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The U.S. national interests in Ecuador are centered around the following themes: a mutual interest of both contries to preserve political stability and peace in the region, in view of the steppedup armed confrontations between Ecuador and Peru in 1995; the strengthening of democratic institutions and the streamlining of procedures for the administration of justice; the enhancement of broadbased economic growth opportunities that bolster Ecuador's trade relations with the United States and the strengthening of environmental institutions to improve the protection and conservation of biodiversity, such as that found in the Galapagos Islands. The United States is Ecuador's largest trading partner, and an increase of per capita income in Ecuador will expand markets for U.S. goods, services and technology. Continued support for family planning and maternal and child health programs will consolidate the advances made over the past decade in the improved health and productivity of the population and provide a firm foundation for economic growth. Ecuador possesses one of the highest rates of biodiversity in the world. Given the impact that the destruction of biodiversity has on global warming, it is in the interest of the United State to help Ecuador expand its economy to provide lowincome groups with income generation alternatives that protect its natural resources.  }K  The Development Challenge . Ecuador remains one of the least developed countries in South America. Despite the modest economic growth during the 199095 period after a decadelong recession, Ecuador needs to make greater progress in modernizing and openingup its economy to improve the quality of life for its population. Per capita gross domestic product growth has averaged about 1% since 1990; real wages are still 23% below 1986; and income distribution is one of the worst in the Andean region. These problems are compounded by a high population growth rate of 2.3%, poor health conditions, and largescale rural and urban poverty. Democratic and judicial institutions remain fragile and need to become more effective. Ecuador's growing environmental degradation has attracted international attention and points to the need for a coherent strategy to deal effectively with this problem. On the positive side, Ecuador democracy, however fragile, managed to survive a series of crises in 1995. The preparations for presidential and national elections in May 1996 continue without any significant setbacks. In addition, the country has implemented major stabilization and initial structural reforms, reached agreements on an International Monetary Fund standby and monitoring accords, and completed historic debt renegotiations. These reforms are gradually establishing the foundation for a marketbased economy, improving the investment climate, increasing exports and overall economic growth, and expanding trade opportunities with the United States. The United States is Ecuador's major trading partner, with about 46% (or $1.2 billion) of total Ecuadorian imports coming from the United States in 1993. U.S. assistance to Ecuador strongly supports economic, social and environmental reforms that will further expand U.S. markets and ultimately facilitate Ecuador's entry into free trade agreements. U.S. assistance also promotes the key objective of strengthening Ecuadorian democracy by promoting judicial reforms and by helping modernize and reform the social sectors. Modest U.S. assistance has played a catalytic role in leveraging large financial support for Ecuador from the World Bank and the InterAmerican Development Bank, and in enabling the civil society, as represented by selected nongovernmental organizations (NGOs), to implement programs in strengthening democracy and in pursuing sound economic, social and environmental reforms.  F:\CP\DEVCHALL  }K(  The challenge for Ecuador for the remainder of this decade is to alleviate the pervasive poverty which affects approximately four million Ecuadorians, about 35% of the population. Despite the Governmenth)0*0*0* of Ecuador's (GOE) inability to meet donor expectations regarding structural adjustment, the current GOE administration has lowered inflation through tight fiscal and monetary policies from the annual rate of 55% in 1992 to 22% at the end of 1995. However, high real interest rates, which turned the tide of capital outflows, led to a decrease in private sector investment. Real economic growth per capita slowed to 1% in 1995 as a result of the border conflict with Peru, a severe energy crisis, and political uncertainties related to allegations of widespread corruption in the GOE. These crises were aggravated by the marked weakness of public institutions in providing basic social services to the poor. These institutional weaknesses and high levels of poverty in Ecuador also contribute to high rates of deforestation which put the country's biodiversity at risk. Ecuador has the highest concentration of biodiversity in Latin America, while suffering the third highest rate of loss of forests in the world. U.S. assistance during the remaining years of the decade has a key role in helping Ecuador to overcome these structural constraints which prevent sustained economic growth and the reduction in the levels of poverty. It is anticipated that the USAID country program will terminate within the next five to ten years as the objectives of USAID assistance are achieved ;C . ; however, USAID may continue to support critical environmental efforts in Ecuador  ;C which are of global concern  ;C through programs administered from USAID/Washington.  }KH   F:\CP\DEVCHALL  F:\CP\DONOR Other Donors. USAID provides a small portion (ranging from 5% to 7%) of donor assistance (grant and loan) which is provided mostly by the InterAmerican Development Bank (IDB) and the World Bank. USAID assistance comprises the largest portion of grant assistance (20% of total grants). The grants have been effectively directed at policy activities and support for NGOs that have served to facilitate removal of constraints to the delivery of other donor assistance. USAID assistance plays a catalytic catalytic role in helping  ;Cand influencing other donors to design and implement their substantial assistance to Ecuador. rF:\CP\DONOR  }KP   F:\CP\PROGRAM FY 1997 Program. The USAID program in Ecuador supports U.S. foreign policy objectives through an integrated approach to help Ecuador achieve sustainable development. Accordingly, activities which encourage broadbased economic growth also include major emphasis on social and democratic policy reforms, microenterprise development, and productive activities for lowincome groups. Activities with NGOs focus on basic health, environmental protection, and support sustainable economic growth through greater economic opportunities to the poor. There is a strong interrelationship between family planning and health activities and USAID's economic growth and democracy objectives. Activities to increase access to the justice system for groups concerned with the longterm sustainability of their environment (including the training of paralegals and introducing alternative disputeresolution mechanisms) are essential to achieve the results related to protecting the environment.  }Kx  Agency Goal: Encouraging BroadBased Economic Growth A high proportion of the population (35%) falls below the poverty line. Of those living in poverty, 15% are in "extreme poverty" without enough income to purchase even a minimally nutritious diet. USAID assistance is being provided to expand opportunities and participation by lowincome groups in a growing market economy by increasing access to financial services by microentrepreneurs, increasing access by lowincome groups to housing solutions, and increasing opportunities for lowincome groups to receive donor financing for productive activities and social infrastructure. USAID efforts also are directed toward promoting policies which will increase the efficiency and competitiveness of the economy. Specifically, these reforms should lead to more efficient investment in people and accession to free trade areas in the Americas, while supporting the macroeconomic and structural adjustment programs of the IDB and the World Bank. USAID's policy dialogue support and technical assistance are helping Ecuador to initiate social reforms in education, social security, health, and decentralization and to deepen economic reforms, such as trade liberalization, privatization, and legal and regulatory measures that strengthen micro and small enterprises. h)0*0*0*Ԍ }K ԙ In 1995, USAIDsupported NGOs assisted the GOE to formulate a coherent social policy reform agenda with a focus on economic stability and growth, unemployment and poverty reduction, modernization of the state, and more efficient delivery of basic social services. They also conducted workshops with Ecuadorian presidential candidates to build consensus and continuity for recommended social and economic reforms. With USAID support, Ecuador is now a member of the World Trade Organization and is undertaking steps to attain access to intermediate trade pacts. USAID has initiated a series of activities in support of the microenterprise development objectives in the Summit of the America's plan of action: the capabilities of partner NGOs have been strengthened in preparation for expanding their microenterprise client base and geographical coverage. A system of housing incentives proposed by USAID will play a major role in increasing domestic savings for housing and in improving lowincome families' access to affordable shelter. In addition, USAID continues to help the GOE organize and finance its emergency social investment fund (FISE) to cushion the immediate impact of stabilization and economic reforms on the poorest and most vulnerable groups. Nevertheless, economic stabilization, modernization, and constitutional reform continue to be major political issues. Although social and economic reform should improve the quality of life and income per capita in coming years, reform has come with nearterm political costs. Fiscal austerity temporarily slowed growth and increased unemployment, while the rapid decreases in inflation obtained in 1994 seemed to have leveled off between 22% and 27% in 1995. Payment of Ecuador's debt comprises 35% of the GOE's 1996 budget. Public sector unions oppose privatization of stateowned enterprises. Strong opposition to modernization of the state within the Ecuadorian Congress is evident. At this critical point in the reform process, partner NGOs are working on building consensus for reform by educating Ecuador's leaders through studies, seminars, and conferences, and through advocacy of reform legislation. At this juncture, a broadbased consensus for reform is critical. Without it, the prospect for attaining the necessary changes in Ecuador's social and economic policy framework will be severely circumscribed, and Ecuador's prospects for attaining sustainable economic growth limited.  }K  Strategic Objective 1:` Increase sustainable economic growth for a broad base of the population.(#  }Kp  Agency Goal: Stabilizing Population Growth and Protecting Human Health One of Ecuador's major challenges is to reduce rates of population growth, fertility and mortality. Significant numbers of women, particularly in rural areas, do not have adequate information concerning contraceptive methods, or they currently use inefficient contraception methods. USAID activities increase the quality, access, and sustainability of family planning services in Ecuador, through: (1) research and training; (2) social marketing, communications, and awareness building to expand service delivery of specific target groups which have high levels of unmet demand or are at high health risk; and (3) introduction of alternative approaches to increase cost recovery and financial sustainability.  A 1994 national survey indicates that overall contraceptive prevalence increased from 53% in 1989 to 57% in 1994. USAID was a major player in attaining these achievements, which have contributed to an impressive, overall reduction in the population growth rate of around 3.5% in the late 1970s to 2.3% today. During 1995 USAID's Ecuadorian partner NGOs significantly increased their coverage of family planning users. They also provided new, improved contraceptive methods which increased the range of choice for women. Progress toward sustainability continued and the family planning NGOs increased their level of cost recovery to nearly twothirds of their costs. However, a recent evaluation has indicated that these strides towards sustainability could have come at the cost of restricting expansion of services to lower income users. Two specific areas will continue to need assistance over the medium term. The first is the expansion of family planning services to the underserved poor women. The second relates to the need to extend the period of time for attaining full selfreliance by partner NGOs in order for them to identify additional means to generate income while maintaining the top priority of serving the needy target population.h)0*0*0*ԌEcuador's health statistics are worse than those of most Latin American countries. Lack of safe water and sanitation, the prevalence of infectious and communicable diseases, and malnutrition are the most common causes of child death. The prevalence of chronic malnutrition among children under five is 55%. Large numbers of women still do not have access to adequate pre and postnatal care. USAID is directing its efforts toward improving the policy climate for health reform and increasing the provision of primary health care services by NGOs. It is also facilitating other donor support for policy reforms such as decentralization, targeting of benefits, and increasing private sector provision of services. USAID has successfully influenced the direction of the World Bank's $70 million Health sector loan to focus on policy reforms relating to cost recovery, targeting of services, and decentralization. During the last year, the Minister of Health campaigned for sector reform with an unprecedented sense of purpose and urgency mobilized donors to join forces in a coordinated effort, and initiated contractual negotiations with major U.S. universities to provide massive technical assistance to the effort. USAID also succeeded in integrating the planned activities of NGOs directly into the GOE's sector reform plans for the coming years. In so doing, USAID has continued to work in coordination with the World Bank, the InterAmerican Development Bank, and the PanAmerican Health Organization (PAHO) to bring on stream major additional technical and financial resources to the sector reform effort. The major constraints to achieving these reforms would be the failure to sustain a political consensus for health policy. The challenge to USAID, other donors, and the NGO community will be to convince the new GOE administration to maintain its commitment to reform after the elections in May 1996.  }K  Strategic Objective 2:` Reduce mortality and fertility to levels which are commensurate with sustainable development.(#  }KP Agency Goal: Building Democracy Ecuador has a highly fragmented justice sector, with judicial responsibilities divided among many entities. Inadequate human resources, and weak institutions. These factors have resulted in a seriously inefficient and delayed administration of justice. Nevertheless, the justice sector is one in which democratic institutions can be strengthened and where limited resources can make a difference and lead to major reform while increasing other donor assistance. Since 1993, when USAID began working through private and public sector groups and an effective Ecuadorian NGO, USAID has had a major impact on the passage of laws, in leveraging the contributions of other major donors, and in extending reforms beyond the justice sector to progress in the area of anticorruption. During 1995, the USAIDfinanced action plan for the justice sector was completed and officially presented by the President of the Supreme Court to other donors, including the World Bank, the IDB, and the European Community. As a result, the donors have agreed with the GOE on which of the reform areas each will support. USAID activities also have led to the creation of the Coordination Unit for Ecuadorian Judicial Reform, the Ecuadorian official entity charged with coordinating and implementing reform efforts for the justice sector as a whole. This unit will be the national counterpart all international institutions working in the sector. USAID's Ecuadorian partner NGO has continued to actively promote public understanding of and support for judicial reform in Ecuador. Given the pressing need for anticorruption activities, USAID has decided to widen the scope of its democracy program to include better governance and transparency in government under this activity.  }K%  Strategic Objective 3:` Improved responsiveness of selected democratic institutions with greater citizen participation.(# (0*0*0*  }K  Agency Goal: Protecting the Environment  }K  Ecuador faces an urgent challenge in protecting the environment. It has one of the world's richest sources of biodiversity; it also has one of the highest urban growth rates in Latin America. For too long, the country's economic growth and development strategies have been based on activities that are highly extractive in nature. Unfortunately, current policies and related consumption patterns are threatening these resources, human health, and economic sustainability. Activities under this strategic objective are focused on changing such policies and consumption patterns. USAID's activities to protect the environment are concentrated on improving natural resource management, conserving biodiversity, and reducing pollution. In policy reform, USAID assistance has led to the establishment of a Presidential environmental advisory commission, which is defining Ecuador's strategy for protecting the environment. In 1995, the commission completed Ecuador's first national environmental action plan, which provides a blueprint to define the environmental problems, concerns, and agreedupon actions. USAID also has supported implementation of innovative environmental management strategies with four indigenous groups in the Amazonian and coastal regions of Ecuador. Elements of these strategies include development of ecotourism activities to provide employment, training of parabiologists in ethnobotany to preserve indigenous knowledge and empowerment of the indigenous groups to address legal issues through paralegal training. In a groundbreaking legal decision, the indigenous communities' property rights to their ancestral lands (including the 400yearold AfroEcuadorian communities) were recognized by the GOE, thus paving the way for finalizing natural resource and forestry management plans. The role of the community paralegals was essential to sustaining a strong community voice throughout the process and in resolving historic conflicts among competing interests. Satellite imagery has been used to complete the delimitation of communal lands and reserve boundaries in order to complete and implement the area's landuse management plans. The Charles Darwin Foundation, with support from USAID, has now completed all of the programmed research studies, surveys, reports, scientific publications and training programs related to the Galpagos archipelago. The analyses were essential to adoption of a plant and animal quarantine system for the Galpagos. OIKOS, a local environmental NGO, completed 22 prediagnostic assessments for reducing urban pollution in textiles, sugar, vegetable oil, dairy product, dry cleaning, and plastic industries. USAID technical assistance supported initiation of an innovative waste collection system (currently serving over 25,000 inhabitants), employing the use of lowcost bicycle and push carts for waste collection. The primary constraint to achieving results in this sector is the magnitude of the problem of environmental degradation and the complexity of interests which involve rural and poor indigenous groups; industries such as petroleum, tourism, transportation, and logging; and urban residents. The GOE's weak implementation of policy reforms and laws already approved is also a significant constraint. Ecuador's important position with regard to conservation of biological diversity and the preservation of natural resources argues strongly for continued support over the longer term.  }K!  Strategic Objective 4:` Promote the sustainable use of natural resources, the conservation of biological biodiversity, and the control of pollution. TF:\CP\PROGRAM (#`"0*0*0*  }K   F:\CP\PROGSUM #hxP7ͷP#W' ECUADOR  }K FY 1997 PROGRAM SUMMARY ă #TxP7MP#  X  h ddx !ddx6  ######h  @  &9&  "X Encouraging  Economic  Growth" Stabilizing xPopulation Growth and Protecting Human Healthv"+bProtecting /:the +Environmentv"4Building 4TDemocracyv"=Providing ;%Humanitarian <mAssistancev"Hq"Total@  6 &9&  USAID Strategic ObjectivesJ#xJ#*&J#3=J#<MJ#EX J#N$   v &&  #TxP7MP#1. Increase Sustainable Economic Growth Dev. Assistancej #x x x  $2,580,000j #*&j #3=j #<Mj #EX j #N$ N$ N$ D!$2,580,000  l J &e&  2. Increase Use, Effectiveness, and Sustainability of Family Planning and Health Services Dev. Assistance#x#*& *& *& *& *&  .$6,032,000#3=#<M#EX #N$ N$ N$ N$ N$ D!$6,032,000l  j  &e&  3. Improve Responsiveness of Selected Democratic Institutions Dev. Assistance#x#*& *& *& *& *&#3=#<M <M <M <M 2U$1,950,000#EX #N$ N$ N$ N$ D!$1,950,000   &&  4. Promote Sustainable Use of the Natural Resources Base Dev. Assistanceb#xb#*& *&b#3= 3= 3= 3= )E$2,970,000b#<Mb#EX b#N$ N$ N$ N$ D!$2,970,000    &&  Total Dev. Assistancef#x  $2,580,000f#*&  .$6,032,000f#3= )E$2,970,000f#<M 2U$1,950,000f#EX f#N$ C!$13,532,000  b `%%(USAID Mission Director: Thomas L. Geiger PF:\CP\PROGSUM ׃ 0*0*0*  }K   F:\CP\SOONE  X #ixP7ͷP# >! ACTIVITY DATA SHEET Ã  }K PROGRAM: ECUADOR  }KX  TITLE AND NUMBER: Increase sustainable economic growth for a broad base of the population, 518S001  }K  STATUS : Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997: $2,580,000 DA  }Kx  INITIAL OBLIGATION : FY 1995; ESTIMATED COMPLETION DATE : FY 2000 Purpose: To increase sustainable economic growth for a broad base of the population by increasing efficiency and competitiveness of the economy and by expanding opportunities and participation by lowincome groups in a growing market economy. Emphasis is placed upon lowincome groups in rural areas, with a focus upon women. Background: Ecuador is an extremely poor country. The World Bank's Ecuador poverty report concludes that 35% of its population, close to four million people, live in poverty, and an additional 17% are highly vulnerable to poverty. Unemployment affects 11% of Ecuador's economically active population; underemployment affects another 53%. Ecuador's persistent economic and social problems have led the government to undertake vital economic stabilization and structuring measures to lay the groundwork for the longterm economic and social health of the country. Yet the worsening situation of the poor poses serious concerns for Ecuadorian society. This strategic objective includes USAID's Policy Dialogue and Implementation, Microenterprise Assistance and Strengthening, and National Shelter Delivery System Projects. USAID Role and Achievements to Date: USAID supports policy reform leading to more efficient investment in people, accession to free trade areas in the Americas, and macroeconomic and structural adjustment. USAID increases access to financial services by microentrepreneurs with emphasis upon women, access for lowincome groups to housing solutions, and opportunities for lowincome groups to receive donor financing for productive activities and social infrastructure. In 1995 USAID activities contributed to 1.3% real growth in gross domestic product (GDP) percapita and a 4.3% increase in the ratio of nontraditional exports to GDP. USAID also helped move the government toward adoption of specific reforms related to education, financial and capital markets, privatization, intellectual property rights, and land tenancy. With USAID support, Ecuador is now a member of the World Trade Organization and Andean Trade Pact. USAID's housing shelter sector program eliminates indirect subsidies while supporting the establishment of a private sectorled housing financing corporation and the issuance of mortgagebacked securities. USAID provided direct assistance to the establishment of Ecuador's Social Emergency Investment Fund (FISE) which provides financing for basic infrastructure and some productive activities directly to poor communities and selected NGOs. As a result, USAID assistance leveraged more than $100 million in 1994 and 1995 from the World Bank, InterAmerican Development Bank (IDB), and the Andean Development Corporation (CAF). Description: USAID's strategic objective is aimed at producing two major results: (1) increased efficiency and competiveness of the economy; and (2) expanded opportunities and participation by lowincome groups in a growing market economy. Activities that contribute to the first result include support toward attainment of specific demanddriven objectives, including: (1) improved quality of education, (2) broader participation of lowincome groups in social security coverage and pensions, (3) reduced constraints to labor market entry, (4) strengthening of collective bargaining and dispute mediation, and (5) environmental reforms that will assist Ecuador in accessing free trade areas in the Americas. To achieve the second result, USAID activities include: (1) upgrading microcredit delivery systems and quality of financial services; (2) establishing licensed, financial institutions delivering microcredit; (3) increasing equity investment in financial service institutions serving microentrepreneurs; (4) increasingh)0*0*0* the volume and total value of shelter loans to belowmedianincome families; and (5) supporting shortterm poverty amelioration by increasing access of lowincome groups to productive activities and social services. Host Country and Other Donors: USAID's partner NGOs are attracting other sources of funding while advocating major social and economic policy reforms and greater access by lowincome groups to housing solutions and microcredit. The World Bank, IDB, and CAF are Ecuador's major donors, providing nearly $500 million annually in support of this USAID strategic objective, while restructuring their programs to focus on lowincome groups to address the serious poverty situation in Ecuador. INCAE will be providing inkind contributions of staff and logistical support valued at $900,000. The GOE is contributing $800,000 in economic support fund local currency to support the Ecuador Foundation's policy reform efforts. USAID's partner NGOs, including Solidaria, Finaciera Uno, Enlace, and Accisolsa, will contribute over $2.9 million to cover operational expenses, and to provide equity investment to establish licensed, leveraged financial institutions which deliver quality financial services to microentrepreneurs. In addition, communities receiving SDAA support contribute labor and materials. Beneficiaries: USAID beneficiaries are lowincome Ecuadorians who have reached a degree of communitylevel organization. These disadvantaged groups are located in urban and rural areas and have little or no access to income opportunities and social services. The benefits of the activities are reaching this segment of Ecuador's population and are achieving a multiplier effect. Special emphasis is placed upon microentrepreneurs in both urban and rural areas. Microenterprises owned by women represent 50% of the total number of microentrepreneurs (approximately 1.2 million) in Ecuador. Principal Contractors, Grantees, or Agencies: The principal implementors of the program are Ecuadorian NGOs and the Central American Institute of Business Administration (INCAE, based in Costa Rica with an office in Ecuador), with technical assistance and training provided by U.S.based consulting firms (e.g., Coopers and Lybrand, Development Alternatives Inc., Eccles and Associates, Price Waterhouse, Chemonics), and grantees (including U.S.based Accion International). In 1996, additional grants will be provided to U.S.based private voluntary organizations to facilitate equity investments in local licensed financial institutions delivering quality financial services to microentrepreneurs. J Major Results Indicators:  }K  ` `  $+hh3:AppIBaseline  Wxx_Target  }K Real growth in GDP per capitahh3:AppI1.8% (1995)  Wxx_3.0% (2000)  }Kx No. of stateowned enterprises sold (cumulative)AppI1 (1995)  Wxx_19 (2000)  }K@ No. of concessions granted to provide social servicesppI3 (1995)  W xx_15 (2000) J No. of microentrepreneur borrowers  }K  (served by USAIDassisted NGOs)hh3:AppI13,250 (1995)xx_110,380 (2000)  }K!  J Volume of housing incentives issuedhh3:AppI0 (1995)  Wxx_15 (2000) F:\CP\SOONE (#0*0*0*  }K >5 ACTIVITY DATA SHEET ă  }K  PROGRAM: ECUADOR  }KX  TITLE AND NUMBER: Reduce levels of mortality and fertility to levels which are commensurate with sustainable development, 518S002  }K  STATUS : Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997; $6,032,000 DA  }Kx  INITIAL OBLIGATION : FY 1995; ESTIMATED COMPLETION DATE : FY 2000 Purpose: To improve the effectiveness, use and quality of child survival, primary health care and family planning services in Ecuador. Background: Both infant and maternal mortality are high in Ecuador, especially among the rural and peri-urban poor and indigenous groups. The quality, effectiveness and use of health and family planning services in the public sector remain poor. Constraints to the improvement of these problems include: declining financial resources of the Government of Ecuador (GOE) devoted to health; a fragmented, uncoordinated, and duplicative health care system, with more than four major institutions providing medical care; lack of targeting and efficient allocation of these scarce resources; and the need for decentralization of management and delivery of health services. The GOE is now embarking on a major health sector reform program to address these constraints, and USAID is contributing significantly to the reform effort. The USAIDfinanced activities have a strong focus on addressing the needs of the underserved, on supporting private sector alternatives to delivery of services, and on developing models of sustainable child and reproductive health services. USAID Role and Achievements to Date: In the family planning and population field, USAID continues to be the major donor and therefore a critical actor in achieving reduced fertility, increased contraceptive use to prevent unwanted pregnancies, and improved women's health. USAID interventions in provision of contraceptives and financial sustainability to private sector family planning nongovernmental organizations (NGOs) have been and will continue to be a major part of this strategic objective through the 1999. These NGOs have achieved 60% to 65% selfsufficiency through cost recovery, while their targets for contraceptive use and fertility reduction have been surpassed over the past five years. The total fertility rate fell from 3.8% in 1989 to an estimated 3.5 in 1995, while contraceptive prevalence increased from 52.9 to approximately 56.8 during this period. Infant mortality decreased from 53 in 1989 to 40 per 1,000 in 1995 while immunization and rural water supply coverage increased to planned levels. Policy analysis and reform efforts have already resulted in innovative financing and delivery schemes with NGOs and municipalities.  Description: Of the total funding requested for population and health, $3,950,000 is planned for population activities and $2,082,000 is planned for health activities. This strategic objective includes three major components which address the primary constraints to improving child and maternal health and reducing fertility: (1) Ministry of Health policy support for health sector reform; (2) policy promotion, analysis and dissemination activities; and (3) private sector service delivery and organizational strengthening. The first component will provide assistance for Ministry of Health policy development to improve resource use, strengthen the production and distribution of primary health care services in specific health areas, support coordination of sector resources; and coordination of Ministry of Health and NGO efforts to develop models of decentralization of child survival and primary health care services which are sustainable. The second component will develop an independent private sector think tank, Center for Studies of Population and Responsible Parenthood (CEPAR), capability for policy analysis, formulation, dissemination, consensus building and advocacy. The third component will assist the private sector NGOs to develop sustainable, quality health and family planning services for underserved populations. h) 0*0*0*ԌHost Country and Other Donors: The major donor is the World Bank, with its $70 million loan for strengthening the Ministry of Health as well as a national micronutrient fortification program. Substantial financial resources also come from the InterAmerican Development Bank, especially for the social security hospital system. USAID is among the leading sources of technical assistance along with the Pan American Health Organization and the World Bank. USAID technical assistance and pilot interventions have served as catalysts for leveraging large inputs of World Bank funds. The host country contribution to this strategic objective is $18.6 million from the GOE (including up to $2.5 million for nonproject assistance), and $10.45 million from USAID's partner NGOs (Center for Studies of Population and Responsible Parenthood, Ecuadorian Pro Family Association, and the Medical Center for Family Planning). Beneficiaries: Children under five and women of childbearing age in Ecuador represent 25% to 30% of the population, which totals 11.2 million people. USAIDsupported programs have reached about 165,000 women with reproductive health and family planning services. In addition, the children of Ecuador have benefited from improved child survival and primary health care services. Beginning with phase II of the Child Survival project in 1995, direct beneficiaries will include demonstration health clinic users, approximately 500,000 women and children. Principal Contractors, Grantees, or Agencies: USAID implements most of its activities through private sector NGOs. In health, these include an Ecuadorian NGO, CEPAR, for policy formulation, analysis, promotion and dissemination activities; and CARE, for efforts to develop the capacity of Ecuadorian NGOs and municipalities to implement primary health care demonstration projects with cost recovery). USAID contractors providing technical assistance for this strategic objective include: Abt Associates, The Partnership for Child Health Care Inc. (BASICS), John Snow Inc., Management Sciences for Health, University Research Corp., and the Center for Development and Population Activities. In family planning, our major partners are Ecuadorian family planning NGOs (Ecuadorian Pro Family Associaton and the Medical Center for Family Planning) with some critical inputs on social marketing, operations research and logistics management from USAID contracts with The Futures Group, Johns Hopkins University, The Population Council, and the Centers for Disease Control. J Major Results Indicators:  }K ` `  $+hh3:AppIPBaselinexx_ fTarget  }K Infant mortality rate $+hh3:AppIP40 (1994)xx_ f32 (2000)  }KX Contraceptive prevalence rate+hh3:AppIP52.9 (1989)xx_ f60 (2000)  }K   JJ Percentage of births attended by a health professionalppIP30 (1989)xx_ f90 (2000)  }K  JJ Percentage of cost recovery of family planning NGOsAppIP63 (1994)xx_ f90 (2000) JJ ` `  x 0*0*0* ACTIVITY DATA SHEET  }K  PROGRAM : ECUADOR  }KX  TITLE AND NUMBER : Improved Responsiveness of Selected Democratic Institutions with Greater Citizen Participation, 518S003  }K  STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $1,950,000  }Kx  INITIAL OBLIGATION : FY 1995; ESTIMATED COMPLETION DATE : FY 2000 Purpose: To promote the effective and fair application of the rule of law in Ecuador for all citizens. Background: The rule of law and democracy are inextricably linked. In a democracy, the rule of law is a requisite. Democracy cannot function well where there are major flaws in the application of law to all citizens. The program works with selected nongovernmental organizations (NGOs) and the Government of Ecuador (GOE) to improve the administration of justice so that it is accessible and fair to all citizens, and to bring about more transparency in government institutions. USAID Role and Achievements to Date: For the past several years, USAID's assistance in the justice sector has been provided through a small grant to finance the activities of the GOE's Justice Sector Working Group and support for the Latin American Development Corporation (CLD), Ecuador's principal NGO in justice sector reform. The Justice Sector Working Group has now concluded its main task the preparation, presentation and adoption by the GOE of a "justice sector action plan." The plan was presented to the donor community in the summer of 1995, and subsequently it was formally approved by the GOE. With the completion of this task, the work of the Justice Sector Working Group is complete. A newly created Justice Sector Coordinating Unit, established by Presidential decree, will now coordinate all assistance to the GOE in the justice sector. CLD's principal accomplishments to date have centered in two broad areas: constituency building and public education, and technical support to the judicial reform process. CLD has been successful in raising public perceptions about the judicial system's problems and the need for reform. CLD's activities have produced an important increase in public debate about reform issues and have provided the general public, as well as the principal actors of the justice apparatus, with a wide variety of information on the subject. CLD technical support has been directed to drafting of important legislation (i.e., constitutional amendments, cassation law), to the development by the GOE of a strategy for judicial reform, and to the establishment of a database on prisoners in preventive detention which has been generally recognized as unique in the region. Description: USAID assistance will be focused towards attainment of results in five key areas: (1) private sector constituencies and coalitions that promote needed reforms; (2) improved efficacy of selected laws; (3) increased access to the justice system by disadvantaged and minority groups; (4) a strengthened legal system, and (5) strengthened government capacity to combat corruption. Funding for four of the five areas will be channeled through Ecuadorian NGOs. Funding for strengthening the legal system will be channeled through the recently created GOE Justice Sector Coordinating Unit, which will coordinate all international assistance to the justice system. USAID will continue support to CLD, Ecuador's leading NGO in judicial reform. USAID will also continue to sponsor workshops and seminars with members of Congress to raise their awareness and obtain their support for globalization in the world economy and the need for an accord to reduce political fragmentation. Host Country and Other Donors: The World Bank and the InterAmerican Development Bank (IDB) plan major assistance programs in the justice sector. USAID maintains close contact with each of these donors to ensure that our efforts are supportive and not duplicative. The World Bank's $14 million program will focus on infrastructure, court management, and alternative dispute resolution. The IDB intends to provide assistance in selected areas of legal reform, strengthening of the office of the prosecutor, and in judicial and administrative training. As counterpart to USAID assistance, the GOEh) 0*0*0* will provide $180,000. In addition, CLD is expected to contribute $228,000 and other partner NGOs, including The Center for Studies and Research on Ecuadorian WomenCEIME, the Center on Law and SocietyCIDES, and the Ecuadorian Council for Support of WomenCEPAM, are expected to contribute $140,000. Beneficiaries: Ecuador's population as a whole will benefit from this activity. However, much of the activity is intended to directly benefit large segments of the population which traditionally have not had access to the justice system or have not benefited from the application of existing law. These groups include women, minors, indigenous populations, and the poor. Principal Contractors, Grantees, or Agencies: Virtually all assistance provided under this Strategic Objective will be channeled through Ecuadorian NGOs. A very limited amount of assistance will be made available to the GOE's recently created Justice Sector Coordinating Unit. h !ddx6  ###### Addx ww ##h @@  J  Major Results Indicators:0 #PBaseline0 #f Target@  J  Reduction in the number of violations (e.g., abuse of women and minors, unsentenced prisoners)8#P* (1996)8#d * (2000)0  Percentage increase in the number of disadvantaged persons using legal services@#N* % (1996)@#b0* % (2000)@8 J  Reduction in pretrial detention time#K* days (1996)#`* days(2000)@@ J  An enhanced perception by at least six key groups of customers (judges at various levels, lawyers, judicial sector personnel, opinion leaders and NGOs involved in the sector) of the need for judicial reform#P* (1996)#d * (2000)   Increased public awareness on the use of public resources #P* (1996) #d * (2000) * Since this strategic objective has just recently been defined, the baseline and target indicators are still being developed.x 0*0*0*  }K  F:\CP\SOFOUR >5 ACTIVITY DATA SHEET ă  }K  PROGRAM: ECUADOR  }KX  TITLE AND NUMBER: Promote Sustainable Use of Natural Resource Base, 518S004  }K   STATUS : New  }K  PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997: $2,970,000 DA  }K  INITIAL OBLIGATION : FY 1995; ESTIMATED COMPLETION DATE : FY 2005 Purpose: To promote the sustainable use of natural resources, the conservation of biological diversity, and the control of pollution. Background: Ecuador has been described as containing the highest concentration of biodiversity in Latin America. Approximately 45% of the mainland is located in the Amazonian watershed. Although 17% of the country's Amazonian watershed has been designated "protected areas," fewer than 75 persons are assigned to manage the area. Ecuador suffers the highest rate of deforestation among the Amazonian countries. The Galpagos Marine Resource Reserve, 1,000 kilometers west of Ecuador's mainland, encompasses 70,000 square kilometers of open water and shoreline, making it the second largest marine park in the world. Ecuador's urban growth rate is placing increased demands on the national and municipal governments for critical environmental sanitation services and improved pollution prevention. Pollution and the lack of these sanitation services have immediate, direct, and measurable impacts on the health, productivity, and quality of life of Ecuador's urban poor. Uncontrolled vehicular and industrial pollution compound these risks by increasing toxicity levels found in urban slums. Poor water and sanitation systems in urban areas and lack of any potable water in rural areas are main causes of water borne diseases. USAID's environmental portfolio is structured to achieve tangible, measurable results to conserve biological diversity, to sustainably manage natural resources, to reduce pollution, and to promote sustainable urbanization. Currently funded activities contributing to the achievement of program outcomes include: Sustainable Uses for Biological Resources, Environmental Education and Technology Transfer, the Conservation of Biological Resources in Galapagos, and the Sustainable Uses of Galapagos Marine Resources. USAID Role and Achievements to Date: USAID's support is directed towards: (1) improved environmental policies and their implementation; (2) improved management of natural resources and biodiversity conservation activities; and (3) improved practices for pollution control and urban environmental management. Every Ecuadorian partner (ministries, private voluntary and nongovernmental organizations, municipal and private sector groups) has approved the national environmental action plan to serve as a blueprint, defining problems, concerns, and agreedupon required actions to be undertaken by each and every player. An environmental trust fund has been established (financed by a percentage of the sale of stateowned enterprises). The Constitution has been amended to ensure each citizen's right to a clean environment, and an environmental and natural resources law has been submitted to Congress. Thirtyone community paralegals trained under USAID and NGO auspices have obtained legal recognition of 13 homelands and resolved 9 communal land ownership conflicts. This paved the way for finalizing natural resource, landuse and forestry management plans in the 50,000 hectare, buffer zone containing the country's last remaining stand of humid tropical forest in the Pacific lowlands. A plant and animal quarantine system for the Galapagos Islands has been designed. Over 200 exportflower producers have adopted improved pesticide management policies and practices.  Description: USAID focuses activities on three major results: conservation of biological diversity, sustainable management of natural resources, and reduction of pollution and promotion of sustainable urbanization. USAID works through U.S. and Ecuadorian NGOs, under local agreements with national, municipal, community and private sector organizations. Activities will support the implementation ofh) 0*0*0* the national environmental action plan, an environmental support trust fund, a standard environmental impact assessment methodology, improved management of selected protected areas and their buffer zones, improved urban management for increased access to water and sanitation services, and pollution prevention and control practices. Host Country and Other Donors: Host country and NGO contributions to achieve the strategic objective results total over $2 million. Parallel contributions include World Bank, InterAmerican Development Bank (IDB) and Global Environment Fund (GEF) funds exceeding $28 million. Although USAID provides only a small portion (ranging from 5% to 7%) of total donor assistance (grant and loan) provided mostly by the World Bank, IDB and GEF, USAID's environmental strategic objective framework is crafted to assist Ecuador in meeting the policy reforms which are conditions to the continued disbursement of IDB, World Bank and other donor funds. The ease of access to a broad array of technical assistance through USAID's Global Bureau immensely facilitates USAID's achievement of the intermediate strategic results and enables Ecuador to meet its longterm environmental goals. Beneficiaries: Ultimate beneficiaries are the majority of the nation's poor, who live in rural areas, especially women, children and Ecuador's indigenous communities (estimated at 60% of the population). They directly depend on sustainable use of natural resources (forests, land, soil, water and wildlife). Ecuador's increasing urban and periurban residents who lack access to potable water, sanitary systems and a pollutionfree, residential and work environment also benefit. Principal Contractors, Grantees, or Agencies: USAID implements environmental activities principally through U.S. and Ecuadorian NGOs, including: CARE, The Nature Conservancy, The Wildlife Conservation Society, Ecociencia, Jatun Sacha, the Charles Darwin Foundation, and OIKOS. USAID also has agreements with the Presidential Environmental Advisory Commission, the Ministry of Agriculture, the National Forestry and Wildlife Institute. Additional USAID assistance also is provided through the Academy for Educational Development, the International Center for SelfGovernance, the U.S. Environmental Protection Agency, the Department of the Interior, and the Peace Corps. J Major Results/Indicators:  }K ` `  &.hh5=BaselineppLTTarget JJ Completio