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A. a.(1)(a) i) a)DocumentҲa1DocumentE+(ODocument Style< //&=((2d!*(F *  ׃  2qea2DocumentE+(ODocument Style< //&=((2d!*(*    a3DocumentE+(ODocument Style< //&=((2d!*(0     a4DocumentE+(ODocument Style< //&=((2d!*(   . a5DocumentE+(ODocument Style< //&=((2d!*(  2Ke p p ca6DocumentE+(ODocument Style< //&=((2d!*(  a7DocumentE+(ODocument Style< //&=((2d!*( ` ` ` a8DocumentE+(ODocument Style< //&=((2d!*( ` ` ` Tech Init"6-Initialize Technical Style2d"*(O2E  1 .1 .1 .1 .1 .1 .1 .1 Technical2 } -^ a1Technical+(OTechnical Document Style//&=((2d#*( 4!     a2Technical+(OTechnical Document Style//&=((2d#*( *    a3Technical+(OTechnical Document Style//&=((2d#*('   a4Technical+(OTechnical Document Style//&=((2d#*(&   28 $  .  a5Technical+(OTechnical Document Style//&=((2d#*(&   . a6Technical+(OTechnical Document Style//&=((2d#*(&!"  . a7Technical+(OTechnical Document Style//&=((2d#*(&#$  . a8Technical+(OTechnical Document Style//&=((2d#*(&%&  . 2*j epsiPleading2$6-Header for numbered pleading paper*(O2E'(   ,#x  @;X@# X  y*dddyy*dddy HH1 HH2 HH3 HH4 HH5 HH6 HH7 HH8 HH9 H10 H11 H12 H13 H14 H15 H16 H17 H18 H19 H20 H21 H22 H23 H24 H25 H26 H27 H28   ӲHeading 2(6-Underlined Heading Flush Left(*(O2E)* Heading 1)6-Centered Heading((2d)*(O2E+,* Ã  Bullet List6-Indented Bullet List2d**(O2E-.` ` ` 2;a1Right Par+(ORight-Aligned Paragraph Numbers(2d2*(8/0@   a2Right Par+(ORight-Aligned Paragraph Numbers(2d2*(A12@` `  ` ` ` a3Right Par+(ORight-Aligned Paragraph Numbers(2d2*(J34` ` @  ` `  a4Right Par+(ORight-Aligned Paragraph Numbers(2d2*(S56` `  @  2t3a5Right Par+(ORight-Aligned Paragraph Numbers(2d2*(\78` `  @hh# hhh a6Right Par+(ORight-Aligned Paragraph Numbers(2d2*(e9:` `  hh#@( hh# a7Right Par+(ORight-Aligned Paragraph Numbers(2d2*(n;<` `  hh#(@- ( a8Right Par+(ORight-Aligned Paragraph Numbers(2d2*(w=>` `  hh#(-@pp2 -ppp 2 0Ыx  @;X@<  9`("Courier 10cpiXx  @;X@<  9`("Courier 10cpiXixP7P,xA`&Univers (Scalable)TxP7P,xA`&Univers (Scalable)ixP7P,xA`&Univers (Scalable)d  @;@<  9`("Courier 12cpiixP7P,xA`&Univers (Scalable)2#|7#ixP7P# MEXICO FY 1997 Development Assistance: $17,800,000 Introduction . Mexico is of vital importance to the U.S. national interest. The United States and Mexico share a 2,000 mile border. Mexico's proximity and its poverty, population growth and environmental degradation make it the largest source of illegal immigration into the United States. More than 1.3 million Mexicans illegally migrated to the United States in 1992. At the same time, Mexico's proximity and population make it the largest importer of U.S. goods in the developing world and the U.S.'s third largest trading partner. U.S. exports to Mexico in 1994 exceeded $ 50 billion. Mexico's weak judicial system and the high level of corruption as well as its border with the U.S. also mean that it is a leading source of illegal drugs., Mexico and the United States have a shared interest in addressing the problems which foment illegal immigration and drug smuggling and which constrain the growth of trade between the two countries. During 1995, Mexico has coped with its worst economic recession in the past 50 years. The economic adjustment program that began at the end of 1994 has so far succeeded in averting a sovereign default, limiting the inflationary impact of the financial crisis, and gaining access once again to international finance markets. The government's firm stabilization policies, its much improved export performance, and the liquidity provided under the U.S.led support program are all hastening Mexico's eventual recovery. However, the economy still continues to experience high unemployment and loss of real income as a result of the deep recession. This has set back Mexico's efforts to resolve its problems of immigration, poverty, population and environmental degradation and will have a direct effect on the quality of life and growth of the U.S. economy. Fierce opposition to the political, economic and social changes will continue as the government deals with the vestiges of favoritism, corruption and lawlessness. But, there is full expectation that significant economic, social and political gains will be in place by FY 1997. U.S. interests impel us to strengthen our partnership with Mexico, as it presses forward to solve problems of common concern and to create mutually beneficial opportunities for the for economic growth and prosperity in the 21st century. The Development Challenge. The population of Mexico was approximately 91.6 million in 1995 and was projected to reach 121.8 million in 2020. Roughly 8% of the population is indigenous. Although the rate of natural population growth has slowed from over 3% in the mid1970s to 1.9% in 1995, partly as a result of USAID family planning assistance, it is the second most populated country in Latin America and its population is relatively young: in 1994 36% of the population was under 15 years of age. These demographic characteristics it create a problem in terms of the country's capacity to generate sufficient numbers of new jobs to meets its national labor requirements. Between 800,000 and 1,000,000 new jobs are required to accommodate new entrants into the labor force each year. The quest for better living standards and employment have pushed or enticed many Mexicans to emigrate to the United States, some legally and many more illegally. This has caused serious social, economic and political problems between our countries. Prior to the advent of the current economic crisis, Mexico's President Zedillo advanced sweeping proposals for judicial reform. Staying the course of its reform program and deepening the implementation of these proposals will be critical to restoration of investor confidence and subsequent economic revitalization. The North American Free Trade Agreement (NAFTA) also will provide opportunities for an improved quality of life. These opportunities will not come, however, without significant challenges to the environment. USAID, which assisted in garnering support for the passage of NAFTA, is now in an excellent position to act as a mentor to Mexico in helping develop better approaches in forestry, energy efficiency, industrial pollution, and biodiversity conservation. Mexico is classified as one of the largest "megadiversity" reserves in the world, harboring one of the greatest ranges of habitat types and natural communities. Protection of global climate change and sustainability of the country's economic growth depends on effective management of the natural resource base and strict enforcement of environmental laws and regulatory frameworks. Now that Mexico is a member of NAFTA, it is under pressure to raise environmental standards and correct mistakes made in the past. Major U.S. foreign policy concerns as well as the magnitude of global environmental concerns imply that USAID will need to continue its program in Mexico for several more years. Other Donors. The U.S. Government and other international finance institutions have provided substantial support to Mexico's economic stabilization program. Direct disbursements under the USG's February 21, 1995 Agreements between the United States and the Government of Mexico (GOM) have totaled $13.5 billion in 1995 and as much as $11.8 could be disbursed in 1996. In providing this assistance, the USG acted to protect vital U.S. interests American exports and jobs, the security of our common border, and the stability of other emerging market economies. In conjunction with the U.S.led support program, the World Bank is providing $2 billion in assistance to the country's banking system, support for the social sector, and a $30 million technical assistance loan for infrastructure privatization. In addition, the InterAmerican Development Bank (IDB) is supporting the emergency economic stabilization program with $1.5 billion in 199596. Other major donor countries providing development assistance include Japan, Germany, France, Spain, and Great Britain. FY 1997 Program. USAID's strategy for providing development assistance to Mexico will continue to focus Mexico's needs related to stabilizing population growth, protecting the environment, and encouraging broad based economic growth. In addition, attention will also be given to special objectives that support national interests and/or address global concerns. Specifically, support for Mexico's Judicial Reform program will be expanded and activities related to the prevention of AIDS will continue. USAID will seek to leverage its investments with resources of beneficiary institutions, the GOM and those of other donors and the IFIs. USAID anticipates completing NAFTArelated activities by the end of 1997, assuming progress on key problems are successfully resolved and demand for assistance in this area is no longer warranted. Levels for support to population activities are expected to decline as public and private sector sustainability increases. To enhance the focus of its program, USAID will undertake strategy reviews in the areas of democracy, microenterprise, and the environment. Agency Goal: Encouraging BroadBased Economic Growth Mexico is the third largest trading partner for the United States and is the United States' largest export market in Latin America. The Agency's broadbased economic growth goal has been pursued by USAID in the context of legal and regulatory frameworks related to helping make NAFTA work since its passage in 1994. Previous NAFTArelated USAID financed activities have achieved major results as follows: Elimination of 811 years of patent application backlog, resulting in over 10,000 patents being issued to U.S. individuals or businesses; 100% compliance with the use of turtle excluder devices by Mexican shrimp fleets based upon random sample inspections by Embassy Science Office and National Marine Fisheries Service staff has enabled them to ship uninterrupted their shrimp to the U.S. market whose value annually is estimated to be $600$900 million, and Validation of GOM's 100% compliance with adherence to pollution control norms based on U.S. Environmental Protection Agency inspections have lead to greater public confidence in public reporting on Mexico City's air pollution conditions. USAID also believes that the newest economic growth activity designed to assist in the development of a securitized secondary mortgage market in Mexico, will facilitate an expansion of residential construction and will contribute to Mexico's economic recovery.  Strategic Objective 1: Improved Performance of Target Institutions in the NAFTArelated Legal and Regulatory Areas` `  Agency Goal: Protecting the Environment Climate change, pollution and environmental destruction are longterm problems which respect no political boundaries and require cooperation and coordinated actions. Noxious emissions and effluent in Ciudad Juarez freely cross the border to El Paso, Texas. U.S. technologies for pollution prevention, energy efficiency and renewable energy development are badly needed in Mexico and represent both major markets and windows for global trade and development. Improper management of forests, soils and wildlands results in waste, species extinctions, and in the longer term poverty, illegal migration and global warming. Agricultural crops, forest products and genetic resources will continue to play vital roles in the U.S. economy. In all technical areas, however, laws protecting the environment are only as good as the capability and willingness of the government and private sector to enforce them. USAID is now initiating a strategic planning process for its environmental program that will identify opportunities for consolidation and measured growth. This program will continue to focus on two global environmental problems of major bilateral importance and interest: climate change and biodiversity conservation. It is building capacity in key governmental, nongovernmental and private sector entities and is creating a better understanding of the value and importance of compliance and sustainable development. Ongoing activities achieved significant progress in 1995: The Mexico Conservation Fund to support biodiversity conservation and development was established in 1995 with an initial endowment of $20 million from USAID and $10 million from the GOM; A USAIDU.S. Department of Energy cofunded renewable energy demonstration and promotion program is running well. It is exceeding expected outputs and is making important progress in leveraging the purchase of U.S. equipment; A joint USAIDU.S. Environmental Protection Agency program is supporting Mexico's Global Climate Change (GCC) country studies and mitigation action plan actions, and strengthening Mexico's leadership position as a key climate change country; USAID's capability to provide timely and cost effective technical assistance is being recognized by various public and private Mexican entities in such areas as energy efficiency, urban and industrial pollution prevention, sanitary landfill and waste management, and training; and USAIDsupported conservation NGOs (The Nature Conservancy, World Wildlife Fund, Conservation International) are making a major contribution in the management of Mexico's parks and reserves, protection of biodiversity, and reform of "green" policy and legislation. Strategic Objective 2: Increase environmentally sound natural resource and energy use Agency Goal: Stabilizing World Population Growth and Protecting Human Health Between 1940 and 1995 Mexico experienced a population explosion. It's population grew from 20 to 91 million inhabitants. Two decades ago, the Government of Mexico approached USAID for help in moderating this skyrocketing rate of population increase. USAID population efforts before 1992 were directed to increasing contraceptive coverage and institution building, but with a limited focus on a few Mexican counterparts and in a limited number of states. Since 1992 the strategy has supported the Government of Mexico and two large Mexican nongovernmental organizations (NGOs) in a nationwide effort to achieve a sustainable increase in contraceptive prevalence. These service delivery institutions have been effectively implementing their programs as reflected by the following key indicators: contraceptive prevalence has increased by 8.3% between 1992 and 1995 and the total fertility rate has dropped from 3.5 in 1992 to 3.1 in 1995. These results were achieved through: the extension of new service delivery strategies to rural areas; analysis and design of information, education and communication (IEC) materials for users and service providers; development of new approaches to service delivery through counseling, reduction of medical barriers; training in new contraceptive technology, and development of specific service delivery and IEC strategies for special populations (adolescents, men, and indigenous people). Challenges for FY 1997 will mostly revolve around impact of Mexico's severe economic recession on Mexican support for family planning activities. Phaseout of USAID assistance in this sector is planned for 1998 (public institutions) and 2000 (private NGOs) but careful consideration must be given to both public and private sector needs and future sustainability.  Strategic Objective 3: Sustainable increase in contraceptive prevalence Special Objectives  Special Objective 1: Building Democracy  Mexico's President Ernesto Zedillo assumed office in December of 1994. Almost immediately he announced serious reforms of the judicial branch, particularly the Supreme Court. Since that time, the President has continued to press forward with administration of justice reforms. The Zedillo Administration has manifested interest in reforming the Mexican judiciary, expand new Democratic Initiatives which focus on rule of law, administration of justice, civil society, participation, and human rights. This is premised upon the concept that while short term economic growth is possible absent a solid foundation of democracy, long term and sustainable economic growth will not occur. There is a clear correlation between systemic reforms such as the judicial overhaul being undertaken by the Zedillo Government, and confidence level of the investing community, both domestic and international. The great majority of USAID's democracy activities have involved some combination of training, exchange, and/or technical assistance which has been requested by the GOM or its partners have requested assistance. Future USAID assistance will strengthen the capacity of selected GOM and NGO institutions to address democracy and human rights issues. If Mexico is to become a first world country, it can only do so with a modernized and honest judiciary and police force. It is certainly in the U.S. Government's interest to support this agenda and being responsive to requests for training and technical assistance.  Special Objective 2: HIV/AIDS Prevention HIV respects no boundaries, including national borders. Because of tourism, commerce, and immigration patterns, the transmission and spread of HIV/AIDS in Mexico is closely linked with the HIV/AIDS epidemic in the United States. The spread of HIV/AIDS in Mexico poses a threat not only to development gains there, but also to U.S. control efforts. The two countries must cooperate in order to combat HIV effectively. Mexico ranks third behind the United States and Brazil in number of AIDS cases in this Hemisphere. HIV/AIDS is currently the third leading cause of death in Mexico City men in their most economically productive years, and is increasing significantly in women and children. Absent a cure or vaccine, accurate and available information is the most effective weapon against the spread of HIV. USAID will work through nongovernmental organizations to increase availability of information on modes of transmission and prevention of HIV/AIDS. These efforts will focus on the communities most vulnerable to and affected by HIV/AIDS: women, migrants, adolescents, and indigenous groups. ' MEXICO ă _ FY 1997 PROGRAM SUMMARY ă #TxP7P# | ddxYY ###### ddxYY ######| *  *Encouraging Economic GrowthStabilizing Population Growth and Protecting Human HealthProtecting the EnvironmentBuilding DemocracyProviding Humanitarian AssistanceTotal*  *USAID Strategic Objectives *^ ^ *1. Improved performance of target institutions in selected legal/regulatory areas related to the NAFTA Dev. Assistance $150,000  $150,000*  *2. Increase environmentally sound natural resource and energy use Dev. Assistance  $4,000,000 $4,000,000*, , *3. Sustainable increase in contraceptive prevalence Dev. Assistance $13,000,000 $13,000,000*  *4. Special Objective (to be transitional in FY 96 to SO Level): Democracy Strengthened capacity of target institutions to deal with selected democracy/ human rights issues. Dev. Assistance  $300,000 $300,000*\ \ *5. Special Objective: HIV/AIDS Prevention Increased Availability of Information on modes of transmission and prevention of HIV/AIDS Dev. Assistance  $350,000 $350,000*v      v      *Total   $150,000 $13,350,000 $4,000,000  $300,000   $17,800,000 USAID Mission Director: Arthur Danart #ixP7P# ACTIVITY DATA SHEET Đ PROGRAM: MEXICO TITLE AND NUMBER: Improved Performance of Target Institutions in NAFTArelated Legal and Regulatory Areas, 523SO01 STATUS : Continuing PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997: $150,000 DA INITIAL OBLIGATION: 1995; ESTIMATED COMPLETION DATE : FY 1997 Purpose: To improve performance of target institutions in selected legal/regulatory areas related to the North American Free Trade Agreement (NAFTA). Background: Although free trade will not solve all Mexico's problems, it will open up channels with immense potential to stimulate Mexico's shortterm growth and to build a solid foundation for longterm economic progress. Successful implementation of the requirements of free trade will include Mexico's ability to comply with pertinent NAFTA rules and regulations. Key counterpart agencies within the Mexican government have been targeted for training and information exchange in order to achieve this objective. USAID Role and Achievements to Date: USAID's support has included training in patents, trademarks, and all forms of intellectual property rights. USAID assistance helped the Mexican Industrial Property Office eliminate a 811 year backlog in processing of patent applications. This portion of the project was completed one year ahead of schedule and resulted in over 10,000 patents being issued to U.S. interests as the backedup applications were cleared out. The progress has been sustained and the focus has shifted from processing to training in technical areas such as biochemical and genetically engineered materials. Field training in the use of turtle excluder devices by Mexican shrimp fleets has #d  @;@##ixP7P#taken place in several locations in the Gulf of Mexico, and repeated monitoring has yielded a record of sustained 100% compliance. The educational and training processes have improved Mexico's ability to participate more effectively and efficiently in free trade and have provided direct economic return to the U.S. through patent ownership. In addition, the ecology has benefitted through the marine resource conservation program as well as through the other environmental projects which USAID has supported under free trade. A small microenterprise development project has been undertaken as a crosscutting activity. Many areas in Mexico lack formal employment opportunities, which creates intractable economic stagnation. USAID also has given a small grant to a Mexican nongovernmental organization (NGO) to provide microenterprise technical assistance and credits in the depressed states of Chiapas and Oaxaca in southern Mexico. To date, more than 1,500 microenterprises have received technical assistance.  Description: The majority of USAIDfunded activities provide technical assistance to upgrade the capacity of institutions whose operations are critical to Mexico's implementation of free trade. The U.S. Patent and Trademark Office works with Mexico's Industrial Property Office to increase its operational efficiency, reduce patent backlogs, and more effectively implement the Industrial Property law. The U.S. Environmental Protection Agency works with the Secretariat of the Environment, Natural Resources and Fisheries, to more effectively enforce environmental provisions of the NAFTA. The U.S. Department of the Interior's National Marine Fisheries Service is providing technical assistance and training to the Government of Mexico's (GOM's) National Institute of Fisheries and the Secretariat of Fisheries for marine turtle and dolphin conservation. The most recent project to come online provides USAID support to the GOM in the development of a secondary mortgage market. The office of Federal Housing Enterprise Oversight (OFHEO) is the lead U.S. agency in this initiative.  Host Country and Other Donors: The World Bank and the InterAmerican Development Bank are primary donors in the free trade initiative. These institutions are joined by the GOM which has been an active contributor in all aspects of the economic growth objective, covering all salaries, partial expenses of training and transportation and by providing inkind donations. Canada also has contributed to the labor and nutrition and labeling standards projects. Beneficiaries: There have been multiple beneficiaries on both sides of the border. Increased efficiency in governmental operations has resulted in additional revenue to the GOM; patent ownership can create individual and corporate wealth and generate demand for labor and inputs. Workers have benefitted by requirements of free trade regarding occupational health and safety; health and conservation issues have been addressed, resulting in safer pesticide use, adequate nutrition labeling which allows consumers to make informed decisions, and protection of endangered lands and species; and very low income families have been able to obtain the basic necessities of life through microenterprise jobs. Principal Contractors, Grantees, or Agencies: USAID implements free trade activities primarily through participating agency service agreements (PASAs) with other U.S. Government agencies, including the Environmental Protection Agency, the Office of Federal Housing Enterprise Oversight, the National Marine Fisheries Service. Major Results Indicators: hh#(-Baseline7  <Target Percent of GOM inspections that follow newly developed norms for industrial pollution control.(-75% (199293)7100% (1995) Percent of shrimp boats in compliance with required use of turtle excluder devices in the Gulf of Mexico and the Caribbean hh#(-pp23050% (1993) xxA100% (1994) Percent of patent applications still pending after 811 years.` `  hh#(-pp24% (1992)  < 0% (1995)  ACTIVITY DATA SHEET Đ PROGRAM: MEXICO TITLE AND NUMBER: Increase EnvironmentallySound Natural Resource and Energy Use, 523SO02 STATUS : Continuing PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997: $4,000,000 DA INITIAL OBLIGATION 1995; ESTIMATED COMPLETION DATE : FY 1997 Purpose: To increase public awareness and actions of the Government of Mexico (GOM) and of Mexican nongovernmental organizations (NGOs) to improve the management of Mexico's natural resources for sustainable development, mitigation of global climate change, and adoption of renewable and energy efficient technologies and practices. Background: Because of the key role environmental management plays in the development of Mexico, especially as a foundation for sustainability and a motor for trade and development, this strategic objective continues to grow in scope and importance. USAID focuses on three sectors of global significance: energy efficiency, forest protection and biodiversity conservation (including coastal zone management). However, the GOM and private sector interests continue to encourage USAID toward greater involvement in the direction of pollution prevention and urban and industrial development.  USAID Role and Achievements to Date: USAID's goal is longterm and focuses on two objectives: (1) the development of Mexican capabilities to mitigate global climate change (GCC) and to conserve and develop biological resources; and (2) the support for trade and development of environmental and energy technologies and services (on both sides of the border). By the year 2006, the GOM, in partnership with NGOs and the private sector, will have developed capabilities and expertise that will allow it to take full charge of an ongoing portfolio of GCC and biodiversity conservation activities. USAID's role in the support of bilateral cooperation for environmental trade and development, on the other hand, is potentially much larger term and integrates closely with the work of other U.S. agencies such as the U.S. Environmental Protection Agency and the Trade Development Administration of the U.S. Department of Commerce. Despite the fact that the environmental problems being addressed are complicated and longterm, the evidence for impact of USAID assistance is clear. Energy. Sixteen of 20 planned energy audits are completed or under way. They are demonstrating the potential for important energy savings, especially in the area of highefficiency motors. Despite the economic crisis in Mexico, most participating plants are committed to the program and are implementing the efficiency measures identified in the audits. One activity to sell compact fluorescent lamps is a model energy efficiency project that has successfully reduced electricity costs and consumer power bills and reduced greenhouse gas and other pollutant emissions. This Department of Energy/USAID program is successfully accomplishing two primary purposes: (1) increased use of renewable energy technologies as a climate change mitigation strategy; and (2) expansion of both U.S. and Mexican markets for renewable energy technologies. Five model contracts have been signed with rural development agencies in northern Mexico, three more with U.S. conservation NGOs for work in southeastern Mexico, and two more are under development with state governments. Approximately 50 productive applications have been designed and implemented in support of rural development and conservation. The number of beneficiaries has increased from 100 in 1994 to over 2,000 in 1995, involving water pumping for livestock, icemaking and refrigeration, and irrigation. Natural Resource and Forestry. The environment program has sensitized collaborators to the usefulness of measuring deforestation ratesas a management tool, and they have begun estimating rates in 10 of the 11 project areas. In all 10 areas, best estimates indicate that annual rates of deforestation have declined to 0% (or close to 0%, indicating no net change in the extent of forest cover). In most cases, this represents a decline from regional deforestation rates that have been 1% to 1.8% per year. Project activities are being implemented in 2.3 million hectares (ha), and can be expected to affect deforestation in about 2 million ha. of forest in Mexican protected areas that constitute 3.1 million ha. At the intermediate result level, the Parks in Peril program has been working with USAID in funding seven protected areas. Management, data processing, staffing, and infrastructure have reached a level necessary for attaining successful, longterm government management in one area; it and one other will graduate in FY 1996. Three more areas have achieved 75% of capacity necessary for longterm viability, and they are expected to graduate by FY 1997. Two are planned to graduate in FY 1998. Since its inception five years ago, the Mexican Parks in Peril program has succeeded in adding more than 1 million acres of land to the protected areas system in Mexico. In FY 1995, this included: (1) the conversion of La Encrucijada from Nature Reserve to Biosphere Reserve, from 2,500 ha. to 144,000 ha., which was celebrated at a public gathering headed by the President of Mexico, Ernesto Zedillo, and his cabinet, and (2) the addition of 89,000 ha to Sian Ka'an Reserve, bringing its total size to 530,000 ha. A key to the success of USAID's program is its attention to community development issues. All GCC activities in protected areas are working with marginalized communities to develop alternative economic activities that promote sustainable uses of natural resources (e.g., apiculture, fisheries management, organic farming, ecotourism). The constituency for these activities has risen to 107 of the 305 communities located in or near buffer zones of the 13 project protected areas. About 3,000 families (an estimated 10%) of the 158,000 total population are involved in the supported technologies programs. Biodiversity Conservation. The primary activity being supported under this project objective is establishment and effective operation of the Mexico Conservation Fund. As of September 30, 1995, all expected outputs were successfully achieved more or less on schedule, and the Fund was operational and ready for receiving the $19.5 million USAID endowment. Steps successfully implemented included an institutional strengthening subgrant to PRONATURA, an environmental NGO.  Description: Within the forestry portfolio, several of the smaller protected area grant projects will be completed or subsumed under a larger umbrella project with The World Wildlife Fund Biodiversity Support program, the Parks in Peril program of the Nature Convservancy, and the Mexico Conservation Fund. With the initiation of the Mexico Conservation fund an important ten year oversight period will be initiated through which USAID will be able to play a greater role in the facilitation and strengthening of Mexico's biodiversity conservation. This will involve increasing collaboration with other "green" U.S. technical line agencies, such as the U. S. Forest Service, U.S. National Park Service, and U.S. Fish and Wildlife Service.  Two other technical areas which have received much attention and support, both from the United States and Mexico, are urban and industrial pollution prevention and coastal zone and marine resources management. Both of these areas have potential for expansion if additional Global and USAID resources can be provided. The first will be subsumed under the GCC results package, and the second under biodiversity conservation. Host Country and Other Donors: Both environmental programmatic areas are global environmental issues of international, regional and national support, and donorattention USAID activities and funding under climate change are increasingly being taken into account and integrated into the Mexico GCC initiative involving country studies, a greenhouse gas (GHG) emissions inventory, and action planning/mitigation. On the biodiversity side, the Mexico Conservation Fund is linking closely with the National Biodiversity Commission, the GOMsupported entity that oversees all biodiversity conservation and development in Mexico, and internationally. Both of these areas involve an expanding collaboration with the private sector, numerous foundations, and the multilateral. Several examples and opportunities of replication and cofunding with the InterAmerican Development Bank and the World Bank can be cited that support/link with USAID activities in energy efficiency, renewable energy, protected areas/biodiversity, and the Mexico Conservation Fund. Beneficiaries: A diverse range of beneficiaries are effected by environmental activities in Mexico, depending on the technical area being considered. Since both areas of focus relate to global and crossborder environmental problems, important benefits are accrued internationally, and importantly to U.S. citizens. Intermediary institutions involved in, and benefiting from, the program include environmental NGOs and the private sector. Principal Contractors, Grantees, or Agencies: In the area of GCC and forestry, implementing agencies include World Wildlife Fund, The Nature Conservancy, Conservation International, PRONATURA, a Mexican NGO, and the National Biodiversity Commission. USAID's work with these groups also supports approximately 25 Mexican partner organizations. The primary Mexican collaborators in the energy portfolio are the Federal Electrical Commission, the National Commission on Energy Savings, the Department of the Federal District, and Mexican industry. In the area of biodiversity conservation, the implementor is the Mexico Conservation Fund. U. S. implementing agencies include the U.S. Forest Service, the U.S Parks Service, and the U.S. Fish and Wildlife Service. Major Results Indicators: hh#(-Baseline7  <Target Carbon dioxide emissions prevented through selected energy uses per yearhh#(-100%pp27  <25% reduction Average annual deforestation rate in target areas (-site average 8%7site average 5% Number of viable populations of indicator species maintained` `  hh#(-pp2TBD7  <xxA50% or more in ` `  hh#(-pp27  <xxAtarget areas  ACTIVITY DATA SHEET  PROGRAM: MEXICO TITLE AND NUMBER: Sustainable Increase in Contraceptive Prevalence, 523SO03 STATUS : Continuing PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997: $13,000,000 DA INITIAL OBLIGATION 1995; ESTIMATED COMPLETION DATE : FY 1997 Purpose: To increase access to and quality of family planning and reproductive health services, primarily in rural areas where unmet demand for these services is high. Background: In November 1991, USAID entered into a landmark agreement with the Mexican Government and key private sector family planning organizations. A critical aspect of this agreement is the United States' plan to incremental decrease funding for the population program through 1998, and the Mexican Government's commitment to increase its funding in comparable amounts. In 1992, project activities began within the public sector in those states defined by the GOM as priority (Chiapas, Guanajuato, Guerrero, Hidalgo, Oaxaca, Puebla, Veracruz, Estado de M)xico, Michoacn, Jalisco, Quer)taro, San Luis Potos1, Zacatecas) and in the private sector, nationwide. USAID Role and Achievements to Date: The USAID goal is to ultimately phase USAID out of population activities and to have the Government of Mexico, in partnership with nongovernmental organizations (NGOs), assume complete responsibility for continuing the program. Toward this end, USAID has assumed a coordinating role, leaving direct service delivery to the Government of Mexico and the participating NGOs. USAID and its cooperating agencies have provided technical assistance, training and limited commodity costs required to establish an institutional framework for extending the family planning program to underserved areas. In exchange, the Mexican Government has agreed to assume full responsibility for recurring expenses of maintaining the program. The hard data evidence for impact of USAID assistance is clear. From the onset of the strategy to 1995, contraceptive prevalence has increased by 8.3%. In absolutes, this represents an increase of 1,187,284 new family planning users between 1992 and 1995. The total fertility rate (TFR) has also been favorably affected by this assistance: in 1992, the rate was 3.5 and in 1995, it was 3.1. Finally, the number of births averted is impressive: with USAID's additional funds over the GOM contribution, the number of births averted from 1993 to 1995 was 19,673. Other achievements include extension of new servicedelivery strategies to rural areas, strengthening of national vasectomy and postpartum programs, analysis and design of IEC materials for users and service providers, new approaches to service delivery through counseling, reduction of medical barriers, training in new contraceptive technology, and development of specific servicedelivery and IEC strategies for special populations such as adolescents, men, and indigenous people. Description: Of the total funding requested for population and health, $12,920,000 is planned for population activities and $500,000 is planned for health activities. In FY 1997, USAID will continue to support the activities of the public and private sector institutions providing reproductive health and family planning services in Mexico. Direct funding to these institutions will be in the areas of strengthening service delivery through training, IEC, supplies, equipment, monitoring, supervision, and evaluation. Programs will be carried out in the priority states mentioned above in order to maximize impact and concentrate resources where they are most needed. Specifically, private sector support will be for the two largest NGOs in Mexico: MEXFAM (the International Planned Parenthood Federation affiliate) and FEMAP (a Federation of private family planning organizations), so that they may expand and improve family planning services to lowincome and underserved populations, while simultaneously receiving the technical assistance necessary to make the transition to sustainable programs without USAID funding. Areas of technical assistance include logistics, management, quality control, and social marketing. Public sector support will be provided to the participating Mexican public sector institutions (CONAPO: National Population Council, IMSS: Social Security for Private Sector Employees, SSA: Ministry of Health, and ISSSTE: Social Security for Government Employees). These institutions provide over 60% of the family planning services nationwide ensuring USAID impact in the target areas. Concrete areas of support include, among many others, training of medical and paramedical personnel in modern family planning methodology, provision of medical equipment, especially for those rural hospitals and clinics lacking such equipment, and the development and implementation of a national mass media campaign. USAID is presently at the halfway point toward phaseout of population assistance to Mexico within both the private and public sectors, and USAID's cooperating agencies have been instrumental in helping the Mexican institutions work towards financial and technical sustainability. USAID's GOM and NGO partners have been open and forthright about the important contribution of USAID and its cooperating agencies in terms of the technical assistance provided and the transfer of technology taking place on a daily basis. This transfer assures us that quality services can continue to be provided even after termination of USAID assistance. Host Country and Other Donors: Large donors joining USAID in supporting Mexico are the World Bank, the United Nations (UN) agencies, Japan, the United Kingdom, Canada, and Germany. Beneficiaries: While men and women of reproductive age in the priority states of Mexico, about 25 million, directly benefit from GOM and private sector reproductive health services, this figure increases to approximately 50 million when considering the children and families who also profit. Principal Contractors, Grantees, or Agencies: USAID implements activities through 12 U.S. cooperating agencies (The Population Council, John Snow, Inc., Contraceptive Research and Development, Population Reerence Bureau, The Futures Group, Population communication Services, Management Sciences for Health, Georgetwon University's Institute for Reproductive Health, Pathfinder International, AVSC International, The International Planned Parenthood Federation/Western Hemisphere Region, Program for international Training in Health, and Family Health International); two local NGOs (Mexican Family Planning Foundation and Federation of Mexican Private Family Planning Associations); and four local public sector institutions (Mexican Social Security Institute, Ministry of Health, Social Security Institute for Government Workers, and the National Population Council). Major Results Indicators: ` `  hh#(-Baseline Target Service delivery points hh#(42,079 (1992)pp247,775 (1997) People trained in family planning service provision(43,813 (1992)pp274,054 (1997) New users of public sector family planning services(946,950 (1992)pp21,200,000 (1997) Couple Year Protection for key family planning NGOs-539,395 (1992)7651,495 (1997) Total annual GOM family planning budget ($000)($63,200 (1992)pp2$140,000(1997)