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After emerging from a prolonged civil war, El Salvador has successfully forged a democratic nation. El Salvador has established a solid foundation of sustainable economic policies, freemarket principles and practices, and demonstrates a growing attention to the equitable distribution of the benefits of economic growth. The U.S. Government's substantial assistance has played an important role in these achievements. Beyond the desire to protect the U.S. Government's large investment in this small Central American country, the United States has strong interests in the successful consolidation of these recent gains. Among these interests are regional and political stability and increased regional and hemispheric trade. Salvadorans are the second largest group of illegal aliens in the United States, further entwining the foreign and domestic policies of both countries.  }KH  The Development Challenge. El Salvador has now benefitted from four years of peace, and political leaders continue to work collaboratively to seek common ground. Peace and economic reforms spurred economic growth (6% increase in gross domestic product in 1995), lower inflation, improved fiscal performance, major gains in investment, substantially higher employment, and increases in nontraditional exports. Nonetheless, the underlying causes of the civil war poverty, compounded by political disenfranchisement persist. In 1995, 52.4% of the population lived in poverty 23.9% in extreme poverty predominately in rural areas. Although improving, access to social services is greatly inequitable and attention to environmental factors affecting health is inadequate, still overshadowed by shortterm economic goals. The foundations of democracy protection of human and civil rights, the supremacy of civilian authority, and accountable, transparent government are in the early stages of taking root. The challenge for the U.S. Government, the donor community, and especially the Salvadorans, is to consolidate the peace, fulfilling the 1992 peace accords and putting El Salvador on the road toward equitable and sustainable development. This is a lengthy and difficult process, requiring commitment by all to achieving longterm goals. Failure to see this process through is to risk a return to the crises and instability which characterize recent Salvadoran history.  }K   Other Donors.   Despite a sharp decline in USAID assistance in the last two years, USAID continues to be the largest bilateral donor in El Salvador. The other major donors include the World Bank, the European Economic Community, Japan, France, Spain, Germany, and the InterAmerican Development Bank (IDB). The World Bank and the IDB are the major players in the economic arena, with plans for large programs to  }K modernize the state, implement privatization activities, and encourage reforms.  USAID is the primary donor in the democracy sector, although several other donors are increasingly involved in supporting elections and strengthening grassroots, participatory organizations. The IDB has pledged to play a  }K(# strong role in this area, particularly in judicial reform and legislative strengthening.  Bilateral and multilateral donor organizations are increasingly active in the social sectors. The World Bank and the IDB are the largest donors involved in health and education, while the United Nations Population Fund and the Pan American Health Organization are the primary sources of technical cooperation in the population field. Finally, other bilateral donors, principally Canada and Germany, have recently expressed interest in the environment and are contributing small amounts of funding to various facets of protecting El Salvador's environment and natural resources. h)0*0*0*Ԍ }K ԙ FY 1997 Program. In FY 1997, USAID will begin to implement a new assistance strategy to El Salvador. The new strategy builds on the successes of the past four years to promote sustainable peace and development. Where the current strategy has achieved significant results by focusing at the macrolevel, e.g., implementing the peace accords, establishing sound macroeconomic policy and strengthening democracy at the national level, the new strategy will deepen and consolidate those achievements through a focus on alleviating rural poverty. Four interrelated strategic approaches will address the multidimensional aspects of poverty. First, access to productive resources must be broadened to enable the rural poor to fully participate in the economy, thereby increasing their economic opportunities and income. Second, participation in democratic governing processes must expand to ensure that the rural poor have a voice in decision making. Third, improvements in access by the rural poor to quality basic health and education services must continue. Fourth, improvements in the management of the environment and natural resources must be made to safeguard the health of the rural poor and the productive resources of the country. Many of the activities envisioned for FY 1997 will be carried forward with little change from prior years, reflecting the continuity between the old and new strategies. Among these will be selected activities currently funded under USAID's wartopeace strategic objective. Others include: (1) policy reform and curriculum development for the basic education system (grades K6), (2) provision of basic health services, (3) credit and technical assistance to mobilize savings, support to microenterprise, and assistance to small farmers and cooperatives to produce and market highvalue crops, and (4) strengthening municipal government and implementation of national legislative elections in April 1997. New activities to be funded in FY 1997 are expected to support land tenure security for small holders, to reduce the incidence of environmentally related diseases, and to further strengthen the judicial system. USAID's portfolio will also change because many activities under the wartopeace strategic objective will be completed by the end of FY 1997.  V$  USAID is currently in the design process of its 19972002 strategic plan for El Salvador.  V& The following discussion of USAID's strategic objectives is based on the FY 1996 El Salvador portfolio.  V'   V'   }K8  Agency Goal: Encouraging Broadbased Economic Growth The commitments assumed by the USG under the peace accords signed in 1991, which include supporting government and nongovernmental organization (NGO) programs to reestablish access to basic social services and infrastructure, as well as reintegration of excombatants into the social and economic fabric of the country, have made a substantial contribution to achieving broadbased economic growth. A wide array of services has been provided to excombatants in order to ease their reentry into productive society, including agricultural and small enterprise credit and technical assistance, financing for transferring land to many people affected by the war, and construction of schools, clinics, roads and bridges in the exconflictive zones. There continues to be a great national will for peace, as well as a reasonably successful collaboration by the Government of El Salvador (GOES) and the Farabundo Marti National Liberation Front (FMLN) on the implementation of the accords. The investment on the part of the USG in this program has contributed to four years of peace, continued economic growth, and an expansion of social and infrastructure services available to the 1.4 million residents of the exconflictive zones. The land transfer component facilitated the purchase of 215,000 acres of land for more than 31,000  }K% beneficiaries.    By September 1995, over 19,000 excombatants from both sides received vocational, agricultural or microenterprise training. More than 11,000 received microenterprise or agricultural credit, and thousands of individuals wounded in the war have received surgery and specialized treatment, prosthetic devices, if necessary, and rehabilitation. About 130 NGOs have been involved in the program, and approximately $77 million has been channeled through them in order to provide vital services which strengthen these essential elements of civil society. In FY 1997 $9 million of ESFh)0*0*0* will be provided through the LAC regional program to assist in the transition from war to peace.    Other USAID assistance to encourage broadbased economic growth involves efforts to modernize the state and maintain overall economic growth. Assistance focuses on combating poverty through appropriate social and economic policies and increased private investment, exports, and employment. New economic policies are creating an environment with better incentives and income opportunities for El Salvador's poor, the majority of whom are employed in the agriculture sector. The significant macroeconomic reforms and successes in El Salvador and the gradually improving equity in the society attest to the importance of activities being implemented. The farranging programs that make these improvements possible are vitally important in order to achieve changes  }K throughout society.   Progress toward achievement is reflected by an increase in real gross domestic product per capita and a steady decrease in the percentage of households with one of four basic needs unmet. Additionally, the Government of El Salvador (GOES) has increased the quality and coverage of government services such as education, health, and economic infrastructure, and has increased the share of social spending in its 1996 budget, at the same time reducing the share of military  }K expenditures. Inflation, most harmful to the poor, has been held to less than 12%  .  Strategic Objective 1: Assist El Salvador make the transition from war to peace  Strategic Objective 2: Broadbased economic growth increased  }K0   Agency Goal: Building Democracies Democratic institutions and practices are taking hold in El Salvador. The objectives are to sustain  }K peace and strengthen democracy;    to improve citizen participation in the public policy and decisionmaking process, providing a better framework for effective protection for human and citizen rights; to improve mechanisms to ensure public accountability; and to increase the devolution of power to the local level. A milestone in the establishment of democracy in El Salvador was the 1994 national election which produced a more representative legislative assembly. Legislative reforms enacted by the new assembly, with USAID assistance, have strengthened the judicial system and improved laws and legal procedures affecting Salvadoran society. According to a 1995 survey of democratic values, Salvadorans have developed an increased tolerance for political differences. Meanwhile, the central government is slowly devolving authority to the local level. Legal implementation of the User Fee Law, which allows municipalities to collect user fees, has resulted in an average increase of 70% in locallygenerated revenues. In the area of administration of justice, the Family Code and the Law for Juvenile Offenders were passed. The Criminal Code, Criminal Procedures Code, and Penitentiary Law have been discussed and debated in the public fora, press, and legislative assembly. All are encouraging signs that a political and popular will for democracy exists and will continue to strengthen.    }K  While conditions are changing, the country's long history of limited participation, reinforced by a political system which favors the elite, could undermine achievement of this objective. The recent surge of crime has caused citizens to be more concerned about public security. Further, the failure to respond to the concern of making ends meet economically inevitably will weaken pressures for further democratic reform. The achievement of this objective may be further constrained by the government's own limited institutional capacity to implement the many legal reforms that have recently been enacted.  Strategic Objective No. 3: Strengthened democratic institutions and practices '0*0*0*  }K  Agency Goal: Stabilizing Population and Protecting Human Health Health and education are fundamental elements in poverty reduction in El Salvador. Diarrhea, acute respiratory infections and vaccinepreventable diseases and malnutrition continue to be major health problems. Similarly, a significant portion of the population lacks basic literacy and numeric skills. These problems severely limit the opportunity to become economically productive and retard active participation in democratic processes. USAID activities implemented under this objective strive to increase access to and improve the quality of primary education, to promote increased contraceptive prevalence, and to increase coverage for reproductive health care and child survival programs. Major basic education and health portfolio components provide a broad range of educational materials, contraceptives, training for teachers and health providers and institutional strengthening for both public and private sector entities. To increase nationwide accessibility to modern contraceptive methods, USAID emphasizes the rural poor, who have participated far less than the urban population in family planning and child survival programs. The number of children under five receiving complete vaccination series in four diseases increased from 47% in 1988 to 53% in 1995. Enrollment in the first through sixth grades continues to rise. The target of 70.2% (from 65.2% in 1993) children enrolled is expected to be met.  }K   Major constraints, however, continue to exist in the health and education sectors. A lack of trained personnel (particularly in the most poor rural areas), lack of supplies and materials, and centralized decisionmaking continue to hamper modernization efforts. Cultural beliefs and practices constrain expansion in the use of contraceptives, but a larger constraint is the lack of resources and trained providers to meet the everincreasing demand for services. Strategic Objective 4: Increased quality with equity in health and education  }K  Agency Goal: Protecting the Environment El Salvador is a country once rich in natural resources, and much of the country's economic activity is still directly or indirectly dependent upon what remains of those seriously mismanaged resources. The resources are largely finite, nonrenewable, and are being depleted at an astonishing rate. El Salvador's biological diversity is disappearing, its natural forests have all but been destroyed, and soil, air, and water resources are being degraded. Pressures from overcrowding, a growing population, and an expanding economy are the principal reasons for the overexploitation of natural resources. This depletion and degradation of renewable and nonrenewable resources are impediments to longterm, sustainable development and improvements in the quality of life.  }K  The USAID program will assist in the development of a legal and policy framework for improved natural resource use, increase public awareness of environmental problems, and implement demonstrations of the positive impacts that appropriate sector policies and higher levels of awareness will have on  }K resource management.  Results to date include completion of a widereaching national environmental strategy, with environmental protection laws and regulations now being enforced. Greater awareness of environmental problems within all sectors of Salvadoran society has already been realized. For example, in 1993, only slightly more than 15% of men and 12% of women interviewed were able to name three environmental problems. The 1997 target level of 25% of respondents for this same question was attained and exceeded just one year later when almost 43% of men and 31% of women in 1994 could name environmental problems. USAID activities being implemented under the strategic objective also have supported improved landuse systems for agricultural production by focusing on  }KH& soil, water and forest management to attain sustainable increases in production.   However, the GOES' capacity to strengthen environmental protection and sustainable natural resource management is weak. The GOES has failed to provide broad support for environmental actions, and a fragile institutional base puts at risk many natural resource and environmental activities financed byh)0*0*0* USAID and other international donors. Efforts to strengthen local institutions to augment environmental awareness will continue to be a major component of all USAID activities.  Strategic Objective 5: Improved environmental and natural resource managementX0*0*0*  }K #ixP7ͷP#F EL SALVADOR  }K @FY 1997 PROGRAM SUMMARY ă #TxP7MP# X  h ddx !ddxXt  2 h @ @ X &9&  " * Encouraging +Z Economic , Growth" g=gStabilizing 9I Population Growth ;and Protecting <Human Health"+YPYProtecting T1the PEnvironment"4`Building `WDemocracy"pProviding nDHumanitarian oAssistance"H""Total'#}b!@  X &9&  USAID Strategic Objectivel 5Tl Kl l l l    &e&  1. Assist El Salvador to make the transition from war to peace ESF *2 #5T2 #K2 #[82 #jX2 #z 2 #$ $ $ $ $   l &e&  2. Broadbased economic growth increased Dev. AssistanceR#5T 5T 5T +\ $5,334,000R#KR#X [8 [8 Q@$1,016,000R#jX jX jX jXR#z R#$ $ $ !$6,350,000   2  &&  3. Strengthened democratic institutions and practices Dev. Assistance#5T 5T 5T 5T - $906,000#K#[8 [8 [8 [8 S$225,000#jX jX jX jX ``$4,839,000#z #$ $ $ $ !$5,970,000  R &&  4. Improved quality with equity in health and education Dev. Assistance#5T 5T 5T 5T +\ $4,604,000#K K K K @$12,771,000#[8#jX#z #$ $ $ $ !$17,375,000   &&  5. Improved environmental and natural resource management Dev. Assistance#5T#K K K K D$25,000#[8 [8 [8 [8 Q@$5,827,000#jX#z #$ $ $ $ !$5,852,000    &H&  Total Dev. Assistance N#5T * $10,844,000N#K @$12,796,000N#[8 Q@$7,068,000N#jX ``$4,839,000N#z N#$ !$35,547,000  H * LAC Regional request includes $9,000,000 attributed to El Salvador transition from war to peace objectives. `%fUSAID Mission Director: Carl H. Leonard 0*0*0*  }K  X #ixP7ͷP#>B ACTIVITY DATA SHEET ă ` ` # ,  }K  PROGRAM : EL SALVADOR  }KX  TITLE AND NUMBER: Transition from War to Peace Achieved, 519SO01  }K   STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997 $9,000,000 ESF (attributed under LAC Regional Request)  }Kx  INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1997 Purpose: To assist El Salvador make the transition from war to peace. Background: The formal signing of the peace accords on January 16, 1992, marked an historic turning point for El Salvador and an end to nearly 12 years of armed conflict. Immediately following the signing of the peace accords, the U. S. Government prepositioned host countryowned local currency to begin reconstruction and reconciliation activities and concluded the design of a fiveyear $300 million Peace and National Recovery (NRP) activity. Most activities under this strategic objective will be completed by 1997. However, several components of this strategic objective will be subsumed into other strategic objectives. USAID Role and Achievements to Date: USAID's contribution to the fulfillment of the peace accords has been substantial. The Government of El Salvador (GOES) and the United Nations have referred to the national reconstruction plan as a model program in assisting a country make the difficult transition from war to peace. USAID is the largest contributor to the plan. USAID's support includes training of 60,000 beneficiaries, titling of land to more than 31,000 excombatants, implementation of more than 2,000 small infrastructure projects and a wide selection of projects benefiting more than 20,000 excombatants, e.g. counseling, training, scholarships and agricultural credit. Levels of "poverty" and "extreme poverty" have decreased in the exconflictive zones. Description: This strategic objective addresses four areas: (1) reactivation of factors of production (land, labor and capital), (2) reestablishment of basic services and infrastructure, (3) strengthened locallevel democratic institutions and civic participation, and 4) reintegration of excombatants. The program is implemented through the Secretariat for National Reconstruction (SRN), the principal GOES institution for postwar reconstruction. The first two years of the program focused on the reintegration of combatants from the Farabundo Marti National Liberation Front and government personnel into civilian life. Since 1994, the reconstruction plan has concentrated efforts on the longterm social and economic needs of the 115 municipalities located in the exconflictive zone. More than 130 nongovernmental organizations (NGOs) have assisted in the implementation of 84 separate activities benefiting the 1.4 million people located in the exconflictive areas. Host Country and Other Donors: Host countryowned local currency contributions for the National Reconstruction Program amount to $66.5 million. The World Bank provided support to improving El Salvador's agricultural extension system. The United Nations Development Program implemented agricultural technical assistance activities, smallscale infrastructure building, and lowcost housing solutions for excombatants. The European Union financed land titles and complementary services for excombatants and the World Bank has a planned loan to finance land titling. Bilateral donors include Japan and Germany, and the host country estimated host country counterpart contribution for FY 1997 is $2,370,000 . Beneficiaries: USAID's national reconstruction plan reaches approximately the 1.4 million inhabitants living in 115 exconflictive municipalities. Principal Contractors, Grantees, or Agencies: USAID implements activities under the strategic objective through the Secretariat for National Reconstruction, which in turn channels funds through U.S. andh)0*0*0* Salvadoran NGOs and government institutions, including the Cooperative League of the U.S., Catholic Relief Services, Foundation for International Community Assistance, and Cooperative for Assistance and Relief Everywhere, Inc.  }K    Major Results Indicators  }K ` ` # ,4hh=FBaselineppXa  iTarget(#   }Kx People trained under  ,` 4hh=F4,560 (1992)` ppXa  i54,115 (1997)(#p national reconstruction plan  }K Clients receiving credit` 4hh=F12,850 (1991) a  i58,123 (1996) (# 0*0*0*  }K >B ACTIVITY DATA SHEET ă  }K  PROGRAM: EL SALVADOR  }KX  TITLE AND NUMBER: Broadbased Economic Growth Increased, 519SO02  }K   STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997 $6,350,0000 DA  }K  INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1997 Purpose: To achieve sustained strong rates of economic growth that raise standards of living among El Salvador's lowincome groups. Background: The long years of conflict and economic stagnation that El Salvador experienced in the late 1970s and 1980s led to a severe deterioration of living standards for El Salvador's rural and urban poor. With the adoption of sound marketoriented economic policies and the achievement of peace, El Salvador's economy has grown at rates above 6% in real terms in recent years. USAID has supported economic policy reforms leading to broadbased growth and project activities helping poor households participate in that growth. USAID Role and Achievements to Date: USAID support includes policybased cash transfers focusing on steps to modernize the Salvadoran state, privatize inefficient public enterprises, reform the tax system, and streamline the public sector bureaucracy. USAID has provided technical assistance and training to support the privatization of the power and telephone sectors. Cash transfer assistance has supported Government of El Salvador reforms in management and resource allocation in social sector programs, privatization, implementation of the peace accords, tax reform and civil service reform. In addition, USAID provides technical assistance to the GOES to assist in the implementation of reforms leading to sustained equitable growth. USAID's portfolio also contains activities that help alleviate constraints to income growth among El Salvador's poor. USAID activities contributed to a rate of overall real economic growth of 6% in 1995. Real per capita income increased by 24% between 1990 and 1995. Nontraditional exports increased from $244.1 million in 1989 to $579 million in 1995. Description: USAID promotes policy reform leading to higher rates of equitable economic growth through its cash transfer program and through technical assistance activities. In addition, direct support to raise incomes of poor Salvadoran households is extended through activities such as microenterprise credit, technical assistance to cooperatives producing nontraditional crops, promotion of savings mobilization among the rural poor. The Microenterprise Support Center (CAM) works with more than 28,000 individuals to mobilize savings and it has established 950 villages banks in some of the poorest areas of the country. The microenterprise program provides credit and/or technical assistance to more than 8000 small firms. Productive skills training is provided to managers and workers. To date, 90,000 beneficiaries have received vocational training. Host Country and Other Donors: The GOES has a commendable track record in pursuing economic reforms and is increasingly concerned about the equitable distribution of these benefits. The international financial institutions are supporting continued economic reform through program and technical assistance. A multi-donor study of rural poverty to be undertaken this year, led by the World Bank and supported by USAID, is expected to influence a national effort to raise rural incomes. The estimated host country counterpart contribution for FY 1997 is $2,369,000. Beneficiaries: All Salvadorans benefit when the local economy prospers. USAID has strongly supported adoption of policies and activities that lead to patterns of growth beneficial to poverty reduction. ( 0*0*0* Principal Contractors, Grantees or Agencies: USAID undertakes its activities through U.S. firms including Chemonics; through GOES entities, including the Ministry of Economy and the Ministry of Finance; and through U.S. and local nongovernmental organizations including Catholic Relief Services, International Center for Economic Growth, Foundation for International Community Assistance, Salvadoran Producers and Exporters Federation, Microenterprise Support Center, Foundation of Entrepreneurs for Educational Development, and the Ungo Foundation. Major Results Indicators  }K@ ` ` # ,` 4Xhh=XFBaselineppXaTarget(# Nonfinancial Public Sector Deficit  }K  as % of gross domestic producthh=F9.9 (1991)ppXa0.8 (1997)(#p  }K` National Savings as % of GDP hh=XF9.6 (1990)ppXa13.5 (1997)(#p  }K( Increase of Real GDP per capitahh=F100 (1990)ppXa126.4 (1997)  }K Value of Nontraditional exportshh=F$244 million (1989)a$694.1 million (1997) 0*0*0*  }K #ixP7ͷP#>B ACTIVITY DATA SHEET ă  }K  PROGRAM: EL SALVADOR  }KX  TITLE AND NUMBER: Strengthened democratic institutions and practices, 519SO03  }K   STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997 $5,970,000 DA  }K  INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1998 Purpose: To support Salvadoran efforts to strengthen democratic institutions and practices. Background: This objective, supported by USAID since the mid1980s, began largely as an effort to assist reforms in a judicial system rife with impunity and corruption. These activities have continued, joined by efforts to strengthen the legislature, electoral administration, and labor organizations and labormanagement relations, as well as to foster national reconciliation and a vibrant civil society. While conditions are changing, the country's long history and culture of limited participation, along with its resultant political system which favors elites, are deeply rooted problems this objective will need to address. This cultural legacy has resulted in a strongly centralized government comprised of weak institutions and insufficient controls to ensure that public officials are accountable to citizens. The government's weak institutions, particularly in the judicial and electoral administration sectors, must be strengthened in order to allow effective implementation of the many legal reforms that have recently been approved or will soon be approved by the Legislative Assembly. Constraints to achievement of this objective include the tremendous postwar crime surge, which is causing citizens to be more concerned about public security than expansion of their democratic liberties, and continued unemployment and underemployment, which similarly causes Salvadorans to be more concerned about making ends meet than pressing for further democratic reforms. USAID Role and Achievements to Date: USAID has been closely involved in each of the abovementioned areas of democratic reform, and in some for well over a decade. USAID has worked with its partners in both the public and private sectors to further these muchneeded democratic reforms. Among the most important achievements toward which USAID assistance has contributed are legal reforms passed (Family Code, Juvenile Offenders' Law) or under review in the Assembly (Criminal and Criminal Procedures Codes, Penitentiary Law, National Citizens' Registry Law, Electoral Code Amendment); trained judges, prosecutors, defenders and police; elimination of preexpenditure financial controls on public funds; free and fair elections in 1991 and 1994; a legislature significantly more independent and capable of informed debate; more timely municipal service providing broader coverage; and an increasingly vigorous and engaged civil society. Under the Central American Peace Scholarship program, 1,633 people have been trained since late 1990. The followup program estimates that each of these scholars passes on their experiences to 100140 people, extending the program reach up to 228,000 people. Description: USAID democraticstrengthening assistance focuses on the following areas: (1) improving participation of citizens in the public policy and decision making process by enhancing citizen's knowledge of, and participation in, the elections process and in the decision making of local governments; support in this initiative is supported through voter and civic education programs carried out by NGOs, (2) improving legal and institutional frameworks for effective protection of human and citizen rights by strengthening the leadership of the legal reform movement and improving the capability of justice sector institutions to implement reforms, (3) improving mechanisms to ensure public sector accountability and oversight by revising and integrating GOES financial management and auditing systems to increase and enhance people's confidence in their government, thus promoting consolidation of democratic institutions, and (4) fostering devolution of power to the local level by improving the capacity of municipalities to respond to the needs of their constituents. ( 0*0*0* Host Country and Other Donors: The Government of El Salvador, in fulfillment of its peace accords commitments, is sponsoring programs of judicial and electoral reform. USAID has been and continues to be the principal donor in these areas. Multilateral donors include the World Bank, and The Inter-American Development Bank is embarking shortly on major efforts in the areas of judicial reform and legislative strengthening. Various European donors and the United Nations Development Program are discussing support to electoral reforms. European donors, Canada, and Scandinavia donors support civic education activities through nongovernmental organizations (NGOs). Other bilateral donors include France, Spain, and Japan. The estimated host country counterpart contribution for FY 1997 is $1,960,800. Beneficiaries: The beneficiaries of our programs are Salvadorans, with emphasis on women, youth and lowincome communities, who do not: (1) participate in the formulation of public policies and decisionmaking; (2) have adequate access to services; (3) have adequate protection under the law; or (4) have adequate experience with democratic practices or education. Principal Contractors, Grantees or Agencies: The principal government agencies serving as counterparts for USAID's democratic strengthening efforts are the Supreme Court, the Ministry of Justice, the Public Ministry, the Legislative Assembly and the Supreme Electoral Tribunal. In addition, various Salvadoran NGOs are grantees under our program, including the Center for the Study of Democracy. Private voluntary organizations contributing to this initiative include the American Institute for Free Labor Development, Creative Associates International, and Cooperative for Assistance and Relief Everywhere, Inc. Two institutional contractors work in partnership with USAID on our judicial reform, electoral assistance, and NGO civic education programs. Major Results Indicators:  }K ` ` # ,4hh=FBaselineppXa  iTarget  }K Free and fair elections ,4hh=Fyes (1991)ppXa  iyes (1997) Citizen support for selected  }K  democratic institutions4hh=F54% (1992)ppXa  i57% (1997) Citizen tolerance for  }K8  political differences ,4hh=F45% (1992)ppXa  i58% (1997)  0*0*0*  }K X(#>B ACTIVITY DATA SHEET ă  }K  PROGRAM: EL SALVADOR  }KX  TITLE AND NUMBER: Improved Quality With Equity in Health and Education, 519SO04  }K   STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997 $17,375,000 DA  }K  INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1998 Purpose: To increase access to, and improve the quality of, primary education, and to promote increased coverage for reproductive health care and child survival programs. Background: Health and education are fundamental building blocks in the economic and democratic development of El Salvador. Diarrhea, acute respiratory infections and vaccine-preventive diseases and malnutrition continue to be major health problems. Incomplete health outreach to pregnant women contributes to maternal and infant mortality. Similarly, a significant portion of the population lacks the basic literacy and numeric skills. Major constraints in the health and education sector are the lack of trained personnel (particularly in the rural areas), lack of supplies and materials, centralized decision making and a lack of community involvement. In the population sector, religious, cultural, and folk beliefs and practices constrain growth in the use of contraceptives, but a larger constraint is the lack of resources and trained providers to meet the ever-increasing demand for services. USAID Role and Achievements to Date: USAID activities implemented under this objective strive to: (1) increase access to, and improve the quality of, primary education, (2) promote increased contraceptive prevalence, and (3) increase coverage for reproductive health care and child survival programs. Major basic education, health, and population activities provide a broad range of educational materials, contraceptives, training for teachers and health providers, and institutional strengthening for both public and private sector entities. The number of children graduating from sixth grade increased from 70,000 in 1992 to 112,000 in 1995. All 4,500 public primary schools have textbooks. More than 7,000 teachers were trained in the use of new curricula in 1993, with an additional 6,700 trained in 1994. Maternal and child health services have been extended to high-risk populations in 1,500 of the country's poorest and smallest communities. Some 350 health promoters and more than 2,200 physicians and nurses received training in 1993. Progress brought about by population program activities also has been dramatic. A national health survey conducted in 1993 shows that the average national contraceptive prevalence rate reached 53.3% in 1993 (from 47.1% in 1988), and the total fertility rate in El Salvador has decreased from 4.6 children per woman in 1988 to 3.85% children per woman in 1993. Numerous studies have shown that health, population and education dollars have significant peopleoriented impact and longterm nationbuilding benefits.  Description: Of the total funding requested for this objective, $6,206,000 is planned for population activities, $6,269,000 is planned for health activities, and $4,900,000 for basic education activities. USAID programs emphasize rural areas, which in the past have participated far less than urban areas in all types of population, family planning, and child survival programs. Training is provided for health promoters, contraceptives are offered, demographic surveys and information campaigns are carried out, and grass-roots involvement of local private voluntary organizations (PVOs) and nongovernmental organizations (NGOs) is financed. In addition, USAID technical assistance efforts are being linked to proposed policy and budgetary reforms under Modernization of the State programs and to increased social sector budget allocations by the government. Numerous studies have shown that health, population and education dollars have significant people-oriented impact and long-term nation-building benefits. ( 0*0*0* Host country and other donors: Bilateral and multilateral donor organizations are increasingly active in this area. The Government of El Salvador (GOES) successfully negotiated a major educational reform loan with the World Bank and the InterAmerican Development Bank, which is now underway. Discussions continue with the banks on funding for health reform. Bilateral donors include France, Germany, Japan, and Canada. Multilateral donors include the United Nations Development Program, the Pan American Health Organization, and the European Union.The GOES continues to devote substantially more national budget resources to health and education, with participation from the Central American Bank for Economic Integration. The Ministry of Education expanded the EDUCO (community involvement) school system and, as of last year, this GOES project provided education to 53% of the rural educational population; enrollment in the basic education system was increased by 2.9% in 1995. The estimated host country counterpart contribution for FY 1997 is $3,328,186. Beneficiaries: Beneficiaries are the poor and socially disadvantaged Salvadorans without adequate access to health and education services. Principal Contractors, Grantees, or Agencies: USAID implements activities through U.S. firms, private non-profit companies, local NGOs, and U.S. PVOs, including Save the Children, Medical Services Corporation International, Academy for Educational Development, Share Foundation, and Project Concern International. Major results Indicators:  }Kh ` ` # ,4 hh=XFBaselineppXa  iTarget(#    }K 6th graders graduating in 6 years hh=F29% (1992)ppXa  i41% 1997(#p  }K Deaths per 1,000 births (under 1 yr.) hh=F55 (1988)ppXa  i38 (1999)(#   }K Deaths per 1,000 births (age 15) hh=F15 (1988)ppXXa  i10 (1999)(#  }KP Infant Mortality Rate (under 1 yr.) hh=F51 (1993); 40 (1996)a  i38 (1999)(#   }K Total Fertility Rate ,X4Xhh=F4.6 (1988)ppXXa  i3.0 (1999)(#  }K Promotion rate, 1st grade` 4Xhh=F62% (1992)*ppXa  i68% (1997)` { { {(# *Intermediate data for 1996 is 65/68 (M/F)p0*0*0*  }K >B ACTIVITY DATA SHEET ă  }K  PROGRAM: EL SALVADOR  }KX  TITLE AND NUMBER: Improve Environmental and Natural Resource Management, 519SO05  }K   STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $5,852,000 DA  }K  INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1997 Purpose: To reverse the degradation of renewable and nonrenewable resources as the foundation for longterm, sustainable development. Background: Population pressures in the most densely populated country in the continental western hemisphere, uneven distribution of wealth, and a rapidly expanding economy are all factors placing increasing pressure on El Salvador's natural resources. USAID Role and Achievements to Date: USAID played a leading role in assisting the Government of El Salvador set up an environmental secretariat upon the conclusion of the war in 1992. Another activity strengthened 16 environmental nongovernmental organizations (NGOs) who have now banded together into a federation, COAMBIENTE. The country's first environmental law is under consideration by the national assembly. Nearly 2,000 hectares have been reforested or put into agroforestry systems. Another 28,000 hectares are now under improved natural resource management or sustainable agriculture systems. The percent of survey respondents who can specify three environmental problems has risen steadily from less than 40% in 1993 to 61.3% in 1996. Over 100 conservation and child survival projects have been carried out by NGOs funded by the Initiative for the Americas Debt Reduction Fund,which is monitored by USAID. Activities have been implemented by international contractors and local NGOs. USAID has served as a catalyst and coordinator of other donors in the sector. Description: USAID focuses on four activity areas: (1) improved environmental and natural resource policy, (2) environmental education, (3) ontheground activities to demonstrate the benefits of sound natural resource management, and (4) strengthening NGOs to become effective advocates for the environment, and sustainable use of natural resources. Host Country and Other Donors: The Food and Agriculture Organization of the United Nations, InterAmerican Development Bank, World Bank, United Nations Development Program, Pan American Health Organization, and the Pan American Development Foundation are all active participants in environment and natural resources projects for sustainable development in El Salvador. The estimated host country counterpart contribution for FY 1997 is $1,840,700. Beneficiaries: Primarily residents of environmentally fragile areas (hillsides, flood plains, marginal neighborhoods) with limited access to potable water, sanitation, education, and arable land. Principle Contractors, Grantees, or Agencies: USAID implements activities in this sector through a U.S. firm, a private nonprofit company, local NGOs (including Fundacion Salvadorena para el Desarrollo Economica y Social), a U.S. PVO (Technoserve) ^  and several local NGOs ^ , and the Central American Bank for Economic Integration.. %0*0*0* Major Results Indicators:  }K ` ` # ,` 4Xhh=XFXOBaselineaX  ixxrTarget(#   }KX Percentage of implementation of national resourcehO0% (1995)a  i` xxr82% (1997)(#x  }K   management strategy recommendationsFO  }K Hectares of nonforested land improved underhO10,000 (1993)  ixxr37,610 (1997)(#  natural resource management  }Kx Suspended solids in Ahuachapio RiverFXO4.0 (1991)a  ixxr3.3 (1997)