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Increased Central American Participation in the Hemispheric Economy Dev. Assistance~ #9o 9o 9o 9o 9o /w $2,500,000~ #O~ #_~ #n~ # ~ #g$ g$ g$ g$ g$ o!$2,500,000l   ""  2. Effective Regional Stewardship of Key Natural Resources Dev. AssistanceD#9oD#OD#_ _ _ _ U$6,000,000D#nD# D#g$ g$ g$ g$ o!$6,000,000  ~  Special Strategic Objective#9o#O#_#n# #g$  D ""  Enhanced Central American Capacity to Respond to the HIV Crisis Dev. Assistance#9o#O O O O E$6,750,000#_#n# #g$ g$ g$ g$ o!$6,750,000    "*"  Total Dev. Assistance#9o /w $2,500,000#O E$6,750,000 O#_ U$6,000,000#n# #g$ !$15,250,000  * `+%jUSAID Mission Director: William Stacy Rhodes 0*0*0*  }K  X #ixP7ͷP#>F ACTIVITY DATA SHEET ă  }K  PROGRAM : Central American Regional  }KX  TITLE AND NUMBER: Increased Central American Participation in the Hemispheric Economy, 596SO01  }K   STATUS: Continuing  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $2,500,000 DA  }K  INITIAL OBLIGATION : FY 1995 ESTIMATED COMPLETION DATE: FY 2000 Purpose: To increase Central America's preparedness to enter into free trade agreements and thereby accelerate the region's integration into hemispheric markets. Background: To effectively combat poverty and promote sustainable development in Central America, substantially higher economic growth rates are required on a sustained basis. Real growth of 56% per year is needed to provide increased demand for the productive use of labor and thereby increase incomes for working families. At the Summit of the Americas in December 1994, the heads of state of the hemisphere's 34 democracies united in pursuing greater hemispheric prosperity through open markets, hemispheric integration and sustainable development. They signed the Summit of the Americas Declaration of Principles and Action Plan, including a pledge to establish the Free Trade Area of the Americas (FTAA) by 2005. While fully supportive of Summit objectives, Central America's ability to participate in FTAA is severely limited by its lack of depth in technical expertise in areas related to implementing existing trade agreements and commitments, dismantling trade barriers and enhancing the region's competitiveness. Reflecting this, the Summit of the Americas Action plan pledged that "technical assistance will be provided to facilitate the integration of the smaller economies and increase their level of development." USAID's program is designed to support this commitment and consists of the project in Support of Central American Participation in Free Trade Agreements. USAID Role and Achievements to Date: USAID has provided technical assistance, training and research in support of Central America's efforts to reform its regional trade regime. This assistance has contributed importantly to the adoption by Central America of a more outwardoriented regional integration model characterized by lower external tariffs, accelerated implementation of the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) commitments, and reductions in both intra and extraregional nontariff trade barriers. Central America's trade performance continues to improve. In 1994, Central America's imports from the United States increased 11% to $6.6 billion, which supports 132,000 U.S. jobs. Imports from the U.S. are expected to have increased another 5%8% in 1995. Description: USAID is directly supporting Central American readiness for participation in hemispheric free trade agreements in four major areas: (1) Intellectual Property Rights (IPR). USAID supports Central American efforts to strengthen IPR policies and to enhance enforcement capabilities through: (a) development of model Central American conventions on trademark, patent and copyright conventions; (b) increasing the public's awareness on the importance of adequate IPR protection to investment, technology transfer and sustainable development; (c) support for Central American efforts to build regional and national consensus on required IPR policy changes; and (d) technical training to patent, trademark and copyright registry officials. (2) Further trade liberalization. USAID is supporting Central American measures to further liberalize both intra and extraregional trade. Activities focus on critical nontariff barriers and emphasize making regional legislation consistent with standards. Technical experts also assist and enhance Central American participation in the Summit of the Americas FTAA working groups. h)0*0*0*Ԍ(3) Enhanced protection of regional and foreign investment. USAID support assists the region to improve dispute resolution procedures, eliminate policy constraints to increased regional and foreign investment, afford national or mostfavorednation treatment to all investors, and establish international standards for expropriation which provide for prompt, adequate and effective compensation. (4) Better protection of worker rights and improved labor relations. USAID contributes to strengthening the protection of internationally recognized workers rights through improving and simplifying labor legislation, as appropriate, and upgrading the region's enforcement capabilities. Regional workshops and national seminars emphasize: (a) the relationship between increased trade and better wages and the higher levels of competitiveness and productivity required to succeed in hemispheric markets; (b) workers rights and their relationship to trade preferences; and (c) models of labormanagement cooperation that contribute to both increased productivity and higher wages. Host Country and Other Donors: USAID is coordinating closely with the InterAmerican Development Bank (IDB) which is planning activities to strengthen Central American regional trade institutions and support improved trade policies. As a result of this coordination, USAID is concentrating on areas such as intellectural property rights, labor rights and investment protection, in which the IDB does not plan major investments. USAID maintains close contact with the Central American Office of the United Nations' Economic Commission for Latin America (ECLA), which provides research and technical analysis on Central American economic integration issues. Beneficiaries: Greater Central American integration to hemispheric markets will contribute to higher levels of production and increased employment. Beneficiaries will include those enjoying increased employment opportunities and higher incomes throughout the economy, but primarily in the export sector. Principal Contractors, Grantees, or Agencies: USAID is working closely with the U.S. Trade Representative, the U.S. Patent and Trademark Office of the Department of Commerce, the U.S. Department of Labor, the U.S. Customs Service, and the Economic and Commercial Sections of U.S. Embassies in the region. The Permanent Secretariat for Central American Economic Integration (SIECA) is a grantee, and several contracts and grants with U.S. and local firms and NGOs are planned. Major Results Indicators:  }KX ` ` % .8hhAKTBaselineg  pxxyTarget Central American trade openness  }K  (total merchandise trade as a percent of GDP)T45.2% (1994)g  pxxy50% (2000) Central American readiness to enter into hemispheric free trade  }K  agreements (composite index with maximum of 5)T2.7 (1992)g  pxxy3.5 (2000) !0*0*0*  }K #ixP7ͷP#>F ACTIVITY DATA SHEET ă  }K  PROGRAM : Central American Regional  }KX  TITLE AND NUMBER: Effective Regional Stewardship of Key Natural Resources, 596SO02  }K   STATUS: New  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $6,000,000 DA  }K  INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2000 Purpose: To develop and consolidate a Central American system of protected areas, by providing appropriate management models for terrestrial and coastal protected areas, and to promote a strengthened regional regulatory and enforcement framework for environmental management.  }K`  Background:` ` % Central Americas forests, farm lands and water provide most of the employment and income that is generated in the isthmus, and feed its rapidly expanding population. The region's terrestrial and marine ecosystems have long played a critical role in the flow of genetic material between the Northern and Southern Hemispheres. In recent decades, this flow has become threatened by extensive deforestation, urbanization, and environmental contamination. These destructive environmental trends, partially a result of the lack of community empowerment to manage its own resources, in turn bring increased risks to the social and economic development and well-being of the region's inhabitants. USAID's Central American Regional Environmental project embodies this objective.  }K0  USAID Role and Achievements to Date: The conservation of biological diversity and promotion of environmentally sound natural resources management practices have been a major focus of USAID assistance in Central America since 1989. USAID's role has been catalytic in nature, influencing processes to create change and addressing those activities having economies of scale and crossborder impacts. Through effective institutional strengthening and technology transfer, over 70,000 Central American extensionists, trainers, health practitioners, farmers and community leaders have been trained, and sound landuse practices adopted on a large scale. More than 100,000 farmers are planting multipurpose, fastgrowing trees, with as many as 25,000 hectares and 25 million trees planted todate.  }K   Description: USAID's strategy anticipates actions in four key areas. By supporting regional networking of environmental experts and workshops for legal professionals on environmental issues, and other information exchange activities, USAID expects to achieve regional consensus and coordinated actions to reduce levels of contamination by key pollutants. A USAIDfunded small grants program will allow communities and Central American counterparts to explore and adopt bestuse practices, to conduct policy analysis at the local level, and to increase community and local government participation in decisionmaking related to natural resources use and management. USAID also supports upward harmonization of environmental laws and regulations, principally through increased regionwide access to information on the laws and regulations of individual countries. The expectation is that with full information, the establishment of common or uniform standards will follow to ensure adequate environmental protection and to deter private investment from shifting to countries with more lax standards. Host Country and Other Donors: USAID has been working with other international donors, including the InterAmerican Development Bank, the Global Environmental Fund, the United Nations Development Program, the European Economic Community, and Germany, to leverage funding and to develop an integrated Central American environmental strategy.  }K'   Beneficiaries: Poor rural families living in protected areas and surrounding agricultural areas in selected sites throughout Central America, and poor urban and semiurban families benefiting from expanded urban services and urban pollution abatement will benefit from these activities. h)0*0*0*Ԍ }K ԙ  Principal Grantees, Contractors or Agencies:  USAID will implement the program through four U.S.  }K NGOs, a U.S. Contractor to be selected, U.S. Environmental Protection Agency, Central America Commission for Environment and Development, Federation of Municipalities in the Isthmus of Central America (FEMICA), and Central America Bank for Economic Integration (CABEI).  }K   Major Results Indicators: X01Í ÍX01Í ÍLZ dB@ #TxP7MP#э The above indicators have been chosen but baselines and targets are being developed for this new phase of USAID's regional environmental strategy.  }K ` ` % .8hhAKTBaselineX01Í ÍX01Í Íg  pxxyTarget ` ` % .8hhAKTpp] Increased number of protected areas under  }K  improved management8hhAKT5 (1996)g  pxxy17 (2000) Number of municipalities with pollution  }K  mitigation systems in place8hhAKT5 (1995)g  pxxy40 (1998) ( 0*0*0*  }K #X~xP7JXP##ixP7ͷP#>F ACTIVITY DATA SHEET ă  }K  PROGRAM: Central American Regional  }KX  TITLE: Enhanced Central American Capacity to Respond to the HIV Crisis, 596SOO3  }K   STATUS: New  }K  PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $6,750,000 DA  }K INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2000 Purpose: To strengthen the capabilities of local Central American organizations to deliver services and information about the prevention of HIV/AIDS to target groups. This program contributes to the goal of reducing the spread of HIV and sexually transmitted diseases (STDs), thus lessening the impact of AIDS on Central American individuals and societies. Background: The future political, economic and social development of Central America is threatened by the HIV/AIDS epidemic. The areas most likely to be affected by HIV/AIDS include work productivity, medical care costs, and the size of the labor force. To maintain economic, political and social stability in Central America, HIV/AIDS prevention activities will be initiated through a strategy that considers the specific subregional commonalities and crossborder transmission. USAID Role and Achievements to Date: The efforts of this program will complement the reproductive health activities (particularly in services and information) that USAID has been supporting in the seven Central American countries. Description: USAID will support activities on three different levels. On the broadest level, the activities are designed to improve the policy environment for the promotion of HIV programs. On an intermediated level, USAID supports an improved institutional capacity of NGOs and local universities to deliver HIV prevention programs and to conduct research. Lastly, the activities will promote individual behavioral changes that are required to prevent the spread of HIV/AIDS. The Central American HIV/AIDS program has three components. The policy development and public awareness component is the vehicle through which USAID will provide assistance in support of interventions that enhance the perceived urgency for, and the effectiveness of, HIV prevention programs at the local, national, and regional levels. The three major activities which willl be carried out under this component are regional policy research, leadership and policy development, and public awareness. Through the nongovernmental organization (NGO) strengthening component, USAID will provide assistance to local NGOs to strengthen their capacity to provide sustainable, highquality HIV prevention and other services. Major activities to be carried out under this component are technical assistance and training, networking and information exchange, and small grants. The condom social marketing component is in the design phase. Host Countries and Other Donors: Most national governments are budgeting almost no resources to slow the epidemic, and the donor response has been mixed. The PanAmerican Health Organization (PAHO) has assisted and provided essential budget support for the establishment of a National AIDS Control Program (NACP) in each country. The NACPs have little or no high level support and/or insufficient financial and human resources to be effective. Other donors in the region include the Commission of European Communities, Japan, the United Nations Children's Fund (UNICEF), the Dutch and Nordic countries. In 1996, the UNAIDS Project will begin activities; this effort will be headed in Central America by PAHO. USAID has consulted with PAHO regarding joint programming and cosponsored activities. Beneficiaries: The Central American HIV/AIDS program will strengthen the capacity of Central American organizations and leaders to deal with the HIV/AIDS crisis in Central America. The ultimate beneficiaries are those groups and individuals who are at risk of HIV. h) 0*0*0*Ԍ Principal Contractors, Grantees or Agencies: USAID implements activities for the NGO strengthening and policy components through a consortium of three U.S. firms. An implementing agency for the social marketing component will be selected in FY 1996.  }K Major Results Indicators:nZ }K@ ԍ#TxP7MP# During the first year of project implementation (199596), baseline data will be gathered on each of these indicators and targets for the project will be set. Four indicators have been selected to monitor the impact of the project: number of supportive policies enacted; number of policy barriers reduced; amount of regional resources allocated to HIV/AIDS/STD programs and number of NGOs that can independently deliver HIV prevention programs. Major Results Indicators:  }K` ` ` % .8hhAKTBaselineg  pxxyTarget Number of supportive policies enacted Number of policy barriers reduced Amount of regional resources allocated to HIV/AIDS/STD programs Number of NGOs that can independently deliver HIV prevention programs