Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
ECUADOR
FY 1998 Development Assistance . . . . . . . . . . . . . . . . . $9,000,000 Introduction
The U.S. national interests in Ecuador are centered around the following themes: a mutual interest of both countries to preserve political stability and peace in the region, in view of the armed confrontations between Ecuador and Peru in 1995; the strengthening of democratic institutions and the streamlining of procedures for the administration of justice; the enhancement of broad-based economic growth opportunities that bolster Ecuador's trade relations with the United States and the strengthening of environmental institutions to improve the management of natural resources and the protection and conservation of biodiversity, such as that found in the Galápagos Islands.The United States is Ecuador's largest trading partner, and an increase of per capita income in Ecuador will expand markets for U.S. goods, services and technology. Continued support for family planning and maternal and child health programs will consolidate the advances made over the past decade in the improved health and productivity of the population, reduce population pressure on the environment and provide a firm foundation for economic growth. Ecuador possesses one of the highest concentrations of biodiversity in the world. Given the impact that deforestation has on global warming, it is in the interest of the United State to help Ecuador expand its economy to provide low-income groups with income generation alternatives that protect its native forests.
The Development Challenge
.Ecuador remains one of the least developed countries in South America. Four million Ecuadorians, about 35% of the population, fall under the poverty line; of those, 1.7 million people (15% of the population) are in extreme poverty. Despite the modest economic growth during the 1990-96 period after a decade-long recession, Ecuador needs to make more progress in modernizing and opening-up its economy to improve the quality of life for its population. Per capita gross domestic product growth has averaged about 1% since 1990; real wages are still 23% below 1986; and income distribution is one of the worst in the Andean region. These problems are compounded by a high population growth rate of 2.3%, poor health conditions, and large-scale rural and urban poverty. Democratic and judicial institutions remain fragile and need to become more effective. Ecuador's growing environmental degradation has attracted international attention and points to the need for a coherent strategy to deal effectively with this problem.
On the positive side, Ecuador democracy survived a series of crises in 1995 and the fifth consecutive successful democratic transition took place on August 10, 1996 as President Abdalá Bucaram took the oath of office. In addition, the country has made important progress in reducing inflation and completed historic debt renegotiations. Progress in structural reform will establish the foundation for a market-based economy, improving the investment climate, increasing exports and overall economic growth, and expanding trade opportunities with the United States. The United States is Ecuador's major trading partner, with about 32% (or $1.3 billion) of total Ecuadorian imports coming from the United States in 1995. U.S. assistance to Ecuador strongly supports economic, social and environmental reforms that will further expand U.S. markets and ultimately facilitate Ecuador's entry into free trade agreements. U.S. assistance also promotes the key objective of strengthening Ecuadorian democracy by promoting judicial reforms and by helping modernize and reform the social sectors. Modest U.S. assistance has played a catalytic role in leveraging large financial support for Ecuador from the World Bank and the Inter-American Development Bank, and in enabling the civil society, as represented by selected nongovernmental organizations (NGOs), to implement programs in strengthening democracy and in pursuing sound economic, social and environmental reforms.
The challenge for Ecuador for the remainder of this decade is to alleviate the pervasive poverty whichaffects approximately four million Ecuadorians. Despite the Government of Ecuador's (GOE) inability to meet donor expectations regarding structural adjustment, the GOE administration has lowered inflation through tight fiscal and monetary policies from the annual rate of 55% in 1992 to 26% in 1996. However,high real interest rates led to a decrease in private sector investment. Real economic growth slowed to 1% in 1995 as a result of the border conflict with Peru, a severe energy crisis, and political uncertainties related to allegations of widespread corruption in the GOE. This trend is expected to continue in 1996 (estimated 1.8% GDP growth) with the political uncertainties resulting from the democratic transition that took place in August 10. These crises are aggravated by the marked weakness of public institutions in providing basic social services to the poor. These institutional weaknesses and high levels of poverty in Ecuador also contribute to high rates of deforestation which put the country's biodiversity at risk. Ecuador has the highest concentration of biodiversity in Latin America, while suffering the third highest rate of loss of forests in the world. U.S. assistance during the remaining years of the decade has a key role in helping Ecuador to overcome these structural constraints which prevent sustained economic growth and reduction in the levels of poverty. It is anticipated that the USAID country program will terminate within the next five years as the objectives of USAID assistance are achieved; however, USAID may continue to support critical environmental efforts in Ecuador which are of global concern through programs administered from USAID/Washington.
Other Donors
USAID provides a small portion (ranging from 5% to 7%) of overall donor assistance (grant and loan), the bulk of which is provided mostly by the Inter-American Development Bank (IDB) and the World Bank. USAID assistance comprises the largest portion of grant assistance (20% of total grants). The grants have been effectively directed at policy activities and support for NGOs that have served to facilitate removal of constraints to the delivery of other donor assistance. USAID assistance plays a catalytic role in helping other donors to design and implement their substantial assistance to Ecuador.FY 1998 Program
The USAID program in Ecuador supports U.S. foreign policy objectives through an integrated approach to help Ecuador achieve sustainable development. Accordingly, activities which encourage broad-based economic growth also include major emphasis on social and democratic policy reforms, microenterprise development, and productive activities for low-income groups. Activities with NGOs focus on basic health, environmental protection, and support sustainable economic growth through greater economic opportunities to the poor. There is a strong inter-relationship between family planning and health activities and USAID's economic growth and democracy objectives. Activities to increase access to the justice system for groups concerned with the long-term sustainability of their environment (including the training of paralegals and introducing alternative dispute-resolution mechanisms) are essential to achieve the results related to protecting the environment.Agency Goal: Encouraging Broad-Based Economic Growth
A high proportion of the population falls below the poverty line. Of the entire population, 15% are in "extreme poverty" without enough income to purchase even a minimally nutritious diet. Through FY 2000 USAID assistance is being provided to expand opportunities and participation by low-income groups in a growing market economy by increasing access to financial services by microentrepreneurs, increasing access by low-income groups to housing solutions, and increasing opportunities for low-income groups to receive donor financing for productive activities and social infrastructure. USAID efforts also are directed toward promoting policies which will increase the efficiency and competitiveness of the economy. Specifically, these reforms should lead to more efficient investment in people and accession to free trade areas in the Americas, while supporting the macroeconomic and structural adjustment programs of the IDB and the World Bank. USAID's policy dialogue support and technical assistance are helping Ecuador to initiate social reforms in education, social security, health,and decentralization and to deepen economic reforms.
In 1996, USAID-supported NGOs continued to assist the GOE to formulate a coherent social policy reform agenda with a focus on economic stability and growth, unemployment and poverty reduction, modernization of the state, and more efficient delivery of basic social services. With USAID support, Ecuador is now undertaking steps to attain access to intermediate trade pacts. USAID has initiated a series of activities in support of the microenterprise development objectives in the Summit of the America's plan of action: the capabilities of partner NGOs have been strengthened in preparation for expanding their microenterprise client base and geographical coverage. A system of housing incentives proposed by USAID will play a major role in increasing domestic savings for housing and in improving low-income families' access to affordable shelter. In addition, USAID has continued to help the GOE finance its emergency social investment fund (FISE) to cushion the immediate impact of stabilization and economic reforms on the poorest and most vulnerable groups.
Nevertheless, economic stabilization, modernization, and constitutional reform continue to be major political issues. Fiscal austerity temporarily slowed growth and increased unemployment, while the rapid decreases in inflation obtained from 1992 to 1994 seemed to have leveled at 26% in 1996. Payment of Ecuador's debt comprises 40% of the GOE's 1997 budget. Public sector unions oppose privatization of state-owned enterprises. Strong opposition to modernization of the state within the Ecuadorian Congress is evident. At this critical point in the reform process, partner NGOs are working on building consensus for reform by educating Ecuador's leaders through studies, seminars, and conferences, and through advocacy of reform legislation. At this juncture, a broad-based consensus for reform is critical. Without it, the prospect for attaining the necessary changes in Ecuador's social and economic policy framework will be severely circumscribed, and Ecuador's prospects for attaining sustainable economic growth limited.
* Strategic Objective 1: Increased sustainable economic growth for a broad base of the population.
Agency Goal: Stabilizing Population Growth and Protecting Human Health
One of Ecuador's major challenges is to reduce rates of population growth, fertility and mortality. Significant numbers of women, particularly in rural areas, do not have adequate information concerning contraceptive methods, or they currently use inefficient contraception methods. USAID activities increase the quality, access, and sustainability of family planning services in Ecuador, through: (1) research and training; (2) social marketing, communications, and awareness building to expand service delivery of specific target groups which have high levels of unmet demand or are at high health risk; and (3) introduction of alternative approaches to increase cost recovery and financial sustainability.
A 1994 national survey indicates that overall contraceptive prevalence increased from 53% in 1989 to 57% in 1994. USAID was a major player in attaining these achievements, which have contributed to an impressive, overall reduction in the population growth rate of around 3.5% in the late 1970s to 2.3% today. During 1996 USAID's Ecuadorian partner NGOs significantly increased their coverage of family planning users. They also provided new, improved contraceptive methods which increased the range of choice for women. Progress toward sustainability continued and the family planning NGOs increased their level of cost recovery to nearly 70%.
Two specific areas will continue to need assistance over the medium term. The first is the expansion of family planning services to the underserved poor women. The second relates to the need to extend the period of time for attaining full self-reliance by partner NGOs in order for them to identify additional means to generate income while maintaining the top priority of serving the needy target population.
Ecuador's health statistics are worse than those of most Latin American countries. Lack of safe water and sanitation, the prevalence of infectious and communicable diseases, and malnutrition are the mostcommon causes of child death. The prevalence of chronic malnutrition among children under five is 55%. Large numbers of women still do not have access to adequate pre- and post-natal care.
As a result of reprogramming child survival resources, USAID is directing its efforts,through a variety of innovative organizational delivery mechanisms, toward improving the policy climate for health reform and increasing the provision of primary health care services by NGOs. Policy studies to achieve reforms on financing, resource allocation, decentralization, targeting of benefits, and increasing private sector provision of services, are carried out in close coordination with the World Bank, IDB and PAHO. Since the democratic transition USAID has engaged the new Minister of Health in understanding the need for sector reform. USAID also succeeded in integrating the planned activities of NGOs directly into the GOE's sector reform plans for the coming years. In so doing, USAID has continued to work in coordination with the World Bank, the Inter-American Development Bank, and the Pan-American Health Organization (PAHO) to bring on stream major technical and financial resources to the sector reform effort.
*Strategic Objective 2: Reduce levels of mortality and fertility
Agency Goal: Building Democracy
Ecuador has a highly fragmented justice sector, with judicial responsibilities divided among many entities. Inadequate human resources, and weak institutions. These factors have resulted in a seriously inefficient and delayed administration of justice. Nevertheless, the justice sector is one in which democratic institutions can be strengthened and where limited resources can make a difference and lead to major reform while increasing other donor assistance. Since 1993, when USAID began working through private and public sector groups and an effective Ecuadorian NGO, USAID has had a major impact on the passage of laws, in leveraging the contributions of other major donors, and in extending reforms beyond the justice sector to progress in the area of anti-corruption.
Following technical assistance and analysis provided by USAID, the President issued a decree which created the Coordination Unit for Ecuadorian Judicial Reform, the first entity in the Ecuadorian history charged with coordinating donor support and implementing reform efforts for the justice sector as a whole. This unit will be the national counterpart for all international institutions working in the sector. CLD, an Ecuadorian partner NGO, has continued to actively promote public understanding of and support for judicial reform in Ecuador. Given the pressing need for greater access to the justice sector, and civil society and anti-corruption activities, USAID has decided to widen the scope of its democracy program to include strengthening of civil society organizations in order to improve civil society participation in the democratic process and promote better governance and transparency in government.
* Strategic Objective 3: Strengthened sustainable democracy
Agency Goal: Protecting the Environment
Ecuador faces an urgent challenge in protecting the environment. It has one of the world's richest sources of biodiversity; it also has one of the highest urban growth rates in Latin America. Environmental protection is inextricably linked with the welfare of Ecuadorians in general, but especially its poor. Ecuadorian poor are the first to suffer the effects of environmental degradation; they are more likely to drink contaminated water and food, breath poisoned air, lose sources of food and medicines due to deforestation, and suffer unemployment as jobs based on shrinking natural resources disappear.
USAID's environment and natural resources activities focus on assisting Ecuador to protect and manage its environmental and natural resources so that they will benefit the country's poor. The program balances policy and field activities: improving natural resource management, conservingbiodiversity, and municipal environmental management, and pollution prevention. The National Environmental Action Plan (NEAP), financed by USAID has provided Ecuador with a national environmental blueprint that now needs to be implemented through such mechanisms as standardized environmental analysis procedures and a National Environmental Fund. Another principal policy focus that has received USAID/Ecuador support has been the building of consensus to protect the Galápagos Islands and their surrounding ocean and translate that consensus into an effective law and its regulations. USAID/Ecuador is also supporting system to invest water user fees from Quito residents to protect the ecological reserve which is the source of water.
USAID/Ecuador supports field activities, complementing these policy initiatives, that share United States technical knowledge with Ecuadorians. The Oikos Corporation, for example, provides technical assistance to Ecuadorian industries to reduce both pollution and operating costs. The Charles Darwin Foundation provides technical training to Galápagos fishermen and assistance to Galápagos municipalities in solid waste recycling. CARE provides technical assistance for land titling and natural forest management in the rain forests on the edges of the Cotacachi-Cayapas Ecological Reserve on the northwest coast. Satellite imagery has been used to complete the delimitation of communal lands and reserve boundaries in order to complete and implement the area's land-use management plans. The Nature Conservancy supports the development of alternative sources of income in and around the Cayambe-Coca Ecological Reserve to the west of Quito.
Both policy and field activities have a common aim: to assist Ecuador to develop sustainable systems for using its environment and natural resources for the benefit of all its citizens. The primary constraint to achieving results in this sector is the magnitude of the problem of environmental degradation and the complexity of interests which involve rural and poor indigenous groups; industries such as petroleum, tourism, transportation, and logging; and urban residents. The GOE's weak implementation of policy reforms and laws already approved is also a significant constraint. Ecuador's important position with regard to conservation of biological diversity and the preservation of natural resources argues strongly for continued support over the longer term.
* Strategic Objective 4: The environment managed for long-term sustainability
ECUADOR
FY 1998 PROGRAM SUMMARY
(000's)
USAID Strategic Objectives Encouraging Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environment Building Democracy Providing Humanitarian Assistance Total 1. Increased Sustainable Economic Growth Dev. Assistance
500
500
2. Reduced levels of mortality and fertility Dev. Assistance
4,000
4,000
3. Strengthened sustainable democracy Dev. Assistance
1,500
1,500
4.The environment managed for long term sustainability Dev. Assistance
3,000
3,000
Total Dev. Assistance
500
4,000
3,000
1,500
9,000
USAID Mission Director: Thomas L. Geiger
ACTIVITY DATA SHEET
PROGRAM: ECUADOR
TITLE AND NUMBER: Increased sustainable economic growth for a broad base of the population, 518-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $500,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To increase sustainable economic growth for a broad base of the population by increasing efficiency and competitiveness of the economy and by expanding opportunities and participation by low-income groups in a growing market economy.
Background: Ecuador is an extremely poor country. The World Bank's Ecuador poverty report concludes that 35% of its population, close to four million people, live in poverty, and an additional 17% are highly vulnerable to poverty. Unemployment affects 11% of Ecuador's economically active population; underemployment affects another 53%. Ecuador's persistent economic and social problems have led the government to undertake vital economic stabilization and structuring measures to lay the groundwork for the long-term economic and social health of the country. Yet the worsening situation of the poor poses serious concerns for Ecuadorian society. This strategic objective includes USAID's Policy Dialogue and Implementation, Microenterprise Assistance and Strengthening, and National Shelter Delivery System Activities.
USAID Role and Achievements to Date: USAID supports policy reform that has lead to increased efficiency and competitiveness of the economy through more efficient investment in people, accession to free trade areas in the Americas, and macroeconomic and structural adjustment. USAID has also encouraged expanded prticipation by low income groups in the market economy through increased access to financial services by microentrepreneurs with emphasis upon women, access for low-income groups to housing solutions, and related infrastructure and services, and opportunities for low-income groups to receive donor financing for productive activities and social infrastructure. In 1995 USAID activities contributed to 1.3% real growth in gross domestic product (GDP) per-capita and a 4.3% increase in the ratio of non-traditional exports to GDP. Through Policy Dialogue USAID also helped move the government and civil society toward adoption of specific reforms related to education, financial and capital markets, privatization, intellectual property rights, and land tenancy. With USAID support, Ecuador is now a member of the World Trade Organization and is moving towards creating the environment for accession to free trade areas in the Americas. USAID's housing shelter sector program is contributing to the elimination of indirect subsidies while supporting the establishment of a private sector-led housing financing corporation and the issuance of mortgage-backed securities. In 1996 USAID signed equity investment agreements for microenterprise financing with CARE and Seed Capital Development Fund. USAID also initiated village banking activities with CARE, CRS and Project Hope. Directly and through CARE, USAID provided assistance to strengthen Ecuador's Social Emergency Investment Fund (FISE) which provides financing for basic infrastructure and some productive activities directly to poor communities and selected NGOs. As a result, USAID assistance leveraged more than $100 million in 1994 and 1995 from the World Bank, Inter-American Development Bank (IDB), and the Andean Development Corporation (CAF). Further, the IDB has approved a FISE II operation in the amount of US$ 15.0 million, and the Dutch government is providing up to $3.0 million for a joint CARE/FISE effort in financing community level productive activities through local NGOs.
Description: USAID's strategic objective is aimed at producing two major results: (1) increased competitiveness of the economy in which emphasis is placed upon low-income groups in rural areas, with a focus upon women and (2) expanded opportunities and participation by low-income groups in a growing market economy. Emphasis is placed upon low-income groups in rural areas, with a focusupon women. Activities that contribute to the first result include support toward attainment of specific demand-driven objectives, including: (1) improved quality of education, (2) broader participation of low-income groups in social security coverage and pensions, (3) reduced constraints to labor market entry, (4) strengthening of collective bargaining and dispute mediation, and (5) environmental reforms that will assist Ecuador in accessing free trade areas in the Americas.
To achieve the second result, USAID activities include: (1) upgrading microcredit delivery systems and quality of financial services; (2) establishing licensed, financial institutions delivering microcredit; (3) increasing equity investment in financial service institutions serving microentrepreneurs; (4) increasing the volume and total value of shelter loans to below-median-income families; and (5) supporting short-term poverty amelioration by increasing access of low-income groups to productive activities and social services.
Host Country and Other Donors: USAID's partner NGOs are attracting other sources of funding while advocating major social and economic policy reforms and greater access by low-income groups to housing solutions and microcredit. The World Bank, IDB, and CAF are Ecuador's major donors, providing nearly $500 million annually in support of this USAID strategic objective, while restructuring their programs to focus on low-income groups to address the serious poverty situation in Ecuador. USAID's partner NGOs, including Financiera Uno, Enlace, and Accion, will contribute over $2.9 million to cover operational expenses, and to provide equity investment to establish licensed, leveraged financial institutions which deliver quality financial services to microentrepreneurs. In addition, communities receiving SDAA support contribute labor and materials.
Beneficiaries: USAID beneficiaries are low-income Ecuadorians, who are located in urban and rural areas and who have little or no access to income opportunities and social services. Special emphasis is placed upon microentrepreneurs in both urban and rural areas. Microenterprises owned by women represent 50% of the total number of microentrepreneurs (approximately 1.2 million) in Ecuador.
Principal Contractors, Grantees, or Agencies: The principal implementors of the program are Ecuadorian NGOs and the Central American Institute of Business Administration (INCAE, based in Costa Rica with an office in Ecuador), with technical assistance and training provided by U.S.-based consulting firms and grantees (including U.S.-based Accion International, CARE, CRS, Project Hope, the Academy for International Development and the Research Triangle Institute).
Major Results Indicators:
Baseline Target
Real growth in GDP per capita 1.8% (1995) 3.0% (2000)
No. of state-owned enterprises sold (cumulative) 1 (1995) 19 (2000)
No. of concessions granted to provide social services 3 (1995) 15 (2000)
No. of microentrepreneur borrowers
(served by USAID-assisted NGOs) 13,250 (1995) 110,380 (2000)
Volume of housing incentives issued 0 (1995) 15 (2000)
ACTIVITY DATA SHEET
PROGRAM: ECUADOR
TITLE AND NUMBER:
Reduced levels of mortality and fertility, 518-S002STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998; $4,000,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000
Purpose: To improve the effectiveness, use and quality of child survival, primary health care and family planning services in Ecuador.
Background: Both infant and maternal mortality are high in Ecuador, especially among the rural and peri-urban poor and indigenous groups. The quality, effectiveness and use of health and family planning services in the public sector remain poor. Constraints to the improvement of these problems include: declining financial resources of the Government of Ecuador (GOE) devoted to health; a fragmented, uncoordinated, and duplicative health care system, with four major institutions providing medical care; lack of targeting and efficient allocation of these resources; and the need for decentralization of management and delivery of health services. The GOE, the private sector and all major donors recognize the importance of health sector reform to address these constraints. USAID is contributing significantly to the reform effort. The USAID-financed activities have a strong focus on addressing the needs of the underserved, on supporting private sector alternatives to delivery of services, on developing models of sustainable child and reproductive health services that can be replicated by larger World Bank resources, and on promoting health reform at both the local and national levels.
USAID Role and Achievements to Date: In the family planning and population field, USAID continues to be the major donor and therefore a critical actor in achieving reduced fertility, increased contraceptive use to prevent unwanted pregnancies, and improved women's health. USAID contributions to the financial sustainability of family planning nongovernmental organizations (NGOs) have been and will continue to be a major part of this strategic objective through the 2000. These NGOs have achieved 70% self-sufficiency through cost recovery, while their targets for contraceptive use and fertility reduction have been surpassed over the past five years. The total fertility rate fell from 3.8% in 1989 to an estimated 3.5% in 1995, while contraceptive prevalence increased from 52.9 to approximately 56.8 during this period. Infant mortality decreased from 53 per 1000 in 1989 to 40 per 1,000 in 1995 while immunization and rural water supply coverage increased to planned levels. Policy analysis and reform efforts have already resulted in innovative organizational, financing and delivery schemes with NGOs and municipalities.
Description: Of the total funding requested for population and health, $4,000,000 is planned for population activities and $2,032,000 is planned for health activities. This strategic objective includes three major components which address the primary constraints to improving child and maternal health and reducing fertility: (1) Ministry of Health policy support for health sector reform; (2) policy promotion, analysis and dissemination activities; and (3) private sector service delivery and organizational strengthening. The first component will provide assistance for Ministry of Health policy development to improve resource use, strengthen the production and distribution of primary health care services in specific health areas, support coordination of sector resources; and coordination of Ministry of Health and NGO efforts to develop models of decentralization of child survival and primary health care services which are sustainable. The second component will develop the capability of an independent private sector think tank, Center for Studies of Population and Responsible Parenthood (CEPAR), to carry out health policy analysis and, formulation. The third component will assist private sector NGOs to develop sustainable, quality health and family planning services for underserved populations. With respect to family planning NGOs, the Ecuadorean Pro Family Association (APROFE) and the Medical Center for Family Planning (CEMOPLAF) will continue to expand and become financially self-supporting by early in the next century through increased revenues for servicesprovided, a contraceptive procurement fund, a sustainabilty fund, and expansion of reproductive health laboratory and clinic services that are profitable as well as serving the target rural and poor populations.
Host Country and Other Donors: The major donor in this sector is the World Bank, with its $70 million loan for strengthening the Ministry of Health, construction of health, water and sanitation facilities and the implementation of a national nutrition program. Limited financial resources also come from the Inter-American Development Bank, especially for the Social Security hospital system, as well as from the Government of Japan's, hospital equipment donation. UNFPA and UNICEF are major contributors to maternal and child health programs. USAID is among the leading sources of technical assistance along with the Pan American Health Organization and the World Bank. USAID technical assistance and pilot interventions have served as catalysts for leveraging large inputs of World Bank funds. The host country contribution to this strategic objective is $18.6 million from the GOE (including up to $1.5 million for non-project assistance), and $10 million from USAID's partner NGOs (Center for Studies of Population and Responsible Parenthood, Ecuadorian Pro Family Association, and the Medical Center for Family Planning), during the life of the SO.
Beneficiaries: Children under five and women of child-bearing age in Ecuador represent 25% to 30% of the population, which totals 11.7 million people. USAID-supported programs reach about 425,000 women with reproductive health and family planning service per year. In addition, the children of Ecuador have benefited from improved child survival and primary health care services. During phase two of the Child Survival project (1995-1999), approximately 500,000 women and children will benefit from services developed, improved or expanded by the project.
Principal Contractors, Grantees, or Agencies: USAID implements most of its activities through NGOs. In health, these include an Ecuadorian NGO, CEPAR, for policy formulation, analysis, promotion and dissemination activities; and CARE, for efforts to develop the capacity of Ecuadorian NGOs and municipalities to implement primary health care demonstration projects with cost recovery. In family planning, our major partners are Ecuadorian family planning NGOs (Ecuadorian Pro Family Association and the Medical Center for Family Planning). USAID contractors providing technical assistance for this strategic objective include: Abt Associates, The Partnership for Child Health Care Inc. (BASICS), John Snow Inc., Management Sciences for Health, University Research Corp., the Center for Development and Population Activities, the Futures Group, Johns Hopkins University, The Population Council, the Centers for Disease Control, The Georgetown University Institute for Reproductive Health, and The Association for Voluntary and Safe Contraception.
Major Results Indicators:
Baseline Target
Infant mortality rate 40 (1994) 32 (2000)
Contraceptive prevalence rate 52.9 (1989) 60 (2000)
Percentage of births attended by a health professional 30 (1989) 90 (2000)
Percentage of cost recovery of family planning NGOs 63 (1994) 90 (2000)
ACTIVITY DATA SHEET
PROGRAM: ECUADOR
TITLE AND NUMBER: Strengthened Sustainable Democracy, 518-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $1,500,000
INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 1999
Purpose: To promote: (A) the effective and fair application of the rule of law in Ecuador for all citizens and (B) more transparent government institutions which follow the rule of law in carrying out their functions.
Background: The rule of law and democracy are inextricably linked. In a democracy, the rule of law is a requisite. Democracy cannot function well where there are major flaws in the application of law to all citizens. The program works with selected nongovernmental organizations (NGOs) and the Government of Ecuador (GOE) to improve the administration of justice so that it is accessible and fair to all citizens, and to bring about more transparency in government institutions.
USAID Role and Achievements to Date: For the past several years, USAID's assistance in the justice sector has been provided through a small grant to finance the activities of the GOE's Justice Sector Working Group and support for the Latin American Development Corporation (CLD), Ecuador's principal NGO in justice sector reform. The Justice Sector Working Group has completed the preparation of a "justice sector action plan". The plan served as the basis for the successful negotiation of a $10.7 million loan from the World Bank for improving the administration of justice and the start of project negotiations with the IDB for additional support to the judicial sector. The GOE created by Presidential Decree a Justice Sector Coordinating Unit, PROJUSTICIA to coordinate all assistance to the GOE in the justice sector. CLD's principal accomplishments to date have centered in two broad areas: constituency building and public education, and technical support to the judicial reform process. CLD has been successful in raising public perceptions about the judicial system's problems and the need for reform. CLD's activities have produced an important increase in public debate about reform issues and have provided the general public, as well as the principal actors of the justice apparatus, with a wide variety of information on the subject. CLD technical support has been directed to drafting of important legislation, to the development by the GOE of a strategy for judicial reform, and to the establishment of a database on prisoners in preventive detention which has been generally recognized as unique in the region. During 1996, USAID defined a $4.0 million Rule of Law Results Package to build on and expand these achievements by working with these and other NGO partners.
Description: USAID assistance will be focused towards attainment of results in five key areas: (1) building constituencies and expanding coalitions to broaden popular support for legal reforms; (2) improving the effectiveness of the administration of justice system; (3) increasing the availability of affordable legal services to the non-elite classes of the population, including women, minors, low-income groups and indigenous communities; (4) improving the capability of selected justice sector institutions so that they are better equipped to carry out activities to improve the rule of law system; and (5) promoting the development and implementation of anti-corruption mechanisms that lead to transparency in the operations of public sector agencies and accountability for the use of public sector resources. Funding for four of the five areas will be channeled through Ecuadorian NGOs. Funding for strengthening the legal system will be channeled through the recently created GOE Justice Sector Coordinating Unit, PROJUSTICIA, which will coordinate all international assistance to the justice system. USAID will continue support to CLD, Ecuador's leading NGO in judicial reform. USAID will also continue to sponsor workshops and seminars with members of Congress to raise their awareness and obtain their support for legal reforms especially in the criminal code.
Host Country and Other Donors: Largely as a result of USAID efforts, the World Bank and the Inter-American Development Bank (IDB) are committed to major assistance programs in the justice sector. USAID maintains close contact with each of these donors to ensure that our efforts are supportive and not duplicative. The World Bank's program will focus on infrastructure, court management, and alternative dispute resolution. The IDB intends to provide assistance in selected areas of legal reform, strengthening of the Office of the Prosecutor, and in judicial and administrative training. Both will involve substantial GOE counterpart. As counterpart to USAID assistance, the GOE will provide $85,000. In addition, CLD is expected to contribute $165,650 and other partner NGOs, including The Center for Studies and Research on Ecuadorian Women-CEIME, the Center on Law and Society-CIDES, and the Ecuadorian Council for Support of Women-CEPAM, are expected to contribute $170,220.
Beneficiaries: Ecuador's population as a whole will benefit from this activity. However, much of the activity is intended to directly benefit large segments of the population which traditionally have not had access to the justice system or have not benefited from the application of existing law. These groups include women, minors, indigenous populations, and the poor.
Principal Contractors, Grantees, or Agencies: Virtually all assistance provided under this Strategic Objective will be channeled through Ecuadorian NGOs. $250,000 of assistance will be made available to the GOE's recently created Justice Sector Coordinating Unit.
Major Results Indicators (Illustrative *): Baseline Target Reduction in the number of violations (e.g., abuse of women and minors, unsentenced prisoners) * (1996) * (1999) Percentage increase in the number of disadvantaged persons using legal services * % (1996) * % (1999) Reduction in pretrial detention time * days (1996) * days(1999) An enhanced perception by at least six key groups of customers (judges at various levels, lawyers, judicial sector personnel, opinion leaders and NGOs involved in the sector) of the need for judicial reform * (1996) * (1999) Increased public awareness on the use of public resources * (1996) * (1999) * Because of delays in funding availability in FY 1996, the majority of activities under this SO were not initiated until early FY 1997. Therefore, the Mission will work closely with partners to gather and develop the required baseline and targets for the agreed upon indicators.
ACTIVITY DATA SHEET
PROGRAM: ECUADOR
TITLE AND NUMBER: The Environment Managed for Long-Term Sustainability, 518-S004
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $3,000,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2005
Purpose: To promote the sustainable use of natural resources, the conservation of biological diversity, and the control of pollution.
Background: Ecuador has been described as containing the highest concentration of biodiversity in South America and probably the world. Approximately the size of the state of Colorado, Ecuador is home to twice the number of bird species found in the entire United States, and double the number of native plants found in all of Europe, including Russia. Ecuador has two of the top ten "hotspots for biological conservation" in the world. One such area, is part of the Choco Biogeographical Area, has been cited as the most biologically diverse terrestrial area in the world. Uncontrolled harvesting of tropical wood from this area threatens this unique ecological system and the indigenous people who are dependent on this renewable resource. The other area is located along the lowland slopes of the Amazon basin. Approximately 45% of the mainland forms part of the Amazonian watershed. Although 17% of the country's Amazonian watershed has been designated as "protected areas", activities associated with petroleum development place increasing demands on Amazonian biodiversity and ethnic groups. Conversely, among South American nations, Ecuador has the highest population density, the third highest population growth rate, and the second highest deforestation rate.
The Galápagos Marine Resource Reserve, 1,000 kilometers west of Ecuador's mainland, encompasses 70,000 square kilometers of open water and shoreline, making it the second largest marine park in the world. Ecuador's urban growth rate is placing increased demands on the national and municipal governments for environmental sanitation services and improved pollution prevention. Pollution and the lack of sanitation services have impacts on the health, productivity, and quality of life of Ecuador's urban poor. Uncontrolled vehicular and industrial pollution compound these risks by increasing toxicity levels found in urban slums. Poor water and sanitation systems in urban areas and scarcity of potable water in rural areas cause water borne diseases.
USAID Role and Achievements to Date: USAID's support is directed towards: (1) improved management of natural resources; (2) protection of biodiversity conservation; (3) urban environmental management; and (4) improved practices for pollution prevention. Every Ecuadorian partner (ministries, private voluntary and nongovernmental organizations, municipal and private sector groups) has approved the National Environmental Action Plan which serves as a blueprint, defining problems, concerns, and agreed-upon required actions to be undertaken by each player. The legal basis for an environmental trust fund to be financed by a percentage of the sale of state-owned enterprises has been established. The Constitution has been amended to ensure each citizen's right to a clean environment, and an environmental and natural resources law has been submitted to Congress. Community paralegals trained under USAID and NGO auspices have obtained legal recognition for 13 homelands and resolved 9 communal land ownership conflicts. This has paved the way for finalizing natural resource, land-use and forestry management plans in the 400,000 hectare buffer zone containing the country's last humid tropical forest in the Pacific lowlands. A plant and animal, quarantine system for the Galápagos Islands has been designed and partially implemented. A mechanism to charge a water use fee to finance the protection and management of the Cayambe-Coca Ecological Reserve (the main source of Quito's potable water) has been designed.
Description: Activities financed by USAID support the implementation of the national environmental action plan, an environmental support trust fund, a standard environmental impact assessmentmethodology, improved management of selected protected areas and their buffer zones, improved urban management for increased access to water and sanitation services, and pollution prevention and control practices. These include activities to: develop sustainable uses for biological resources; promote environmental education and technology transfer, conservate biological resources in the Galápagos, develop the sustainable uses for Galápagos marine resources, and the development of sound environmental policies. USAID works through U.S. and Ecuadorian NGOs, under local agreements with national, municipal, community and private sector organizations.
Host Country and Other Donors: Host country and NGO contributions to achieve the strategic objective results total over $2 million. Parallel activities funded by the World Bank, and the Inter-American Development Bank (IDB) exceed $28 million. Although USAID provides only a small portion (ranging from 5% to 7%) of total donor assistance. USAID's environmental strategic objective framework is crafted to assist Ecuador in meeting the policy reforms which are conditions to the continued disbursement of IDB, World Bank and other donor funds.
Beneficiaries: Ultimate beneficiaries are the majority of the nation's poor, especially rural women, children and Ecuador's indigenous communities. They directly depend on sustainable use of natural resources (forests, land, soil, water and wildlife). Ecuador's increasing urban and peri-urban residents who lack access to potable water, sanitary systems and a pollution-free, residential and work environment also benefit.
Principal Contractors, Grantees, or Agencies: USAID implements environmental activities principally through The United States and Ecuadorian NGOs, including: CARE, The Nature Conservancy, The Wildlife Conservation Society, Ecociencia, Jatun Sacha, Antisana Foundation, Rumicocha Ecological Foundation (FER), the Charles Darwin Foundation, and the Oikos Corporation. USAID also has agreements with the Presidential Environmental Advisory Commission of the Ministry of the Environment, the National Forestry and Wildlife Institute. Additional USAID assistance also is provided through the Academy for Educational Development, the International Center for Self-Governance, and the U.S. Environmental Protection Agency, and in collaboration with the Department of the Interior and the Peace Corps.
Major Results/Indicators:
Baseline Target
Completion and Implementation Begun (1995) Fully Implemented (1999)
of Environmental Law
Establishment of Environmental Begun(1995) Completed (1996) *
Trust Fund
Industrial pollution prevention 1 (1994) 15 (2000)
models adopted by private industries
Cities with improved solid waste 1 (1994) 3 (1997)
collection systems
Completion and Implementation of 1996 1999
a Special Law for the Galapagos
Selected national parks, reserves 150,000 (1996) 2,129,000 (2001)
and buffer zones under sustainable
land use/national resource
management plans (hectares)
Users fees disbursed for protected $2.0 million (1996) $4.5 million (2001)
area management
* The fund was established by a presidential decree but it is not yet operational
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