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).
GUATEMALA
FY 1998 Development Assistance . . . . . . . . . . . . . . . . . $ 23,338,000 FY 1998 P.L. 480 Title II . . . . . . . . . . . . . . . . . $ 12,122,000 Introduction
Guatemala's largely rural, Indian population lives in some of the most difficult conditions found in the Central American region. Located less than 1,000 miles from our border, U.S. interests are focused on supporting the full implementation of the Peace Accords to be signed on December 29, 1996, and strengthening a fragile democracy. With 36% of the total population of Central America and a similar percentage of regional economic production, Guatemala plays an important role in the long-term growth and stability of the region, which has rapidly increasing trade and investment importance to the United States. Two-way trade between the United States and Guatemala increased to $3.3 billion in 1996, directly benefitting numerous U.S. firms. A successful post-war period of recovery and reintegration will support other major US interests, such as reducing illegal immigration and narcotics trafficking, and global issues of loss of biodiversity, unsustainable population growth, and HIV/AIDs.The Development Challenge
Guatemala is the largest Central American country in terms of both population (10 million) and economic activity (1995 GDP $14.3 billion). However, distribution of land, income, and other wealth is highly skewed toward a small share of the Spanish-speaking population. An estimated 75% of Guatemalans live in poverty. Guatemala's Indian populace (of roughly 5 million) are isolated socially, economically, and politically, due both to geographic and language barriers. The country's social indicators are among the worst in the Hemisphere and the national averages mask even sharper inequalities between social groups and regions. For example, overall adult literacy is estimated at 48%, but literacy among Mayan women in some areas is as low as 10%. Less than half of rural Guatemalans have access to running water, a quarter have access to electricity and less than one in ten have access to sanitary facilities. Infant, child, and maternal mortality rates are among the highest in all Latin America, despite decreases in recent years. These indicators reflect persistent underinvestment in social services and basic rural infrastructure by Guatemala's government and past practices of political exclusion of the indigenous population.The transition to peace and sustainable development in Guatemala, marked by the signing of the Final Peace Accords in the closing days of 1996, offers an enormous opportunity for unprecedented social, economic and political change. Progress has been made over the past decade to consolidate democracy in Guatemala, but effective access to democratic institutions remains unequal, especially for the indigenous population. Justice reforms are proceeding at a slow pace. While politically motivated human rights abuses have declined, violent crimes have surged in the recent past. Macroeconomic reform has led to stabilization of the economy and growth of non-traditional exports in the agricultural and light manufacturing sectors. Yet, despite ten consecutive years of positive Gross Domestic Product (GDP) growth rates, real per capita income in 1996 has yet to fully recoup losses sustained during the 1980s. Population growth remains very high (estimated at 2.9% annually) and the government continues to suffer fiscal deficits, despite efforts of two successive administrations to increase the low level of tax revenues. Further reform is urgently needed to provide additional resources for basic education and preventive health programs, along with other social and infrastructure investments required to meet commitments made under the Peace Accords. Sustainable improvements in income and living conditions also will depend on stemming current rates of depletion of the natural resource base, which is a major contributing factor to poverty in Guatemala.
The requirements for addressing these multiple challenges, in addition to financing the costs associatedwith the peace agreements, is enormous and far exceed Guatemala's current domestic reserves and revenue-generating capacity. Donor funding is an essential complement to domestic financing, given the estimated $2.3 billion cost of implementing the Accords over the next four years. Thus, Guatemala is not considered a candidate for graduation from U.S. economic assistance in the near term.
Other Donors
Official Development Assistance data for 1995 is not yet available, however, it appears that the United States continues to be a major bilateral donor. Economic assistance to Guatemala administered by USAID totaled $32.9 million in FY 1995 and $27.0 million in FY 1996. Other major contributors include Japan, Germany, the Interamerican Development Bank, the World Bank, United Nations (UN) agencies, and the European Economic Union. With the signing of the Final Peace Accords, the donor community has been called on to pledge over $1 billion in new resources over the next four years.FY 1998 Program
The range of development activities supported by USAID has been continually refined and reduced to focus on four principal areas: democratic development, improved health, broad-based economic growth and poverty reduction, and sustainable natural resource management. Geographically, our programs are targeted on the departments comprising Guatemala's belt of extreme poverty, which is largely indigenous, and the areas most affected by the 36 year conflict. In addition, since 1995 USAID has developed initiatives to support implementation of the Peace Accords, and this objective constitutes the primary focus of our program in FYs 1997-98.A lasting peace, stronger democratic institutions, and greater equity are clearly linked to U.S. hemispheric interests. Greater economic prosperity will make the 10 million Guatemalans a stronger market for U.S. products, as well as deter illegal migration and use of Guatemala as a major transit point for narcotics trafficking. The proposed mix of Development Assistance (DA), and P.L. 480 Title II resources complemented by $25 million of Economic Support Funds will enable the United States to achieve its highest priority objectives and help address the root causes of Guatemala's longstanding armed conflict, among them, persistent and widespread poverty. Reductions in the level of DA funding would force us to scale back efforts to advance equitable economic growth. Without ESF resources, USAID will have to retreat on its support to the implementation of the Peace Accords in the areas of demobilization and reinsertion, modernization of the state, and increased human capacity and sustainable production in ex-conflictive and resettlement areas.
Agency Goal: Building Democracy
USAID/Guatemala's Strategic Objective 1 - Creation of a More Effective and Participatory Democracy -supports Agency Goal 2 by addressing both the issues of who participates in the political process; and the quality of services provided by government agencies. The focus is on expanding access to political and social institutions for the indigenous majority, and assuring greater responsiveness by those institutions.This strategic objective is grounded in a peace process that has yielded a final "firm and lasting accord" signed in December 1996. The implications of the Peace Accords for better governance and the democratization of Guatemala are profound. The Accords not only identify priority tasks for the short term in creating a new Guatemalan state, but they spell out a development plan for the next quarter century. They are the best single indicator of "what Guatemala wants" and provide the framework for USAID's interventions in this sector, which are characterized by a set of four program priorities: 1) a more effective, accessible criminal justice system; 2) greater respect for human rights; 3) greater citizen participation in political processes; and 4) a strengthened, more responsive Congress.
The constitutional transfer of power to a popularly elected president in early 1996 was a milestone in Guatemala's transition to a more stable democracy. The task facing the new government is that of consolidating the gains achieved to date, and strengthening the institutions upon which the long term viability of democracy depends. Actions taken by the Arzu government in its first year to assert full civilian control over the government and to remove corrupt officials in the security forces, bode well for the future of democratic development in Guatemala. USAID will actively support this process.
USAID's support during 1994-1995 was instrumental in initiating reform in the criminal judicial system. Through our funding, newly-created training schools within the Supreme Court and the National Prosecutor's Office provided training and technical assistance to 300 prosecutors, legal defenders, judges and magistrates. Despite many detractors and rising levels of crime, over 200 oral trials have been held to date, and improved prosecutorial skills have demonstrated that modern criminal procedures can be applied fairly and efficiently in Guatemala. Consolidation and deepening of these gains, and combatting impunity, remain major challenges for 1997 and the rest of the decade.
The 1995 elections were a tribute to the professionalism and impartiality that characterize Guatemala's Supreme Electoral Tribunal (SET), a recipient of USAID training assistance focussing on enhanced civic participation nationwide. While voter turn-out was low (46% for the first round, 37% for the second round), it is doubtful that participation would have been even this high without USAID and other donor funding for get-out-the-vote campaigns in rural areas. As a result, the SET has now fundamentally changed the function of its 300 municipal representatives toward promoting citizen/voter participation in the electoral process.
The National Congress elected in late 1994, following the "purge" of corrupt representatives, benefitted from USAID-funded technical assistance for a viable committee system and a more professionally-managed legislative process. That assistance is already serving the new, politically more diverse Congress elected in late 1995, as representatives face the added challenge of the multiple legislative actions required to implement the ambitious requirements of the peace accords signed to date.
Strategic Objective 1: More Inclusive and Responsive Democracy Agency Goal: Stabilizing World Population Growth and Protecting Human Health
At the current rate of 2.9% growth per year, Guatemala's population is expected to double in about 20 years. This will make the task of achieving self sustaining economic and social development more difficult. USAID's strategy for this sector emphasizes the delivery of culturally sensitive, high quality, maternal-child health (MCH) and family planning services, especially in poor and formerly conflictive areas. Working through the Ministry of Health and several U.S. and local nongovernmental organizations (NGOs), the program focuses on promoting appropriate family household practices as well as improving the quality of services provided by voluntary community health workers, nurses and physicians. Our goal is to improve overall health indicators, especially infant and maternal mortality, reduce overall fertility levels, and improve the quality and availability of basic services to rural populations.Due to sustained USAID and other donor support between 1987 and 1995, the infant mortality rates dropped from 74 to 51 (per 1,000 live births) and child mortality rates declinec from 109 to 68 (per thousand). The total fertility rate decreased from 5.4 to 5.1, and the contraceptive prevalence rate increased from 23% to 31% during this same period. The woefully low vaccination coverage of only 5% in 1985 increased to 42% in 1995 -- still a far cry from the 80% target. Almost one-fourth of acute diarrheal diseases in children under five are treated with oral rehydration therapy. USAID's program to reduce maternal mortality is now fully operational in four departments (states) with critical need. This successful program is being replicated by another donors in four additional departments. The USAID program to reduce childhood deaths from pneumonia is focused on eight departmentswhere the need is greatest.
Strategic Objective 2: Improved Community and Family Health Agency Goal: Protecting the Environment
The number of people living in extreme poverty in Guatemala is growing, due in part to the rapid degradation of the natural resource base from which 80% of the population derive income. USAID environmental activities are designed to promote more sustainable income generating practices, support policy reform to provide greater incentives for sustainable land use and conservation of biodiversity, and strengthen key institutions to play more effective and sustainable roles in support of environmentally sound management of natural resources.USAID has been the lead donor in this field in Guatemala over the past decade and has been successful in linking conservation and development through the biosphere concept. Specifically, within the Maya Biosphere Reserve, over 4,000 km2 of natural forest cover has been saved from deforestation and conversion to unsustainable uses. Throughout Guatemala, over 12,000 families have adopted more sustainable land use practices and income strategies, including small-farmer coffee production and processing, improved hillside agriculture, agro-forestry, ecotourism and environmentally sound related enterprises. USAID activities have had a significant impact to date on increasing the understanding of the vital link between management of the natural resource base and the economic well-being of the poorest families in Guatemala.
Strategic Objective 3: Sustainable Natural Resource Management and Conservation of Biodiversity in Priority Areas Agency Goal: Encouraging Broad-based Economic Growth
The Peace Accords signed between the Government of Guatemala (GOG) and the guerrilla leadership commit the Guatemalan society for the first time to programs targeting endemic poverty and social, economic and political inequality in Guatemala. Seventy-five percent of Guatemalans live in poverty, and 50% live in extreme poverty. USAID's strategy to address this issue is three fold: increasing short-term food security for those most at risk; increasing access to credit, training and markets as a medium-term effort to increase economic opportunity; and enhancing Guatemalan capacity to improve quality and coverage of intercultural and bilingual education in order to address the long-term barrier to access to opportunity.Poverty and uneven access and availability of food, as well as the overall poor health status of rural populations mean that a large percentage of Guatemalans go hungry. In FY 1996, PL 480 Title II programs improved the food security status of 359,000 participants in Maternal Child Health activities, small loan funds for farmers, and Food for Work activities providing supplementary food rations to poor families in exchange for their work. In each of these areas, P.L. 480 Title II resources are integrated with Development Assistance resources to achieve greater results.
USAID's major emphasis in support of economic growth has been to improve primary education, help Guatemala strengthen its trade and investment policy regime and improve labor relations in order to assure an environment conducive to greater productive investment and support to on-the-ground productive activities increasing income for small coffee farmers. Our programs for FY 1998 and beyond, will focus on improved intercultural and bilingual education, and providing access to credit, training and technical assistance in rural areas for microenterprise and agricultural activities.
Strategic Objective 4: Expanded Economic Opportunity for Guatemalan Poor in Selected Geographic Areas Agency Goal: Providing Humanitarian Assistance
The United States has been a principal player in all donor coordination efforts surrounding the Guatemalan peace process. The proposed program in support of the full and effective implementation of the final Peace Accords signed on December 29, 1996, builds on USAID's earlier support for the interim peace accords as they were being negotiated one by one. USAID has developed a multi-year assistance package to support the final Peace Accords and build public confidence in the GOG's ability to deliver on the commitments made in the agreements. Immediate needs include demobilization and reinsertion of ex-combatants into the economy, economic revitalization of ex-conflictive zones (through efforts in human capacity development as well as improved access to credit, technical assistance and improved infrastructure) and modernization of the state, designed to facilitate GOG implementation of high- impact peace accord commitments.In assisting Guatemala in its transition to peace and sustainable development, the United States will be promoting our interests in seeing a peaceful, prosperous Central America. While such special support is politically and economically necessary, virtually all USAID programs will be linked to the implementation of the Peace Accords which lay out both short-term priorities and a long-term development plan for Guatemala.
Special Strategic Objective: Support Implementation of the Peace Accords
GUATEMALA
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. More Inclusive and Responsive Democracy Dev. Assistance
P.L. 480 Title II
2,000
1,697
2,000 1,697
2. Improved Family and Community Health Dev. Assistance
P.L. 480 Title II
12,215
6,304
12,215
6,304
3. Sust. Natural Resource Management & Conservation of Biodiversity Dev. Assistance
P.L. 480 Title II
4,635
727
4,635 727
4.Expanded Economic Opportunity Dev. Assistance
4,488
4,488
Special Objective: Support
Implementation of
the Peace Accords
Dev Assistance
ESF*
P.L. 480 Title II
3,394
3,394
Total Dev. Assistance
ESF*
P.L. 480 Title II
4,488
12,215
4,635
2,000
12,122
23,338
12,122
*LAC Regional request includes $25,000,000 attributed to Guatemala Peace Program
USAID Mission Director: William Stacy Rhodes
ACTIVITY DATA SHEET
PROGRAM: Guatemala
TITLE: More Inclusive and Responsive Democracy, 520-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $2,000,000 DA, $1,697,000 P.L 480 Title II
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To strengthen democratic stability by promoting more responsive and accountable government institutions and increased citizen participation in the political process.
Background: The constitutional transfer of power to a popularly elected president in early 1996 was a milestone in Guatemala's transition to a more stable democracy, coming in the wake of a publicly-mandated purging of the Congress and changes in leadership of the judicial system. The major constraints facing the new government as it seeks to strengthen representative democracy are many, but include: weak and inefficient government institutions, particularly the judiciary; low levels of public support/tolerance for basic democratic values such as free expression and respect for human rights; and a limited, yet increasingly dynamic, movement of civil society organizations that provide effective channels for citizen participation. Early actions by the President Arzu government to advance the peace process and lay the ground work for a true shift in the balance of power that would allow for meaningful participation by the traditionally disenfranchised bode well for the future of democratic reform. Yet much remains to be done.
USAID is committed to advancing the democratization process through a variety of programs which encompass: the Judicial Sector Reform Support Project which supports key justice sector institutions such as the Public Ministry, the court system, the university law faculties and the bar association; the Democratic Institutions Project, through which technical assistance and training are provided to the Congress, the Office of the Human Rights Ombudsman, and civil society organizations: the Guatemala Peace Scholarship Program; and the Street Children Support Program which promotes the protection of children's rights through legal reform, education and service provision to children whose rights have been abused.
USAID Role and Achievements to Date: USAID continues to be a major donor in the sector, although it no longer plays a dominant role as new sources of financing from other bilateral and multilateral donors and the international development banks come on stream. Donor coordination in the sector is critical, and will become all the more important for the full and successful implementation of the GOG's ambitious peace plan.
Although USAID needs to be flexible in its programming priorities as new donor financing comes is made available the greatest emphasis will remain on improving the fairness and responsiveness of the criminal judicial system. U.S. support for training and technical assistance focused on the successful implementation of the new criminal procedures code has directly benefited some 300 prosecutors, judges and public defenders and has enabled the judicial system to carry out over 200 oral trials nationwide, demonstrating that modern criminal procedure can be applied in Guatemala. Several high profile cases were tried in 1996 through public, oral trials by competent judges and prosecutors who benefited from USAID financed training. These dealt a serious blow to the impunity that has long been enjoyed by the wealthy and powerful who, through bribery and intimidation, could easily buy their way out of a conviction under the old system. As a result, the debate among Guatemalans has advanced from the issue of whether to maintain the new procedural law to how to best implement its sweeping changes over the short term.
The elections of 1995/96 were a tribute to the professionalism and impartiality that exist among the staff and delegates of Guatemala's Supreme Electoral Tribunal (SET), an institution which has for many years received USAID training assistance. While voter turn-out was low (46% for the first round, 37% for the second round), it is doubtful that participation would have been even this high without USAID and other donor assistance for get-out-the-vote campaigns.
The National Congress has also benefitted from USAID funded technical assistance to develop a viable committee system and a more professionally-managed legislative process. In 1996, USAID expanded its assistance to help in the design and implementation of a multi year modernization plan that will provide the Congress with a sustainable, in-house capacity for legislative development, an increased ability for executive oversight and better representation through improved constituent services.
Description: USAID's program will continue to focus on the complementary objectives of creating a more responsive criminal justice system, deepening the culture of respect for human rights, stimulating greater citizen participation political processes at both the national and local levels, and supporting a more professional, responsive legislature. Our support for the implementation of the new criminal procedure code will focus increasingly on the sustainability of the training and professional development programs required to ensure application of the new procedures. Particular emphasis will be given to development of a stronger prosecutorial function, civilian-directed criminal investigation and expanding access to mayan speakers through judicial interpretation training. In the area of human rights, institutional strengthening support provided to the Human Rights Ombudsman to improve investigation and follow-up will be complemented by efforts to strengthen non-governmental organizations' advocacy for judicial reform. New Initiatives to strengthen local government as the nexus for citizen engagement in public policy. and to support advocacy organizations working at the national level will be designed in 1997 and come on line by early 1998.
Host Country and Other Donors: The United Nations Verification Mission for Guatemala (MINUGUA) is actively engaged in institutional strengthening and human rights verification. Other multi lateral donors such as the European Union, the Organization of American States, the World Bank and the Interamerican Development Bank plan major investments in this sector as well. Additionally, the Government of Guatemala invests its resources in USAID-supported initiatives. In spite of the recent increase in funding for this sector from the international community, the expectations of the Guatemalan citizenry for immediate, tangible dividends from the peace process are great, and beyond the current capacity of the Guatemalan government to satisfy in the near term. USAID must continue to be an important contributor to the consolidation of democracy.
Beneficiaries: USAID activities in the democracy sector are targeted at historically disenfranchised populations, especially the poor rural, indigenous majority. The nature of democratic development, however, yields benefits for the entire Guatemalan population.
Principal Contractors, Grantees, or Agencies: USAID has implements activities through bilateral agreements with the judicial branch, the Public Ministry, the San Carlos University Law School, the Office of the Human Rights Ombudsman's and the national congress. Activities are managed by a mix of U.S. partners such as Development Associates, DPK Consulting, the State University of New York, Partners of the Americas, and local NGOs.
Major Results Indicators:Unit: Percentage of favorable ratings in DIMS (Democratic Indicators Monitoring System - a biannual survey of democratic attitudes and citizens' support for the democratic system):
Baseline (1993) Target (1997)
1) System Support Index 40% 42-44%
2) Democratic Liberties Index 55% 59%
ACTIVITY DATA SHEET
PROGRAM: Guatemala
TITLE AND NUMBER: Family and Community Health, 520-S002
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: $12,215,000, DA, 6,304,000 P.L. 480 Title II
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To reduce high levels of neonatal, infant, child and maternal mortality by increasing the access, coverage and quality of services, especially in remote rural areas thus contributing to sustainable development.
Background: Mortality rates of women, infants and children in Guatemala are the highest in Central America; the fertility rate (5.1) is also the highest in the region, and for the indigenous groups, it is one of the highest rates in the world (5.9). The key constraints to reducing mortality and fertility include limited access to basic services by more than half the population, low government investment in the social sectors, and the government's lack of leadership in establishing a mandate for primary, preventive health services. This program includes the final year of the eleven year child survival and four reproductive health projects, as well as the first year of the new family and community health strategy.
USAID Role and Achievements to Date: USAID's support includes four key interventions to save children's lives: immunizations, promotion of oral rehydration therapy, improved management of pneumonia, and birth spacing. Between 1987 and 1995, USAID activities contributed to reducing infant mortality by 23% from 74 deaths per 1000 live births to 57; child mortality has dropped by almost 28% from 109 deaths of children under five per 1000 live births to 79 during this period. USAID also supports an integrated women's health program designed to reduce maternal mortality through voluntary family planning services and improved management of obstetric complications. The USAID program has also contributed to a reduction in the total fertility rate from 5.6 to 5.1 between 1987 and 1995.
Description: USAID's program focuses on strengthening and linking three critical levels of care. At the household level, the program provides information and counseling to women about reproductive health and the prevention of childhood illness; this program also teaches women to recognize symptoms (such as pneumonia) that require medical attention. At the community level, the program helps traditional birth attendants and health promoters learn to provide essential services for women and children including temporary family planning methods, prenatal care, prevention of dehydration from diarrheal disease, and referring clients as necessary to formal health services. At the facility level, USAID trains health workers in the clinical management of obstetric and perinatal complications and childhood illnesses as well as family planning counseling and services. USAID has supported the Government of Guatemala's efforts to decentralize the Ministry of Health by establishing information systems and providing management training at lower levels of the health system.
Host Country and Other Donors: USAID, UNICEF, the Panamerican Health Organization (PAHO) and the European Union provide coordinated support in Guatemala for the national immunization program; the GOG provides all vaccines and syringes for this program. Likewise, this same group of donors works in coordination to support the national diarrheal disease control program. USAID and the European Union are working with the GOG to expand USAID's successful pilot program to reduce maternal mortality. Although USAID is the lead donor in supporting reproductive health, the GOG contribution to the national program has increased steadily for the past four years. USAID, in coordination with PAHO, is launching an initiative to promote "Integrated Management of Childhood Illness" in Guatemala. This approach, developed by WHO, is an integrated approach to the assessment, classification, treatment and counseling of sick children and their caretakers. This newapproach is also supported by UNICEF and promises to improve quality of care and further reduce child mortality in Guatemala.
Beneficiaries: The USAID integrated Maternal Child Health (MCH) program focuses on children under five years and women of child-bearing age. Through 1995, USAID's programs were in national scope; however, beginning in 1996, USAID supports target areas that have been seriously affected by civil war and/or areas where health indicators are far worse than the national average. The majority of the USAID beneficiaries live in rural communities and speak one of Guatemala's 23 indigenous languages.
Principal Contractors, Grantees, or Agencies: USAID implements activities through several U.S. firms, two U.S. non-profit organizations, and several U.S. and local NGOs.
Major Results Indicators: Baseline Target Infant Mortality per 1000 live births 57 (1995) 46 (2001) Child Mortality per 1000 live births 79 (1995) 60 (2001) Maternal Mortality Ratio per 1000 live births 220 (1995) 205 (2001) Contraceptive Prevalence Rate 31% (1995) 35% (2001) Total Fertility Rate 5.1 (1995) 4.8 (2001) Immunization Coverage (percent of children fully immunized by age one) 42% (1995) 80% (2001)Use of ORT in project areas 22% (1995) 40% (2001)
Women with 2 doses of tetanus toxoid 38% (1995) 60% (2001)
ACTIVITY DATA SHEET
PROGRAM: GUATEMALA
TITLE: Sustainable Natural Resource Management and Conservation of Biodiversity in Priority Areas, 520-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $4,635,000 DA; $727,000; P.L. 480 Title II
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2000
Purpose: To conserve biological resources of international importance, by providing sustainable income alternatives to marginalized populations and improving the management and protection of these natural resources.
Background: The number of Guatemalans living in extreme poverty has grown due to the rapid degradation of the natural resource base from which 80% of Guatemalans derive income. The cycle of poverty and resource degradation feeds upon itself with the support of an inadequate policy regime, weak public and private institutions to address natural resource management issues, and weaknesses in other key sectors such as education and justice. For example: although two-thirds of Guatemala's climate, soils, and topography are best suited for forest-based production, only about one-third of the country retain forests, and 3% of these continue to be cleared annually by landless poor for subsistence farming in a manner which is unsustainable. This program encompasses the continuation of the Maya Biosphere Project, including expansion to address returnees and internally displaced who are setting in protected areas.
USAID Role and Achievements to Date: For a decade, USAID has been a lead donor supporting environmentally sound management in Guatemala through activities such as improved small farmer production systems, watershed management, more environmentally sound coffee processing. Over 20,000 families have adopted more sustainable land-use practices and income strategies, including small-farmer coffee production and processing, improved hillside agriculture, agro-forestry, forestry and tourism-related enterprises. USAID has also supported the establishment of a legal framework for a national system of protected areas and support for linking conservation and development through the "biosphere" concept. Since 1989, USAID has assisted Guatemala to establish two biospheres, and to achieve a seven-fold increase in legally declared protected areas from 2,870 km2 to 19,228 km2 in 1995. For the Maya Biosphere Project, figures for 1996 show that 81% of the original target population have adopted more sustainable farming practices. In the Maya Biosphere Reserve alone,1.5 million hectares have been brought under improved management and over 5,000 km2 have been saved from conversion to unsustainable slash and burn agriculture. USAID also provided assistance which resulted in the passage of important laws to strengthen Guatemala's environmental policy framework.
Description: Initiatives focus on developing a broad-based local constituency for environmentally sound management of natural resources, promoting increased local participation in management of resources, improving the policy framework and demonstrating and disseminating environmentally sustainable income-generating practices. Public and private institutions are being strengthened to improve the administration of legally established protected areas and to develop and promote environmentally sound enterprises (eco-tourism and related services, organic agriculture, agro-forestry and forestry systems). The program is testing and demonstrating the environmental, social and financial sustainability of approaches, empowering local communities through concessions governing natural resource use, extending best management practices into new areas, and improving people's welfare while effectively counteracting historic deforestation trends.
Host Country and Other Donors: Counterpart commitments include over $11.1 million from the host country and $8.7 million from local and international nongovernmental organizations (NGOs). USAID has assisted the GOG to assure that environmental impact analyses are prepared for all donor programsand large private projects with potential impacts. USAID continues to coordinate with the Inter-American Development Bank on its $50 million Peten sustainable development investment project, the World Bank on land tenure, the German agencies on policy reform and forest management, and the European Union on its "Agricultural Frontier" program.
USAID and the United Nations Development Program worked closely on a $7.5 million Global Environmental Fund (GEF) project for the Izabal department using USAID's micro-watershed management work as a model. Similarly, coordination continues with United Nations High Commission on Refugees and other donors to encourage concentration on mid-to-long term sustainable solutions to resource management and socioeconomic issues facing resettled and displaced populations.
Beneficiaries: Marginalized families living in and around the Maya Biosphere (35,000 people approximately, of whom approximately 25% are from indigenous Mayan cultures, mostly K'ekchi) are the immediate beneficiaries. A new focus is currently under design to provide sustainable income producing opportunities to returnees and displace persons from formerly conflictive zones in support of Guatemala;s peace process. However, the conservation of natural resources and biological diversity benefits the entire country.
Principal Contractors, Grantees, or Agencies: USAID implements this program through USPVOs, (CARE, The Nature Conservancy, Conservation International, and Rodale Institute), local NGOs (ProPetén, Maya Center, Defenders of Nature, and the National Coffee Association), regional organizations (CATIE) and national agencies (National Environment Commission (CONAMA), National Council for Protected Areas (CONAP), Ministry of Agriculture and Livestock (MAGA).
Major Results Indicators:Result Description Baseline Target
-People adopting more sustainable land use practices, % of total population in new target area (35,000) 14% (1990) 55% (1999) -Km2 of natural habitat saved from conversion to agriculture, compared to trends 0 (1991) 670,000 (1999) -Selected institutions increase income from non-USAID sources ($US) 80,000 (1990) 1,100,000 (1998) -Policy regime reflects increased incentives for sustainable development and conservation (annual assessment based on 26-point policy agenda) No (1992) Yes (1997) -Total area officially protected, km2 2,870 (1990) 20,010 (2000) -Public land under sustainable land use management concessions with local communities, hectares 0 (1993) 100,000 (1999)
ACTIVITY DATA SHEET
PROGRAM: Guatemala
TITLE: Expanded Economic Opportunity for Guatemalan Poor in Selected Geographic Areas, 520-5004
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $4,488,000 DA
INITIAL OBLIGATION: 1997 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To promote economic growth through increased access to economic opportunity by Guatemalan poor in three ways: 1) improved quality and coverage of intercultural and bilingual education; 2) increased short-term food security for those most at risk; and 3) increased access to credit, training and markets. This program will contribute to the Agency Goal of encouraging broad-based economic growth.
Background: Guatemala has one of the highest incidence rates of poverty among low to middle income countries and has the highest incidence for countries of comparable GNP per capita. Even more alarming is that in 1980, 71% of the population was classified as poor, and 35% as extremely poor and in 1989/90, based on the same criteria, 79% of the population was poor and 59.3% was extremely poor. Civil conflict over the past 35 years ravaged the poor more than any segment of the population. The Peace Accords signed between the Government of Guatemala and the Guatemalan National Revolutionary Unity (URNG) guerrilla leadership commit Guatemalan society for the first time to programs which target endemic poverty and social, economic and political inequality.
Access to primary education in rural areas of the country constrain economic growth and expansion of economic opportunity. The quality and coverage primary education are limited by a chronic lack of government resources. The Government of Guatemala's budget for education, as a percentage of Gross Domestic Product (GDP), decreased in past years and has been noted as the lowest in Latin America, including Haiti. As a result, the sustainability and expansion of the pilot activities which show promising signs of improving quality, efficiency and equity of primary schooling remains a major challenge.
Access to credit, training and technical assistance in rural areas for microenterprise and agricultural activities has increased communities access to local and international markets. The National Development Bank has reached many of the rural county seats, as have donor small- and medium- scale credit programs. Access and sustainability remain problematic primarily due to the inability of local organizations to manage credit and provide direction, leadership and training to their members.
The nearly 60% of the rural population that fall into the category of extremely poor continue to require short term access to food. With a population growth rate of 2.9% a year food assistance will continue to focus on maternal and child health, small-scale community support activities to encourage income generation, and improved and sustainable agricultural production technologies to increase food production.
USAID Role and Achievement to Date: USAID support in education includes community based, active learning interventions, bilingual education services for Mayan students, a girl's education program, management information systems and management services and training. Successful models in bilingual education, one-room, active learning pilot schools and girl's education are being replicated by the GOG and other donors.
USAID activities with the Ministries of Labor, Economics and Finance have established a partnership through which limited technical assistance was provided to upgrade the Guatemalan tax system, cited as a primary target for reform. USAID's major emphasis has been on helping Guatemala strengthen its trade policy regime and improve labor relations through grants to both the public and private sector. USAID-supported on-the-ground productive activities have increased income for small coffee producerswith improvements in both the quality and quantity of product.
Description: The program will focus on three major areas impacting on reduced poverty: enhanced Guatemalan capacity to improve the quality and coverage of intercultural and bilingual education in order to address the long-term barrier to access to employment and income opportunities; increased short-term food security for those at highest risk; and increased access to credit training and markets.
Host Country and Other Donors: It is expected that the World Bank and IDB will fund major sector loans for education which will allow the expansion of current USAID pilot activities in the education sector on a national level. With USAID-funded technical assistance, the GOG Social Investment Fund supports community based schools in more than 1,200 communities that lack education services. The GOG has increased its budget for rural education, however it remains insufficient to meet the needs.
Other donors have benefited from USAID experience with the coffee credit program. USAID funded technical assistance provided input into the design of the International Fund for Agriculture Development (IFAD) and the GOG's National Land Fund both which identify the need for rural credit at the community level.
USAID maintains an actively coordinate with USPVOs implementing the PL 480 Title II Program, representatives of the World Food Program, and the GOG Planning Secretariat responsible for establishing GOG policies and priorities regarding food security.
Beneficiaries: Rural communities, organizations, parents and children will be the primary beneficiaries of this program. The National Development Bank, Ministry of Education personnel, local cooperatives, non-governmental organizations and the Ministry of Finance.
Principal Contractors, Grantees, or Agencies: It is anticipated that the primary counterpart will be the Government of Guatemala (Ministries of Education, Labor, Economics, Agriculture, and Finance. Program implementation will be through contracts, grants and cooperative agreements with local and international non-governmental organizations and one Participating Agency Support Agreement (PASA) for design, monitoring and evaluation.
Major Results Indicators: Major indicators and targets will be selected following a review of baseline data available under previous SO dealing with education, economic growth, health and environment. It is anticipated that the indicators at the SO performance level will include at least three of the following or similar measures: improved child nutrition reduced incidence of poverty change in women's employment, income and education status; use of income.
ACTIVITY DATA SHEET
PROGRAM: Guatemala
TITLE: Support Implementations of the Peace Accords, 520-SP01
STATUS: New
P ROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998 $25,000,000 ESF (attributed under LAC Regional request), $3,394,000 P.L. 480 Title II
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2001
Purpose: To support Guatemala's transition from armed conflict to peace and sustainable development through support to the full implementation of the Peace Accords.
Background: The Government of Guatemala and the guerrilla movement have negotiated six substantive accords covering human rights, resettlement of uprooted populations, historical clarification, the rights and identity of the indigenous people, socioeconomic and agrarian matters, and civil authority and the role of the military. To implement the final Peace Accords, operational agreements were signed relating to the implementation of the ceasefire, demobilization, reinsertion of the guerrilla forces into the political life of the country, and the passage of legislative and constitutional reforms required to implement the Accords. Nearly 400 specific commitments have been made under the accords to be implemented by the Government of Guatemala, international organizations, non-governmental organizations (NGOs), and grassroots organizations representing the people who were most affected by the conflict. The GOG has requested quick-disbursing assistance to meet the immediate costs of implementing the accords, thereby demonstrating the seriousness of its commitment to their full and effective implementation. The Peace Accords provide a road map to both short-term and long-term development in Guatemala.
U.S. assistance to the peace process in Guatemala began in FY 1995 with the establishment of the Guatemala Peace Fund to support specific substantive accords as they were being negotiated. Our assistance was then channeled through: the U.N. Human Rights Verification Mission, MINUGUA; the U.S. Department of Justice ICITAP program to strengthen the investigation and prosecution of human rights abuses; NGO programs to generate employment and income for people living in formerly conflictive regions; and support to the GOG to decentralize and expand health and education services to Mayan and ex-conflictive areas.
USAID Role and Achievement to Date: The first phase of this new four year program to support the final accords is in addition to the regular USAID development programs. Implementation began immediately upon the signing of the Final Accords on December 29, 1996.
Description: USAID's program is focussed on four major areas: (1) demobilization of ex-combatants and into society reinsertion their; (2) economic reactivation of ex-conflictive and resettlement zones through efforts in human capacity development; (3) increased access to credit and technical assistance; and improved infrastructure in ex-conflictive and resettlement zones; and (4) modernization of the state, designed to assure the GOG has the resources necessary to implement high-impact peace accord commitments. Some examples of specific activities that will be funded are credit programs for microenterprise and small farmers, rehabilitation and construction of rural roads and other infrastructure, vocational training for ex-combatants and other affected populations, training for education promoters and indigenous leaders, passage of reforms required by the Peace Accords in the justice, tax, and customs areas, and implementation of bilingual multi-cultural education.
The program includes a grant component which will generate local currency to support additional high priority projects linked to the Peace Accords. In addition, funding will be provided to UN agencies charged with carrying out specific peace accord functions (e.g., MINUGUA) which will continue its work in justice sector reform.
Host Country and Other Donors: The GOG has estimated the cost of financing the Peace Accord commitments to be approximately $2.3 billion and recognizes that a significant portion of the funding must be generated internally. A Consultative Group meeting was held on January 21-22, 1997 which generated pledges of $1.9 billion. Major donors include the IDB, the World Bank and the major donors, along with the European Union. Because of its ability to provide grant assistance and to do so rapidly, USAID's share of the overall contributions will be particularly important to securing early, tangle results under the Peace Accords.
Beneficiaries: The beneficiaries of this program will be the entire Guatemalan nation which has expressed its desire for peace and development through the negotiation of the Peace Accords. In particular, ex-combatants, refugees, displaced, and the permanent populations in the formerly conflictive and resettlement zones will most directly benefit from the full implementation of the Peace Accords.
Principal Contractors, Grantees, or Agencies: Entities of all three branches of the GOG (the Ministries of Finance, Health, Education, the Judiciary, Congress, and Presidential Funds), UN agencies, local and international NGOs, municipalities and local community organizations, are all expected to participate in the implementation of the program.
Major Results Indicators and Targets: In broad terms, the key results to which the program will contribute are the demobilization and resettlement of 1,000 ex-combatants and their families; improved education and vocational training throughout the ex-conflictive and resettlement zones; prompt access to factors of sustainable production assured in these areas and improved performance by the GOG through modernization and strengthening of key institutions, including absolute increases in social sector spending as a percentage of GDP and the creation of a new civilian police force, operating within and subject to an improved justice system.
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