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).
MEXICO
FY1998 Development Assistance . . . . . . . . . . . . . . . . . $9,250,000 FY 1998 International Narcotics Funds . . . . . . . . . . . . . . . . . $1,000,000 Introduction
The U.S. and Mexico share a 2,000 mile border. There is interdependence on the broadest range of economic and social issues including immigration, poverty, population growth, and environmental degradation. Due to its size and population, Mexico is one of our country's principal trading partners and a neighbor with whom many common political, economic and social interests are shared. Over the past two years (1995-1997), Mexico has demonstrated solid gains in coping with the worst economic recession in the past 50 years. The government's stabilization program managed to reduce the current account deficit from USD 30 billion in 1994 to only USD 716 million in 1995, and USD 500 million in surplus during the first half of 1996. The trade balance went from a deficit of USD 18 billion in 1994 to a surplus of USD 7 billion in 1995 and USD 6 billion during the first ten months of 1996. Inflation in 1996 will be about 27 percent, down from 52 percent in 1995. The economy has recovered more quickly than expected from the 6.2 percent decline in 1995, with the GDP up 4.4 percent in the first three quarters of 1996. The recovery, however, has not yet brought the economy back to where it was in 1994, and some setbacks are likely to occur along the road of recovery given the breadth of the reforms underway. Fierce opposition to the political, economic and social changes continue to be reckoned with as they deal with the vestiges of favoritism, corruption and lawlessness. There is full expectation that there will be significant economic, social and political gains achieved in FY1998.The Administration of Ernesto Zedillo (1994-2000) has developed a solid National Plan of Recovery and has reached out to build broad-based consensus across political parties and between public and private sectors. The principal tenets of the recovery plan are: (1) rigorous implementation of its monetary and fiscal policies; (2) continued liberalization of economic activities; (3) support for establishing open markets with other countries; (4) strengthening of the banking system; (5) encouragement of internal savings on a permanent basis; and (6) improvement of the country's human capital base through training and education programs.
Mexico's economic adjustment program succeeded in averting a sovereign default, limiting the inflationary impact of the financial crisis, and gaining access once again to international finance markets. The government's firm stabilization policies, its much improved export performance, and the liquidity provided under the U.S.-led support program are all hastening Mexico's recovery. However, the economy still continues to experience high unemployment and loss of real income as a result of the deep recession during 1995-1996.
Mexico's success or failure to resolve its problems of immigration, poverty, democratic transition, population and environmental degradation will have a direct effect on the quality of life and growth of the U.S. economy. Significant steps of bilateral cooperation to deal with these problems have been achieved and will continue during FY1998. Therefore, U.S. interests impel us to strengthen our partnership with Mexico, as it presses forward to solve problems of common concern and to create mutually beneficial opportunities for national growth into the 21st Century. Trade with Mexico (the U.S.'s third largest trading partner), accounts for more than 55% of all U.S. exports to Latin America and the Caribbean, and has returned to high growth rates that preceeded the advent of the 1995-1996 recession.
The Development Challenge
The population of Mexico was approximately 93 million in 1996 and projected to reach 121.8 million in 2020. Roughly 8% of the population is indigenous. The rate of natural population growth has slowed from over 3% in the mid-70s to 1.99% in 1996. It is the second most populated country in Latin America and larger than the combined population of all the countries in Central America and the Caribbean (60 million). Mexico's population is relatively young: in 1994 36% was 14 years or under. With these demographic characteristics it faces potential problems in terms of the country's capacity to create sufficient numbers of new jobs to meets its national labor requirements. Between 900,000 -1,000,000 new jobs are required annually to accommodate new entries into the job market. The quest for better living standards and employment, along with environmental deterioration have led to large rural to urban migrations, especially to Mexico City, Monterrey and Guadalajara, as well as in recent times to the northern maquiladora towns located along the U.S./Mexico border. The State of Mexico (which surrounds Mexico City) has received more than 400,000 immigrants a year, for the past decade.Prior to the advent of the current economic crisis, President Zedillo advanced sweeping proposals for judicial reform. Staying the course of its reform program and deepening the implementation of these proposals will be critical to restoration of investor confidence and subsequent economic revitalization. The North American Free Trade Agreement (NAFTA) also will provide opportunities for an improved quality of life. These opportunities will not come, however, without significant challenges to the environment. Given USAID's relationships with the principal actors and experience, it is in an excellent position to act as a partner of Mexico in helping develop better approaches in forestry, energy efficiency/industrial pollution and biodiversity conservation.
Mexico is classified as one of the largest "mega-diversity" reserves in the world, harboring one of the greatest ranges of habitat types and natural communities. Protection of global climate change and sustainability of the country's economic growth depends on effective management of the natural resource base and strict enforcement of environmental laws and regulatory frameworks. Mexico has dramatically raised environmental standards, but much still remains to be done on the environmental agenda.
Other Donors
Mexico's macroeconomic stabilization program is supported by one of the largest international financial support packages ever devised. The original package consisted of a total of up to USD 51.8 billion, divided as follows: up to USD 20 billion from the USG; up to USD 17.8 billion from the International Monetary Fund (IMF); up to USD 10 billion in short term swap facilities from the Bank for International Settlements (BIS); up to USD 3 billion from a group of international commercial banks; and up to USD 1 billion from Canada. As of the end of November, 1996, Mexico had outstanding USD 11 billion from the IMF, and a net of USD 3.5 billion from the Exchange Stabilization Fund (ESF) of the USG. Mexico has repaid USD 9 billion in short-and medium term swaps to the Federal Reserve and the U.S. Treasury.In providing this assistance, the USG acted to protect vital U.S. interests - American exports and jobs, the security of our common border, and the stability of other emerging market economies. In conjunction with the U.S.-led support program, the World Bank is providing $2 billion in assistance to the country's banking system, support for the social sector, and a $30 million technical assistance loan for infrastructure privatization. In addition, the Inter-American Development Bank (IDB) supported the emergency economic stabilization program with $1.5 billion in 1995-96. Other donor countries providing development assistance include principally Japan, Germany, Spain, and the European Economic Community.
FY 1998 Program
USAID's strategy for providing development assistance to Mexico will continue to focus mainly on the Agency's goals and Mexico's needs related to Encouraging Broad-based Economic Growth, Stabilizing Population Growth, and Protecting the Environment. A Special Objective in democracy has been approved for implementation in the period FY 1997-1998. Attention will also be given to Special Objectives (Targets of Opportunity) that support this strategic framework, specifically, Economic Growth and Prevention of AIDS. With diminishing levels of budget support program trends will further focus on improved management of the use of funds to prioritize development interventions to achieve maximum impact over the short-medium timeframe. We will seek to leverage our investments with resources of beneficiary institutions, the GOM and those of other donors and the IFIs. Levels of support to population activities are expected to decline as public and private sector sustainability increases.Agency Goal: Stabilizing World Population Growth and Protecting Human Health
Over the past half-century from 1940 to 1996, Mexico experienced a population explosion, witnessing an incredible increase from 20 to 93 million inhabitants. Recognizing that family planning was essential to the country's economic growth and stability, approximately two decades ago, the Government of Mexico approached USAID for help in moderating this skyrocketing rate of population increase. Since 1977, the annual rate of natural population growth has declined from 3.01% to 2.05% (1995), and is projected to be 1.76% by the year 2000.USAID population efforts before 1992 were directed to increasing contraceptive coverage and institution building, but with a limited focus on a few Mexican counterparts and in a limited number of states. Since 1992 the strategy has supported the Government of Mexico and two large Mexican NGOs in a nationwide effort to achieve a sustainable increase in contraceptive prevalence. These service delivery institutions have been effectively bringing about changes since 1992, as reflected by the following key indicators: contraceptive prevalence has increased by 8.3%, which translates into an increase of 1,187,284 new family planning users, and the total fertility rate has dropped from 3.1 to 2.8.
Other significant results include extension of new service delivery strategies to rural areas, strengthening of national no-scalpel vasectomy and postpartum programs, analysis and design of information, education, and communication (IEC) materials for users and service providers, development of new approaches to service delivery through counseling, reduction of medical barriers, training in new contraceptive technology, and development of specific service delivery and IEC strategies for special populations (adolescents, men, and indigenous people).
Challenges for FY1998 will most likely revolve around Mexico's continuing economic recession. Plans for phase-out of USAID assistance in this sector planned for 1998 are continuing, but with careful consideration of both public and private sectors' needs and future sustainability. And, while outreach into more remote areas still remains a challenge, USAID assistance has been effective in assisting Mexican partners to increase access to services for those most in need.
Strategic Objective 1: Sustainable increase in contraceptive prevalence
Special Objective 3: HIV/AIDS Prevention Agency Goal: Protecting the Environment
Environment is a strategic area of USAID assistance in Mexico that presents two faces: on the one side negative impacts impinging on public health, safety and economic productivity, and on the other resources, technologies and services that are key to trade, economic growth and sustainabledevelopment. Mexico, as both a neighbor and major trading partner of the USA, from the environmental perspective represents both a risk and an opportunity.Climate change, pollution and environmental destruction are long-term problems which respect no political boundaries and require cooperation and coordinated actions. Noxious emissions and effluents in Ciudad Juárez freely cross the border to El Paso, Texas. U.S. technologies for pollution prevention, energy efficiency and renewable energy development are badly needed in Mexico and represent both major markets and windows for global trade and development. Improper management of forests, soils and wildlands results in waste, species extinctions, and in the longer term poverty, illegal migration and global warming. Agricultural crops, forest products and genetic resources will continue to play vital roles in the U.S. economy. In all technical areas, however, laws protecting the environment are only as good as the capability and willingness of the government and private sector to enforce them.
USAID's environmental program in Mexico, is well along in a strategic planning process that has led to consolidation and measured growth. This program will continue to focus on two global environmental problems of major bilateral importance and interest: climate change and biodiversity conservation. The program is building capacity in key governmental, non-governmental and private sector entities and is creating bridges to understanding the value and importance of compliance and sustainable development.
Many environmental activities link with and contribute to other strategic areas, including microenterprise development, democracy (through decentralization and NGO empowerment), and gender. USAID has initiated two integrated population/environment pilot projects and plans to expand this approach as a means of increasing impact and cost effectiveness.
Strategic Objective 2: Increase environmentally sound natural resource and energy use Agency Goal: Encouraging Broad-Based Economic Growth
Mexico is the third largest trading partner for the U.S. and represents the U.S.'s largest export market in Latin America. The Agency's broad-based economic growth goal has been pursued by USAID/Mexico in the context of legal and regulatory frameworks related to helping make NAFTA work since its passage in 1994. In FY 1998 these actions are expected to be directed to where they can achieve significant impact and to leverage investments of others in selected areas such as development of a securitized secondary mortgage market in Mexico, support for alternative dispute resolution mechanisms, and utilization of environmental technologies.
Special Objective 1: Encouraging improved performance of institutions involved in innovative technologies/processes that offer potential for leveraging significant investments of others and generate new job opportunities. Agency Goal: Advancing Democracy
This Agency Goal will be addressed in FY1998 primarily through a series of democracy initiatives which will focus on administration of justice, congressional exchanges, civil society participation, and rule of law/human rights.
Special Objective 2: Strengthened capacity of target institutions to deal with selected democracy/human rights issues.
MEXICO
FY1998 PROGRAM SUMMARY
(000's)
*Lac Regional request includes $1,000,000 for Mexico democracy objectives.
USAID Strategic Objectives: Encouraging Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environment Building Democracy
Providing Humani- tarian Assistance
Total
1. Sustainable increase in contraceptive prevalence. Dev. Assistance
3,000
3,000
2. Increase environmentally sound natural resource and energy use Dev. Assistance
5,400
5,400
1. Special Objective: Economic growth- Promote and Improve US/Mexican economic and trade relations
Dev. Assistance
200
200
2. Special Objective: Democracy - Strengthened capacity of target institutions to deal with selected democracy/human rights issues. Dev. Assistance
ESF*
INC
250
1,000
250
1,000
3. Special Objective: HIV/AIDS Prevention - Increased availability of information on modes of transmission and prevention of HIV/AIDS. Dev. Assistance
400
400
Total Dev. Assistance
ESF*
INC
200
3,400
5,400
250
1,000
9,250
1,000
USAID Mission Director: Arthur Danart
ACTIVITY DATA SHEET
PROGRAM: MEXICO
TITLE AND NUMBER: Sustainable increase in contraceptive prevalence, 523 -SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY1998: $3,000,000 DA
INITIAL OBLIGATION 1995; ESTIMATED COMPLETION DATE: FY1998
Purpose: To increase access to and quality of family planning and reproductive health services, primarily in rural areas where unmet demand for these services is high.
Background: In November 1991, USAID entered into a landmark agreement with the Mexican Government and key private sector family planning organizations. A critical aspect of this agreement is the United States' plan to incrementally decrease funding for the population program through 1998, and the Mexican Government's commitment to increase its funding in comparable amounts. In 1992, project activities began within the public sector in those states defined by the GOM as priority (Chiapas, Guanajuato, Guerrero, Hidalgo, Oaxaca, Puebla, Veracruz, Estado de México, Michoacán, Jalisco, Querétaro, San Luis Potosí, Zacatecas) and in the private sector, nationwide.
USAID Role and Achievements to Date: The USAID goal is to ultimately phase USAID out of population activities and to have the Government of Mexico, in partnership with NGOs, assume complete responsibility for continuing the program. Toward this end, USAID has assumed a coordinating role, leaving direct service delivery to the Government of Mexico and the participating NGOs. USAID and its cooperating agencies have provided technical assistance, training and limited commodity costs required to establish an institutional framework for extending the family planning program to underserved areas. In exchange, the Mexican Government has agreed to assume full responsibility for recurring expenses of maintaining the program.
The hard data evidence for impact of USAID assistance is clear. From the onset of the strategy to 1995, contraceptive prevalence has increased by 8.3%. In absolutes, this represents an increase of 1,187,284 new family planning users between 1992 and 1995. The total fertility rate (TFR) has also been favorably affected by this assistance: in 1992, the TFR was 3.1 and in 1995, it was 2.8.
Other achievements include extension of new service delivery strategies to rural areas, strengthening of national no-scalpel vasectomy and postpartum programs, analysis and design of IEC materials for users and service providers, new approaches to service delivery through counseling, reduction of medical barriers, training in new contraceptive technology, and development of specific service delivery and IEC strategies for special populations such as adolescents, men, and indigenous people.
Description: In FY1998, USAID will continue to support the activities of the public and private sector institutions providing reproductive health and family planning services in Mexico. Direct funding to these institutions will be in the areas of strengthening service delivery through training, IEC, supplies, equipment, monitoring, supervision, and evaluation, and will be carried out in the priority states mentioned above in order to maximize impact and concentrate resources where they are most needed.
Specifically, private sector support will be for the two largest NGOs in Mexico: MEXFAM (the International Planned Parenthood Federation affiliate) and FEMAP (a Federation of private family planning organizations), so that they may expand and improve family planning services to low income and underserved populations, while simultaneously receiving the technical assistance necessary to make the transition to sustainable programs without USAID funding. Areas of technical assistance include logistics, management, quality control, and social marketing.
Public sector support will be provided to the participating Mexican public sector institutions (CONAPO: National Population Council, IMSS: Social Security for Private Sector Employees, SSA: Ministry ofHealth, and ISSSTE: Social Security for Government Employees and Teachers). These institutions provide over 60% of the family planning services nationwide ensuring USAID impact in the target areas. Concrete areas of support include, among many others, training of medical and paramedical personnel in modern family planning methodology, including no-scalpel vasectomy and IUD insertion, provision of medical equipment, especially for those rural hospitals and clinics lacking such equipment, and the development and implementation of a national mass media campaign.
Phase-out of population assistance to Mexico within both the private and public sectors is looming on the horizon, and while USAID's cooperating agencies have been instrumental in helping the Mexican institutions work towards financial and technical sustainability, the economic crisis has made it difficult for them to continue providing high quality services. Through the transfer of technology, the final years of the population strategy will be used to ensure that these high quality services can continue to be provided even after termination of USAID assistance.
Host Country and Other Donors: Large donors joining USAID in supporting Mexico are the World Bank, the United Nations (UN) agencies, Japan, the United Kingdom, Canada, and Germany.
Beneficiaries: While men and women of reproductive age in the priority states of Mexico, about 25 million, directly benefit from GOM and private sector reproductive health services, this figure increases to approximately 50 million when considering the children and families who also profit.
Principal Contractors, Grantees, or Agencies: USAID implements activities through 12 U.S. cooperating agencies (The Populaiton Council, John Snow, Inc., the Population Reference Bureau, two local NGOs (MEXFAM and FEMAP), and four local public sector institutions (IMSS, SSA, ISSSTE, and CONAPO).
Major Results Indicators: Baseline TargetPeople trained annually in 422 (1993) 2,000 (1998) family planning service provision
New users of public sector family 946,950 (1992) 1,400,000 (1998) planning services
CYPs for key family planning NGOs 442,347 (1992) 551,610 (1998)
Total annual GOM family 63,200 (1992) 60,000(1998) planning budget (US$000)
ACTIVITY DATA SHEET PROGRAM: MEXICO
TITLE AND NUMBER: Increase environmentally sound natural resource and energy use, 523-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY1998: $5,400,000 DA
INITIAL OBLIGATION FY1990; ESTIMATED COMPLETION DATE: FY2006
Purpose: to support the sustainable development of Mexico through the promotion of environmentally sound natural resource and energy use focusing on climate change mitigation and biodiversity conservation.
Background:
USAID Role and Achievements to Date: Although the environmental problems being dealt with are complicated and long-term, significant progress is already clearly evident in the program's two primary areas of activity: 1) the development of Mexican capabilities to mitigate climate change; and 2) the conservation and development of biological resources. In the short six year history of USAID/M's E/GCC program the following significant developments have occurred over a number of technical areas:
--the Mexico Conservation Fund to support biodiversity conservation and development is up and running, with an initial $20 million USAID and $10 million GOM endowment established;
--an important $9.5 million USAID/DOE co-funded renewable energy demonstration and promotion program is running well, exceeding expected outputs. Important progress has been shown re. the mitigation of global warming, the procurement of U.S. equipment/services, and replicability;
--a joint USAID-EPA program is supporting Mexico's GCC country studies/mitigation action plan actions and strengthening Mexico's leadership position as a key climate change country;
--USAID's capability to provide timely and cost effective technical assistance is being recognized by various Mexican entities (i.e., IMP, DDF, CFE, industry) in such areas as energy efficiency, urban/industrial pollution prevention, sanitary landfill/waste management, and training; and
--USAID-supported conservation NGOs (TNC, WWF, CI) are making a major contribution in the management of Mexico's parks and reserves, protection of biodiversity, and reform of "green" policy and legislation.
DescriptionThe S.O. works in two sectors of global significance: climate change and biodiversity conservation. Within climate change, activities focus on the adoption of renewable energy, energy efficiency and pollution prevention technologies and practices; and the management of protected areas and forest conservation. Within biodiversity conservation, activities focus on conserving both terrestrial and marine systems (including coastal zone management) and supporting the establishment of a national conservation fund. This new framework will, with limited financial resources, maintain a focused and high impact E/GCC program while integrating the important new areas of coastal/marine resources management and urban/industrial pollution prevention.
Within the forestry portfolio, several of the smaller protected area grant projects will be completed or subsumed under larger umbrella projects with WWF/BSP, TNC/PiP, and the Mexico Conservation Fund. Thus, within approximately one year the forestry portfolio will consist of fewer but larger activities, reducing USAID/M's management burden. The energy portfolio is expected to grow with the integration of Global resources and the initiation of the Mexico Energy Initiative late in 1997. The Mexico Conservation Fund is now initiating it's first grants cycle and the important ten-year oversight period has been initiated through which USAID will be able to play a greater role in the facilitation/strengthening of Mexico's biodiversity conservation. This will involve increasing collaboration with other "green" U.S. technical line agencies (i.e., USES, USNPS, DOI, USF&WS, US Biological Service), and perhaps the incorporation of grants for wetland and bird conservation.
Two other technical areas which have been receiving much attention and support, both from the U.S. and Mexican side, are urban and industrial pollution prevention and coastal zone/marine resources management. Both of these areas are being incorporated into the environmental results framework.
Host Country and Other Donors: Both of the E/GCC programmatic areas of emphasis are global environmental issues of great international, regional and national support, and donor attention USAID/M activities/funding under climate change are increasingly being taken into account and integrated into the Mexico GCC initiative involving country studies, a greenhouse gas (GHG) emissions inventory, and action planning/mitigation. On the biodiversity side, the Mexico Conservation Fund is linking closely with CONABIO, the GOM-supported entity that oversees all biodiversity conservation and development in Mexico, and internationally. Both of these areas involve expanded collaboration with the private sector, numerous foundations, and the multilaterals. Several examples and opportunities of replication and co-funding with the IDB and World Bank can be cited that support/link with USAID activities in energy efficiency, renewable energy, protected areas/biodiversity, and the Mexico Conservation Fund.
Beneficiaries: A diverse range of end beneficiaries are affected by E/GCC activities in Mexico, depending on the technical area being considered. Since both of the areas of focus relate to global and cross-border environmental problems, important benefits are accrued internationally, and importantly to US citizens. Intermediary institutions involved in and benefiting from the program include indigenous and U.S. environmental NGOs and the private sectors in both countries.
Principal Contractors, Grantees, or Agencies: In the area of GCC/forestry primary clients include World Wildlife Fund, The Nature Conservancy, Conservation International, PRONATURA. Our work with them also supports approximately 25 Mexican partner organizations. The primary Mexican collaborators in the GCC/energy portfolio are CFE, FIRCO, IIE, DDF, CONAE and industry. In the area of biodiversity conservation it is the Mexico Conservation Fund.
Major Results Indicators : Baseline Target
Carbon dioxide emissions prevented through selected energy uses per year 100% (1) 25% reduction
Average annual deforestation rate in target areas 8%(2) site av. 5% site areas
Number of viable populations of indicator species TBD (3) 50% or more maintained in target areas
ACTIVITY DATA SHEET
PROGRAM: MEXICO
TITLE AND NUMBER: Increased Availability of Information on HIV/AIDS 523-Sp03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY1998: $400,000 DA
INITIAL OBLIGATION 1988; ESTIMATED COMPLETION DATE: FY2000
Purpose: To increase availability of information on modes of transmission and prevention of HIV/AIDS.
Background: Mexico has the third largest number of reported AIDS cases in the Hemisphere, and the epidemic is expanding. In some areas, HIV/AIDS infection is closely linked to travel to the U.S. Mexico is also of great regional importance in efforts to control the spread of HIV/AIDS between North and Central America. In view of tourism, commerce, and immigration patterns in the region, HIV/AIDS poses a threat not only to development in Mexico, but also to prevention efforts in the U.S. Lessons learned from the difficult experiences of many African countries point to the need for a strong containment effort in Mexico. The close geographic, economic, and social ties between Mexico and the U.S. and our 2000 mile common border, with more than 300 million legal crossings each year) underscore the need for joint cooperation and support in fighting the HIV/AIDS epidemic.
USAID Role and Achievements to Date: The USAID program seeks to interrupt the sexual transmission of HIV by getting information out to the population at large and to specific high risk groups, including adolescents and migrants, whose behaviors place them at increased risk of HIV infection. Achievements to date include the translation of information on HIV/AIDS into eight indigenous languages, the training of university students as replicators of information in marginalized rural communities in Michoacan State, training of peer educators in the maquila (in-bond) plants in a key border city, and the strengthening of non-governmental organizations (NGOs) and state AIDS prevention councils through specialized U.S. training.
Description: USAID/Mexico's strategic approach to contributing to HIV/AIDS prevention in Mexico which will respond to U.S. strategic interests and cross border issues. Integral to the strategy will be effective collaboration with the USAID funded Central American AIDS Prevention Project and the prevention/treatment of sexually transmitted infections (STIs) as a means of preventing the spread of HIV/AIDS. Absent a cure or vaccine, accurate and available information is the most effective weapon against the spread of HIV. Working through non-governmental organizations with access to the communities most affected by HIV/AIDS, USAID/Mexico works to disseminate up to date, factual information to groups most vulnerable to HIV infection - women, migrants, adolescents, and indigenous communities. USAID works primarily with local non-governmental organizations (NGOs), but has also joined with the National AIDS Prevention Council in sponsoring activities promoting NGO institution-building and linkages and increased capacity for conducting HIV/AIDS prevention activities. USAID aims to continue to play a catalytic role in AIDS prevention in Mexico by working through NGO partners with proven credibility and access to affected communities, and by leveraging resources from other donors for joint action in HIV/AIDS prevention. Through the USAID training program individuals active in HIV/AIDS prevention activities around the country receive training in the U.S., principally at the University of California, Santa Cruz, in AIDS prevention program planning. A new activity is a cross border intervention on the Mexico-Guatemala border which focuses on preventing the spread of HIV from one country to the other by targetting information and services toward mobile populations at a strategic location on the border between the two countries.
Host Country and Other Donors: The GOM is the chief contributor to activities in HIV/AIDS; however, a large proportion of its available resources is destined to care and medications for those already infected. In the area of prevention, in addition to USAID, donors include the World Bank fundedregional project for Latin America (SIDALAC), and the Ford and MacArthur Foundations, all with very limited resources. The Pan American Health Organization provides modest support to the National AIDS Prevention Council. To date, UNAIDS has not assumed an active role, but expects to do so in the future.
Beneficiaries: There are multiple beneficiaries of USAID HIV/AIDS prevention activities in Mexico. The general population benefits from greater availability of information on modes of transmission; in addition, special groups with high risk behaviors are the beneficiaries of targeted efforts in behavior change communications. Because of their greater vulnerability to HIV/AIDS and the emerging heterosexualization of the epidemic in Mexico, women are increasingly being targeted as beneficiaries of USAID HIV/AIDS efforts in Mexico. Ultimately, because viruses respect neither borders between countries nor national boundaries, U.S. citizens are also the beneficiaries of successful HIV/AIDS prevention activities in Mexico.
Principal Contractors, Grantees, or Agencies: USAID implements HIV/AIDS activities primarily through local NGOs with proven access to the communities most affected by the epidemic. These include the Common Front Against AIDS, Michoacanos Against AIDS, the Mexican Health Foundation, and the Mexican Federation of Private Health and Community Development Associations.
Major Results Indicators: Because funding for USAID HIV/AIDS Past and current activities has been extremely limited, therefore, results indicators have not been developed. However, results indicators are now being developed.
ACTIVITY DATA SHEET PROGRAM: MEXICO
TITLE AND NUMBER: Democracy Support, 523-Sp02
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY1998: $250,000 DA; $1,000,000 ESF; (attributed unclear LAC Regional request) $1,000,000 INC.
INITIAL OBLIGATION FY 1997 ; ESTIMATED COMPLETION DATE: FY98
Purpose: To strengthen the capacity of target institutions to deal with selected democracy/human rights isssues.
Background: From 1968 to the present, Mexico has embarked on a process of political reform that is transforming the country from a centralized, one-party system to a more pluralist, democratic system. While much remains to be done in implementing these reforms, the current administration of President Ernesto Zedillo is highly committed to pursuing these sector reforms.
The United States strongly supports Mexico's democracy reform movement. A fully democratic Mexico helps fulfill the aspirations of the Summit of the Americas agreement across the hemisphere in support of democracy as a fundamental foreign policy objective. Also, it creates a sustainable basis for internal peace and rule of law, increasing Mexico's attractiveness as a trading and investment partner. In the long-term, success of political reforms will contribute to greater, and more equitable economic development, that should decrease pressures for emigration to the United States. It is in the U.S. Government's interest to support Mexico's efforts to develop a more democratic system and to respond to Mexican needs in areas where we share common interests.
USAID Role and Achievements to Date: It is clearly evident from Mexico's 1994 economic crisis in Mexico that the country's political and economic stability are crucial and directly impact on U.S. national interests. Recognizing Mexico's sensitivity to any outside support or involvement in their internal affairs, particularly, in democracy related areas, it is USAID's policy to be responsive to Mexican leadership and requests for cooperation in this sector. Based upon broad-based discussions, the recently completed Assessment of Democracy and Governance concluded that USAID should offer support in four areas: rule of law; elections; Congress; and local government.
Democracy is USAID/Mexico's newest area of support. However, beginning 1994 USAID has financed a portfolio of activities centered mainly on fielding election observers for the 1994 Presidential elections and a number of state elections in 1995-96; funding of Tri-Lateral Roundtables to facilitate parliamentarian discussions on issues related to human rights, use of Internet and accessing of information on democracies throughout the world; analysis of Mexican media's portrayal of women in society and their ability to participate in political processes; and sponsorship of participants to a variety of conferences, workshops and seminars on alternate dispute resolution (ADR); legal services for the poor; legisltive drafting, pretrial detention; and crime, corruption and the administration of justice.
Description: USAID/Mexico's Strategic Assessment of Democracy and Governance was reviewed and approved on November 1, 1996 by the Latin America and Caribbean Bureau of USAID/W. This approval constituted the startup of a democracy program in the four focus areas of judicial exchange, congressional exchange; elections monitoring and observation, and local governerance. Achievement of the proposed Special Democracy Objecive is estimated to require a budget of $2.269 million over the period of FY96-98. Additional budget support outside of USAID's resources will be required. The U.S. Mexico Embassy supports this initiative and sees it as an integral part of its broader agenda onadministration of justice. While future meetings are planned by the LAC Bureau to solidify funding commitments from other USG agencies, immediate priority in FY 97 is being placed on the hiring of staff and designing the separate democracy initiatives.
Host Country and Other Donors: In addition to USAID's efforts, the Ford Foundation is also active in the democracy area. Its work is mainly concentrated in the area of municipal government strengthening, including studies of municipal reforms and management, dissemination of information/experiences to local governments, training support, and development of curriculum materials on local government administration at 15 local universities.
The World Bank and the Inter-American Development Bank (IDB) recognize political development and reform as crucial issues to Mexico's sustained development, and are working on ititiating several programs in areas of municipal support and fiscal policy-making reform.
Beneficiaries: The expected beneficiaries of the democracy program will be a broad cross-section of Mexican society in general. The most directly impacted will be direct participants such as governmental officials and private, voluntary organizations (PVOs/NGOs) that are selected for participation in the areas of technical cooperation.
Principal Contractors, Grantees, or Agencies: Since a major part of the Democracy Program is now, or will shortly be, in the design stage most of the implementors have yet to be selectd. It is expected that the implementation will be through U.S. and locally based PVOs/NGOs, members of the Federal Judiciary, Mexican Congress and their staffs.
Major Results Indicators: Baseline
The Results Framework and indicators of progress for the specific activities and the overall democracy program are being developed.
ACTIVITY DATA SHEET
PROGRAM: MEXICO
TITLE AND NUMBER: Promote and Improve US/Mexican Economic/Trade Relations, 523-Sp01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY1998: $200,000 DA
INITIAL OBLIGATION 1995; ESTIMATED COMPLETION DATE: FY1998
Purpose: Advance the development of innovative technologies/processes that offer potential for leveraging significant investments and for generating new job opportunities.
Background: Although free trade will not solve all of Mexico's problems, it has opened up channels with immense potential to stimulate Mexico's short-term growth and to build a solid foundation for long-term economic progress. Successful implementation of the requirements of free trade include Mexico's ability to comply with pertinent NAFTA rules and regulations. Since 1995 key counterpart agencies within the Mexican government have been targeted successfully for training and information exchange in order to achieve previous NAFTA related economic growth objective. FY1997 was the transition year for the USAID/Mexico program to move towards selective initiatives that were more opportunistic economically, and also supportive of strengthening Mexico's growing democracy and pluralistic society.
USAID Role and Achievements to Date: USAID's support has included training in patents, trademarks, and all forms of intellectual property rights. USAID assistance helped the Mexican Industrial Property Office eliminate a 8-11 year backlog in processing of patent applications. This portion of the project was completed one year ahead of schedule and resulted in over 10,000 patents being issued to U.S. interests as the backlog of applications was cleared out. Progress has been sustained and the focus has shifted from processing to training in technical areas such as biochemical and genetically engineered materials. Field training in the use of turtle excluder devices by Mexican commercial fishing and shrimp fleets has taken place in several locations in the Gulf of Mexico and repeated monitoring has yielded a record of sustained 100% compliance. The most recent project to come on-line provides USAID support to the GOM in the development of a secondary mortgage market. The office of Federal Housing Enterprise Oversight (OFHEO) is the lead U.S. agency in this initiative, and is working on the development of a securitized mortgage system that will expand Mexico's financial markets and afford greater opportunities for home ownership to more Mexican families.
The educational and training processes have improved Mexico's ability to participate more effectively and efficiently in free trade and have provided direct economic return to the U.S. through patent ownership. In addition, the ecology has benefitted through two marine resource conservation initiatives dealing with turtle and bi-catch excluder research as well as through the other environmental projects which USAID has supported under free trade.
Description: USAID has focused on institutions whose operations are critical to Mexican implementation of free trade: The Mexican Industrial Property Office (counterpart to the U.S. Patent and Trademark Office); The Secretariat of the Environment, Natural Resources and Fishing (counterparts to the U.S. Environmental Protection Agency, The National Marine Fisheries Service and the U.S. Department of the Interior); The Secretariat of Labor (counterpart to the U.S. Department of Labor); and Secretariat of Health (counterpart to the U.S. Health and Human Services - Food and Drug Administration).
Host Country and Other Donors: The World Bank and the Inter-American Development Bank are primary donors in the free trade initiative. These institutions are joined by the GOM which has been an active contributor in all aspects of the economic growth objective, covering all salaries, partialexpenses of training and transportation as well as by providing in-kind donations. Canada has also contributed to the labor and nutrition and labeling standards projects.
Beneficiaries: There have been multiple beneficiaries on both sides of the border. Increased efficiency in governmental operations has resulted in additional revenue to the GOM; patent ownership can create individual and corporate wealth as well as generating demand for labor and inputs. Workers have benefitted by requirements of free trade regarding occupational health and safety; health and conservation issues have been addressed, resulting in safer pesticide use, adequate nutrition labeling which allows consumers to make informed decisions, protection of endangered lands and species; and very low income families have been able to obtain the basic necessities of life through micro-enterprise jobs.
Principal Contractors, Grantees, or Agencies: USAID implements free trade activities primarily through PASAs with other U.S. Government agencies.
Major Results Indicators: Baseline TargetPercent of SEMARyNAP inspections that follow newly developed norms for industrial pollution control. 75% (1992-93) 100% (1995)
Percent of shrimp boats in compliance with required use of turtle excluder devices in the Gulf of Mexico and the Caribbean. 30-50% (1993) 100% (1994)
Percent of patent applications still pending after eight-eleven years. 4% (1992) 0% (1995)
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