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).
NICARAGUA
FY 1998 Development Assistance . . . . . . . . . . . . . . . . . $21,340,000 FY 1998 P.L. 480 Title II: . . . . . . . . . . . . . . . . . $764,000 Introduction
Progress to continue to deepen Nicaragua's democracy and free marketis of paramount importance to the United States. The free and fair elections concluded in October 1996 lay another cornerstone in the process of consolidating democracy and strengthening peace. The new administration is counting on U.S. support to help carry the process forward. Success in the medium-to-long term will bring stability and prosperity to Central America's poorest country, and will facilitate expanded trade not only between the United States and Nicaragua, but with the rest of Central America as well. Failure could again mean conflict and worsening poverty, and the chance to upset delicate progress being achieved throughout the region. As the 1980s proved, a tumultuous Nicaragua, and Central America in general, can produce direct consequences for the United States.The Development Challenge
Nicaragua is in its sixth year of a historic transition, from war to peace, from dictatorship to democracy, and from a statist economy to an export-led economy based on private initiative and enterprise. The decade of the 1980's -- characterized by civil war, a socialist economy, expropriation of private property, and a decapitalized productive sector -- precipitated a 40% decline in per capiita gross national product and led to hyperinflation. Nicaragua is now well on its way to recovery. The economy has rebounded with three consecutive years of solid growth. Peace and political stability have been restored. The recently completed national election was peaceful, free and inclusive. The people of Nicaragua chose a candidate and party which emphasized continued economic reform and private sector led growth as the key tenets of its platform. Nevertheless, to complete the transition from the failed policies of the past and make the recovery sustainable will take at least another five years to complete. Many challenges remain before the country can attain a solid democratic tradition and economic prosperity.The political challenge is to deepen the level of trust and to legitimize institutions. The recent elections highlighted the polarization that exists among leading political parties. The new administration will need to reach out to the opposition to govern effectively and continue the process of reconciliation. Civil society institutions must take hold and provide an outlet for people to express their interests. Local authorities must exercise more power relative to national government. The legislature must mature and demonstrate that it is a professional body capable of making legislative compromises that overcome partisan interests for the benefit of society as a whole. The judicial system must be modernized and reformed to achieve credibility in the eyes of the public as a fair arbiter of criminal and civil disputes. The military and police must scrupulously avoid appearances of partisanship, demonstrate a commitment to punish human rights abusers among their ranks, and take strides to modernize. The civil bureaucracy must slim further, and become more efficient and accountable to the public at large.
The economic challenge is to sustain growth and stimulate increased private investment, exports and jobs. In macroeconomic terms, the country has made great strides. The stabilization and structural adjustment efforts have set the country on the right economic path and must be continued. Key economic indicators like growth rates, exports and employment demonstrate progress. But the virtual collapse of the economy as a result of policies in the 1980's created a steep hill to climb. Nicaragua remains one of the poorest countries in the region, poorer than any other country -- with the exception of Haiti. Gross Domestic Product per capita is estimated at $450, and the World Bank estimates that 50% of the population live in poverty with 19% in extreme poverty. Unemployment estimates also range as high as 50%, with rural areas particularly hard hit. To achieve sustainable economic growth, Nicaragua must continue to deepen and expand the economic reforms already instituted. Remaining fiscal and financial imbalances, and foreign debt burdens must be resolved. Foreign and domestic investors must feel secure that the government supports their participation, which means confiscated property cases must be resolved fairly and quickly, privatization must continue, and the judicial system must enforce a level playing field and establish a clear and predictable set of rules for business. The government must reform the tax system to remove the disincentives and distortions that impede growth, especially of exports, and generate revenues to finance basic education and health services. The country's leadership must recognize the potential the agriculture sector holds and exploit the possibilities. New markets for the growing Nicaraguan agriculture and small business export industry must be developed. The country must employ better incentives to save Nicaragua's rich natural resource base, and lessen the pressure on biodiversity reserves. All of these avenues must merge to address the stubborn unemployment and underemployment issues afflicting most parts of the country.
The social challenge is to prepare the children to participate fully in the new Nicaragua. While quality and efficiency enhancements have occurred, the primary education system has to improve teaching and testing of students, and reduce the years it takes for the average student to graduate from the sixth grade. Efforts must also increase to encourage community, and particularly parental, participation in education. The health system must find ways to better deliver primary and preventive care, and reduce public subsidies by charging for certain services. Infant mortality rates must continue to drop. Gains in poverty reduction will be lost if the population growth rate is not lowered. Without educational and job skills, the huge class of adolescents will strain the job market and public services, while becoming prime breeding grounds for an increasing crime rate.
Other Donors
USAID and other international donors have provided over $4.0 billion to Nicaragua since the 1990 elections. Initially, the United States and the international financial institutions (IFIs), such as the World Bank and the International Monetary Fund, provided primarily balance-of-payments assistance. Nicaragua donor base has since broadened considerably, and Bilateral donors such as the European Union, Sweden, Netherlands, Germany and, Japan have become major donors. They are working on a broad array of projects in agriculture, credit, land titling and registry, health, education, municipal development and safety net programs for the rural poor. In FY 1996, U.S. assistance represented about 6% of official development assistance to Nicaragua, which amounted to about $445 million.FY 1998 Program
Given the political, economic and social progress achieved by Nicaragua, the Mission's strategy will shift during FY 1997 and 1998 to sustain the achievements and expand the benefits to its customerssuch as by having: more local citizens participating in governmental decisions, small farmers and microentrepreneurs expanding their enterprises, primary school kids learning more, and babies and their mothers practicing better health care. The five year period starting with 1997 through 2002 will be critical to the success of this strategy. The roots of the progress achieved are shallow and can easily wither. Thus, funding must not diminish below the requested level for FY 1998 of $( ). The USG must continue to work with the other donors in a concerted effort to attain mutually agreed upon goals. The results expected over the next several years require persistence and innovation in the following strategic objective areas: (1) More political participation, compromise and transparency; (2) Sustainable growth in employment and income; and (3) Better educated, healthier, and smaller families.Agency Goal: Building Democracy
To be judged as a mature democracy, a country has to show more than a couple of successful elections. Therefore, USAID will continue to target key institutions for strengthening. The first priority will be to help the Supreme Electoral Council (CSE) reform the electoral law, complete issuance of citizen identification cards and reorganize itself based on the lessons learned from this past election. Another immediate priority to help consolidate democracy is human rights. USAID will work to establish and develop the Human Rights Ombudsman, which will investigate and help resolve human rights violations closely coordinating with a network of local peace commissions that will monitor human rights at the community level. Ultimately, human rights protection for a society adhering to the rule of law depends upon an effective, equitable and credible judicial system. Right now, the public's trust in the rule of law is extremely low. While recent changes in the Supreme Court's composition bode well for the needed overhaul of the judicial system, citizens, in general, and investors, in particular, remain skeptical whether the rule of law can predominate in the Nicaraguan culture. USAID is reactivating efforts to strengthen the administration of justice. The program is working to modernize the legal framework, institute administrative reforms to reduce delays, enhance prosecutorial capabilities, establish a public defender's office and improve the public's knowledge of legal rights and responsibilities.Laws, policies and regulations which guide the judicial system, as well as the rest of society, emanate from the National Assembly. USAID will intensify its support to the Assembly, as a critical player in Nicaragua's development, by improving its information system, strengthen its committee structure, enhance its ability to monitor the country's budget, and develop its capabilities to analyze legislation and provide oversight. People's confidence in government will be influenced by the access and services they are provided. USAID will work with the Government of Nicaragua (GON) to create a more efficient and accountable public sector, through better management and transparency of public finance. Also, USAID is striving to bring government closer to the people through decentralizing power and authority to the municipalities and their mayors. Efforts will concentrate on improving mayoral and local administrators' capabilities and increasing citizen involvement in local decision making. The foundation for people's belief and participation in the Legislature and other democratic pressure points is a strong civil society. USAID will support a range of activities aimed at enhancing the public's understanding of democracy and at encouraging the growth of non-government organizations (NGOs) in a variety of sectors, such as civil-military relations, democratic labor unions, civic education and protection of women's rights.
The plans outlined above will build on solid progress. The recent election was free, fair and inclusive. USAID provided critical support to the Nicaraguan CSE. The National Assembly has produced a series of improved laws, covering economic and political issues, benefitting from the improved information system. A number of indigenous NGOs have emerged and have played key roles in human rights monitoring and election observation. A whole new group (1,100) of teachers have trained tens of thousands of secondary school children in civic education within a democratic setting. A student government system, democracy in practice, is being established in Nicaraguan secondary schools.
USAID Strategic Objective 1: More Political Participation, Compromise and Transparency Agency Goal: Encouraging Broad-based Economic Growth
The USAID program has had definite impact on the economy. The economy has rebounded over the past three years. Gross Domestic Product (GDP) growth rates in 1994, 1995 and 1996 respectively were 3.3%, 4.5% and 5.5% (estimated). Inflation dropped from over 13,000% in 1990 to an estimated 12% in 1996. Open unemployment continues to fall registering around 16% in 1996, although overall unemployment and underemployment levels remain high. Nontraditional agriculture exports have increased from a few million dollars four years ago to almost $100 million in 1996, generating 10,000 more jobs. Traditional crop farmers participating in USAID programs have realized production increase ranging from 20% to 50% in the last two years. Microenterprises have generated over 20,000 new jobs in the last two years. Protected lands under effective management has risen from around 300,000 hectares in 1993 to approximately 1.0 million hectares in 1996. Nevertheless, the progress achieved has yet to reach a sustainable level sufficient to withstand external shocks or deliver widespread benefits. The government must keep the stabilization and structural adjustment policy framework in place and get back on track with the Enhanced Structural Adjustment Facility(ESAF) Program to show that it is serious about growing and opening the economy. USAID will rely heavily on the IMF and World Bank to push these reforms but will tackle key policy matters where it has a comparative advantage, e.g., tax reform, agriculture and impediments to trade. Incomes and employment opportunities will grow when people take advantage of the improved environment. The biggest impact can occur in the agriculture sector due to its high potential and predominance in the economy. Profits on the farm can quickly convert to new investments and new jobs for rural residents. USAID will help establish improved marketing mechanisms for traditional and nontraditional crops, transfer better production and processing technologies, and revitalize the rural financial sector, which will springboard Nicaragua's participation in external and internal markets. It will also work to improve the productive and protective practices of farmers, thereby enhancing natural resource maintenance and biodiversity preservation.Small business should be the backbone of the Nicaraguan economy. But these smaller entrepreneurs, especially women, find it difficult to access credit. A key thrust of the USAID program will create greater possibilities for small and microenterprises in both rural and urban settings. The program will utilize primarily local groups to establish community banks, which will provide financing and promote savings. To make not only the agriculture and small business sectors work, but also the manufacturing and commercial sectors, the private sector financial system must be modernized. As necessary, USAID will work to facilitate more innovative lending practices. Failure to resolve property cases and to provide a more reliable judicial regulatory framework serve to dampen investor interest in Nicaragua. The longer property expropriation issues persist, the more uncomfortable people will feel over the security of their investments. USAID will continue to help the government expedite solutions to the property issue.
Due to the extremely impoverished conditions in Nicaragua, USAID will continue to support targeted programs as necessary. These include small farmer production and marketing activities, and temporary employment efforts geared to infrastructure improvements in particularly poor regions. The local currency generated from the Title III program provides the resources for these productive efforts.
USAID Strategic Objective 2: Sustainable Growth in Employment and Income Agency Goal: Stabilizing World's Population and Protecting Human Health
A better educated, healthier public with a stable and low population growth rate boosts the prospects for economic growth and a more participatory citizenry in a democracy. While Nicaragua has had more comprehensive social programs than most developing countries, it still falls short in terms of quality and efficiency. It suffers from distortions such as a university education system that receives a greater share of the budget than primary education, and a weak cost recovery programs health sector. The poorly educated have greater difficulty benefitting from new job opportunities, and are not likely to be knowledgeable participants in the burgeoning democracy. Sick adults are unproductive workers and sick children have more difficulty learning in school. An overheated population growth rate devours economic gains and shreds the social safety net. USAID will sponsor a mutually supportive set of primary education and maternal/child primary health programs to address these constraints.The program will spur the primary school completion rate, while lessening the number of years to educate the average student. Better books, modern teaching approaches, objective-based testing, community participation in schools and decentralized administration will drive the program. Better educated people also adopt smarter health practices. Access to preventive care and nutritional supplements will reduce infant mortality and improve the overall health status of women and children. The health program includes vaccinations in a variety of childhood diseases, vitamin supplements and encouraging mothers to breast feed. It also covers prenatal care, oral rehydration therapy and better trained personnel attending those in need. The program relies heavily on the Ministry of Health, but also engages several PVOs to support decentralized health services at the local level. It works closely to improve overall management practices and reduce costs, while building upon the Ministry's innovative integrated maternal and child health delivery model. Through P.L. 480 Title II, supplemental feeding of malnourished women and children under three years of age in the most impoverished sections of Nicaragua complements this program.
At current fertility rates, the population could almost triple, surpassing 10 million in the next 25-30 years. USAID will work to expand the range and access of family planning services as part of integrated health delivery throughout Nicaragua using PVOs and the Ministry of Health. A combined approach which emphasizes increasing public awareness of reproductive health services and expanding access to these services, especially in rural areas, should lead to increased use of contraception and lower fertility rates. USAID will also help stem the growth of AIDS transmission in the country through prevention programs.
Thus far, the program has shown excellent results. Since 1993, primary school completion rates have risen from 23% to 28% in 1996. Repetition rates have fallen around 15% in the first grade over the past two years. Infant mortality has dropped from 58/1000 to 55/1000 since 1993. The fertility rate is estimated to have dropped from an average of 4.6 in 1993 to 4.4 children per woman in 1995. The couple years of protection (people using contraceptives) provided only under our programs assisted by USAID has jumped from about 86,000 in 1992 to almost 180,000 in 1996. The percentage of children receiving the core childhood immunizations is ranging from 80% to 90%, while the percentage of children treated with ORS therapy is in the mid 50s. The percentage of children with Vitamin A deficiency has dropped to below 50% from a 70% level in 1993.
USAID Strategic Objective 3: Better Educated, Healthier, and Smaller Families
NICARAGUA
FY 1998 PROGRAM SUMMARY
(000's)
*LAC Regional request includes $1,000,000 for Nicaragua democracy objective.
USAID Strategic Objectives Encouraging Economic Growth
Stabilizing Population Growth and Protecting Human Health Protecting the Environment Building Democracy Provtiding Humanitarian Assistance Total 1. More Political Participation, Compromise and Transparency
Dev. Assistance
ESF*
4,800
4,800
2. Sustainable Growth in Employment and Income Dev. Assistance
4,000
2,200
6,200
3. Better Educated, Healthier and Smaller Families Dev. Assistance
P.L.480 Title II
3,340
7,000
764
10,340 764
Total Dev. Assistance
ESF*
P.L. 480 Title II
7,340
7,000
2,200
4,800
764
21,340
764
USAID Mission Director: George Carner
ACTIVITY DATA SHEET
PROGRAM: NICARAGUA
STRATEGIC OBJECTIVE TITLE AND NUMBER: More Political Participation, Compromise and Transparency 524-SO01
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY1998: $4,800,000 DA; $1,000,000 ESF (attribute to LAC Regional Request)
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To support the consolidation of democracy through institutions that are responsive to the people, protect human rights, and promote a strong civil society.
Background: The recent free and fair elections provide another example of the emerging democratic tradition in Nicaragua. However, the country still has a long way to go to meet the aspirations of its people. There is still a high level of mistrust in society and few credible institutions through which to address social and political polarization. The four branches of government, while improving and becoming more transparent, are not coequal in power, capabilities and accountability. There are still valid concerns that human rights abuses go unpunished. While civil society continues to strengthen, more education is required and more nongovernmental institutions must provide avenues for people to articulate their interests. The country needs to decentralize power and strengthen local governments while promoting improved management of public finances. While the electoral system is inclusive and electoral participation approached 80% in 1996, reform is necessary to ensure more efficiency in the future. Overall, broad and informed political participation will counter the tendency in Nicaragua to concentrate power in the hands of a few and lead to an effective, representative government.
USAID Role and Achievements to Date: The National Assembly has become a more functional, representative body, serving as a counterbalance to the executive branch, as well as the electoral and judicial branches of government. During 1996, USAID's assistance to the Supreme Electoral Council (CSE) provided the key and timely support to accomplish a free, fair and inclusive election. USAID support helped resolve policy issues, produce voter registration lists, assure electoral document distribution, air voter education campaigns, fund local and international observers, and train Nicaraguan election workers. Assistance to the Organization of American States Commission of Support and Verification for Human Rights Monitoring has helped reduce violations, although the backlog of cases awaiting resolution remains high. The program has spurred the formation of Nicaraguan human rights organizations/committees at the municipal level, which provide human rights education and encourage reporting of human rights violations, and the establishment of the Human Rights Ombudsman office. Local NGOs also work at the national level to provide information on human rights. USAID helped establish and coordinate a multi-donor program to reform governmental financial management systems to reduce fraud, waste, abuse and corruption. Judges, prosecutors and court administrators have received training to improve basic skills in the judicial system. USAID, working through local NGOs: helping improve civic education in the primary and secondary school systems; press reporting; the organization and democratic functioning of local labor unions; fostering dialogue on civil-military relations, strengthening political parties, and promoting protection of women's rights.
Description: USAID will continue modest support to the CSE to reform the electoral law, complete the issuance of identification cards and to reorganize itself. The program will also help strengthen the Nicaraguan observer organization, Ethics and Transparency, to become a self-sustaining entity for future elections. In judicial reform, USAID will collaborate with the Assembly and Judiciary to reform the criminal law and other key legal codes. Greater efforts will be placed on improving courtperformance. The program will also work with the Attorney General's office to facilitate prosecution of cases, ensure due process and create a public defender's office. The program will assist the recently established Human Rights Ombudsman Office, local human rights groups and the network of local Peace Commissions. Significant efforts in strengthening the skills of municipal officials will take place, including legal reforms to devolve more power to localities and increased participation of citizens in local decision making. Efforts will be expanded to transform the Assembly into a more professional body. A concerted approach to rationalize the public sector and improve fiscal and financial management will continue. Civic education and developing civil society organizations will remain critical components of the program.
Host Country and Other Donors: Spain, Sweden, Germany, Canada, Denmark, Switzerland, the European Union, Norway, Finland and Holland supported the election process. The IDB has signed an agreement with the Supreme Court to assist in judicial reform. The donor community has pledged approximately $110 million toward reforming the state, including approximately $32 million toward establishing an integrated financial management system and a comprehensive audit system.
Beneficiaries: All citizens of Nicaragua.
Principal Contractors, Grantees, or Agencies: Office of Human Rights Ombudsman, Nicaraguan Association for Promotion of Human Rights (ANPDH), Permanent Commission for Human Rights (CPDH), Ethics and Transparency (ET), Supreme Court, Attorney General Office, National Assembly, National Democratic Institute (NDI), International Republican Institute (IRI), Institute for the Promotion of Municipalities (INIFOM), Academy for Educational Development (AED), Casals and Associates, the Planning Associates Development Collaborative (PADCO), Center for Education for Democracy (CED), AIFLD and the National Center for State Courts (NCSC).
Major Results Indicators: Baseline TargetFree, fair and transparent elections (yes/no) -- yes (1996)
Human rights violations decline 828(1991) 350(1998)Public confidence in judicial system 35%(1995) 45%(1999)
Human rights Ombudsman's office established (yes/no) no (1996) yes(1997)
Number of cases handled by public defenders office 0(1995) TBD(1999)
Integrated financial management systems established in ministries 0 (1995) 3(1998)
ACTIVITY DATA SHEET
PROGRAM: NICARAGUA
STRATEGIC OBJECTIVE TITLE AND NUMBER: Sustainable Growth in Employment and Income, 524-SO02
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998; $6,200,000 DA
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To foster increased employment and income by encouraging the transition to an open, free-enterprise, export-oriented economy and the inclusion of small producers in the expanding economy.
Background: Jobs remain the major concern of the average Nicaraguan. Open unemployment was around 16% in 1996. Including low-wage underemployment, largely in agriculture, over 50% of the labor force needs more or higher-paying work. Productive jobs are the result of investments -- primarily private -- in human and financial capital, technology and marketing. Although Nicaragua has made substantial progress in re-creating an environment that encourages private investment, impediments remain that have caused poorer members of society a delay in seeing economic gains. The government must continue to encourage private investment, export expansion, and job creation. This will require a rapid resolution of property claims, clearer and simpler export regulations, appropriate fiscal and monetary policies, reduction of the external debt burden, increasing the competitiveness of Nicaraguan products, and a stronger and a more responsive financial system.
Encouraging small farmers to produce more and higher valued crops will expand the rural economy. Doing so will require increased access to more productive technology, credit and secure land titles. Rural markets must function efficiently so small producers can sell their products profitably. Access to new markets - nontraditional and internal - are essential. Agribusiness must expand so on-farm and off-farm employment will increase. In addition, microenterprise programs can provide off-farm opportunities to the poor in both urban and rural areas. Natural resources management is critical to Nicaragua's ability to improve production and exports. Preservation and sustainable use of these resources requires appropriate linkages to production to make activities more successful.
USAID Role and Achievements to Date: USAID's early emphasis on stabilization and structural adjustment, coupled with initiatives to stimulate growth, particularly agriculture and small business, have had a big impact on the Nicaraguan economy. Growth rates in 1994, 1995 and 1996 respectively were 3.3%, 4.5% and 5.5% (estimated). Agricultural exports fueled most of the expansion, almost tripling between 1992 and 1996. Nontraditional agricultural exports have increased from a few million dollars four years ago to almost $100 million in 1996, generating more than 10,000 jobs. Emphasis is placed on small producer profitability through technical assistance, production technologies and marketing services that are channelled through private associations. Over 12,000 small farmers and cattlemen have benefitted as of 1996. Microenterprises have generated over 20,000 new jobs in the last two years. Recent (GON) urban employment surveys indicate that the total number of persons employed climbed 10.5% from 1993 to 1994, and an additional 12.3% from 1994 to 1995. The U.S. is assisting the (GON) resolve property confiscation cases (including U.S. citizens) by accelerating administrative procedures; thus far almost 1,000 U.S. citizen cases have been rectified although another 1,000 remain. The number of beneficiaries under targeted emergency employment programs has reached over 80,000 concentrated in the poorest municipalities. USAID helped the environmental ministry develop and pass the first environmental law with accompanying regulations. Protected lands under effective management have risen from around 300,000 hectares in 1993 to approximately 1.0 million hectares 1996.
Description: The program will increase emphasis on agriculture and small business development to better meet internal and external demands. A growing, open Nicaraguan economy becomes a muchmore attractive trading partner for the U.S. Imports from the U.S. have increased from $2.0 million in 1990 to nearly $300.0 million in 1996. Support for small farmers will engage private producer associations as a channel to access credit, technology, marketing and land titling services. The program will increase small farmer ties to foreign markets to take advantage of special interest items like organic products. The program will continue to reactivate rural credit unions in order to enhance savings and investments in these areas. USAID will continue its support to the key microenterprise sector, which has produced thousands of job and opportunities in a relatively short time period. USAID will work on the legal and regulatory framework which currently inhibits foreign and domestic private investment. Efforts to improve the functioning of the judicial system will have additional benefits in assuring equitable treatment to investors. In this regard, resolution of property cases will remain a high priority for USAID support. Conservation of biodiversity and natural resource management will focus on key protected areas. Primary emphasis will be centered on increasing incomes of buffer zone communities through environmentally sound agricultural production and management practices. With P.L. 480 Title III funds, the program will target agricultural production and post harvest activities, along with temporary employment programs in the most impoverished departments in Nicaragua. These activities are closely linked to the targeted feeding programs provided under P.L. 480 Title II, to address health, child survival and nutrition issues in these areas.
Host Country and Other Donors: The IDB has provided non conventional credit for rural areas, funds for agricultural and livestock strengthening, a large property resolution program, and technical assistance to the government on privatization and for the Superintendency of Banks. The Netherlands, Sweden, and Norway provide credit for microenterprises and small producers, and Switzerland gives postharvest assistance to basic grains producers.
Beneficiaries: Small farmers, landless rural poor, small savers, small businessmen and micro entrepreneurs are the primary beneficiaries.
Principal Contractors, Grantees, or Agencies: Development Associates, The Nature Conservancy (TNC), National Cooperative Business Association (NCBA), Nicaraguan Association of Producers & Exporters on Non-traditional Products (APENN), Nicaraguan Union of Agricultural Producers (UPANIC), National Union of Farmers and Cattle Owners (UNAG), Cooperative League of the United States of America (CLUSA), International Executive Services Corp. (IESC), Academy for Educational Development (AED), TECHNOSERVE and World Relief.
Major Results Indicators: Baseline TargetNumber of farmers w/access to improved production and marketing services 7,100 (1993) 40,000 (1998)
Number of persons employed in urban private formal sector 145,000 (1993) 250,000 (1999)
Non-traditional agricultural exports $30,400,000 (1993) $130,000,000(1998)
Jobs created by microentrepreneurs N/A (1994) 50,000 (1999)
Protected areas (under effective mgmt.) 0.3 million hec. (1993) 1.2 million hec. (1998)
ACTIVITY DATA SHEET
PROGRAM: NICARAGUA
STRATEGIC OBJECTIVE TITLE AND NUMBER: Better Educated, Healthier, and Smaller Families, 524-SO03
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998, $10,340,000 DA $764,000 P.L. 480 Title II
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To develop human capital through basic education, health, and family planning.
Background: Education lays the foundation for a functioning and strong democracy and an economically productive workforce. An unhealthy citizenry can not take advantage of job and educational opportunities, and are a burden on the social safety net. Particularly vulnerable segments of the population in Nicaragua are women and children. Primary and preventive health care are critical to mothers' and children's survival, to enhance opportunities for the full realization of their potential, and a more efficient, cost effective social support network. Nonetheless, an unrestrained population growth rate can quickly reverse the gains achieved in other sectors, placing difficult strains on society. Family planning is an important ingredient in improving maternal health and child survival. Reduced population growth clearly affects planned results in sustainable economic development, environmental preservation, and poverty reduction.
USAID Role and Achievements to Date: USAID plays a major role in supporting basic education, health and family planning. Primary school completion rates have risen since 1993 from 23% to 28% in 1996. Repetition rates have fallen 15% in the first grade over the past two years. Infant mortality has dropped from 58/1000 to 55/1000 since 1993. Immunization coverage rates attained relatively high levels of close to 90%. The percentage of children with Vitamin A deficiency has dropped to below 20% from a 70% level in 1993. Fertility rates are estimated to have gone from an average of 4.6 to 4.4 children per woman in 1995. Couple Years of Protection (CYP) provided by the Ministry of Health (four health districts) and by Profamilia increased from around 86,000 in 1992 to 180,000 by the end of 1996.
Description: USAID will continue its current maternal and child health and family planning activities, as well as its activities to improve primary education. In educaton, we will continue to support curriculum reform, training in modern teaching methods, and increased community participation in the school system. In health, we will support an expanded program of immunizations; conduct community health education through private voluntary organizations; provide essential medicines and technical assistance for decentralized health centers and supplies; and provide training and commodities for AIDS control programs. USAID provides micronutrient supplements to women and children under five years of age which will support food supplements through PVO Title II programs in geographic areas where malnutrition is most severe and coordinate with UNICEF's Baby Friendly Hospital and Health Center Initiative. With USAID assistance, Profamilia, a local private voluntary organization, is expanding its network of clinics and community distribution post; training Ministry of Health and Profamilia personnel in contraceptive technology and patient counseling techniques; and supporting local NGOs and US PVOs active in voluntary family planning and reproductive health services.
Host Country and Other Donors: Other bilateral donors and IFIs are active in the social sector. The Germans, Dutch, and Swedes also provide crucial support to the Ministries of Education and Health.
Beneficiaries: In the health sector, the primary beneficiaries are mothers and children under age 5. In education, the critical customer group is the primary school student population.
Principal Contractors, Grantees, or Agencies: Management Sciences for Health (MSH), Ministry of Health (MINSA), The Pan American Health Organization (PAHO), CARE, CRS, Save the Children, Partners of America, Project Concern, World Vision, ADRA, Project Hope, Academy for Educational Development (AED), Ministry of Education (MED), The Nicaraguan Association for the Promotion of Family Well Being (PROFAMILIA), and Development Associates.
Major Results Indicators: Baseline TargetTotal fertility rate 4.6 (1995) 3.8 (2000)
Infant mortality rate (per thousand) 58 (1993) 50 (2000)
Maternal mortality rate (per 100,000) 150 (1995) 125 (2000)
Women Breastfeeding Exclusively 11.5% (1993) 20% (2000) For Four Months
Immunization coverage for children 65% (1994) 90% (2000) under 1 year of age
Primary school completion rate s 23% (1993) 40% (2000) (6th grade graduate)
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