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).

EL SALVADOR

FY 1997 FY 1998 FY 1999
Actuals Estimate Request
Development Assistance..............$16,963,000 $23,152,000 $20,550,000
Child Survival and Disease..........$8,950,000 $10,964,000 $10,778,000
Economic Support Funds*.............$5,000,000 $1,000,000


* LAC Regional request for FY 1999 includes $2,000,000

Introduction

Recent history has demonstrated the impact which political or economic instability in El Salvador has on its neighbors, including the United States. El Salvador alone has sent more illegal immigrants to the United States than all of Europe, Asia and Africa and this phenomenon would likely be repeated if political and economic instability returned. USAID support for economic growth is designed to prevent that eventuality by helping to give El Salvadorans a stake in a peaceful future. Equally important is the country's role in facilitating regional cooperation in the fight against international crime, the expansion of economic opportunities for U.S. citizens, regional integration and protection of the environment.

The Development Challenge

El Salvador has made considerable progress toward sustainable development and democracy, but is not considered to be a candidate for graduation from U.S. assistance in the near-term. Nonetheless, the potential for social and economic instability is still present. Its primary sources are poverty and the unfinished consolidation of democratic processes. Nationally, 41 infants die for every 1,000 live births. The literacy rate is the fourth lowest in the hemisphere; fewer than 50% of Salvadorans graduate from sixth grade. Heavy population density is exacerbating the already severe environmental degradation. Virtually all natural surface water systems are contaminated with sewage, agricultural runoff, industrial waste and sediment--with consequent impacts on human health and environmental stability. Freedom House's rating of El Salvador's political rights and civil liberties as "free" is the result of significant improvements in governance since the civil war ended. Nonetheless, El Salvador's high rate of violent crime--with one of the highest per capita murder rates in the world--reflects a weak rule of law and constitutes a major challenge to the consolidation of full democracy. Furthermore, El Salvador is still building a strong broad-based civil society mechanisms and institutions for redressing social inequalities and protecting individual rights.

In FY 1997, USAID began implementation of a six-year rural poverty alleviation strategy. Under this strategy, USAID is pursuing four inter-dependent strategic objectives in economic growth, democracy, health and water. Achievements to date, building on the achievements of the prior strategy, have been impressive. Greater access to quality primary education throughout the country has been achieved through a comprehensive program of reforms. These reforms, based on decentralization and an enhanced community and parental role in managing schools, have been internationally acclaimed. USAID's support for privatization and decentralization of key public services was a positive and important contribution to passage of laws in late 1997 to deregulate the telecommunications sector and privatize the national telephone company. New legal codes were enacted in 1997 that will have a revolutionary effect on the justice sector, and enable the courts to address the exploding prison population, about 80% of which is awaiting trial or sentencing. A National Registrar, responsible for issuing new identity cards, was named as a precursor to additional electoral reforms. The municipal mayors' association is showing greater capacity to lobby for and effect national policy changes. Municipal and parliamentary elections in March 1997 resulted in a shift in the balance of political power

between the political left and right, enhancing public dialogue and debate on key issues and building new coalitions and consensus in the Legislative Assembly. This made possible the passage of major legislation in the telecommunications sector (mentioned above); passage of legislation to privatize electricity generation and distribution (including provision for greater worker participation than in earlier drafts); the unanimous election of the President of the Supreme Court; and the approval of the 1998 budget which included a six percent transfer to municipalities and major increases for justice and basic education.

Infant and child mortality rates and malarial cases have dropped dramatically over the past 20 years, as a direct result of USAID's leadership as the largest donor in the health sector since the 1970s. In addition, 94,680 more people have potable water and 66,272 more have sanitary latrines, resulting in a plummeting in diarrheal disease cases of between 25% and 75% over two years in targeted communities. Awareness of environmental issues rose 39%, from 14% in 1993 to 53% in 1996, as a consequence of USAID-financed national education campaigns in the media and in the schools.

In 1996, El Salvador's external debt was one of the lowest in Central America, both in absolute terms ($2.496 billion) and as a percent of GDP (23%). 68% of the debt is held by multilateral organizations. Debt to the U.S. Government was $320 million after the United States, in 1993, forgave $471 million under the Enterprise for the Americas Initiative and rescheduled another $155 million.

Other Donors

USAID continues to be the largest bilateral donor, followed by Japan, Germany, Spain, the Netherlands and Sweden. Other major donors include the Inter-American Development Bank (IDB), the World Bank, the European Union (EU) and the United Nations Development Program (UNDP). Overall donor assistance is declining rapidly as donors wind up their assistance to the National Reconstruction Program. The major exception is the Japanese Government which resumed its assistance program in 1992 and is now the second largest bilateral donor, with support going to bridge reconstruction and activities in education, agriculture and the environment. The IDB, the largest donor, is focused on social sector reforms, local development, the environment, promoting private investment and modernizing the State.

FY 1999 Program

In FY 1999, USAID will continue to pursue its poverty alleviation strategy. USAID will expand access and opportunity for poor, rural families to participate in and benefit from El Salvador's growing economy. One activity will work with cooperatives and other rural organizations to promote the cultivation and marketing of organic crops. Another activity will support policy reforms in privatization and decentralization and the development of policy options for the next administration for combating rural poverty. A third activity, building on USAID's education successes, will focus on the needs of early childhood education. The activity will be executed through local NGOs and government institutions. Technical assistance and training will be provided to increase the awareness of the importance of child-raising practices and skills for those who care for the youngest children. Other ongoing activities will expand access by the poor to credit through microfinance lending and provide targeted training opportunities in support of the overall strategy.

USAID will deepen democracy in El Salvador by helping Salvadorans to develop more inclusive and effective democratic processes. Activities will increase citizen awareness and participation in democratic processes, while continuing to strengthen key institutions. Among these institutions are the prosecutors' and public defenders' offices which in 1998 will begin implementing the new legal codes. For the 1999 presidential elections, USAID will promote greater citizen understanding and participation in the electoral process. Other ongoing activities will be to upgrade the administrative capacity of municipal governments and strengthen the involvement of citizens in the local government processes.


USAID will help Salvadorans expand the coverage of health services in rural areas, especially for women and children, and to enhance the sustainability of those services. USAID will continue to support the Government of El Salvador (GOES) and NGO health providers to provide basic preventive health care services to reduce child and maternal mortality in rural areas. These approaches will be complemented by policy reform to encourage greater attention to the needs of rural areas and to implement more cost-effective approaches to delivering health care.

FY 1999 will be the second year of implementation for USAID's strategic objective to increase access to clean water. This objective, formerly a broader environment objective, was revised in October 1997 to focus on the primary environmental problem facing the rural poor and to adjust to declining resources available for the environment programs. This water focus also enables USAID to integrate and coordinate all water-related activities under all of the strategic objectives to maximize impact and ensure sustainability. In FY 1999, funding provided for this objective will support efforts primarily at the municipal and community levels to strengthen municipal management of watersheds, increase citizen involvement in addressing water problems and protect water sources. These actions will be complemented by targeted support for policy reforms at the national level to support decentralization of local water resource management, improve waste water management, and establish and enforce water quality standards. In addition, community-based water distribution systems will be installed or rehabilitated, and combined with health education, to reduce water-borne illnesses.


EL SALVADOR
FY 1999 PROGRAM SUMMARY

($000s)

USAID
Strategic and Special
Objectives  
Economic Growth   Population and Health   Environ-ment   Democracy   Human Capacity Develop-ment   Human-itarian Assistance  
Total  
S.O. 1
Expanded Access and Economic Opportunity

- DA
- CSD  


8,890  

 

1,400  

 

3,300  

 

10,290
3,300  

S.O. 2
More Inclusive and Effective Democratic Processes

- DA
- ESF*  

   

 


4,215  

   

4,215  

S.O. 3
Sustainable Improvements in Health of Women and Children Achieved

- DA
- CSD  

 

2,800
7,478  

       

2,800
7,478  

S.O. 4
Increased access by rural households to clean water

- DA  

   

3,245  

     

3,245  

Totals

- DA
- CSD  


8,890  


2,800
7,478  


4,645  


4,215  


3,300  

 

20,550
10,778  


* LAC Regional request includes $2,000,000 attributed to El Salvador democracy objective

USAID Mission Director: Kenneth C. Ellis


ACTIVITY DATA SHEET

PROGRAM: EL SALVADOR
TITLE AND NUMBER: Expanded Access and Economic Opportunity, 519-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $10,290,000 DA; $3,300,000 CSD
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To expand access and economic opportunity for El Salvador's rural families in poverty.

USAID Role and Achievements to Date: USAID's economic growth activities are directed toward the objective of reducing rural poverty by creating income opportunities for rural residents. USAID works to expand access by rural residents to education, training, infrastructure, extension services and credit. USAID also promotes Government of El Salvador (GOES) adoption of policies that create growth and employment, especially in rural areas.

USAID has helped the GOES implement ground-breaking reforms, including deregulating the power and telecommunications sectors, and privatizing the national pension system. In addition, USAID has collaborated with the Ministry of Education on an internationally acclaimed top-to-bottom education reform. USAID has helped raise both quality and access for basic education, and has helped the GOES to decentralize decision-making to local communities and parents. USAID has assisted small farmers and cooperatives diversify their production into higher value crops, especially organic products. Real per capita income has grown by 23.8% since 1990, and poverty has decreased from 60.2% of the total population in 1990 to a projected 49% in 1997.

Description: Rural residents have not received full benefit of the economic growth enjoyed by El Salvador in recent years, which has primarily boosted standards of living in urban areas. For this reason, USAID has elected to emphasize rural poverty reduction in its economic growth activities. USAID's economic growth SO includes five intermediate results: (1) education and training, (2) land markets, (3) rural productive services (technology, marketing and financial), (4) infrastructure, and (5) policy. The majority of the SO resources are dedicated to basic education, microfinance and agricultural technology and marketing, with lesser amounts allocated to the other areas.

In education and training, USAID's flagship basic education activity, Strengthening Achievement in Basic Education (SABE), is in its last year. USAID is complementing this effort with its social sector reform activity that works with local NGOs to foment classroom level research on the impact of educational reform on student outcomes and addresses other key reform issues such as the quality of higher education. A new activity in early childhood education will be developed in 1998.

In land markets, USAID is assisting Peace Accords land recipients to gain secure individual titles to their properties, working through local NGOs.

In rural access to productive services, USAID's new microenterprise activity was initiated last year and will provide competitive grants to NGOs and other institutions with demonstrated interest in providing financial services (credit and savings) to rural poor households. Several activities in agriculture are helping small farmers, cooperatives and rural enterprises to diversify production and raise incomes, through better technology and improved marketing opportunities.

In infrastructure, USAID has revamped and raised the funding for its small community-based infrastructure program, to better address linkages to local economic development. USAID is also completing work on rural electrification and roads activities with local currency.

In policy, to facilitate reductions in rural poverty, USAID is supporting GOES and civil society efforts to develop and implement policy reform proposals. Reforms to be supported include budgetary and

public investment improvements to expand services such as education and infrastructure for the rural poor, and adoption of market-based policies that multiply economic activities in rural areas. Recognizing the importance of agriculture to rural incomes, USAID is helping the Ministry of Agriculture improve its analytical capabilities, provide better information to producers, and lower barriers to agricultural trade. USAID is working with civil society to develop private consumer protection mechanisms (e.g., similar to Better Business Bureaus, consumer advocacy groups, and producer-organized quality control efforts).

USAID will primarily work through institutions and service providers whose mandate is rural poverty reduction. For example, USAID works with NGOs to expand access to credit and extension services. A new training initiative will help USAID's NGO and government partners strengthen management of development activities, achieve self-sufficiency and address cross-cutting issues such as gender and environment.

Host Country and Other Donors: El Salvador has implemented the most decisive economic reforms in Central America, contributing to strong economic growth, a stable currency and low inflation. Its actions to reform education, modernize the pension system and deregulate public utilities serve as examples to the region. Recognizing the positive climate supporting development, the international financial institutions and more than 16 bilateral development agencies provide assistance.

Bilateral assistance levels have dropped with the successful conclusion of most Peace Accords-related programs. Nonetheless, the legacy of close collaboration among the GOES and the donor community remains strongly in place and facilitates USAID efforts. Examples of USAID coordination with bilateral donors includes collaboration with the European Union (EU) and German assistance programs in the areas of education and microfinance.

Multilateral institutions now provide the largest flow of development finance for El Salvador in the economic growth area. USAID coordinates with the IDB on issues relating to economic policy, microfinance infrastructure and education. USAID and the World Bank consult regularly on agriculture, economic policy, financial sector and education activities.

Beneficiaries: While all Salvadorans benefit when the economy grows, USAID intends through its activities to accelerate the benefits of growth accruing to rural households in poverty.

Principal Contractors, Grantees or Agencies: USAID implements its activities through U.S. firms such as Chemonics and the Academy for Educational Development (AED). GOES counterparts include the Ministries of Education, Economy and Agriculture. USAID also works with an array of local and U.S.-based NGOs, which include Catholic Relief Services (CRS), CARE, the Cooperative League of the USA (CLUSA), the Foundation for International Community Assistance (FINCA), Foundation for Economic Development (FUNDE), the Microenterprise Support Center, the Foundation of Entrepreneurs for Educational Development and the Ungo Foundation.

Major Results Indicators:
Baseline Target (1999)

Rural population with children 79.4% (1995) 84.3%
aged 7-10 attending school

Rural individuals receiving 36,350 (1996) 51,500
services (e.g., marketing, TA,
processing, management)

Percent of GOES investment budget allocated 2.8 (1995) 4.5
to the four poorest departments


ACTIVITY DATA SHEET

PROGRAM: EL SALVADOR
TITLE AND NUMBER: More Inclusive and Effective Democratic Processes, 519-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $4,215,000 DA; $2,000,000 ESF (attributed under LAC Regional request)
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To support Salvadoran efforts to strengthen democratic processes and increase citizen participation.

USAID Role and Achievements to Date: USAID has supported efforts to strengthen democratic processes since the mid-1980s, initially focusing on strengthening and reforming the Salvadoran justice sector. Later, USAID added programs to strengthen key democratic institutions and processes such as the legislature, local government, electoral administration and organized labor. The Peace Accords of 1992 provided the framework to consolidate support to key democratic institutions and legal reforms. Elements of civil society, such as the national mayors' association and a coalition of women's organizations supported by USAID, assumed stronger roles in democratic processes and practices at both the national and local levels.

USAID's support for local government infrastructure projects and the national mayor's association laid the basis for passage of a law in November 1997 that provides for the transfer of a fixed level (six percent) of the national budget to municipalities. This demonstrated the increased capability of the mayors' association to effect change in support of decentralization. Efforts will now be directed towards developing regulations to determine the distribution and operational procedures for using these funds, including USAID assistance to municipalities to implement an improved municipal financial management system. This effort builds upon improvements in financial management and auditing which helped to broaden the coverage and quality of the Salvadoran Court of Accounts auditing program and the dissemination of audit findings.

Major achievements in the rule of law include significant legal reforms in key areas such as criminal, family and juvenile law. Advocacy efforts by local NGOs helped ensure passage of these reforms. USAID and other donor support subsequently enabled these NGOs to expand their popular legal education programs to educate women and key community leaders on the new legislation. Institutional strengthening efforts resulted in creation of a Coordinating Commission for the Justice Sector (CCJS), strengthened public defenders' and prosecutors' offices, and improved constitutional and criminal case tracking systems. In April 1998, new criminal legislation that introduces oral and adversarial procedures in the criminal courts will take effect.

USAID assistance to the 1997 municipal and legislative elections was limited to assisting NGOs in voter registration programs and short term technical assistance in electoral administration. Despite lower than anticipated levels of voter participation (38% of eligible voters) and some continued administrative problems, the electoral results were widely accepted. More importantly, the elections altered significantly the balance of political power in the legislative assembly and municipalities such that, for the first time in recent history, no single party controls the Legislative Assembly. Civil society groups have assumed an increasingly active role in the electoral and legislative processes presenting legislative proposals and stimulating public debate and use of established procedures to resolve and discuss differences. Civil society actors also contributed to achieving a key electoral policy reform in 1997: based upon legislation passed in 1995, an individual was named as the National Registrar and preparations for establishment of the new civil registry and issuance of a new single citizen/voter identification card are underway. This registry is the key to additional electoral reforms such as residential voting in allowing Salvadorans to vote in the communities in which they reside.


Description: USAID will facilitate democratic consolidation and improve the quality of governance through supporting activities that enhance citizen participation in the formulation and implementation of democratic reforms. This will lead to greater legal protection for individuals and more responsive local governance. USAID activities to strengthen local government will facilitate citizen involvement in municipal affairs and improve municipal administration by introducing computer-based accounting and budgeting systems and training for personnel. Assistance to selected municipalities will improve citizen-local government interaction through the development, negotiation and monitoring of a local development agenda. This will be complemented by improved financial management and efforts directed toward increasing transparency to enable local citizen groups to oversee municipal level budget execution. In the legal/judicial protection area, USAID will support principal judicial actors including prosecutors, public defenders and trial court judges to complete and ensure the implementation of the new criminal legislation through coordinated planning efforts, on-the-job training and limited equipment purchases. USAID will begin to work with the Office of Human Rights Ombudsman (OHRO) and with civil society groups to lobby for continued legal reform such as mediation and reconciliation. Efforts to increase citizen participation and transparency in governance will focus on policy advocacy training for NGOs, greater openness in the legislative process, and activities that improve transparency in public decision-making process.

Host Country and Other Donors: The Government of El Salvador (GOES) continues to support judicial sector reform efforts, decentralization, and the implementation of a new national civil registry. The IDB and UNDP are providing critical support for judicial reform efforts, and municipal infrastructure/service improvement projects. The EU, Sweden, Germany, Spain, UNICEF, and Japan support activities through the GOES and NGOs to assist the expansion of citizen education and participation in the making of laws and other public policy USAID has close working relationships with the donor community and works hand-in-hand with them to develop and implement development strategies.

Beneficiaries: Beneficiaries are the rural poor, primarily women and young sectors of the population that have not previously had the opportunity to participate.

Principal Contractors, Grantees or Agencies: USAID's principal government counterpart agencies are the CCJS, the Supreme Court, the Ministry of Justice, the Public Ministry, the OHRO, the National Council for the Judiciary, the Legislative Assembly and the new National Civil Registry. Two U.S.-based institutional contractors - Research Triangle Institute (RTI) and the International Foundation for Electoral Systems (IFES) - work in partnership with USAID in the areas of municipal development and elections. Numerous Salvadoran NGOs receive grant assistance from USAID, either directly or through sub-grants from RTI or IFES, implementing activities in voter documentation and civic education programs, legal education, and municipal development.

Major Results Indicators: Baseline (1996) Target (1999)
Electoral Reform
- Civil Registry established N/A Established
- New ID/Voter Registration Cards Issued 0 500,000

Legal/Judicial Reform
- Case processing time (average)
for criminal cases reduced 16 months 12 months

Municipal Development
- Municipal svce improvement and area
development plans developed by 0 18 municipalities
communities implemented
- Locally generated tax revenue increased 0 50% increase in target
municipalities


ACTIVITY DATA SHEET

PROGRAM: EL SALVADOR
TITLE AND NUMBER:     Sustainable Improvements in Health of Women and Children Achieved,
            519-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 1999: $2,800,000 DA; $7,478,000 CSD
INITIAL OBLIGATION: FY 1997; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To improve the health of women of reproductive age and children under age five through the increased use and sustainability of appropriate health practices and services.

USAID Role and Achievements to Date: USAID's support for health and population activities in El Salvador spans several decades and is associated with a steady improvement in health and population indicators. USAID was virtually the only donor in the health sector during the 12 years of civil conflict in El Salvador during the 1980s. The last two health and demographic surveys (1988 and 1993) showed marked improvement in the health status of Salvadorans: infant mortality dropped from 54 to 41 per 1000 live births. (In targeted rural areas, infant mortality dropped to 11 per 1000 live births by 1996) Child mortality dropped from 15 to 12 per 1000 live births. Contraceptive prevalence increased from 47% to 53%. The total fertility rate dropped from 4.17 to 3.83 children per woman. Now, rural inhabitants have more access to potable water and latrines; due to USAID support, 94,680 more people have potable water and 66,272 more people have sanitary latrines. Between 1991 and 1996, USAID support resulted in major strides against malaria in El Salvador. In 1997, El Salvador had under 3,000 malaria cases, down from 90,000 in 1980. USAID also focused high-level public attention on health risks of street children and has proposed solutions to this serious problem.

Description: The USAID health portfolio is focused in three areas:

[] Child Survival: USAID programs reduce mortality and morbidity in children under the age of five through support to the Ministry of Health (MOH) and to NGOs providing primary health services such as vaccinations, growth monitoring, and the prevention and treatment of preventable diseases.

[] Reproductive Health: USAID programs reduce reproductive health problems through the improved delivery of health services for pre- and post-natal care and safe deliveries by NGOs and MOH personnel. Families also receive assistance to have fewer unplanned and mis-timed pregnancies.

[] Policy: To improve health for women and children, USAID works with the government and other donors to enhance the policy environment to support long-term changes. The policy component supports decentralization by training key personnel and providing technical assistance in service delivery sustainability through the introduction of fee-for-service practices.

USAID activities within this objective increase the use of appropriate child survival and reproductive health services through increased access to quality services especially for the rural poor. The activities have national impact while focusing on key departments as determined by the MOH and USAID. Specific activities include: training and supervising health promoters and midwives; expanding coverage of the population by health promoters and midwives; increasing the availability of family planning education and services; and increasing access to potable water.

Despite positive trends in health indicators between 1988 and 1993, some data from the MOH suggests that child deaths are increasing and that the rate of increase in new family planning acceptors is decreasing. In addition, poor policies and practices--including over-emphasis on curative care, limited cost-recovery for services, and a restricted role for health promoters--continue to impede the efficient and cost-effective delivery of health services.

To combat these trends, USAID is initiating a new activity in 1998 with an integrated approach to family planning, child health, and policy reform. The new activity will strengthen the MOH's ability to provide services to underserved rural areas and support NGO efforts to ensure the accessibility of health services. Major emphasis will be put on decentralization, access to primary health care, and support for family planning. USAID also will continue support for MOH and NGO implementation of the World Health Organization's Integrated Management of Childhood Illness (IMCI) initiative to decrease deaths in children under age five. USAID plays a central role in strengthening the services and sustainability of local NGO health providers and in facilitating their collaboration with the MOH to extend health services to the most remote areas.

Host Country and Other Donors: USAID is the largest donor in the health sector and has led donors in health coordination, particularly in the area of decentralization. In the area of decentralization, the IDB, the Pan-American Health Organization (PAHO), and Germany are the major partners working on decentralization and health sector modernization. The IDB is expected to initiate a $19.2 million loan in 1998 for health sector modernization. PAHO is assisting the MOH to develop a management information system to facilitate decentralization. Germany is improving health management systems and hospital infrastructure in four departments. In the area of child survival, PAHO, the United Nations Children's Fund (UNICEF), and Spain are the other major donors. PAHO is supporting the MOH's implementation of the IMCI initiative and other aspects of child health and emerging diseases. UNICEF supplies essential medicines, has established rotating drug funds in several NGOs with which USAID works, and is the lead donor on food fortification and micronutrient issues. The Government of Spain is improving health curricula for health promoters. PAHO, UNICEF, Japan, IDB and the EU have (or anticipate having) activities to address water quality and distribution, sanitation, and environmental contamination. In the area of reproductive health, the United Nations Fund for Population Activities is working with the MOH to develop a national reproductive health plan. UNICEF is targeting adolescents with reproductive health information including HIV prevention and, together with PAHO, educating Salvadorans on domestic violence and women's roles in society.

Beneficiaries: Beneficiaries are poor Salvadoran women in reproductive age and children under age five, particularly those in rural areas. Poor women and children under five in El Salvador total approximately 1,000,000 people.

Principal Contractors, Grantees or Agencies: USAID assistance in the health area is implemented through the following contractors, local NGOs and U.S. PVOs: Medical Services Corporation International, CARE, Project Concern International, and the Salvadoran Demographic Association. In addition, USAID directly finances a consortium of 12 local NGOs that support a national network of health promoters.

Major Results Indicators:
Baseline (1993) Target (1999)
Maternal Mortality Ratio 158 139
(per 1,000 live births)

Infant Mortality Rate 41 34
(per 1,000 live births)

Child Mortality Rate 52 42
(per 1,000 live births)

Total Fertility Rate 3.85 3.40
(children per woman)


ACTIVITY DATA SHEET

PROGRAM: EL SALVADOR
TITLE AND NUMBER:    Increased access by rural households to clean water, 519-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,245,000 DA
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DAT E: FY 2002

Purpose: To increase the number of rural households with access to clean water in sufficient quantity to meet basic needs.

USAID Role and Achievements to Date: USAID has been the leading donor on environmental issues in El Salvador since 1990. It has focused assistance on national policy reforms, environmental education, strengthening of local environmental NGOs and the demonstrating of benefits of sustainable resource management. In the policy reform area, draft laws on general environmental protection, forestry (and a forestry incentives program), and protected areas were prepared with USAID assistance. Environmental education materials were prepared and distributed to all 300 primary model schools and 250 NGOs. National environmental mass media campaigns focused on air and water pollution. As a result of these education campaigns, awareness of environmental issues rose from 15% in 1993 to 66% in 1996. Several local NGOs are now credible advocates for the environment. Collaterally, through the Initiative for the Americas Debt Reduction Fund (FIAES), NGOs have implemented over 220 conservation and child survival projects since 1994. A demonstration area was established and is being used to demonstrate sustainable resource management in an important watershed to policy makers and small farmers from other parts of the country. In 1997, a environmental profile and action plan of the greater San Salvador area was prepared by a joint government, private sector and NGO commission with support from USAID.

Description: In October 1997, USAID reformulated its environment objective in El Salvador to focus on improving access by rural households to clean water in sufficient quantities to meet their needs for domestic consumption and productive enterprises. This change reflects USAID's focus on the needs of poor, rural customers and the recognition that lack of access to clean water is the leading environmental concern in El Salvador. The resources requested for this objective will address the environmental aspects of the water problem. At the national level, a policy advisor will work with the new Ministry of the Environment to ensure key water-related legislation takes the environmental perspective into account. Chief among these policies is the decentralization of the water distribution authority, the focus of significant IDB assistance. At the municipal level, USAID will work nationwide with 15 municipalities, through a GOES agency (ISDEM), to strengthen intra- and inter-municipal management of watersheds.

Environmental education activities will focus on increasing awareness and understanding of the causes and possible solutions for resolving problems of water quality and insufficiency. This will be complemented by replication of lessons learned from the watershed demonstration area, particularly in the area of soil and water conservation, to other parts of the country. While the emphasis of this objective will be on the 15 municipalities, which cover three significant watersheds, efforts will be made to replicate this approach to the rest of the country through other USAID, GOES and donor activities.

To maximize the impact of this objective, the activities described above will be complemented by and integrated with other new and ongoing USAID activities related to water. In the area of municipal watershed management, these environmental activities are being integrated with efforts by the democracy objective and a USAID regional environmental activity to strengthen municipal administration and citizen participation. These activities will assist municipalities to better manage water distribution and solid waste disposal--two primary concerns of municipalities and their

constituents. Environment education will be linked with activities in the health and democracy objectives to strengthen civil society and create community water committees, thereby increasing citizen action to resolve water problems. Soil and water conservation efforts are being coordinated closely with the economic growth objective's new activity related to organic farming. The health objective's activity to rehabilitate or install community water distribution systems will be closely coordinated with environmental education and community participation in managing upstream contamination sources and protecting water sources.

Host Country and Other Donors: Close coordination with other donors and the GOES is critical to leveraging USAID's investment through complementary activities and replicating the approach to other parts of the country. The IDB is USAID's principal donor partner in this effort. One IDB loan for $30 million will focus on the management of the Upper Lempa watershed from which the metropolitan area of San Salvador obtains much of its water. Another pending IDB loan, for $55 million, will finance technical assistance to decentralize the national water distribution authority, create a multi-sectoral water regulatory body, and install or rehabilitate community water systems. The IDB-financed community water systems will follow the model pioneered by USAID for community organization and sustainability. UNICEF and Japan also finance water distribution systems. The German Government is working with ISDEM to strengthen municipal governments and address solid waste disposal in areas other than those covered by USAID activities.

In June 1997, the GOES signalled its commitment to protecting the environment with the creation of a new Ministry of Environment and Natural Resources. Its creation also reflects the growing recognition within the government, due in part to USAID's efforts, of the need for greater attention to El Salvador's environmental problems. The estimated host country counterpart contribution for FY 1999 towards the environmental activities described above is $2 million.

Beneficiaries: More than 278,699 people residing in the 16 targeted municipalities will directly benefit from this objective. Through replication to other parts of the country, it is likely that another 300,000 people will also benefit indirectly.

Principal Contractors, Grantees, or Agencies: USAID implements activities under this objective through Abt Associates, the Academy for Educational Development and two local NGOs, SalvaNatura and Salvadoran Development and Natural Resources Research Program (PRISMA).

Major Results Indicators:
Baseline (1997) Target (1999)
Number and percent of households 16,750; 25% 23,450; 35%
in target areas with access to
clean water

Number of rural households in 0 12,000
actively managed watersheds


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