Paraguay

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Development Challenge Other Donors FY 2002 Program Activity Data Sheets Summary Tables Program Summary Strategic Objective Summary USAID Search: Paraguay Previous Years' Activities 2001, 2000, 1999, 1998, 1997 24     Introduction Paraguay continues to slowly evolve towards a true, functioning democracy. USAID/Paraguay's FY 1997-FY 2000 Strategic Plan has been completed. The new Strategic Plan for FY 2001-FY 2005 builds upon the previous successes of that strategy and focuses upon civil society strengthening, the provision of basic services by local governments, and developing a serious reform agenda. The need to balance population growth and to develop the appropriate use of the nation's natural resources are integrated into the overall democracy objective. The Development Challenge The challenges to democracy in Paraguay are large and growing. The increasing dissatisfaction with the national government has led to considerable unrest in the countryside. The fiscal deficit increased considerably in 2000, and the country is on the brink of default. The recession in Paraguay is now in its fifth year with little sign of relief. Without national reform that includes a restructuring of the public sector, citizens will not receive the basic services they expect under a democratic form of government. To support these efforts, USAID provided assistance to GOP institutions to conduct the 2001 elections and to further strengthen democratic processes and institutions. USAID assistance helped to increase pre-election civic participation, increase the number of valid votes cast in elections, educate citizens regarding their rights and responsibilities, and create conditions that facilitated the reporting of deficiencies in the elections. International observers of the first round elections, held on April 8, declared the election to be free, fair and transparent. Moreover, the observers declared Peru's electoral process to be one of the best they had witnessed. The international donors are optimistic that the upcoming second round of balloting will also be successful. USAID continues to support the election process at this critical juncture in Peru's history. Democracy remains as the centerpiece of U.S. policy in Paraguay, from which other components of modernization are expected to follow. At a minimum, Paraguayan democracy must be able to demonstrate an ability to improve economic conditions, ensure the provision of basic services to its citizens, and provide jobs for a rapidly expanding population. If democracy does not deliver a promised better life, a real alternative is that the people will embrace the populist solutions that have been proposed in the recent past and will lose faith in this fledgling democracy. The FY 1997-FY 2000 Strategic Plan accomplished several important objectives. The Democracy Strategic Objective of "Improved Responsiveness and Accountability of Key Democratic Institutions" has been achieved. An effective Electoral Tribunal conducted three successful, democratic elections. The Tribunal was supported by civic organizations with voter education campaigns that involved the three main political parties. Local governments (departments and municipalities) now have an increased ability to generate and manage resources; are providing expanded services to citizens; have improved mechanisms for community participation in planning; and understand their roles in Paraguay's political system. Citizens have more access to a strengthened judicial system that has implemented important penal reforms; has the capacity to train judges, prosecutors, and public defenders; and is providing more information to citizens. In addition, pilot alternative dispute resolution mechanisms are taking some of the burden off of the formal court system. The Environmental Special Objective of "Improved Management of an Expanded Protected Areas System" has been attained through the development of both public and private protected areas. Civil society and government officials are cooperating to preserve these areas. More land has been added to the protected areas system, while viable economic alternatives to deforestation and loss of biological diversity have been developed. The Population Special Objective of "Increased use of Voluntary Family Planning Services" has been successfully implemented. Access to these services has been considerably expanded by providing outreach and information, education, and communication (IEC) through the press, radio, television, and theatrical performances. Training to health providers has improved the quality of family planning services throughout Paraguay. The sustainability of these programs has been advanced through reduced costs and increased efficiency. USAID has begun the implementation of its new Strategic Plan (FY 2001-FY 2005) that utilizes a three-tiered approach to strengthening democracy as its primary objective. First, the lack of confidence in governmental institutions must be addressed by strengthening the capacity of local governments to deliver services in response to the needs of its citizens. In this way, citizens will develop more interest and confidence in a responsive and effective political system and will be less vulnerable to alternative solutions. Second, civil society must be strengthened to be able to put pressure on the current political system to change and become more responsive. Third, an open, transparent policy dialogue needs to be installed which allows the inclusion of all groups, especially those that are traditionally marginalized. The new plan integrates environmental and reproductive health initiatives into the overall democracy program by strengthening the role of local government and civil society efforts. Efforts with local governments will expand their role as providers of basic services, such as health, education, water and sanitation, solid waste, and basic infrastructure. Civil society will participate in the public decision making process, will strengthen advocacy to influence local and national policies, and will improve oversight of public institutions. Last year, USAID recommended the development of an Economic Special Objective to address poverty, to encourage economic reforms, and to generate employment by expanding poor people's access to financial services. The concern was that these economic conditions would derail the democracy program. The Latin American Caribbean Bureau has now approved this request, and the Mission is proceeding with the development of this Special Objective. Other Donors The United States is Paraguay's fifth largest bilateral donor after Japan, Germany, the European Union (EU), and Spain. USAID is the main donor working on the decentralization of power and authority to local governments with a strong civil society focus. The Inter-American Development Bank (IDB), World Bank, United Nations agencies, and the Pan-American Health Organization (PAHO) are major multilateral contributors. USAID is unique among donors in Paraguay by working exclusively through NGOs and other organizations. The USAID has the comparative advantage of developing innovative programs that can be tested through field experience without having to go through a lengthy process of Government of Paraguay (GOP) approvals. USAID's focus will continue to be developing pioneering, demonstration projects that larger donors or the GOP can replicate. USAID's experience indicates that this approach works very well in Paraguay. FY 2002 Program USAID will build upon these successful elements of its current programming during the new strategy period, FY 2001-FY 2005, while at the same time introducing some new approaches. USAID's three objectives will place a greater focus on civil-society organizations and their fundamental role in democratic governance. Efforts with local governments will be expanded and deepened with an emphasis on their role as service providers, especially to marginalized groups. Anti-corruption initiatives will be introduced in the context of each program area. Activity Data Sheets 526-001 Improved Responsiveness and Accountability of Key Democratic Institutions   526-002 Improved Management of an Expanded Protected Areas System 526-003 Increased Use of Voluntary Family Planning Services 526-005 Sustainable Management of Globally Important Ecoregions Improved 526-006 Use of Voluntary Reproductive Health Services Increased 526-XXX Increased Incomes for the Poor in Selected Economic Regions Country Background Information Resources   CIA Factbook Library of Congress National Geographic Country Maps State Dept. Country Information

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