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Paraguay
>> Regional Overview >> Paraguay Overview Activity Data Sheet
PROGRAM: Paraguay
TITLE AND NUMBER: Increased Incomes for the Poor in Selected Economic Regions, 526-XXX
PLANNED FY 2001 OBLIGATION AND ACCOUNT: None
PROPOSED FY 2002 OBLIGATION AND ACCOUNT: TBD.
STATUS: New
INITIAL OBLIGATION: FY 2002 ESTIMATED COMPLETION DATE: FY 2005Summary: The purpose of this objective is to address poverty issues in three of Paraguay's poorest departments by generating employment and increasing income by expanding people's access to financial services and by encouraging economic reforms. The activities implemented under this objective will complement and reinforce USAID's main strategic objective in democracy. USAID is supporting policy reforms to address poverty issues through the provision of decentralized basic services, such as water, solid waste collection, education, public works, and health care. Improving reproductive health care and reducing maternal and infant mortality through increased community participation in local government processes are an important part of this process.
Key Results: Three results will be achieved under this objective: 1) business development strategies will be implemented, 2) financial services will be increased, and 3) the business environment for micro and small businesses will be improved.
Performance and Prospects: Recent studies conducted by the Paraguayan Bureau of Statistics and Census estimate that the level of poverty in Paraguay has increased. Approximately one-third of Paraguayans live below the poverty line, with the majority of them living in rural areas. These rural communities present similar characteristics: numerous small farmers, very rudimentary production techniques, limited access to credit, and many people living on land to which they have no legal title.
In the three departments selected (Concepcion, San Pedro, and Caaguazu), more than one-half of the population live below the poverty line. Business development services will support those companies, institutions, and individuals that provide services and supply products to local and international markets. This will ultimately result in higher incomes to the poor. Technical assistance and training will be provided to financial institutions to provide more financial services to residents in rural areas. The objective is to tailor financial services to the characteristics of rural and micro finance needs. Policy and regulatory support will be developed to ensure that whatever gains are realized by the poor will not be taken away through policy changes that offer unfair advantages to others.
Possible Adjustments to Plans: No changes are expected.
Other Donor Programs: The Inter-American Development Bank funded a $10 million global credit program for the micro enterprise sector from 1993 to 1996. A second $20 million phase began in 1997 and is scheduled to end in December 2001. A third phase that places more emphasis on rural financing is planned.
The German Cooperation Agency (GTZ) recently ended a three-year program to improve small and medium enterprise competitiveness by providing assistance in the formulation of policies, both at the public and the private levels. The GTZ also funded projects for rural development and soil conservation in the department of San Pedro. The International Fund for Agricultural Development funded a $22 million activity to provide credit to small-scale farmers.
Other donors are committed to rural development. For example, the European Union has a project that will focus on 14,000 rural families in the Department of Caaguazú by helping to solve land tenancy problems and providing basic infrastructure and training. The Swiss Association for International Cooperation has a program to support post-crop mechanisms. USAID will work closely with other donors in the three targeted departments and will organize the donor community to facilitate selected policy interventions.
Principal Contractors, Grantees, or Agencies: These organizations will be determined during the contracting process.
Paraguay: 526-XXX
Performance Measures:
Indicator FY97
(Actual)FY98
(Actual)FY99
(Actual)FY00
(Actual)FY00
(Plan)FY01
(Plan)FY02
(Plan)Indicator 1: Specific improvements. NA NA NA TBD NA TBD TBD Indicator 2: Additional borrowers and savers. NA NA NA TBD NA TBD TBD Indicator 3: Number of poor with higher incomes. NA NA NA TBD NA TBD TBD Indicator 4: Completed business development strategies approved. NA NA NA TBD NA TBD TBD Indicator Information:
Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: IR Number Program Reports Specific improvements. Indicator 2: IR Number Program Reports Number of additional borrowers and savers. Indicator 3: SO Number Program evaluations. Number of poor with higher incomes. Indicator 4: IR Number Program evaluations. Number of completed business development strategies approved.
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Last Updated on: May 29, 2002 |
