Country Development Cooperation Strategy FY 2014 20

Preparing to load PDF file. please wait...

0 of 0
100%
Country Development Cooperation Strategy FY 2014 20

Transcript Of Country Development Cooperation Strategy FY 2014 20

PUBLIC VERSION
Country Development Cooperation Strategy FY 2014 – 2020
April 2014

PUBLIC VERSION

Contents

I.

Executive Summary

3

II.

Acronym List

4

III. Development Context, Challenges and Constraints

6

IV. Results Framework

10

Development Hypothesis

11

Development Objective 1

12

Development Objective 2

15

V. Monitoring, Evaluation, and Learning

19

Annex :

Programmatic Considerations

21

Challenges

21

Opportunities

21

Focus and Selectivity

22

Gender and Disability

23

Bibliography

24

2

PUBLIC VERSION

I.

Executive Summary

USAID/Paraguay’s strategy will align with two of the four pillars of President Obama’s framework for U.S. policy toward Latin America (strengthening effective institutions of democratic governance and promoting economic and social opportunity).1 Additionally, the CDCS aligns with three of the four goals of the WHA/LAC Joint Regional Strategy: 1) increased citizen security and effective democratic institutions and governance; 2) social equity for the peoples of the Americas; and 3) expanded economic opportunity. USAID’s vision also directly supports the Government of Paraguay’s (GOP) strategic priorities: reducing extreme poverty and eradicating corruption.

This CDCS focuses on strengthening democratic governance and increasing economic opportunities for vulnerable populations in Paraguay’s northern zone. It demonstrates a high degree of focus to maximize resources and budget. Since 2010, the mission has consolidated from seven program areas to two. This streamlining allows the mission to better concentrate its budget and resources in promoting good governance and transparency in select government ministries, and supporting inclusive economic growth. USAID will seek to advance the objectives of USAID Forward by implementing its programs through local partner organizations. Sufficient local capacity currently exists in Paraguay and continued development of local partners will be an important focus of sustainability.

USAID/Paraguay’s Development Objectives, DO#1 Internal management and governance systems strengthened in select public institutions, and DO#2 Increased inclusive and sustainable economic development for small-scale producers and vulnerable populations in the northern zone will support the CDCS goal of creating a more prosperous, well governed democracy in Paraguay. The goal includes a focus on inclusion of vulnerable Paraguayans.

1 Arturo Valenzuela, Assistant Secretary, Bureau of Western Hemisphere Affairs Testimony Before the Subcommittee on the Western Hemisphere, Peace Corps, and Global Narcotics Affairs of the Senate Committee on Foreign Relations. Washington, DC , 02/17/2011
3

II. Acronym List

PUBLIC VERSION

ABC AECID AGCI AMEXCID ARP CBJ CEJA CDCS CSO DA DAP DCA DO ECLAC ENEP ESF EU FAO FTF FY GIZ GCC HED IDB INL IOM G2G GDP GDA GII GOP HDI IICA IIDH ICS IZN IR JICA KOICA M&E MCC MSME MOH MRR OAS ODC OE

Brazilian Cooperation Agency Spanish Cooperation Agency Chile’s International Cooperation Agency Mexico’s Agency for International Development Cooperation Rural Association of Paraguay Congressional Budget Justification Justice Studies Center of the Americas Country Development Cooperation Strategy Civil Society Organization Development Assistance Desarrollo Agrícola de Paraguay Development Credit Authority Development Objective UN Economic Commission for Latin America and the Caribbean Paraguayan National Country Strategy Team Economic Support Fund European Union U.N. Food and Agriculture Organization Feed the Future Fiscal Year German Cooperation Agency Global Climate Change Higher Education in Development Inter-American Development Bank International Narcotics and Law International Office of Migration Government-to-Government Gross Domestic Product Global Development Alliance Gender Inequality Index Government of Paraguay’s Human Development Index Inter-American Institute for Cooperation in Agriculture Inter-American Institute for Human Rights Integrated Country Strategy Northern Zone Initiative Intermediate Result Japanese Development Agency Korean International Cooperation Agency Monitoring and Evaluation Millennium Challenge Corporation Micro, Small, and Medium Sized Enterprises Ministry of Health Mission Resource Request Organization of American States Office of Defense Cooperation Operational Expenses

4

OFDA OYB PAHO PMP PPP PWD SME SMPR TIP UNA UNICEF UNDP USG

PUBLIC VERSION
U.S. Office of Foreign Disaster Assistance Operating Year Budget Pan-American Health Organization Performance Management Plan Public Private Partnerships People with Disabilities Small and Medium Sized Enterprises Women‘s Secretariat of the Office of the Presidency Trafficking in People National University of Asuncion United Nations Children’s Fund United Nations Development Program U.S. Government

5

PUBLIC VERSION
III. Development Context, Challenges and Constraints Country Context Paraguay is a landlocked country bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay's population is approximately 6,541,5912, with 28.5% under the age of 14 and 41.4% residing in rural areas. The largest concentration is in the southern tip where the capital Asunción and its metropolitan area account for nearly one third of the country’s population. From 1954 to 1989 Paraguay was ruled by Alfredo Stroessner, who led one of South America's longest lived military dictatorships. Stroessner was toppled in 1989 and free elections were held in 1993. In 2008, Fernando Lugo was elected president in the first peaceful handover of power to an opposing party after 60 years of one-party rule. President Lugo was impeached in June 2012. The Vice President, Federico Franco, then assumed the presidency for the remainder of the term. Elections were held in April 2013 and the new president Horacio Cartes was inaugurated on August 15, 2013.
Governance With a score of 150 out of 177, Paraguay ranked third to last in the western hemisphere, in Transparency International’s 2013 Perception of Corruption index, only ahead of Venezuela and Haiti. Paraguay also ranked 119 out of 148 countries in the 2013 World Economic Forum’s Global Competitiveness index, with corruption as one of the leading contributors to the poor business environment. Paraguay ranked 140 in the category of government institutions to improve business function, and 145 in public confidence in politicians. However, progress in combating corruption is being made, including: the creation of a transparent, internet-based government procurement system; the appointment of respected apolitical officials to key posts; and increased civil society input and oversight.
2 Dirección General de Estadísticas, Encuestas, y Censos (DGEEC). 2011. “Encuesta Permanente de Hogares 2011: Distribución de Ingresos y Pobreza” DGEEC. Asunción, Paraguay.
6

PUBLIC VERSION
The Paraguayan state struggles to provide quality public goods and services to all its citizens. Weak governance and a fragile rule of law restrain economic growth, especially among the poor, and allow corruption and other illegal activities to flourish. Limited policy dialogue among and between politicians and civil society has hindered effective decision making over public goods and services, and prohibits substantive citizen participation in issues of public interest.
Economy Landlocked Paraguay has a market economy characterized by a large informal sector, featuring re-export of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. A large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. The agricultural sector dominates Paraguay’s economy constituting 15.9% of the GDP in 20123, and agricultural production employed 26.5% of the workforce. Agriculture production roughly consists of two-thirds crop production and one-third livestock production. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. However, in 2010, the GDP grew by 13%, the largest economic expansion in Latin America that year4, due to high prices for agricultural exports. In 2012, severe drought and outbreaks of foot-and-mouth disease led to a drop in beef and other agricultural exports and the economy contracted about 1%, underscoring the volatility of the Paraguayan economy. The dependence on agricultural exports has made the country’s economy more susceptible to market and price fluctuations, climatic changes, plagues, and disease.
UNDP Poverty indicators show that even with the GDP boom in 2010, the level of poverty only reduced by 1% in rural areas and extreme poverty in rural areas remained flat. This is mainly attributed to Paraguay’s dramatic shift in its agriculturally based economy from a predominantly family farm and labor intensive model to a structure based on capital-and-land intensive activities (soybeans, wheat and beef). Although this generates economic growth, it requires little labor. Approximately 24% of the overall population, or 1.6 million people, fall below the poverty line. Poverty is more widespread and more severe in rural areas, particularly in the Northern Zone, where around 20 percent of the total poor and 50 percent of the extreme poor reside.
Inequality The GINI index in Paraguay was last reported at 52.42 in 2010, an increase from 2009, with the highest ten percent earning 40.8% of the country’s income. Paraguay’s Human Development Index (HDI) for 2011 is 0.665 or 107 out of 187 countries. However, when the value is discounted for inequality, the HDI falls to 0.505, a loss of 24% due to inequality in the distribution of three dimension indices. The greatest loss contributing to this adjusted HDI comes from the 33% reduction due to inequality of income. Paraguay’s inequality is also reflected in land ownership: 86% of agricultural land is consolidated in just 2.5% of all properties, while 30% of the rural population is landless.
The 2011 Gender Inequality Index (GII) value of 0.511 ranks Paraguay at 87 out of 187 countries. It reflects the disadvantage of women in reproductive health, empowerment and job market. In Paraguay, 13.6% of parliamentary seats are held by women, and 45.4% of adult women have reached a secondary or higher level of education compared to 50.4% of men.
3 CIA world Fact Book 2013 4 World Bank, 2011
7

PUBLIC VERSION
Although women’s labor force participation has increased, there continues to be an important wage gap between women and men across sectors. Also, female participation in the labor market is 55% compared to 85% for men.5 The 1992 constitution guaranteed gender equality in terms of civil, political, social, economic, and cultural rights, and assigned responsibility for protecting these rights to the state. The creation of the Women‘s Secretariat of the Office of the Presidency (SMPR) in 1993 marked the most notable gain in efforts to ensure women‘s constitutional rights. However, gender-related discrimination is widespread, and women still suffer disproportionately from domestic violence and economic deprivation. In rural areas especially, women are informally excluded due to lower education rates and higher illiteracy, as well as cultural norms that afford little power or participation to women, reflected in less access to land, lower wages (especially in domestic service), higher unemployment, and higher levels of extreme poverty6. Northern Zone The Northern Zone, San Pedro, Amambay, Concepción and Canindeyú, has the highest concentration of poverty and rural poverty is an overarching systemic problem that significantly inhibits Paraguay’s development. The lack of an effective state presence has fostered social, economic, and political instability which is compounded by the presence of drug traffickers due to the proximity to the notorious tri-border region with Brazil and Argentina. Three of the four departments of the Northern Zone (Concepción, San Pedro, and Canindeyú) display the highest rates of extreme poverty in the country combined with the lowest population densities outside of the Chaco.7
Northern Zone
Poverty Gap Index By the NASA Socioeconomic Data and Applications Center
5 International Labor Organization, 2012 6 World Development Indicators: Labor force structure 2011 7 GOP, DGEEC Household Survey, 2008
8

PUBLIC VERSION The agricultural sector of the Northern Zone presents political problems in Paraguay. Landless farmers' movements continue to stage demonstrations, which have included land invasions, protests for land ownership reform, as well as other social reforms. At the same time, the powerful lobby of the agribusiness sector limits the government's ability to maneuver on environmental and agricultural policies, leaving the GOP under pressure from various sectors, including the international community.
9

PUBLIC VERSION

IV. Results Framework
CDCS Goal: A MORE PROSPEROUS, WELL GOVERNED DEMOCRACY IN PARAGUAY

Development Objective 1: INTERNAL MANAGEMENT AND GOVERNANCE SYSTEMS
STRENGTHENED IN SELECT PUBLIC INSTITUTIONS

IR 1.1: Increased institutional capacity

IR 1.2: Accountability and anti-corruption efforts strengthened

1.1.1: Management and procurement systems improved
1.1.2: Institutional capacity to address strategic and high priority needs improved

1.2.1: Effective internal control systems to reduce corruption strengthened
1.2.2: Increased government transparency and external accountability

Development Objective 2: INCREASED INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT FOR SMALL-SCALE PRODUCERS AND VULNERABLE POPULATIONS IN THE NORTHERN ZONE

IR 2.1: Increased net income of small-scale producer organizations and enterprises through value chains and market access
2.1.1: Strengthened internal capacity of producer organizations or other productive enterprises
2.1.2: Increased agricultural productivity and sustainability
2.1.3: Development and expansion of alliances between agricultural producer organizations and private sector firms

IR 2.2: Increased employment and business opportunities for vulnerable populations
2.2.1: Greater capacity and empowerment of women in agriculture
2.2.2: Increased capacity of people with disabilities to effectively enter labor markets
10
ParaguayZoneWomenPovertyGovernance