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).

HAITI

FY 1998 Development Assistance . . . . . . . . . . . . . . . . . $70,00,000
FY 1998 P.L. 480 Title II . . . . . . . . . . . . . . . . . $14,314,000
FY 1998 P.L. 480 Title III . . . . . . . . . . . . . . . . . $10,000,000

Introduction

Haiti is one of the most recent emerging democracies in the hemisphere, and the one facing the greatest developmental challenges. Although Haiti managed to successfully complete the first democratic transition in its history with the February 7, 1996, swearing-in of an elected president, democracy remains fragile, its legal system weak and its economic future is still in doubt.

U.S. interests focus on strengthening democratic institutions to provide greater pluralism, more open, transparent and accountable government, and on expanding economic opportunity. The expected result of increased opportunity and greater self-determination will be dramatically lower out-migration and thus a reduced burden on neighboring countries, especially the United States. The alleviation of the pressures of political and social crises will provide Haiti with an opportunity to pursue long-term stability through expanding economic opportunity, trade, and regional security.

The Development Challenge

While important reforms have been initiated since the return of constitutional rule in 1994, and while the trend of economic decline has been reversed with international support, the challenges facing Haiti are still daunting. Haiti faces six key challenges to development, all of which are compounded by mounting demographic pressures:

* A legacy of political and social instability, which circumscribes the actions of the government and threatens to reverse recent gains;

* Pervasive poverty and poor social services, which cause suffering, deprive people of opportunities, and contribute to instability;

* A weak public administration and an overextended public sector, which barely provide services, hampers implementation of aid projects and cannot adequately support economic growth;

* A devastated economy as a result of the economic embargo which saw jobs in the vital assembly sector fall from 50,000 in 1992 to less than 10,000 in 1994;

* Uncontrolled population growth which leads to a degraded environment and endangers the natural resource base for sustainable agricultural production; and,

* Deteriorated infrastructure, in all sectors, which makes private sector development and investment difficult.

Haiti has had a long history of political instability and poor governance. In February 1996, René Préval succeeded Jean-Bertrand Aristride as president in the country's first democratic transition of power in history. Haiti is now developing the institutions needed for democracy: a responsible parliament, a free press, a functioning judiciary and a civilian police force. Progress is being made but substantial assessments is required to help nurture these fragile institutions. With respect to governance, an overarching objective is to establish more responsive government - both at the national and local level while a more immediate objective is to curtail violence and fear.

The strengthening of democratic institutions is made more difficult by the weak public sector caused by the poorly trained staff and a frail economy which does not generate the revenue required to fund adequate salaries or services.

The economy still suffers from the loss exports and a net loss of 100,000 jobs as a result of the economic blockade of the early 1990's. Per capita income is estimated to be $250 per year, the lowest in the hemisphere. Investors have been slow to return to Haiti due to the combination of political and economic uncertainty, as well as a deteriorated infrastructure. In the absence of employment and export growth in the assembly sector, the economy and the fiscal situation remain troubled. High population growth and unrelenting poverty have led to the erosion of arable land through deforestation and declining agricultural productivity.

The economic situation is bleak, but not hopeless. Last year, Gross Domestic Product (GDP) grew to about 4.5%. Inflation, which had reached 52% by early 1994, declined to 18% last year. Central government revenues rose to about 6.6% of GDP and the government implemented important structural reform measures. Petroleum subsidies were eliminated; all public sector wage contracts signed with the de facto regime were cancelled; the export surrender requirement and the remaining restrictions on imports were abolished; import tariffs were reduced; and, ceilings on interest rates were eliminated. Moreover, Haiti has significant comparative advantages that set it apart from many other Caribbean countries: a class of modern entrepreneurs, proximity to North-American markets, and strong links to a large and relatively prosperous diaspora. In addition, Haiti did not finance its growth during the 70s through excessive borrowing. As a result, debt overhang is limited and its debt service burden is manageable, if exports recover.

Haiti has one of the highest population to arable land ratios in the world resulting in the deteriorated environment described above. The high rate of population growth of 2.3%, if unchecked, will almost double Haiti's population from 7 million to 13 million by the year 2025. At present, 80-85% of the population is in rural areas, but rural to urban migration will, in the absence of job creation in urban areas, lead to social explosion and/or vastly increased illegal emigration.

The population problem is compounded by the history of under-investment in the human resource base. Illiteracy is 70%. Only about 20% of the children finish primary school. Dilapidated schools, lack of teaching materials, and poorly trained, low-paid teachers prevail. Haiti's population also has the poorest health indicators in the Western Hemisphere. Epidemics of measles, meningitis, rabies and anthrax are common. Child mortality and malnutrition have been reduced, but the international community still provides food to more than a tenth of the population. Less than 60% of the population have access to primary health care on a regular basis.

There is an additional element that needs to be addressed when describing the development challenge in Haiti: infrastructure. Road rehabilitation is an immediate goal of national reconstruction, however, extending the secondary road network is yet another expensive multiyear effort. Provision of other infrastructure, including potable water, electricity and communication, are necessary for both economic and social development.

Other Donors

The United States remains Haiti's largest bilateral partner. Other major donors include the International Bank for Reconstruction and Development (IBRD), the Inter-American Development Bank (IDB), the International Monetary Fund (IMF), the United Nations agencies, the European Union (EU), Canada, France, Japan, and Germany.

Policy reform efforts are included in the programs of the World Bank, IDB, IMF, and EU. Certain infrastructure requirements in the form of primary and secondary roadworks along with potable watersupply activities will be financed by the World Bank, IDB, France and Germany. IDB activities to assist education and decentralization are expected soon, while the EU has generally focused on providing budgetary support. Along with the IDB, the United Nations Development Program has contributed to civil service reform efforts, while Canada has recently signed an agreement to provide C$15 million (approximately US$12 million) annually for five years to finance food commodities. Among other programs, the World Bank will soon have a $42 million environmental activity which continues efforts made under the USAID-financed Targeted Watershed Management activity. A number of international financial institutions and bilateral donors have contributed to the $135 million Enhanced Structural Adjustment Facility, which will help reform the Government of Haiti (GOH) fiscal and monetary management.

FY 1998 Program

U.S. objectives for Haiti will support the development of durable democratic institutions, promote political stability, and foster economic recovery. The FY 1998 program will support a long-term sustainable development strategy for Haiti. This strategy will address poverty and improve basic social services, rebuild and redirect the public sector, extend governance, and lay the groundwork for sustainable growth. The program will include continued support to judicial reform, assistance in agriculture and natural resources management activities already reflected in the existing Haiti program. It will incorporate a more developmentally-targeted nutrition program and maintain a focused health/family planning program. The strategy will encourage greater decentralization efforts and, through civil service reform, assist the GOH to define a new role for government. It will encourage greater investment and overall private sector growth as well as increased private sector participation in the management and ownership of state-owned enterprises. Expected achievements include a visibly functioning justice system, heightened security, a public sector that can effectively address social concerns and help create an environment for private sector-led growth, an improved education sector which includes standards for curriculum and teachers, and targeted assistance for nation-building. The political objective of U.S. assistance is "democratization" and the economic objective is self sustaining growth that, among other things, produces jobs for a growing population and does not further degrade the environment.

Agency Goal: Building Democracy

Building strong, functioning democratic institutions in Haiti is critical to the country's long-term development. Without such institutions, the country will not be able to provide a stable environment in which civil society and economic development can thrive. While some elements can be carried out with the help of non-governmental organizations, much assistance must directly involve the GOH. USAID/Haiti's democracy programs cover five areas: civil society, parliament, elections, local government and administration of justice. The civil society component is developing ways to foster dialogue and action with the Government of Haiti (GOH) on major issues of the day. The following examples illustrate USAID's emphasis on helping democratic structures serve the needs of Haiti's citizens:

- Since June 1995, model prosecutors' offices have been established in 6 out of Haiti's 15 jurisdictions to process cases more efficiently, and thereby radically reducing court backlogs;

- Legal defense services are being provided to indigent detainees who would otherwise not be able to afford an attorney. Between January and August 1996, this program reslulted in the closing of 1,953 cases.

- Parliamentary committees have utilized technical assistance to deal more effectively with issues in the areas of budget analysis, decentralization and the drafting of a parliamentary career law;

- An electoral procedures manual has been prepared, including all required legal forms necessaryfor all levels of elections, and a civic education and training curriculum for the territorial assembly elections is in place; and

- Local government officials have increasingly engaged in dialogue with community groups, many for the first time, to establish and prioritize local needs and to facilitate public/private sector partnerships in the production of local public goods and services. To date, almost half of all municipal governments have consulted their constituents and submitted site profiles and a list of priority needs for program support.

* Strategic objective 1: Foster more effective and responsive democratic institutions and empowered communities.

Agency Goals: Encouraging Broad-based Economic Growth

and Protecting the Environment

Haiti's fledgling democracy cannot be sustained in the absence of economic growth, improved social, productive and institutional infrastructure, and access to opportunities for Haiti's poor. USAID's objective is to improve the enabling environment, increase availability of credit, enable Haitians to obtain meaningful employment and promote viable and environmentally sound agricultural and reforestation ventures. Underlying this element of USAID/Haiti's strategy is the basic premise that poverty drives Haiti's deforestation and other environmental destruction more than any other factor, and that jobs and income opportunities (along with family planning) provide the key to reducing poverty and increasing accessibility to food. Creating jobs require making an investment -- in a secure environment, in infrastructure, in human capital (through training) or in increased productive capacity. In 1996, USAID's efforts have resulted in draft investment and commercial laws, now under review, based on an enhanced dialogue between the private sector and the government. USAID has increased the availability of credit to labor-intensive agro-industry and small and micro-enterprises. USAID is also building on the successful coffee export program, mobilizing other farmers and entrepreneurs to enter other horticultural and artisanal export markets.

The economic challenge is exacerbated by the extreme degradation of Haiti's resource base and environment. Haiti has now less than 1.4% forest cover, with 80% of the national watersheds are severely degraded and 15,000 acres of arable land eroded annually. In FY 1996, the USAID initiative to establish and protect Hispaniola's largest and most species-rich national park, Parc Macaya was successfuly completed. The GOH took charge of managing the park, and a $25 million World Bank funded follow-on loan was initiated. USAID's hillside soil management and commercial tree crop program that currently includes 110,000 farmers practicing environmentally and commercially sound methods, and will reach 130,000 farmers by FY 1998. Under the Agriculturally Sustainable Systems for Environmental Transformation (ASSET) Program, USAID will support community-managed renewable hillside fuelwood ventures in key watersheds and urban waste management efforts in Cité Soleil and in Gonaives. USAID-GOH jointly-programmed local currency from the sales of P.L. 480 Title III Food for Development programs will concentrate on irrigation, rural road and hillside community conservation efforts to reinforce this strategy. Finally, under the Mission's Food Security Program, USAID is putting into full operation with the GOH a national area sample frame based agricultural and food security data collection system which will provide the basis for improved public and private decision making.

In education USAID will focus on improving the quality of primary education, to reduce the 16 years it takes the average Haitian child to complete the six year primary school cycle. USAID's efforts in education have already decreased the primary school repetition rate in the majority of Haiti's private schools from 32% to 25% while primary school enrollment has more than doubled to about 75% of the school-age population. In FY 1997 and 1998, the new Education 2004 program will enable USAID to work directly with 240,000 children by enhancing the quality and availability of textbooks and bytraining teachers and administrators. For the remaining 820,000 of Haiti's primary school students, the program will generate indirect benefits by helping the education sector to plan and manage its limited resources more effectively. The Mission's large school feeding program continues although at reduced levels. We and our cooperating sponsors will use these food aid resources to leverage improvements in educational quality.

* Strategic Objective 2:

Promote broad-based, environmentally sound and sustainable increases in agricultural and urban incomes and employment

* Strategic Objective 3: To promote smaller, better nourished and better educated families

Agency Goal: Stabilizing World Population and Protecting Human Health

Two of Haiti's most pernicious public health problems which aggravate all others are high fertility and the magnitude of both chronic and acute malnutrition. Slowing the population growth rate through a comprehensive program of family planning, is one of the most cost effective health and nutrition programs available to significantly improve the quality of life for the majority of impoverished Haitians. Equally important is attacking the problem of malnutrition which afflicts nearly 50% of Haitian children in some form and is an absolute impediment to further improvements in health status. Effective nutrition programs must include a comprehensive package of health services which will include food aid in many instances; our aim is to reduce the disease burden of young children and provides adequate nutrition for vulnerable communities from the time of conception through at least three years of age.

Thus far USAID's population, and nutrition programs have contributed to a 25% reduction in fertility between 1987 to 1994, and a decline in the prevalence of chronic malnutrition, from 33.9% in 1990 to 31.9% in 1994. This progress, impressive given the dramatic political upheaval of the past few years, still leaves Haiti among the countries with the highest fertility and malnutrition levels.

USAID assistance and technical leadership is required to continue to test and apply new approaches to alleviating malnutrition. Working with public and private sector health providers, we plan to adopt an approach which emphasizes the prevention of malnutrition rather than its treatment. Likewise, as the lead donor in reproductive health, USAID will continue to focus on expanding family planning and STD diagnosis and treatment services. USAID activities in primary education will have a focus on female retention rates, which would directly support achievement of family planning goals.

* Strategic Objective 3: To promote smaller, better nourished and better educated families

Agency Goal: Providing Humanitarian Assistance

The P.L. 480 Title II Feeding and Title III Food for Development programs are integrated into the Mission's development portfolio. Resources provided through these two programs directly support USAID's economic growth and health/nutrition/education objectives. A small general relief program, which provides food assistance to orphans, elderly, TB patients and AIDS victims, continues and is slated for complete phase-out at the end of FY 1998.


HAITI

FY 1998 PROGRAM SUMMARY

(000's)

USAID Strategic Objectives Encouraging Brod-based Economic Growth Stabilizing Population Growth and protecting Human Health Protecting the Environment

Building Democracy

Providing Humanitarian Assistance

TOTAL

1. Foster More Effective and Responsive Democratic Institutions and Empowered Communities

ESF

22,000

22,000

2. Promote Broad-Based, Environmentally-Sound Sustainable Increases in Agricultural and Urban Incomes and Employment

ESF

P.L. 480 Title III

13,200

10,000

7,000

23,200

7,000

3. Promote Smaller, Better-Nourished, and Better-Educated Families

ESF

P.L. 480 Title II

P.L. 480 Title III

24,800

14,314

3,000

24,800

14,314

3,000

Grand Total

ESF

P.L. 480 Title II

P.L. 480 Title III

13,200

24,800

10,000

22,000

14,314

10,000

70,000

14,314

10,000

USAID Mission Director: Lawrence Crandall


ACTIVITY DATA SHEET

PROGRAM: HAITI

TITLE:

Foster more effective and responsive democratic institutions and empowered communities, 521-S001

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $22,000,000 ESF

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To support the Government of Haiti's (GOH's) efforts to establish strong, responsive democratic institutions, both through the government's various branches, and at the local, community level, and to support the emergence of an active civil society.

Background: Prior to the return of President Aristide in 1994 and due in large part to Haiti's violent political history, the judicial system was in an abysmal state. Ineffective judicial institutions lacked popular respect, the national police force was viewed as an enemy of the people, and the penal system was incapable of meeting even the most basic international health or human rights norms. In addition, Parliament was in disarray, emerging from the military regime with only nine members holding electoral mandates, and all of the other elected posts, except for that of President, also had expired. Civil society was severely repressed, with organizations and members exiled, in hiding, hunted and abused. A combination of urgent, transitional interventions and a longer-term strategy, were needed to address these fundamental and pressing problems.

USAID Role and Achievements to Date: USAID's assistance since 1994 has included major contributions toward this strategic objective in helping Haiti to establish a 5,200 member civilian police force, complete its local, parliamentary and presidential elections, train 500 judicial personnel and strengthen the Ministry of Justice, provide legal assistance to almost 4,500 Haitian citizens, establish a Human Rights Fund, work to assure that former members of the Haitian Armed Forces (FAdH) received re-training or monetary compensation when required, work to establish procedures and systems in Parliament, implement over 2,250 community projects in 113 out of Haiti's 133 communes, and initiate a technical assistance training program in 24 communes strengthening these local governments units.

Description: The program seeks to build on the preliminary accomplishments of recent years. With respect to Administration of Justice, the program will create model jurisdictions that build on the previous successes of the model prosecutors' offices. It will allow the development of case and court management systems at all levels, provide on-site mentoring to judges to augment their classroom training; help create and help implement a more in-depth curriculum for judicial personnel, including joint training for judges, prosecutors and police; provide technical assistance to the Ministry of Justice in developing budgets, financial management and the processing of judicial statistics; support the development of a prosecutorial supervision unit and provide technical assistance to the newly created judicial inspection unit; augmenting the number of cities where legal aid services are provided, including those for indigent prisoners, and increase the number of individuals who receive such assistance; and, improve detention conditions in some of the prisons. In the area of civil society, USAID will help to build the basis of a democratic society in Haiti by increasing citizen's knowledge of democratic values and channels for effective participation in policy-making at the national and local levels. The local government program will provide technical assistance to selected local government units to increase their ability to provide efficient and transparent administrative services. In addition, the program will work with local governments to strengthen their capacity to promote private/public sector partnerships, and, technical assistance will be provided to local government leaders to foster national dialogue on local governance and decentralization policy. With respect to the Parliament, legislation dealing with deconcentration and devolution of the authority of the central agencies must be passed. Bills redefining the roles of all levels of local government, including their relationships with one another and to the central government, must also be considered. In the area of elections, preparations have been made to assist in the Constitutionally-mandated local territorial assembly elections, but delays have occurred in the implementation. It is now expected that the elections will be held in April 1997, and the program will provide support to that effort.

Host Country and Other Donors: Donors continue to coordinate closely in the democracy arena. In the area of justice, police and prisons, the major donors are Canada, European Union and France, in addition to the United States. USAID collaborates on a regular basis with these donors in order to assure maximum output without duplication of effort. In the broader area of governance, the United Nations Development Program serves as the coordinator of the effort among USAID, the European Union, Canada, the OAS, France and others.

The democracy program works with the Haitian public and private sectors on numerous levels. In addition, the Haitian Parliament and Ministries of Justice, Interior, and Prime Ministry, Haitian NGOs, bar associations, law schools, citizens' groups and popular movements, as well as rural and inner-city low income people are directly involved, particularly through the various small grants programs.

Beneficiaries: The Haitian people are the ultimate beneficiaries of the democracy programs and specifically, judicial personnel, members of parliament, local government and civil society, NGOs and the democratic institutions fostered by the activities.

Principal Contractors, Grantees, or Agencies: America's Development Foundation (ADF), Associates in Rural Development (ARD), Checchi and Company Consulting, Inc., Department of Justice (OPDAT and ICITAP) and numerous local and U.S. NGOs.

Major Results Indicators:                             Base          Target

INDICATORS (1994) (1998)

- Number of people receiving legal aid services 4,500 12,000

- Case management system in model courts 6 29

- Number of judicial personnel receiving in-depth training at the Magistrate's School (more than 4 weeks) ----- -----

- Number of public consultations between civil society organizations and GOH on ----- -----

- Territorial Elections held and Permanent Electoral Council established no yes

- Number of local government units having completed training 75 100

- Percentage of local government units holding formal meetings with grass-root organizations 45 60 - Design and implementation of a competitive selection process and merit promotion system for parliamentary staff no yes

- Formation of a Central Support Staff for parliamentary committees no yes


ACTIVITY DATA SHEET

PROGRAM: HAITI

TITLE: Promote broad-based, environmentally sound and sustainable increases in agricultural and urban incomes and employment, 521-S002

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $23,200,000 ESF, $7,000,000 P.L.480 Title III

INITIAL OBLIGATION: FY 1995

ESTIMATED COMPLETION DATE: FY 2001

Purpose: To promote increased employment and income in the private sector on a sustainable and environmentally sound basis.

Background: Haiti is confronted with numerous hurdles in establishing broad-based, sustainable, economic growth. Achieving this goal will require the development of an enabling environment for increasing economic activity, while finding environmentally sound and profitable ways of exploiting Haiti's natural resource base.

The slow recovery of the economy, combined with the precipitous decline in business activities between 1991 and 1995, the exodus of investment and management expertise in the past decade, and the persistent reluctance of investors in Haiti to invest due to perceptions of political, economic and social instability, make dramatic improvements in the economic climate problematic. Failure to restore sound economic growth can only exacerbate pressures on rural and urban environments and lead to political instability and increased migration. Furthermore, improving economic security through permanent job creation is a sine qua non for maintaining the democratic gains that have been achieved.

Haiti's poor economic growth is also inextricably linked to its environmental crisis. The extreme deforestation and resource management problems are driven by three fundamental constraints: population pressure, poverty, and weak governance. Massive environmental degradation undermines short- and long-term prospects for achieving greater political and social stability, food security and sustainable economic growth in the rural sector where 80% of Haiti's population resides. Widespread deforestation has resulted in soil erosion, which has become one of the major constraints to agricultural production. During the past decade, twenty-five of the thirty major watersheds were severely degraded with less than 1.4% of the forest remaining -- mostly in Parc Macaya (which USAID helped to create and protect until the World Bank followed with its broader $25 million biodiversity project this year), and in a pine forest in the southeast. The equivalent of 15,000 acres of arable land or over 36.6 million metric tons of topsoil are lost annually due to soil loss following massive deforestation. Erosion chokes rivers with sediments, undermining downstream infrastructure and destroying coastal habitats, which seriously threaten the environmental underpinning of economic growth.

USAID Role and Achievements to Date: Notwithstanding these formidable challenges, USAID's programs are helping to set the stage for environmentally sound economic growth. Increased commercial bank lending in productive activities in the agricultural sector through a credit guarantee program have already resulted in thousands of new jobs for unemployed Haitian agricultural workers, primarily in the mango and horticultural industries. In FY 1996, over four million trees have been planted and new commercial opportunities for their use have been developed.

Other accomplishments to encourage environmentally sound economic growth include:

- Assistance to the Presidential Commission on Modernization resulted in the development of policy recommendations on commercial codes, tourism, and banking practices, allowing USAID to help in the elaboration of the economic policies of the Préval administration.

- Diagnostic analyses that will lead to the privatization of nine government-owned parastatals. Although delayed, the GOH is poised to move forward on privatization.

- The USAID-funded Haitian coffee growers' federation, now 20,000 farmers strong, exported a total of four containers of premium gourmet coffee to six U.S. retailers during FY 1996, and for the second year, paid a substantial bonus to its member growers.

- In Cité Soleil, the nation's most populous slum adjoining Port-au-Prince, 40 neighborhood water users' groups have elected leaders and are prepared to manage water retail outlets, ploughing a share of earnings into developing community microenterprise- based solid waste collection and other urban service ventures.

In summary, USAID/Haiti's investments in private sector promotion and enhanced natural resource management have combined to generate both direct and immediate income gains for over 115,000 Haitian microentrepreneurs and small farmers involved in agricultural exports. They have also begun to set the stage for lasting improvements in the business climate and the policy environment which could spawn long-term employment generation and income enhancement.

Description: During FY 1996, the various activities under the economic growth area have been consolidated into 2 initiativessupported by three other closely related funding mechanisms, as follows:

1. program for the recovery of the economy in transition (PRET) supplemented by funds from the Policy and Administrative Reform (PAR) Project to address the private sector enabling environment and financial intermediation; and

2. agriculturally sustainable systems and environmental transformation (ASSET), building upon the existing Productive Land Use Systems (PLUS) and Food Security Project (FSP) efforts to address natural resource management and environmental constraints.

The goal of these initiatives is to substantially increase employment and income earning opportunities available to Haitians, while increasing GOH policy making capacity.

PRET (with PAR providing additional support to privatization) will:

- help secure passage through Parliament of the national investment and commercial codes which PRET has already helped draft;

- continue to help the GOH to divest itself of inefficient parastatals;

- help non-bank credit institutions and Haiti's leading commercial banks to provide credit to businesses previously considered too small to be "creditworthy"; and

- develop niche export markets, such as the handicrafts and coffee sector.

Under ASSET, USAID/Haiti will also:

- continue establishing a framework for environmentally sound development through support of the National Environmental Action Plan;

- expand the number of farmers engaged in sustainable hillside agriculture from 92,000 in FY 1996 to 130,000 by the end of FY 1998 and to make commercial and processing opportunities available to these farming communities;

- begin empowering local communities in natural resources management and launch local reforestation and fuelwood ventures in several hillside communities; and

- improve liquid and solid waste management in Gonaives and Cité Soleil, Haiti's largest and most notorious slums.

Host Country and Other Donors: include the IDB and the World Bank, and the European Union which are assisting in the reform of financial and non-financial institutions to improve performance while encouraging private investment to Haiti. USAID leveraged relatively small investments in the financial sector to break ground for larger investments from these institutions. For example, USAID's creation of the Agribusiness Guarantee Fund has already leveraged an additional $4.5 million from the European Investment Bank. USAID's successful approaches in assistance to the productive agricultural sector have led to investment by the World Bank and Canadian Government to replicate and expand programs using environmentally sound hillside agriculture technologies.

The UNDP, World Bank, and IDB complement the pioneering USAID efforts to develop the National Environmental Action Plan (NEAP, a conditionality under the FY 1995/96 Title III Programs)), capacity building within the GOH, and efforts in the energy sector. The World Bank supports the Environment and Rural Poverty Program which involves the management of national parks, reforestation, and a communal development fund. FAO is distributing production inputs such as seeds, fertilizer. USAID serves as co-leader with the UNDP in facilitating meetings of the Consultative Group on the Environment. The GOH has programmed significant levels of P.L. 480 Title III local currency to fund interventions in irrigation systems in the plains, and rural road rehabilitation, with geographical linkage with ASSET's interventions in the hillsides.

Beneficiaries: Through the combined impact of the above activities, the direct beneficiaries include the currently unemployed, micro-entrepreneurs, small business owners, small agricultural producers, urban slum dwellers, U.S. and Haitian agricultural input suppliers, non-bank institutions, small agricultural transformation businesses, and the GOH. The direct beneficiaries of ASSET-funded interventions include 650 farmer groups representing 150,000 farmers supported by NGOs in resource and environmental management activities with 20% participation by women farmers. Over two million people will receive environmental awareness information and/or will participate in innovative farmer-oriented soil conservation, watershed management and agroforestry programs. Over 10,000 people will have received access to improved sanitary waste disposal facilities.

Principal contractors and grantees: Two private sector consulting firms and one indigenous NGO (Development Alternatives Inc., Capital Consult, Inc., and SOFHIDES) are engaged as USAID/Haiti's partners in the PRET Program. Under the hillside agriculture component of ASSET, USAID currently implements activities through a U.S. institutional contractors (SECID chemonics), several U.S. PVOs (CARE, PADF, CDS, IICA), many indigenous NGOs, and the Ministries of Agriculture and Environment.

Major results indicators:

INDICATORS Base (1996) 1997 1998

Formal private sector jobs (thousands) 90 100 115

Increase in agriculturally based income (% change) _ 10 15

Loans to small/micro and women-owned enterprises 1,500 2,500 4,500

Selected non-traditional and niche market exports ($m.) 38 45 50

NEAP draft final action

Sust. Incr. in agricultural productivity (Index, base year 95) n/a 1.05 1.08

Total number of trees planted (Million trees). 4 6 7

Increased land under env. protection (1000 Hectares) 110 121 143


ACTIVITY DATA SHEET

PROGRAM: HAITI

TITLE: Promote smaller, better nourished and better educated families, 521-S003

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $24,800,000 ESF, $14,314,000 P.L. 480 Title II, $3,000,000 P.L. 480 Title III

INITIAL OBLIGATION: FY 1995

ESTIMATED COMPLETION DATE: FY 2001

Purpose: To promote smaller, better nourished and better educated families

Background: Realization of the Agency's and Mission's overall goals of food security, social well- being and economic growth will not be possible if the basic constituent unit of the social structure, the family, cannot actively participate in their achievement. As such, the very high and persistent levels of malnutrition, both acute and chronic, the high fertility levels and the low levels of literacy are absolute impediments to the improvement of the health and welfare of the Haitian population, particularly children. It is difficult to speak of the future and of economic prosperity in a country where half of the children have some degree of malnutrition, the average mother has five children but can expect one of her children to die before it reaches age five, and it takes the average Haitian child 16 years to complete the six-year primary school cycle. Achieving smaller, better nourished and better educated families requires a continued USAID commitment over the next five years to further expand and integrate high quality family planning services throughout the country wherever health services are offered; a renewed commitment to reaching mothers and children with a package of primary care services before they become malnourished; and, expanding throughout the country a model primary education program designed to improve the quality of primary schools throughout the country.

USAID Role and Achievements to Date: USAID has played a critical role in improving social well- being. Through the Title III food imports the prices of basic food commodities have been reduced as much as 30% from 1994 levels, thus increasing availability and access to the millions of working and under-employed Haitian family members. USAID's support in the health sector has been concentrated on delivering essential child survival and family planning services including food aid supplements, to nearly one seventh of the population. The results have included a 25% decrease in infant mortality and fertility and a reduction in the rate of acute malnutrition and low birth weights. In the education sector, USAID- assisted schools have shown a decrease in the primary school repetition rate from 32% to 25%, a decrease of 9% in teacher turnover and absenteeism, and the development of a distance learning education program which focuses on enhancing the math and reading skills of third grade students.

Description: USAID will focus its work in the health sector on the achievement of reductions in rates of malnutrition and further reductions in fertility. These two overarching objectives will be achieved by: 1) supporting basic health care packages in specific geographic areas of the country; 2) assuring that the food aid program is integrated within existing maternal and child heath programs; and, 3) assuring that the accent of the supplementary feeding programs is placed on the prevention of malnutrition in pregnant and lactating mothers and children under three years of age rather than the treatment of malnourishment. Family planning programs will be reinforced in all health programs supported by USAID, including programs where food aid is distributed, greatly expanding the program's coverage. A renewed effort will be placed on improving vaccination coverage rates through periodic annual vaccination campaigns. The Mission will also support the marketing of essential nutrition, family planning and health products to low-income groups through social marketing channels. This year the Mission also plans to launch a new five-year basic education program entitled Education 2004 which will have both service and policy components. An estimated 240,000 primary school children will benefit from the enhanced teacher training, distance education materials, and pilot efforts to stimulate community and parent participation. Ultimately, 820,000 primary school students will benefit from the development of policy norms and standards and widespread availability of distance education materials. The ongoing school feeding program, which will reach 220,000 students, will be used to leverage improvements in the quality of primary education provided in the schools.

Host Country and Other Donors: Key donors in the social sectors of health and education are the IDB, the EU, the World Bank and UNICEF. Donors in food aid and food security are the WFP, the EU and CIDA. This year the Japanese and the Canadians also propose to monetize food aid resources to generate local currency for development. These new monetization initiatives are entrusted with USAID/Haiti's consent, to the GOH P.L. 480 Title III Management Office, further to its restructuring with technical assistance provided by USAID/Haiti. That office also disburses significant Title III local currency support to the 3 U.S. PVOs managing the Title II Feeding program.

Beneficiaries: USAID programs in the health sector currently reach 3 million women and children under the age of five, with USAID funding directly contributing to 300,000 family planning acceptors. The food aid for development program now reaches 750,000 people following the successful close-out of emergency feeding sites in the Northwest in late September 1996. The primary education program plans to directly reach 240,000 students in 1,000 primary schools as well as 3,600 teachers and 600 directors.

Principal Contractors and Grantees: USAID administers its health program through a U.S. firm that, in turn, has sub-grants andcontracts with U.S. PVOs and Haitian NGOs. The Title II Feeding program is implemented through three U.S. PVOs, a U.S. contractor who manages the food policy information system, and a local warehousing contract. The education program is administered through a Haitian NGO and a U.S. contractor. A competitive procurement will be awarded in June 1997 to manage the Education 2004 project.

Major Results Indicators: Baseline Target (1994) (1998)

Infant Mortality per 1000 live births 74 69

Total fertility rates 4.7 4.3

Malnutrition rates children 0-23 months 22% 19%

Numeracy, Literacy rates * *

* Indicators for the new project under design


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