Delegación de la Unión Europea en Paraguay
Transcripción
Delegación de la Unión Europea en Paraguay
EUROPEAN COMMISSION EXTERNAL RELATIONS DIRECTORATE GENERAL DIRECTORATE Latin America 0HUFRVXU&KLOH 5HSXEOLFRI3DUDJXD\ (XURSHDQ&RPPXQLW\ Country Strategy Paper 2001-2006 And National Indicative Program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¶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he Republic of Paraguay is located in Central South America. The Western Region of the country - Chaco region, covering more than half of the 406,750 sq km total area of Paraguay suffers of a semiarid climate and is almost unpopulated. Population - 5,5 million - concentrates in the Eastern region. 47% of it lives in rural areas. Paraguay is a constitutional democracy, currently in phase of consolidation. It has adopted an active regional integration policy, being i.a. a member of MERCOSUR, together with Argentina, Brazil and Uruguay. Paraguay has a market economy, with a large informal sector. Agriculture and commerce play a dominant role. Since 1996, Paraguayan economy is undergoing a sustained contraction, following both domestic disadjustsments and the decline of the Brazilian and Argentinean economies, from which it is largely dependent. As a result, poverty has deepened -specially in rural areas- and the income distribution has become more unequal. It looms heavily on the political stability of the country. Faced to this, the Government has adopted an Economic and Social Program-"Plan Estratégico Económico y Social"-which seeks at achieving a sustainable development on the basis of four pillars: modernisation of the State and strengthening of Institutions; macroeconomic stability and structural reform; improving competitiveness and stimulating investment; human resources development and poverty reduction. Japan, Taiwan, Germany, Spain and France are the main bilateral donors. Multilateral assistance comes mostly from the EC, IDB, UNDP and WB, the EC being the largest donor. Up to now cooperation has concentrated on rural development, economic management and social development. On this background, the EC, after consultation among stakeholders, has adopted a response strategy which takes into account the main principles of the EU co-operation policy, is complementary to and consistent with, previous EC and other donor activities, in particular EU Member States, and reflects the national development priorities as enshrined in the "Programa de Gobierno 1999-2003" and the Memorandum of Understanding CE-Republic of Paraguay of 1.7.2001. EC focal areas of intervention will be: I. II. III. Modernisation of the State and institutional development. Productive development, competitiveness and investments in the framework of the Paraguayan regional integration in Mercosur. Human development and poverty reduction. (&FRRSHUDWLRQREMHFWLYHV The bilateral co-operation has been improved since the signature in 1992 of the Framework Agreement on co-operation between the European community and the Republic of Paraguay. Article 1 of this agreement considers that respect for the democratic principles and fundamental human rights are an essential element of the Agreement. The support to the democratic process in 3 Paraguay is also reflected in article 2 to which the European community may contribute to strengthening of the Paraguayans democratic institutions. Furthermore, the bilateral relationship has a new dimension since the signature of the EU-Mercosur framework agreement on co-operation on 15 December 1995, which has the objective of negotiating an interregional association. Paraguay benefits of the co-operation implemented by the community at the level of Mercosur. Our objective is also consistent with the document “European Union – Latinamerica. Present and perspectives of strengthening the Association 1996-2000” which was approved at the Madrid European Council in December 1995. The basic strategies in place continue to apply in regard to Latin America and the guidelines laid down in the March 1999 Communication “On a new EU-Latin America partnership on the eve of the 21st century” are of application also for Paraguay. This approach is also endorsed in the recent Communication from the Commission to the Council and the European Parliament on the follow-up to the First Summit between Latin America, the Caribbean and the European Union in 2000. In various general and specific documents concerning the countries of Latin America, the European Community has stressed the great importance it attaches to: Human rights; Processes of democratisation; Good management of public resources; Protection of environment; Trade liberalisation; And a strengthening of the cultural dimension. Against this background, an improved co-operation is foreseen and sectoral agreements are proposed in the veterinary and phytosanitary agreement as well as wines and spirits. This co-operation is consistent with article 177 of the EC treaty as well as regulation (CE) 443/92 relating to the financial, technical and economic co-operation with Latin American countries. Also the Commission communication with respect to a new partnership between the EU and Latin America (com 992/105) also supports the approach of continuing co-operation for the new challenges in the XXI century , being the priority areas the consolidation of democracy, social imbalances, and the regional integration process. As a follow-up of the Rio Summit in 1999, the Commission tabled a communication to the Council and the Parliament, proposing to focus on three areas: Protection of human rights, reduction of social imbalances and promotion of the information society. At present the European Union is negotiating an Association Agreement with Mercosur in which the co-operation chapter is aimed at reinforcement and strengthening of the process of regional economic integration within the Mercosur. The Council and the Commission adopted on 10 November 2000 a Joint Statement on the European Community’s Development Policy, in which Trade and Development and Institutional Capacity Building are mentioned as two out of six priorities identified for the Community’s Development Policy. At the WTO ministerial Conference launching the Doha Development Agenda, the developing country Members of the WTO it was agreed to provide trade related technical assistance as a central component of the negotiations under that agenda. Following the launching of the Doha Development Agenda, the Commission has noted that “at the level of the EU, we must now ensure 4 that trade related technical assistance and capacity building is well integrated into the EU’s current and future technical assistance/development co-operation programming. 3ROLF\DJHQGDRI3DUDJXD\ Paraguay is responding to the new challenges and the strong need for reform. The key development policy areas defined by the national government for the period of 1999-2003 are reflected in an Economic and Social Strategic Plan – “Plan Estratégico Económico y Social” - which seeks to achieve a sustainable development on the basis of four pillars: modernisation of the State and strengthening of Institutions; macroeconomic stability and structural reform; improving competitiveness and stimulating investment; human development and poverty reduction. It should be noted that the program takes already into account the ongoing and planned international cooperation in the country The plan is based on four main pillars: D0RGHUQLVDWLRQRIWKH6WDWHDQGWKHVWUHQJWKHQLQJRILQVWLWXWLRQV Reform of the State institutions and a strengthening of their management capacity. Decentralisation including a strengthening of the administrative capacity of the regional authorities especially in the areas of health and education. Fight against corruption and contraband which has a distortionary and wasteful impact on the resources of the State and also threatens the institutional stability. E0DFURHFRQRPLFVWDELOLW\DQGVWUXFWXUDOUHIRUPV Fulfilling the economic targets agreed with the International Monetary Fund in the context of the government’s economic programme for 2001 which include the following key elements: F,PSURYLQJFRPSHWLWLYHQHVVDQGVWLPXODWLQJLQYHVWPHQW Development of the private sector with a particular focus on the export sector as an engine of growth. Ensure adequate investment and modernisation of the country’s infrastructure, in particular by improving the roads network and expanding the electricity and telephone service coverage. Support to the development of small and medium-sized enterprises as well as microenterprises. G+XPDQGHYHORSPHQWDQGSRYHUW\DOOHYLDWLRQObjectives consist of the fight against poverty, ensuring sustainable development and implementation of social policies via: Adequate investment in human capital including improved access to health and education. Reduction of unemployment, which currently stands at more than 16 % (officially). Support to weaker sections of society such as : land-less peasants, rural population, women and children, and indigenous population. Preventing the exodus to cities. 5 H,QWHUQDWLRQDODQGWUDGHDJHQGD: At present, foreign policy strategy for Paraguay consists of the following key elements: Making efforts to improve Paraguay’s image abroad as a credible partner and a stable country. The Government is seeking to fully integrate its commercial and economic policy objectives into the national foreign policy framework. In this context, it is taking measures to enhance the country’s foreign representations’ capacity and role in promoting Paraguay’s interests: i) Improving market access for its key export items such as soybean, cotton, beef, maize, organic sugar; ii) Diversifying its export markets; iii) Attracting foreign investment through privatisation schemes of public enterprises and by establishing a stable and transparent political and legal framework. iv) Improve the country’s negotiating capacity in the context of international fora such as the WTO as well as vis-à-vis its major partners. v) Enhancing the country’s influence over regional developments including in particular the deepening of MERCOSUR integration and the MERCOSUR countries acting as a block in international negotiations. Furthermore, Paraguay as member of Mercosur participates in the negotiations for concluding an Association Agreement between Mercosur and the European Union. Also Paraguay is participating in the present exercise of the negotiations for the establishment of a Free Trade Area in the Americas. These two elements are of extreme importance for Paraguay. Finally, tKH FRQFOXVLRQ ZLWK WKH ,0) LQ $SULO , for the first time after the establishment of democracy, of a 0HPRUDQGXPRI(FRQRPLFDQG)LQDQFLDO3ROLFLHV, which establishes targets and benchmarks for the economic reforms in Paraguay and a monitoring plan. $QDO\VLVRIWKHSROLWLFDOHFRQRPLFDQGVRFLDOVLWXDWLRQ $QDO\VLVRIWKHSROLWLFDOVLWXDWLRQ ,QWHUQDO3ROLWLFDO6\VWHP Paraguay is suffering of a political crisis as a consequence of the atomisation of the political parties, the lack of a strong leadership at the present government, and the economic and social crisis. Nevertheless, the recent municipal elections in Paraguay held on 18 November 2001 reflect a consolidation of the hegemony of the Colorado Party. In fact, the Colorado Party obtained 134 Municipalities from a total of 212 in the whole country. The uncertain political situation in the past was also consequence of the continuing influence of former General LINO OVIEDO on the political life of Paraguay. At present Mr. OVIEDO dwells in Brazil after having been granted political asylum and set free by the authorities of this county. Nicanor DUARTE FRUTOS has been appointed in May 2001 as President of Colorado Party and after the municipal elections places DUARTE FRUTOS in an excellent position to stand for the Presidency of the Republic in 2003. 6 The Paraguayan democracy is strongly supported by Mercosur, which always has encouraged deep reforms in the country through the consolidation of democracy. The European Union is also paying special attention to the political situation in Paraguay and is providing co-operation for improving the State modernisation and helping Paraguay to go deeper into democracy. The Colorado Party has governed for the last half century. The Party is split into factions that respond to competing party leaders. There are two main fractions: • The one now in power, formed by late Vice-President Argaña, and • The one formed by loyalists of former Army Commander and failed coup leader Lino Oviedo, jailed in Brazil at this date (September 2001). The leading opposition parties, the Liberals (PLRA), and Encuentro Nacional (PEN), formed an electoral alliance for the 1998 general elections, but were defeated by the Colorado candidate in a landslide victory. They initially joined President Gonzalez-Macchi in a coalition government in 1999, but the PLRA left the coalition in January of 2000. The PEN continues to co-operate with the Gonzalez-Macchi government but holds few important positions within it (LH, Ministry of Industry and Commerce, Planning Secretariat, and the Ministry of Justice and Labor). 'HPRFUDWLFSDUWLFLSDWLRQ(OHFWRUDO6\VWHPDQG5XOHRIODZ Paraguay is a constitutional democracy established recently. The Constitution was ratified on 22 June 1992 and Article 1 establishes that the Republic of Paraguay is an independent and free Republic and its government adopts a representative democracy. The Constitution recognises the three pillars of Paraguayan State: the Legislative Branch, the Executive Branch and the Judicial Branch; and establishes a set of civic, political and social rights, including citizen’s guarantees. Paraguay has a strong presidential and bicameral parliamentarian system. The judicial branch plays an important role in the defense and promotion of the Constitution and laws. Paraguay is divided into seventeen departments each with its own elected Governor and Departmental Council. The capital city of Asuncion is a separate administrative area, independent of the department in which it is located. The municipalities have had elected mayors and city councils since 1991. Both national elections (President, Vice-President, Congress and Governors) as well municipal elections are held every five years. Laws may be originated in the Congress, the Executive Branch, the Supreme Court of Justice or by the will of the citizens. The laws are first approved by the Legislative Branch and finally by the Executive Branch, after which they are passed out and published. With respect to international relations, the Constitution accepts the international law as well as a supranational legal framework that guarantees human rights, peace, justice, co-operation and development in political, economic and social aspects. +XPDQ5LJKWVVLWXDWLRQ The human rights situation in Paraguay has experimented a profound transformation since 1989, with the upcoming of democracy. The end of the authoritarian regime created the conditions to advance toward the establishment of democratic institutions and consolidation of democracy, namely the restoration of public rights such as the right to free expression and the right to political participation. According to the CODEHUPY report (Co-ordination of Human Rights Organisations in Paraguay) although there has been no systematic violations to Human Rights, there are still cases 7 of violation by persons related to the State, against the right to life or against the right to physical integrity of prison inmates, peasants, indigenous peoples, children, and women. 5HJLRQDODQGLQWHUQDWLRQDOFRQWH[W Paraguay is suffering from the present institutional crisis in Mercosur and is also affected by the bad economic situation in the region. The terrorist attacks of 11 September are also influencing the emergent economies. There is a growing feeling of dissatisfaction among businessmen and the citizenship in general about Mercosur, particularly after the unilateral currency depreciation carried out by Brazil. Paraguay is also participating at the FTAA. The Argentinean crisis is also impacting in Paraguay and there is a decrease in exports to Argentina and Brazil due to the depressed Argentinean demand and to the depreciation of the Brazilian real. The Paraguayan Government has announced for 2002 a real GDP growth of around 2 %. But this forecast is based on a positive growth scenario in Argentina in a context of a “controlled” default and moderate peso devaluation. 3DUDJXD\(8UHODWLRQV At present, EU - Paraguay relations are based on the 1992 Framework Agreement on Co-operation and on the 1995 EU-Mercosur Framework Agreement on Co-operation, which has as objective the preparation of an Inter-regional Association With more than EUR 10,8 million of preferential imports to the EU, Paraguay is ranking 57th among the users of the EU’s GSP. Taking into account the size of beneficiary countries’ populations, Paraguay ranks 66th. The global utilization rate of 50% reached in 2000 is average. The utilization rate was 41% in the agricultural sector (EUR 3,5 million of preferential imports), 62% in the industrial sector (EUR 5,1 million of preferential imports) ; and 44% in the textile sector (EUR 2,2 million of preferential imports). Top-3 sectors benefiting from GSP in the year 2000 are: tobacco (EUR 3,4 million of preferential imports; 31% of all preferential imports); leather products (EUR 3 million; 28%) and textiles (EUR 1,8 million; 17%). Paraguay is not graduated in any sector and does not meet the conditions for being graduated in 2003. The European Union is the most important source of foreign direct investment in Paraguay with USD 31 million in 1999, accounting for 50% of total Foreign Direct Investment (FDI). In 1999, Mercosur and Nafta accounted for 7% and 27% of total FDI respectively. In its UHODWLRQV ZLWK WKH (8, Paraguay is seeking to promote trade and investment as well as bilateral co-operation. In trade, Paraguay is seeking to reverse the current trade deficit with the EU (USD 114 millions in 2000) by improving market access for its key products, in particular via: The implementation of a Hilton beef quota; The opening of a quota for organic sugar; 8 Improving market access for rice, fruits and vegetables. In this context, the country is also seeking to accelerate the conclusion of a Sanitary and Phytosanitary agreement with the EU. 5HODWLRQVZLWK0(5&2685 Paraguay is a member of the Mercosur a customs union that should be fully implemented in 2005. Paraguay profits very much of the on-going political dialogue in the framework of Mercosur. The Mercosur Regional Strategy Paper analysis the regional integration process within Mercosur in different fields: institutional, economical, political and security, social and labour, environment, etc. Paraguay provides with preferential trade access to the markets of Brazil, Argentina and Uruguay, and to Chile and Bolivia as associated members of Mercosur. In the context of Mercosur, as a major trading and investment partner, the EU and MERCOSUR share a strong interest in deepening economic, political and social ties. On 15 December 1995, EU Mercosur signed an Interregional Framework Co-operation agreement, with the objective to prepare for the creation of an interregional association. Such an agreement, which would replace the existing one, has the objectives of deepening ties on a bi-regional basis between Europe and the Mercosur as well as giving further support to the regional integration process under way in Mercosur itself. Within MERCOSUR, Paraguay is promoting: the creation of a permanent dispute settlement body, creation of a real MERCOSUR internal market allowing for the free movement of goods and the removal of still prevailing non-tariff barriers, the expansion of co-operation on a regional basis, and the development of an integrated network of transports and communications in the region, as well as promoting macro-economic policy co-ordination. During the recent extraordinary meeting of the Mercosur Common Council on 18 February 2002 (“Protocolo de los Olivos”) the constitution of a Permanent Legal Tribunal (in Asuncion) was decided, as well as to give the Group of Institutional Affairs a mandate to examine the technical strength (not yet administrative one) of the Administrative Secretariat of Mercosur (Montevideo). These renewals, as well as other ones, will create co-operation requests to the European Union. 5HODWLRQVZLWKRWKHU,QWHUQDWLRQDO2UJDQLVDWLRQV • :72 As a member of the WTO Paraguay supported the launch of a new WTO round provided that special attention is given to the needs of the developing countries in particular market access issues. As a member of the Cairns group and given the importance of the agricultural sector in its economy, Paraguay strongly supports the intensification of efforts to fully liberalise agricultural trade and ensuring a fair and equitable market access in all sectors. • )7$$ Paraguay supports regional trade integration in the Western Hemisphere, notably by moving forward with negotiations in order to realise a Free Trade Area of the Americas (FTAA) by 2005. 9 (FRQRPLFDQGVRFLDOVLWXDWLRQ $QDO\VLVRIWKHHFRQRPLFVLWXDWLRQ Economic priorities for the current government are: to preserve macroeconomic stability, to implement key structural reforms (such as privatisation of public enterprises, financial public sector reforms, and broadening the tax base), to fight against corruption, and to attend social needs. Paraguay does not currently have a financial arrangement with the IMF but has signed a “Memorandum of Economic and Financial Policies” agreement (Staff-Monitored Programme – SMP) with the Fund in April 2001. According to this program, the Government aims to restore order to the public finances and allow the continuation of a prudent monetary policy. To this end also, the Government has approved on March 19, 2001 a medium term growth strategy (“Plan Estratégico Económico y Social” of the Planning Secretary) that aims to foster competitiveness in the private sector and seeks to place the export sector as the main engine of growth. Paraguayan economy remained stagnant in the period 1998-2000. In 2000, GDP decreased 0.3% accounting for USD 7.511 millions. Over the last 5 years real GDP per capita has decreased despite the real GDP increase of 1% a year (average) due to a population growth of around 2.5%. In 2000, GDP per capita stood at USD 1.391. As a result, poverty has deepened especially in rural areas; 43% of the population is poor (1998)and the income distribution has become more unequal: the highest 20 percent of households had the 46% of the income (1995) while the lowest 20% of households had the 6%. The Government has worked on a “zero base” budget project by department, aiming to control public expenditures growth. Central Administration's financial situation has gradually been eroded from 1998: budget deficit was around 0% of GDP in 1998, 3% of GDP in 1999, and reached 4.5% of GDP in 2000. In 2000, tax revenues were mainly VAT (41%), Income Revenue (19%), and Import Duties (19%). Public expenditure structure in 2000 was: salaries and related expenditures (43%), other current expenditures (33%), and capital expenditures (24%). In 2000, “Social” Central Administration expenditures accounted for 46%: Ministry of Education 23%, the Ministry of Public Works 12%, the Ministry of Public Health 6%, and the Ministry of Agriculture 5%. According to the Balance of Payments data of the Central Bank of Paraguay, the external current account position deteriorated over the last years: the external account deficit increased from USD 86 million (1.1% of GDP) in 1999 to USD 315 million (4.2% of GDP) in 2000. The deterioration of the current account is mainly a result of three facts: • • The decline of the re-export activities (due to the Mercosur homogenisation of tariffs) A decrease in the terms of trade due especially to the price fall in Paraguay main export item as soybean (from Chicago Ctvs. USD/Bushel 755 in 1997 to Ctvs. USD/Bushel 499 in 2000) and cotton (from Ctvs. USD/Libra 95.42 in 1995 to 60.62 in 2000), and the increase in oil import prices. 10 • The recession in Argentina since 1998 and the depreciation of the Brazilian real since January 1999, which affected Paraguay’s export performance. The merchandise balance worsened from USD 368.2 million (4.8% of GDP) in 1999 to USD 585.7 million (7.8% of GDP) in 2000. In 2000, Paraguayan exports (FOB) decreased by 16% in value compared to 1999, accounting for USD 2.251,1 millions. Imports (FOB) dropped as well but only by 7%, accounting for USD 2.836.8 million. On the other hand, registered exports accounted only for USD 871 million and registered imports only for USD 2.038 million in 2000. Difference in registered and unregistered exports is due to activities in the informal re-export sector. Unregistered exports more than double registered exports: Unregistered exports = Balance of Payments' exports – Registered exports = USD 2.251: – USD 871: = USD 1.380: EU is Paraguay's second largest trading partner after Mercosur. Exports to EU accounted for 14% and exports to Nafta for 4% of total registered exports in 2000. Paraguay's import structure by region has remained broadly stable over the last years. Mercosur shares between 50 and 55% of total registered imports (56% in 1998, 52% in 1999, 54% in 2000, even though there has been some reorientation of Paraguay’s exports away from EU and towards its Mercosur partners since the early 1990s. Imports from EU and Nafta accounted for 11% and 8% respectively of total Paraguayan registered imports in 2000. Paraguay's most significant export item is soybean, which accounted for 33% of total registered exports in 2000 (USD 286 million). Soybean exports decreased by 7% in value compared with 1999. In 2000, cotton exports accounted for 9% (USD 78 million), wood exports for 8.6% (USD 75 million), and meat exports for 8% (USD 70 million) of total registered exports. Machinery and equipment constitute the main import items, accounting for 30% of total registered imports (USD 612 million) in 2000. Other significant import items in the last year were: fuels and lubricants (15%), beverages and tobacco (10%), chemicals (9%), and foodstuffs (7%). $VVHVVPHQWRIWKH5HIRUP3URFHVV It is clear that Paraguay is seeking to achieve a sustainable development adopting a Strategic Economic and Social plan. Nevertheless, it is too early for having consolidated results. Although progress has been made, there are still many reforms to be carried out in diverse areas: State modernisation: the situation is far from being clear and Paraguay still has to make progress in the reform of the financial administration of the State, civil service and decentralisation. Poverty: pending reforms in the fight against poverty are the reform of the law that creates the Rural Welfare Institute and the Agricultural Statute, promulgation and implementation of the Agricultural Code, and promulgation and implementation of a law on agricultural real estates. Competitiveness: further progress is needed with respect to institutional framework, financial system and capital markets; as well as the regulatory framework for private investment. 11 Macroeconomic policy: there is some progress on the liberalisation of foreign currencies deposits and the establishment of a flexible exchange rate system. However, the Tax Reform has not taken place, which is so important for Paraguay. The reform process needs also a strong political support by the political parties and is implemented in a difficult moment became of the internal crisis in Mercosur and the economic recession after the terrorist attacks on 11 September. 6RFLDOGHYHORSPHQWV Poverty in Paraguay affects 32 % of the population. Poverty is related to the underdevelopment of the rural sector, due to the lack of access to means of production as well as basic social services such as health, education, housing. - Urban poverty affects to 23% of the population Rural poverty affects to 43% of the population The rural poverty is so important that there is a strong phenomenon of emigration to the urban areas. Since the upcoming of democracy, Paraguay has increased the social expenditures. In 1990 social expenditures represented 3% of the national budget, which increased to 8% in 1996. Social expenditure currently represents 47% of the national budget; however most of this amount comprises salaries . The 2001 UNDP Human Development Report places Paraguay in the 80th position of the Human Development Index. In 1990 Paraguay occupied the 84th position and in 1998, the 81 position.. Therefore the progress is slow. These are some indicators which can be considered as negative ones. It is the case of the rate of children mortality which is very high and needs an integral strategy by the state particularly in the rural sector. $FFHVVWR(GXFDWLRQDQG+HDOWK6HUYLFH According to the Government Programme 1999-2003 the educational system presents a low coverage and low performance and quality at different levels. Even though there is a high rate of scholarity in primary education, there is also a high level of desertion. Illiteracy is a serious problem too. The educational reform is not yet consolidated and needs to cover the secondary and university education. There is no direct link between the educational system and the consolidation of national culture, protection of historical patrimony and development of democratic values. With respect to health, the underperformance of this system is a direct consequence of extreme poverty, lack of basic health services and the lack of hygienic practices in the most vulnerable sectors of the society. Maternal and infant mortality rates are high. The social security system is only reaching to 17% of the Economically Active Population. The rural workers are not covered in an appropriate manner. The social security is under reform and at a long term is seeking to provide a pension scheme of the working class and a better public health service . 12 7KHUROHRIPHQDQGZRPHQJHQGHUHTXLW\DQGRWKHUJURXSV :RPHQ Women’s position in Paraguayan society is still subject to discrimination. Women represent half of the labor force and 41% of the Economically Active Population. Only 15,8% of women have access to positions within the State, 8% in Parliament, 12% are leaders within the political parties, and 9,7% participate in social organizations. Regarding labor and income, 9,7% occupies professional and technical positions; and receive only 65% of men’s incomes; in urban areas women are occupied mainly in services and commerce, and in rural areas they are occupied in services and manufacturing. Women head 26% of poor homes in urban areas. Paraguay has adopted legal reforms with a view to protect women´s rights and to eliminate discrimination. In this sense, Paraguay has ratified the Inter American Convention for Preventing violence against women in 1995 and since 1992 Paraguay is modifying its own legislation in order to avoid a discriminatory policy against women. This policy includes modifications of the Constitution, the Civil Code, Criminal Code, Labour Code and Electoral Code. In 1993 Paraguay created the Woman’s Secretariat . There are a number of organizations promoting women’s rights and organized in several networks, which have successfully articulated their work, together and with the Women’s Secretariat, leading to modification of discriminative regulations and passing of new laws favoring women’s rights. A National Plan for Equal Opportunities for Women and its Program for Equal Opportunities for Women are being implemented by the Women’s Secretariat and Civil Society organizations. Even though there has been much progress , there is still work to be done in the future. The unemployment rate for women is higher than for men and the salary is lower for women. Even at the financial institutions, women receive less credits compared to men. Another problem is the fact that in the rural areas, natality growth is very high and is directly linked with poverty. &KLOGUHQDQG<RXWK Children and youths between 0 and 19 years old represent more than half of the country’s population, and constitute a highly vulnerable portion of the population, afflicted by problems related to health, educational and labor. Approximately 937.000 children, or 42% of the population between 0 and 14 years old, are afflicted by poverty, which forces them to enter the labor market at ages as early as 5 to 7 years. Of the economically active children between 7 and 17 years old, 38% (in 1995) did not attend school. A recent study estimated that approximately 500.000 children have not been registered by the Civil Registry, and therefore have difficulties to access their basic human rights such as education. Minors in situation of high risk need a special attention. The Constitution recognises the need to protect children and Paraguay has ratified the Convention of the Children’s Rights. The Children’s Code has been passed out by Congress in 2001 and the Children’s Secretariat has been created at the end of 2001. This Secretariat will assume all responsibilities in relation to children’s rights and improvement of the lives of children. The Government has still to allocate financial, technical and human resources to this Secretariat. 13 ,QGLJHQRXV3HRSOHV Indigenous peoples represent between 1% and 2% of the population, according to a 1981 census, which registered 38.307 individuals of 17 ethnic groups, classified in 5 language families (Guaraní, Lengua-Maskoy, Matako, Guaicurú, Zamuco). The indigenous population was later corrected and adjusted to 45.330 individuals. However, according to institutions that support the indigenous peoples and the indigenous communities themselves, the number should be doubled. Lack of official data is a serious barrier to a real analysis of the situation of indigenous peoples. Poverty strikes heavily on this portion of the population, child mortality is high (93,9 per 1000), 94,1% of illiteracy, 93% of households have neither sanitary disposal nor water supply. Conflicts with cattle ranchers, colonies and landless peasants regarding allocation and recovery of lands are an unresolved issue. Indigenous peoples are the most vulnerable and their situation is unequal in terms of health, education, job, land, social integration. Disabled people are estimated at 40.000 inhabitants with a lack of services. 7KHVWDWHRI3DUDJXD\¶VHQYLURQPHQW The main environmental problems are related to the inland water courses and massive deforestation caused by the growth of agricultural activities and timber extraction, which bring about a series of environmental problems that affect flora and fauna, the microclimate of the region and degradation of soils. Paraguay is mostly dependent upon agriculture for its economic development. The overexploitation of lands for pasture, as well as poor agricultural methods like slash and burn clearing, contributes to deforestation, and by extension, soil erosion. Between 1985 and 1991, the Eastern region’s forests were cut down at a rate of 300.000 hectares per year, eliminating an approximate total of 2 million hectares. Several studies have estimated that in 1945 the forest cover of the Eastern region was of 55% of its surface area, while a recent estimation indicates a surface area of 1.161.820 hectares (7,3%) of pristine forests and 926.761 hectares (5.3%) of degraded forests. These areas include Protected Areas, which represent around 2% of the territory. The Western region is being subject also to deforestation. The principal sources of urban and industrial pollution are dumping of sewage and industrial effluents, as well as the inadequate disposal of municipal solid wastes; the effluents and toxic and dangerous wastes by industries. In addition, emissions from various industries contribute to water and air pollution, while inadequate means for waste disposal present health risks for many urban residents. Industrial pollution has grown in the last few years due to the increase in the activities and due to non-replacement of old facilities by more modern ones. The most contaminating industries are: beers and drinks, slaughterhouses, metallurgist, refinery of oil and gas stations. With the creation of the Under secretariat of Natural Resources within the Ministry of Agriculture in 1989, some progress was achieved through sanctioning of several environmental laws, mainly for forestation and reforestation, Protected Areas, Environmental Impact Assessment, and fisheries; and ratification of the main international environmental conventions. In the year 2000 the Environment Secretariat was created, although it encounters problems related to the lack of allocation of sufficient resources to operate. The current key environment issues include: deforestation, air pollution, water pollution poor means of waste disposal and soil erosion. Evidently, there is a need for the EC in its co-operation 14 objectives to assist the government in tackling these issues and environmental requirements will be integrated into all areas of the EC-Paraguay co-operation strategy. Article 5 of Council Regulation 443/92 stipulates that Protection of the environment and natural resources and sustainable development, shall be long-term priorities. The principal budget lines (B7310 and B-7311) have funded certain projects for the protection of the environment in Paraguay. The priorities for Paraguay are in keeping with DG ENV’s own priorities as specified in the 6th Community Environment Action Programme (6EAP, 2002-2011), on which the Environment Council adopted a common position on 7 June 2001. The 6EAP identifies a number of priorities for action: climate change and depletion of natural resources and the loss of bio-diversity are among the biggest threats to sustainable development and require global action to solve them. With the objective to reverse global deforestation and forest degradation, the EC will continue to participate in the United Nations Forum on Forests (UNFF) and within the framework of the Convention on Bio-diversity and other arenas. The Paraguay ratified the Bio-diversity Convention in 1994 and is a member of the UNFF. Our objective should be to promote the conservation and sustainable management of forests, in line with the Commission Communication on “Forests and Development: the EC approach” (COM (1999)554). We should in particular support Paraguay’s implementation of the UNFF Plan of Action, National Forest Programmes and the CBD work programme on forest biological diversity. Paraguay is part to the Climate Change Convention and ratified the Kyoto Protocol in 1999. In view of the SP co-operation priorities, it will be most important to mutually develop the potential of the Clean Development Mechanism under the Kyoto Protocol within the economic co-operation theme. Furthermore, in the field of poverty alleviation, Paraguay’s vulnerability to the adverse effects of climate change need to be assessed and adaptation measures need to be identified. 6XVWDLQDELOLW\RIFXUUHQWSROLFLHVDQGPHGLXPWHUPFKDOOHQJHV Paraguay needs to consolidate democracy, increasing modern and transparent public management and enhancing the Parliament and the Judiciary. With respect to the economy, Paraguay needs to increase its presently low GDP growth and at the same time pursuing low inflation, stable external accounts, ensuring fiscal and monetary discipline and strengthening an independent Central Bank. The fight against poverty is the first priority for Paraguay in order to reduce social imbalances and to reach a better political environment. Poverty is concentrated in rural areas, which have experienced a stronger increase in both the extent and depth of poverty. The percentage of individuals falling under the extreme poverty line in rural Paraguay increased between 1995 and 1999. Poverty is correlated with educational attainment. While school enrolment rates are high in primary education in both urban and rural areas, there is a large gap in educational achievement in secondary education. Associated with poverty is a highly skewed distribution of income and land ownership; about 10 percent of the rural population owns two thirds of the land, while 70 percent of the rural population owns less than 10 hectares, with a high Gini coefficient of 0.60. Paraguay’s main priority consists of achieving political stability and good governance as well as being able to effectively implement urgently needed economic and social reforms in order to stimulate sustainable growth oriented investments and poverty reduction. 15 Paraguay’s response is included in the Economic and Social Strategic Plan, within the "Human Development and Poverty Reduction" axis. On the basis of the reforms already achieved section, Paraguay has a good chance to meet its poverty reduction objectives within the medium/long term, provided that: • • • The efforts carried out in democratisation and modernisation are sustained; Economic development follows the IMF projections; Progress is achieved with regard to fiscal reforms, development of Paraguay’s foreign direct investment regime as well as the legal security for investments, and promulgation and implementation of pending laws (see table above). 0HGLXP WHUP FKDOOHQJHV PHGLXPWHUP RXWORRN IRU WKH FRXQWU\ VWUHQJWKV DQGZHDNQHVVHV Paraguay’s main priority consists of: achieving political stability and good governance as well as being able to effectively implement urgently needed economic and social reforms. This is to be achieved by putting in place the Economic and Social Strategic Plan adopted by the government on March 2001, , which seeks to reverse the negative trend of GDP growth over the last 20 years and ensure sustainable development. It is clear that for reducing social imbalances, Paraguay needs to have a more ambitious GDP growth in the coming years. Modernisation of the State and the strengthening of institutions is the key for consolidating the future development of Paraguay. The development is very much dependent on the evolution of the Mercosur regional integration process which is experiencing some difficulties and the fact that the Paraguayan economy is very linked to the Brazilian and Argentinean economy which are currently having difficulties . 2YHUYLHZRISDVWDQGRQJRLQJ(&FRRSHUDWLRQ 2YHUYLHZRISDVWDQGRQJRLQJ(&FRRSHUDWLRQ The EUis present in Paraguay not only as a donor but also as a major source of Foreign Direct Investment - FDI (50% of total). However, the EU´s FDI has been declining since 1998, while the FDI of other regions, such as that of NAFTA is increasing. This is an element of particular importance given the fact that new investment opportunities are arising due to the progress that the Government is making in the area of modernisation and reform of the State, issuing laws for demonopolization, privatisation, and public procurement. The EC has been co-operating with Paraguay since 1991 on the basis of the Framework Cooperation Agreement between the EC and the Republic of Paraguay signed on February 3, 1992. The main areas of co-operation are rural and social development, as well as modernisation of the State. The total project portfolio up to date comprises 61 projects for a total value of 91.3 million Euros (out of which 45 have been finalised - for a total amount of 26.4 million Euros - and 16 are currently under execution for a total amount of 64.9 million Euros). Presently, the EC is the main donor in Paraguay. The on-going projects of an amount of 64 millions Euros are implemented under the following budget lines: 16 )LQDQFLDODQGWHFKQLFDOFRRSHUDWLRQ% Rural development: Rural development if the main co-operation sector, under which several initiatives are being funded, namely, support to indigenous and peasant communities in the Chaco , support to sustainable development of rural families in the Department of Caaguazu, and water supply infrastructures health services in the Departments of San Pedro, Central and Misiones. Social development: Within this co-operation sector, the most important projects support advancement of children and youths in high-risk situation in the cities of Asunción and Ciudad del Este; and the advancement of women in Paraguay, particularly in the rural areas. Modernisation of the state: A single project is being executed and it is aimed at strengthening and modernising the Executive Branch, the Judicial Branch, as well as the Armed Forces Environment: The EC support is aimed at the establishment of a monitoring center and network on issues related to the environment and water resources of Paraguay. 'HFHQWUDOLVHGSURJUDPPHV Under the budget line for NGO Co-financing (B-6000), several projects are implemented by European NGOs in co-ordination with local NGOs, mostly in the rural and social sectors. The European Commission Humanitarian Office (ECHO) is funding two projects addressing water supply in favour of indigenous and peasant communities. +RUL]RQWDOSURJUDPPHV% Paraguay also participates in the following programmes: Alfa, URB-AL, Alure and Al-Invest and will participate in the new @LIS programme. The impact of these projects in Paraguay has not been very satisfactory, due to the fact that they have been small sized projects carried out within the framework of sectoral policies that still need to be strengthened in Paraguay ,QIRUPDWLRQRQSURJUDPVRI(80HPEHU6WDWHVDQGRWKHUGRQRUV ,QWHUQDWLRQDO&RRSHUDWLRQ Paraguay is one of the Latin American countries receiving the highest amount of non-reimbursable aid from both bilateral and multilateral donors. In 1999, international co-operation amounted to USD236 million. The main donors are the EC and Member States (currently ranking first with 34% of the total amount of external aid granted to Paraguay in 1999), IDB, JICA, USAID and UN Agencies. The main areas of intervention are rural, economic and social development, health, modernisation of the State, education and employment. International co-operation in Paraguay also includes loans that have been granted by several international financial institutions, namely IDB, WB, IFAD, KFW, JBIC, CAF, Fonplata, and by the Government of Taiwan. Loans currently under execution amount to approximately USD 800 million. 17 Bilateral cooperation of the Member States of the European Union Germany: The objectives of the German co-operation in Latin America and particularly Paraguay are aimed toward social imbalances, crisis prevention, environment, and consolidation of democracy. Germany has provided during the period 1994-1998, an amount of 87 million German Marks in the following sectors: reform of the Paraguayan Penal Code, strengthening of the management capacities in the public sector, regional development in Caaguazu and support to decentralisation . Spain: Paraguay is considered as a priority in Latin America for Spain’s bilateral co-operation, taking into account that it is one of the poorest countries in the region. Co-operation is currently focusing in the sectors related to regional development in Caaguazu, education, and environment and sustainable tourism in the Ybycui National Park . The United Kingdom: During the period 1995-2000 the UK contributed to Paraguay with more than 3 million Euros, mostly through technical co-operation, grants and in-kind contributions, and humanitarian aid. France: France is also active in Paraguay and focuses mostly in water resources with 1.9 million Euros. Other Member States are also providing aid to Paraguay with the overall objectives of poverty alleviation, education and support to indigenous communities and rural development. Other donors Japan: Japan is has been traditionally a major donor, contributing to development in Paraguay through both non-reimbursable aid (USD78,5 million) as well as loans in the following sectors: health, education, professional training, small and medium sized enterprises, norms and standards, forestry, rural development, employment, environment, transportation, industry. The IDB : The IDB is extremely active in Paraguay. The IDB´s non reimbursable aid portfolio amounts to USD 34 million to several sectors, natural resources, agriculture and rural development, modernisation of the State, education, employment, health, industry, small and medium sized enterprises. The IDB´s loan portfolio amounts to 34 loans for a total amount of USD 821,9 million in 2000, thus making the IDB the main source of international funding to Paraguay. Main cooperation sectors of the IDB are competitiveness, modernisation of the State, rural development and social reform. The World Bank: The World Bank is also co-operating with Paraguay and currently has five active loans for a total amount of USD 158,3 million in the sectors of water supply and sanitation; health, nutrition and population; education and environment. Other financial institutions: Loans have been also granted by IFAD with USD 22 million, as well as Fonplata and the CAF (Corporación Andina de Fomento) which are also granting loans for development in Paraguay of an amount of 66 millions US dollars. USA: USAID provides financial aid to Paraguay in the areas of State modernisation, environment and health, contributing with USD22.6 million in 1999. 18 UN Agencies: Several UN Agencies provide aid to Paraguay, especially UNDP, UNICEF, WHO/PAHO, UNESCO, FAO. The UN aid amounts to approximately USD 15.9 million in 1999. /HVVRQVDQG([SHULHQFHV Given the big number of projects, their relatively small size as well as the lack of concentration of the funds, the lack of co-ordination with other donors and most importantly the lack of State policy in the areas of intervention, the results in terms of impact and sustainability of the projects have not always been optimal. Now the Commission considers more important to focus on few sectors and with the opening of the Delegation in Asuncion, the Commission will be in a better position to monitor and to make more efficient our co-operation with Paraguay. During 2001 the mid term evaluations of projects “Desarollo duradero del Chaco Paraguayo” and “Apoyo a la modernizacion institucional del Paraguay” have been carried out. The lessons learned as a result of those evaluations are being taken into account in the programming and implementation of new projects. On the basis of the above elements, and taking into account past experience as well as the new guiding principles of EU´s external aid, co-operation with Paraguay should be based on: • Concentration of funds in key areas of the internal policy; while taking care that the proposed programmes do not substitute but complement internal programmes. • Specialisation, in those areas where the EC has specific expertise and the best capacity to transfer know how, while special efforts should be made to co-ordinating the programmes with the Member States bilateral co-operation, as well as with the co-operation of other international donors, and • Sustainability, understood as the continuation of the programmes achievements after their completion, which implies a better involvement not only of the national executing agencies but also of the beneficiaries themselves. 7KH(&UHVSRQVHVWUDWHJ\FRKHUHQFHZLWK(8SROLFLHV *HQHUDOREMHFWLYHDQGSULQFLSOHV The main objective of the EC response strategy is to focus on three priority sectors: I) Modernisation of the State and Institutional Development II) Productive development, competitiveness and investments in framework of the Paraguayan regional integration in Mercosur III) Human development and poverty reduction The EU strategy must also be in line with the EC general co-operation objectives, which are to reduce poverty, to consolidate democracy and to enhance economic development. Co-operation with a poor country such as Paraguay cannot be based on the same criteria as co-operation with richer countries; co-operation funds should be used whenever possible as an instrument to implement or support the implementation of specific issues foreseen in the political and economical Association agreement negotiated with Mercosur. 19 Secondly, the EU strategy should be fully coherent with the “Memorandum of Understanding”, which was signed in Luxembourg in June 2001 and foresees an indicative financial envelope of ¼ 51.7 million for the period 2000-2006 (see annex ). The priorities identified within the MOU remain valid. Nevertheless, an evaluation can be carried out in accordance with article VI of the MOU. Local consultations with the EU Member States have shown the full compatibility of the proposed sectors and priorities with the analysis, strategy and activities of the Member States. Thirdly, the strategy should build on past experience. In the case of Paraguay, more time and resources should be allocated to project identification within the selected sectors so as to focus the choice on projects with a real European value added. This involves a better co-ordination with the Member States. Furthermore, the EU should support the sustainability of Paraguayan entities created through the EC co-operation and an increased decentralisation should be targeted. And finally, the strategy should be complementary to the Member States’ and other donors’ strategy. Therefore, when selecting a project a special attention must be given to what other donors do, which involves a good knowledge at project level. Impeding all EU interventions in these areas would however not make sense given the variety of intervention possibilities but it seems necessary to avoid duplications. It is important to stress that World Bank, the IDB and the EU are foreseeing mostly in the modernisation of the State and poverty. The EU response will be also supportive of improving sector policies in Paraguay and a specific synergy could be made with EU policies. Moreover our response will be very much dependent on the political evolution of the country as well as the available financial resources of Paraguay in future co-operation with the EU. 3ROLF\PL[DQGFRKHUHQFHZLWK(8SROLFLHV Respect for democratic principles, the rule of law and good governance constitute the cornerstone of the relations between the EU and the countries of the Mercosur to be implemented through the &)63 and political dialogue at the various levels (Heads of State and Government, Ministers, ad hoc group of high officials etc.). The European Union encourages Paraguay and its efforts to support the Mercosur regional integration process and our strategy is clearly reflected in the directives for the negotiation by the Commission of an Association Agreement between Mercosur and the European Union. As far as WUDGHDVSHFWV are concerned, the long-term objective in relation to the Mercosur countries is the full liberalisation of trade and investment. This will imply pursuing the conclusion of the EU/Mercosur negotiations for an Interregional Association Agreement, a key element for the future EU-Latin American relations and European presence in Latin America. In the short and medium term this implies pursuing the EU/Mercosur negotiations, while at the same time trying to solve the main trade irritants and prevent the introduction of new barriers. The priority is thus to come to amicable agreement with the Mercosur countries on priority market access cases, which contravene WTO rules, via bilateral consultations and to establish lists and analyse other cases of market access barriers. In the area of co-operation, trade concerns should be taken into account, especially in the EU-Mercosur framework. This wish to liberalise trade has a number of important side effects : being that the EU is trying to promote its way of functioning at the level of other community policies in order to facilitate exchanges and strengthen the commercial opportunities available, in particular in the fields of single 20 market policy, tax and customs policies, competition policy and statistics. Now the Paraguayans authorities consider that the trade aspects are the first priority in its relationship with the EU. Trade related technical assistance in the WTO framework: The Council and the Commission adopted on 10 November 2000 a joint Statement on European Community’s Development Policy, in which Trade and Development and Institutional Capacity Building were mentioned as two out of six priorities identified for the Community’s Development Policy. The EC will support Paraguay in its efforts to build up its regulatory, legislative and institutional capacities to implement and apply its WTO commitments in fields such as TBT/SPS, Trade Related Intellectual Property Rights (TRIPS), and customs valuation. With regard to the Doha Development Agenda, the EC will support Paraguay in its efforts to build its institutional, judicial and regulatory capacities in trade related fields. Technical assistance will be provided to build capacity in the areas of trade facilitation (simplification, harmonisation and automation of import, export and transit procedures), the improvement of the domestic competition policy framework, assistance in the analysis of tariff and no tariff priorities and needs, and support for the further development of Paraguay’s foreign direct investment regime (increasing its capacity to attract and benefit from FDI, human and institutional development). In the area of the VLQJOH PDUNHW SROLF\ the EU’s strategy is to conclude a public procurement agreement, which it is currently negotiating with Mercosur, thus aiming at a reciprocal opening up of the sector to European companies and, more in general, the EU is seeking to promote its practices in this area. The EU is also interested in concluding an agreement on concessions and other types of public-private partnerships. The current negotiations with Mercosur should ensure that the countries provide an effective and appropriate protection of intellectual and industrial property rights in accordance with the highest international standards, including effective means of enforcing such rights provided for in international treaties. The EU is by far the most important importer of agricultural produce from the Mercosur countries, absorbing 39% of the agricultural exports of Mercosur. More than 60% of the agricultural imports from Mercosur enter the EU at a 0% customs rate. In addition, certain products benefit from a preferential access in the framework of tariff contingents. However, the Mercosur countries, which are major producers in the agricultural field, reject the EU’s Common Agricultural Policy (CAP) and are striving for a total liberalisation of trade in this area, in particular through the Cairns Group. However, it has to be mentioned that the CAP has significantly changed during the past years, with social and environmental measures being strengthened, while institutional prices have been lowered, leading to gradual approximation of community agricultural prices to the level of world prices. Although the bilateral trade between Paraguay and the EU is rather low, trade will be increased in the future. Protection of intellectual property rights should be one of our priorities in Paraguay. Measures taken by the EU in the framework of some of its policies, such as its KHDOWK DQG FRQVXPHUSURWHFWLRQSROLF\, might be referred to by some as being “protectionist”, however, they relate to an established level of quality required by European consumers. If Paraguay wishes to maintain their strong presence in the European market, they will have to adapt to the established requirements for food safety of European consumers, thus the importance for Paraguay of concluding a veterinary and phythosanitary agreement with the EU. 21 In the area of VFLHQFH, the community policy also has a significant impact on Brazil, Argentina and Chile. The EU is seeking co-operation with these countries, in particular to allow high-level researchers from these countries to participate in community research. The EC has already signed a science and technology co-operation agreement with Argentina, in order to open up reciprocal possibilities to participate in the programmes and activities managed by each party in the field of R&D, while discussions are underway with Brazil. It is the EU’s strategy to favour the concrete implementation of these agreements, recommending the Mercosur authorities to finance the participation by their researchers in the projects of the 6th Framework Programme and supporting the participation of European researchers in the research programmes of these countries. Moreover, there is a community programme called INCO, which offers possibilities of scientific co-operation in the areas of health, agriculture, environment and development policy. In the case of Paraguay, co-operation in the science area is less relevant but nothing excludes the possibility of exploring further ideas in this field. Finally, other Community policies deserve to be mentioned to the extent that they may influence the EU’s co-operation strategy. In the field of the HQYLURQPHQW the EU has funded certain projects for the protection of the environment in Paraguay. The key environmental issues include: deforestation, air pollution, water pollution, poor means of waste disposal and soil erosion. Evidently, there is a need for the EC in its co-operation objectives to assist the government in tackling these issues. The priority for action in Paraguay will be climate change and the de depletion of natural resources and the loss of bio-diversity. Also to halt and reverse global deforestation and forest degradation. We should in particular support Paraguay’ implementation of the UNFF Plan of Action, National Forest Programmes and the CBD work programme on forest biological diversity. It will be important to mutually develop the potential of the clean Development Mechanism under the Kyoto Protocol within the economic co-operation theme. Furthermore, in the field of poverty alleviation, Paraguay’s vulnerability to the adverse effects of Climate Change need to be assessed and adaptation measures need to be identified. Paraguay should be encouraged to implement the international commitments under these agreements. The development of the LQIRUPDWLRQVRFLHW\is also an important horizontal objective for the EU, having a positive impact on essential development issues. In the field of WUDQVSRUW priorities are markets integration and improvement of security/safety inair and maritime transport, while in the field of HQHUJ\ the EU seeks to ensure security of supply including an appropriate energy infrastructure network and to develop alternative sources of energy. In this field the multiannual programme to promote international co-operation in the energy sector allowed for the financing of co-operation projects with the Mercosur countries, to assist them in defining, formulation and implementing their energy policies in areas of mutual interest and to promote industrial cooperation in the energy sector. Comparable projects might be supported under the planned energy co-operation programme of the future (Intelligent Energy for Europe). In the area ofFRPSHWLWLRQ the EU is stimulating Mercosur countries to adopt legislation on competition which basically should be inspired by the EU model for competition policy. ,QWHUYHQWLRQSULRULWLHV As a result of the above mentioned considerations, a strategy based on the following priorities can be proposed for 2002-2006: I. Modernisation of the State and Institutional Development. 22 II. Productive Development, competitiveness and investments in the framework of the Paraguayan regional Integration in Mercosur III. Human Development and poverty reduction 1DWLRQDO,QGLFDWLYH3URJUDP 7KH1DWLRQDO,QGLFDWLYH3URJUDPPH The national indicative programme covers the budgetary period 2000-2006 and its financial envelope amounts to ¼PLOOLRQDQGFRQFHUQVRQO\EXGJHWOLQHV%ILQDQFLDODQGWHFKQLFDO co-operation (¼PLOOLRQDQG%HFRQRPLFFRRSHUDWLRQ¼PLOOLRQ7KHILQDOVHOHFWLRQ of projects and correspondent amounts will be made according with the results of the identification missions and the preparatory work made by the Commission. The indicative program depends on the annual budgetary funds available on the Commission and will be in agreement with the principles of monitoring, evaluation and revision of the CSP. The priority areas identified in the co-operation strategy with Paraguay are the following : I. Modernisation of the State and Institutional Development (∈6 million) II. Productive Development, competitiveness and investments in the framework of the Paraguayan regional integration in Mercosur (∈21.7million) III. Human Development and poverty reduction (∈24 million) I. Modernisation of the State and institutional development (6 millions EUR) 2EMHFWLYH5HVXOWV ,QGLFDWRU 2EMHFWLYH - Improved capacity of State institutions to implement and follow-up reform and modernisation of the State. - Improved public services in the field of justice, fiscal, education and health ([SHFWHGUHVXOWV - Modernisation of institutions - Policies, laws, and regulations implemented - Zero base budget implemented - Local governments providing services &URVVFXWWLQJWKHPHVSULRULW\DUHDVRI(&GHYHORSPHQWSROLF\ Good governance, human rights and the rule of law 23 3URJUDPPHFRPSRQHQWV - Fiscal reform, in order to promote new policies in favour of better social integration and institutional building. Legal security for foreign investments Decentralisation Capacity building for negotiation in political and regional integration fora and implementation of the national anticorruption plan %XGJHW/LQHDQGSURJUDPPHHVWLPDWHGDPRXQW - Budget Line: Financial and Technical Co-operation - Estimated amount: 6 million Euro ,, 3URGXFWLYH GHYHORSPHQW FRPSHWLWLYHQHVV DQG LQYHVWPHQWV LQ WKH IUDPHZRUN RI WKH 3DUDJXD\DQUHJLRQDOLQWHJUDWLRQLQ0HUFRVXUPLOOLRQ(85 3URJUDPPH6XSSRUWWRWKHVWUHQJWKHQLQJRI3DUDJXD\DQIRUHLJQWUDGH 2EMHFWLYH5HVXOWV ,QGLFDWRU 2EMHFWLYH - Creating an export push. Increased EU direct investments Trade Related Technical Assistance in the WTO framework (see 5.2) Trigger reforms in trade sector Fight against informal trade sector Improvement of training capacities of customs officials Full integration of Paraguay within Mercosur and catalyse EU-Mercosur trade relations - - Trade flows with Mercosur and EU Annual export volumes/incomes Development of an export-friendly environment, harmonising standards and quality control Export promotion Public opinion campaigns against informal trade sector Reinforce veterinary and phytosanitary controls Development of institutional capacity in trade fields, trade facilitation, competition policy, intellectual property rights, customs and valuation Expected results: - - - - - Development of key indicators with Information and quality management system appropriate statistical methodologies and relevant statistical information systems for export products developed. International standards for products and services adopted. Improved quality and aggregate value of export products - Coverage and quality of services Contracts achieved between producers/exporters and buyers Certifications of products and services issued Certifications of products and services issued Annual export volumes/incomes 24 &URVVFXWWLQJWKHPHVSULRULW\DUHDVRI(&GHYHORSPHQWSROLF\ Environment, institutional capacity building and modernisation of the State, regional integration and co-operation, transport 3URJUDPPHFRPSRQHQWV - Technical assistance for capacity building of PROPARAGUAY and of the Instituto Nacional de Tecnología y Normalización Technical assistance for implementation of certifying institutions; Technical assistance to implement a pilot regional cluster of SMEs. %XGJHW/LQHDQGSURJUDPPHHVWLPDWHGDPRXQW - Budget Line: Economic Co-operation - Estimated amount: 8.4 million Euro 3URJUDPPH6XSSRUWWRWKHSURPRWLRQRILQYHVWPHQWV60(¶VDQGGHYHORSPHQWRIKDQGLFUDIWV 2EMHFWLYH5HVXOWV ,QGLFDWRU 2EMHFWLYH Private local and foreign investments in Paraguay improved. - Development of handicrafts Promote second generation structural reforms Development of Paraguay’s foreign direct investment regime - EU direct investments in Paraguay Local investments Tourism flow and participation of tourism in national GDP Institutional strengthening, technological upgrading, promotion of foreign direct investment, considerable improvement in the services sector, including increased efficiency of service delivery and enhancing technical skills of the labour force Increasing its capacity to attract and benefit from FDI, human and institutional development ([SHFWHGUHVXOWV - Increase of FDI, in particular European Increased family incomes in the handicrafts SMEs sector - Better policies in favour of SME’s - Increasing legal security for FDI - - Development of the handicrafts sector SMEs - 25 &URVVFXWWLQJWKHPHVSULRULW\DUHDVRI(&GHYHORSPHQWSROLF\ Environment, gender equality, institutional capacity building and modernisation of the State, regional integration and co-operation, transport, trade and development, support to macroeconomic policies with link to poverty reduction 3URJUDPPHFRPSRQHQWV - Technical assistance for development and adoption of innovative organisation and financial mechanisms, and transfer of technology/know-how to strengthen the handicrafts sector SMEs; %XGJHW/LQHDQGSURJUDPPHHVWLPDWHGDPRXQW - Budget Line: Technical and Financial Co-operation - Estimated amount: 13.3 million Euro 8VLQJFRGLILFDWLRQRI7UDGH5HODWHG7HFKQLFDO$VVLVWDQFHDQG&DSDFLW\%XLOGLQJ757$&% DFWLYLWLHVDVGHILQHGE\WKH:72LQFRRSHUDWLRQZLWKWKH2(&'DQGELODWHUDOGRQRUVEDVHG RQ WKH 'RKD 0LQLVWHULDO 'HFODUDWLRQ RI 1RYHPEHU SUREDEO\ PRVW RI WKH ³Productive Development, competitiveness and investments in the framework of the Paraguayan regional integration in Mercosur”FRXOGEHLGHQWLILHGDV757$&%DPRXQWLQJWRPLOOLRQ(XURRU RIWKHLQGLFDWLYHEXGJHW ,,,+XPDQGHYHORSPHQWDQGSRYHUW\DOOHYLDWLRQPLOOLRQ(85 3URJUDPPH+XPDQGHYHORSPHQWDQGSRYHUW\DOOHYLDWLRQ 2EMHFWLYH5HVXOWV ,QGLFDWRU 2EMHFWLYH - Improve human development - Strengthening environmental aspects and natural resources - Support disabled people, indigenous culture, women and children - Poverty alleviation. Percentage of population in situation of extreme poverty and with unmet basic needs. 26 ([SHFWHGUHVXOWV - Improve integral support to the rural communities trough a program including health, education and economic activities - - Development of familial micro-enterprises - Improvement of the handicraft - sector - Support to institutional building Support to poverty sector of communities - Coverage and quality of services. Income of beneficiary rural families above the poverty line. Community based organizations; participation of women and youths Development of local capacities in the field of projects for rural development Promotion of women. - &URVVFXWWLQJWKHPHVSULRULW\DUHDVRI(&GHYHORSPHQWSROLF\ Gender equality, environment, support to macroeconomic policies with link to poverty reduction (health, education), food security and sustainable rural development 3URJUDPPHFRPSRQHQWV - Strengthening of integrated rural development in critical regions; Technical assistance to rural organisations in formulation of rural development proposals and projects; Construction of housing for poor families. Programs in favour of women promotion and equal opportunities in Paraguay %XGJHW/LQHDQGSURJUDPPHHVWLPDWHGDPRXQW - Budget Line: Financial and Technical Co-operation - Estimated amount: 11 million Euro 3URJUDPPH6XSSRUWWRUXUDOFRPPXQLWLHVDQGKRXVLQJ 2EMHFWLYH5HVXOWV ,QGLFDWRU 2EMHFWLYH Improved livelihoods of the rural and urban poor population. Percentage of population in situation of extreme poverty and with unmet basic needs. 27 ([SHFWHGUHVXOWV Housing conditions for poor families improved. - Access to basic services by the rural population improved. - - Increased sustainable resources. family income management of through natural Local capacities for community planning, management and implementation strengthened. Coverage and quality of services. Income of beneficiary rural families above the poverty line. - Community based organizations; participation of women and youths - Beneficiary families have access to their own houses. - &URVVFXWWLQJWKHPHVSULRULW\DUHDVRI(&GHYHORSPHQWSROLF\ Gender equality, environment, support to macroeconomic policies with link to poverty reduction (health, education), food security and sustainable rural development 3URJUDPPHFRPSRQHQWV - Strengthening of integrated rural development in critical regions; Technical assistance to rural organisations in formulation of rural development proposals and projects; Construction of housing for poor families. Programs in favour of women promotion and equal opportunities in Paraguay %XGJHW/LQHDQGSURJUDPPHHVWLPDWHGDPRXQW - Budget Line: Financial and Technical Co-operation - Estimated amount: 13 million Euro 2 $QQH[ 1DWLRQDO,QGLFDWLYH3URJUDPDQGOLQNZLWKWKH(FRQRPLF6RFLDODQG6WUDWHJ\3ODQRI3DUDJXD\ 1DWLRQDO2EMHFWLYH (FRQRPLFDQG6RFLDO 6WUDWHJLFSODQ3((6 Establish the basis of a new development model supported in private enterprise, by eliminating the obstacles and structural inefficiencies of the productive and institutional system to obtain the supported and sustainable increase in the per capita real GDP, the increase in jobs and the reduction in poverty &HQWUHVRI$FWLRQRIWKH3((6DQG&RRSHUDWLRQ6HFWRUV Productive Development, Human development Competitiveness and Reduction in Poverty Investments $UHDVRI&RRSHUDWLRQ RIWKH(& • • Support for the • Strengthening of Paraguayan foreign trade EUR 8.400.000 • Support Area for the Promotion of Investments for Economic Development and development of handicrafts EUR 13.300.000 and Institutional development and Macro-economic Balance Modernisation of the State Human development and • Reduction in Poverty EUR 11. 000.000 Support Area for the Reform and Institutional Modernisation EUR 6000.000 Support to Rural communities and housing EUR 13. 000.000 1 6800$5<2)$5($6$QG&223(5$7,21352*5$00(6 &RRSHUDWLRQVHFWRU $UHDVRI&RRSHUDWLRQ Productive Development, Support for the Strengthening Paraguayan foreign trade Support for the Promotion of Investments, SME’s and Competitiveness and Investments Development of handicrafts Human development y Reduction in the Poverty 1. Human Development and Reduction of Poverty 2. support to rural communities and housing Institutional development y Modernisation of the State Support for the Reform and Institutional Modernisation 7RWDODPRXQWRI&RRSHUDWLRQ 7LPHWDEOH $PRXQWRI &RRSHUDWLRQ + 8.400.000 + 13.300.000 + + + 11.000.000 13.000.000 6.000.000 Note: The total amounts of the programmes respect the indicative figure assigned in the Memorandum of Understanding. However, it would be suitable keep a certain flexibility to review the figures on the basis of specific identification mission results 2 $QQH[ ,QWHUQDWLRQDO&RRSHUDWLRQLQ3DUDJXD\ 3URJUDPPHVDQGSURMHFWVLQLPSOHPHQWDWLRQDQGSODQQHG 1 &HQWUHRI$FWLRQ 2EMHFWLYH Productive Development, Competitiveness and Investments Grant the pequenas and medium-sized companies the advantages of the economies of scale through cooperation and complementing, development of strategic alliances and the incorporation of new technologies, to direct production towards the exporting of products agri-foodstuff and manufactured products of value added with greater world demand, all this supported for the private sector &RRSHUDWLRQLQ,PSOHPHQWDWLRQDQGRU1HJRWLDWLRQ Support for the strengthening of the exports of Paraguay (1) Support for the promotion of investments for economic development(1) Improvement of the technology of production of vegetables for small farmers Research into the production of soya Support for implementation of the EDEP Business articulation (3) Strategic planning for sustainable development Floor conservation techniques National strategy for the protection of the natural resources(3) Initiative for the Protection of Wild Areas of Paraguay (3) Restructuring of the National Park Ybycui (3) Improvement of the technology of verification and inspection in the area of mass(1) Support for the development of the trade-mark Paraguay Quality (1) Study of identification, reparation and modernisation of the airport Commercial negotiations (3) Regulatory framework of the electrical sector Competitive clean industrial production (1) Multipurpose Centre of Environmental and Hydrologic Monitoring (3) Study on the Reforestation Plan in the Eastern Region (3) 7RWDO$PRXQWIRU6RXUFH&RRSHUDWLQJ 7RWDO$PRXQWRI&RRSHUDWLRQ 7KH(8 8.400.000 -$3$1 %,' *(50$1< (63$1$ 318' &$1$'$ 17.000.000 424.530 1.289.730 930.000 1.668.990 459.055 302.764 8.896.363 126.400 4.000.000 750.000 200.000 1.613.000 123.000 2.250.000 2.500.000 3 &HQWUHRI $FWLRQ 2EMHFWLYH Human development and Reduction in the Poverty Are offered a group of actions to permit that jobs created by the investments stipulated in the competitiveness sector they benefit fairly to the whole population, especially to poor sectors. It is proposed attacking the poverty on several levels in all areas, with preventive and focus in the participation of the latter affected, not merely care attendant. &RRSHUDWLRQLQ,PSOHPHQWDWLRQDQGRU1HJRWLDWLRQ 7KH(8 -$3$1 %,' *(50$1< (63$1$ Support for the consolidation of rural settlements (3) General credit programme for micro-enterprises II (3) Improvement of dairy production for small producers (3) Pilot self-development project of the farmer Communities (3) Sustainable development of the family economy in the department Caaguazu (3) Viable development in the Caazapa department Lasting development of the Paraguayan Chaco (2) Strengthening initial and pre-school education Professionalisation of teachers not called Strengthening bilingual education Strengthening permanent education in obstreticia infirmary Education in population and development and reproductive health in FF aa Education and services in reproductive health in the National Police Sexual education for young pairs of the rural area Strengthening of the reproductive health programme in the MSP Supply of drinking water and waste water treatment Integral health of the adolescent and reproductive health Integral help for minors in situation high-risk (2) Children and adolescent workers in the street (2) Centre network of Initiatives and Development of Women (2) Professional promotion service Paraguayan Japanese Training and labour qualification Support for youth Training for trainers for SMES Improvement of the surveys of living conditions )18$3 .25($ 20.300.000 910.000 4.000.000 425.600 18.100.000 2.209.945 14.800.000 470.000 148.400 304.000 5.000.000 313.412 92.586 291.401 613.445 4.800.000 949.979 10.030.000 4.682.000 8.200.000 261.080 2.334.000 400.000 2.000.000 647.000 4 7RWDO$PRXQWIRU6RXUFH &RRSHUDWLQJ 7RWDO$PRXQWRI&RRSHUDWLRQ &HQWUHRI$FWLRQ Institutional development and Modernisation of the State 2EMHFWLYH The directed policies to convert the State into an instrument apt to comply with its duties understand, on the one hand, the strengthening of the institutional building, and on the other, the remotion of the obstacles and institutional deficiencies that limit their effectiveness today. &RRSHUDWLRQLQ,PSOHPHQWDWLRQDQGRU1HJRWLDWLRQ Support for the reform and institutional modernisation (2) Strengthening of the decentralised administrative structures Integrated system of account and project administration Support for the institutional modernisation of Paraguay (2) Planning for environmental urban development and weirs Plan of territorial ordering and integral regional development in departments of Caaguazu, Guaira and Caazapa (2) Support for the development of acquisitions you publish Financial transparency Strengthening of democratic institutions II Support programme for civic education Support for the Anti-corruption National Plan Reform of the Paraguayan Penal Legal Order Support for the development of the national dialogue 7RWDO$PRXQWIRU6RXUFH 7KH(8 %,' *(50$1< (63$1$ 6.000.000 2.408.300 150.000 5.300.000 1.500.000 127.350 1.260.000 500.000 216.000 555.000 605.000 1.450.471 165.000 5 &RRSHUDWLQJ 7RWDO$PRXQWRI&RRSHUDWLRQ (1) In phase of identification for EU projects (2) In implementation for EU projects (3) In pipeline for EU projects in Paraguay 6 $QQH[ 0e025$1'80' $&&25'(175(/$&20081$87e(8523e(11((7/$5e38%/,48( '8 3$5$*8$< &21&(51$17 /(6 25,(17$7,216 3/85,$118(//(6 3285 / (;e&87,21'(/$&223e5$7,21&20081$87$,5( La Communauté européenne, ci-après dénommée « la Communauté », représentée par la Commission des Communautés européennes, ci-après dénommée « la Commission », et le Gouvernement de la République du Paraguay, ci-après dénommé "le Gouvernement", représenté par le Secrétariat Technique de Planification ; CONSIDÉRANT l'accord-cadre de coopération du 3 février 1992, entre la Communauté européenne et la République du Paraguay qui prévoit le développement de plusieurs secteurs de coopération, spécialement dans des questions institutionnelles, économiques, agricoles, industrielles, environnementales, de lutte contre la drogue, de tourisme, scientifiques et technologiques, éducatives, de santé, d’administration publique et d'intégration régionale ; CONSIDÉRANT que le règlement (CE) n°443/92 du Conseil des Communautés européennes du 25 février 1992 établit les principes de base de l'aide financière et technique et de la coopération économique avec les pays en voie de développement en Amérique latine et que, dans son article 9, il suggère d’établir, dans la mesure du possible, une programmation pluriannuelle indicative par pays ; CONSIDÉRANT la nécessité d'exécuter les programmes, projets et activités spécifiques de coopération financière et technique et de coopération économique qui puissent apporter une contribution effective au développement intégral du pays, CONVIENNENT DES DISPOSITIONS SUIVANTES : $57,&/(, 2EMHFWLIHW&RQWH[WH 2EMHFWLI L'objectif du présent Mémorandum d'accord est la définition des orientations pluriannuelles pour la mise en marche des programmes de coopération entre la Commission et le Gouvernement pendant la période 2000-2006. &RQWH[WH L'ensemble des activités couvertes par le présent Mémorandum pour la période indiquée, se réfère à la coopération financière et technique et à la coopération économique, dont les règles de gestion et les modalités d'assignation sont fixées dans le règlement (CE) n°443/92 du Conseil des Communautés européennes du 25 février 1992. Outre les actions de coopération comprises dans le présent Mémorandum, pourront être effectuées d'autres actions de coopération financées par la Communauté, tant à caractère régional, que national ou décentralisé (par exemple : des projets développés par les ONG, programmes AL-INVEST, ALURE, URB-AL, ALPHA, SYNERGIE, etc.). Les priorités de coopération pour la période 2000-2006 ont été fixées en accord avec les orientations politiques du nouveau gouvernement du Paraguay, constitué en mars 1999, et en prenant comme base les priorités définies par les orientations pluriannuelles pour les pays, contenues dans le document (OPIN-IB/1054/98), élaboré par la Commission en concertation avec les autorités paraguayennes, et approuvées par le Comité PVD/ALA lors de sa 138ème réunion du 27 octobre 1998. $57,&/(,, 'LVSRVLWLRQVGHEDVH Pour l’établissement des secteurs et sous-secteurs sur lesquels la Commission concentrera ses actions de coopération pour la période 2000-2006, ainsi que pour garantir une gestion efficace de ces dernières, ont été prises en considération les dispositions de base suivantes : 1 - Les secteurs et sous-secteurs sélectionnés auront pour instance de référence les priorités politiques définies par les nouvelles autorités paraguayennes, contenues dans le document PROGRAMA DE GOBIERNO 1999-2003. Ceci permettra à l'action de la Commission d'être en accord avec les objectifs des politiques de développement économique et social du Gouvernement ; - Le Gouvernement assurera les ressources budgétaires de contrepartie nécessaires, ainsi que leurs paiements au moment et de la manière pour l'exécution des actions prévus dans le présent Mémorandum ; - Les actions de coopération communautaire seront coordonnées avec celles développées de manière bilatérale par les États Membres de l'Union Européenne au Paraguay, ainsi qu'avec celles d'autres donneurs de fonds, afin d'éviter la superposition d'actions ; - Le Gouvernement s'engage à établir les mécanismes interinstitutionnels qui seront nécessaires pour permettre une bonne coordination avec les différents ministères ou organismes responsables, ainsi qu'avec les autres donneurs de fonds ; - Le Gouvernement garantira que les ressources provenant de la Commission pour financer les différents projets abordés dans le présent Mémorandum, seront gérées en accord avec ce qui est stipulé dans chaque Convention de financement ; Le Gouvernement désigne le Secrétariat Technique de Planification responsable du suivi des actions de coopération prévues dans le présent Mémorandum ainsi que de leurs obligations dérivées. Ce Mémorandum d'accord a été élaboré en en informant les Ambassades des États Membres de la Communauté établies à Asunción. $57,&/(,,, 6HFWHXUVGHOD&RRSpUDWLRQ Conformément à l'accord-cadre de coopération, au document définissant les priorités pour le pays (OPIN), et aux lignes directrices du PLAN DE GOBIERNO 1999-2003 du Gouvernement, la coopération entre la Communauté européenne et la République du Paraguay pendant la période 2000-2006, se concentrera sur les secteurs et sous-secteurs ou programmes détaillés ci-dessous : 6HFWHXUV3ULRULWDLUHV Le développement soutenable du Paraguay requiert comme condition et support fondamental la construction d'un État efficace dans sa conduite, décentralisé dans sa gestion et participatif dans ses décisions, ce qui entraîne de donner la priorité essentiellement aux programmes de réforme institutionnelle et de modernisation de l'État. Le développement rural intégré et soutenable constitue la potentialité du Paraguay, en entendant par là non seulement la production primaire agricole, forestière et d'élevage, mais aussi la transformation industrielle de celle-ci et sa commercialisation privilégiée vers le Marché commun du Sud (MERCOSUR). L’état de pauvreté est l'obstacle à ce développement et doit être résorbé par le biais de programmes orientés vers la promotion et la qualification sociale (micro-entreprises artisanales et familiales). La stratégie des "clusters" (agrégats) ou ensembles intégrés d’entreprises, basée sur les PME, requiert non seulement une attention correspondant à leur nature, mais aussi que les différentes régions où ces derniers sont installés aient leur propre plan de développement selon leurs caractéristiques et potentialités particulières. Des modèles de développement rural soutenable augmentant le capital social (éducation, logement, santé) et tenant compte du potentiel du capital environnemental, ont besoin d'être renforcés dans tout le territoire du pays. La stratégie de développement présente un composant nécessaire dans la promotion des outils institutionnels et technologiques, tels qu’un système national de certification et accréditation des produits et laboratoires technologiques fiables qui assurent la compétitivité de la production paraguayenne. La protection de l'environnement requiert non seulement l'instauration de modèles appliqués d'organisation et de gestion de bassins, mais aussi le développement de programmes apportant une valeur économique à l'environnement, comme c’est le cas pour l'implantation généralisée d'un tourisme écologique. Le tourisme, d'autre part, a un effet agglutinant 2 d'autres activités connexes telles que le développement artisanal, la récupération du patrimoine historico-culturel et la conservation des parcs et réserves naturelles, en plus de la création d'une importante quantité de nouveaux emplois. En fonction de ce cadre de référence du développement économique et social, les objectifs et contenus dans chacun des secteurs identifiés comme prioritaires ont été déterminés dans le document OPIN. 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Ces montants sont purement indicatifs car soumis à des variations éventuelles en fonction des disponibilités budgétaires effectives de la Communauté. $57,&/(9 0RGDOLWpVGH&RQVXOWDWLRQV Les parties maintiendront, par le biais de leurs représentants respectifs, un dialogue permanent sur le suivi de ce qui est établi dans le présent Mémorandum. $57,&/(9, eYDOXDWLRQ Dans le cadre du dialogue prévu dans l'Article V, le présent Mémorandum fera l'objet d'une évaluation au milieu de la période 2000-2006, afin de déterminer les éventuelles mesures et révisions considérées comme opportunes pour assurer son bon accomplissement. 5 $57,&/(9,, 'LVSRVLWLRQV)LQDOHV Il est convenu que, à la demande de certaines des parties, celles-ci pourront, d'un commun accord, amender, modifier ou compléter certaines des dispositions convenues dans le présent Mémorandum d'accord. Pour la Commission de les Communautés européennes Pour le Gouvernement de la République du Paraguay Date Date Nom du signataire Nom du signataire 6 $QQH[0DWUL['RQRUV¼ European Union economical development and competitiveness Social Development Modernisation of the State Macroeconomic sector 7RWDO(XURV BID World Bank Spain 1 Germany Japan 7RWDO(XURV 2.124.136 295.632.121 4.765.380 35.687.739 2.734.318 9.480.899 350.424.593 89.643.427 209.580.431 92.627.299 60.909.336 3.554.470 12.667.131 468.982.094 14.013.784 93.971.361 13.240.293 17.301.856 11.267.796 4.499.437 1.935.883 105.781.347 601.119.796 110.632.972 113.898.931 17.556.584 26.647.467 154.294.527 1.935.883 975.637.097 In accordance with the information received from the German delegation, Germany committed 55.644.000 ¼EHWZHHQLQIDYRXURIELODWHUDOFRRSHUDWLRQZLWK Paraguay, in particular in the fields of environment and modernisation of the State. 1 1 Annex 4 – Economic, trade and social data STATISTICAL APPENDIX 3DUDJXD\ 0DLQ(FRQRPLF7UDGH,QGLFDWRUV Millions of USD (current prices) Annual real growth rate 8.594 -0,4% 7.741 0,5% 7.501 -0,4% 2,0% Per capita (USD 1982) 1.585 1.552 1.535 Structure by sectors Primary sector Secondary sector Tertiary sector 100% 27,4% 20,0% 52,6% 100% 28,1% 20,1% 51,8% 100% 27,0% 20,4% 52,6% *5266'20(67,&352'8&7 *'3DQQXDOJURZWKUDWH 0,03 0,02 3238/$7,21 (millions) 0 1998 -0,01 1999 2000* 2001** 5,4 (%GDP) *5266'20(67,&,19(670(17 81(03/2<0(17 0,01 (% of EAP) 22,9% 23,0% 23,2% 6,6% 9,4% 16,0% 5HJLVWHUHG7UDGH 0LOOLRQVRI86' (annual rate in %) ,1)/$7,21 Consumption prices Exchange rate to USD Inflation in USD 14,6% 23,8% -7,4% 5,4% 16,7% -9,7% 8,6% 6,4% 2,1% 10% 4.000 2.000 0 1998 -2.000 1999 2000* Imports Balance &(175$/$'0,1,675$7,21 (% GDP) %$/$1&( 0,0% -3,5% -4,5% -2,0% 18,60% 27,20% 29,80% 30% Exports (% GDP) '(%7 Gross external public debt ([SRUWV 75$'( Registered Exports (millions of USD) Mercosur Registered Imports (millions of USD) Mercosur Balance Openess [(Exports+Imports)/GDP] Exports 2000 (millions of USD) Cotton Soya Meat Woods Rest Exports 2000 (%) Imports 2000 (%) 1.014 531 2.471 1.383 -1.457 40,6% 741 308 1.725 890 -984 31,9% 871 553 2.038 1.091 -1.167 38,8% 0(5&2685 27+(56 727$/ 535,7 78,7 188,2 23,7 27,9 217,2 316,1 12,7 94,2 47,3 43,9 118,1 851,8 91,4 282,4 71,0 71,8 335,3 0(5&2685 (8 1$)7$ 63,5% 53,7% 13,6% 11,3% OTHER 19% 4,0% 8,3% NAFTA 4% MERCO SUR 63% EU 14% 100,0% 10,7% 33,2% 8,3% 8,4% 39,4% 27+(56 18,9% 26,7% ,PSRUWV 27% 54% 8% 11% MERCOSUR EU NAFTA OTHERS 5174 %' ' %&GNGICVKQPHQT2 CTCIWC[CPF7TWIWC[%CNEWNCVKQPUDCUGFQP%GPVTCN$CPMQH2 CTCIWC[+/(CPF%' 2 #.FCVC2 TGNKO KPCT[' UVKOCVGF May 25, 2001 1 3DUDJXD\ 0HUFKDQGLVHEDODQFH Million of USD - Registered imports and exports FOB Mercosur Brazil Argentin Uruguay UE Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembu Netherlan Portugal Spain Sweden United Ki Nafta United St Mexico Canada Others TOTAL Exports 553,13 336,56 93,58 122,98 118,24 0,01 1,60 0,34 0,01 5,43 6,72 0,68 0,01 30,29 0 61,68 0,69 7,14 0,06 3,56 34,77 33,62 0,74 0,41 164,80 870,94 Imports 1.101,77 502,07 521,38 78,31 232,07 3,69 3,37 1,34 0,63 21,87 57,89 2,85 0,82 44,51 0,05 8,81 2,99 29,97 24,27 29,01 169,18 147,04 18,24 3,90 547,37 2.050,39 Balance -548,64 -165,51 -427,80 44,67 -113,83 -3,67 -1,76 -1,00 -0,62 -16,44 -51,17 -2,18 -0,81 -14,22 -0,05 52,87 -2,30 -22,83 -24,21 -25,45 -134,41 -113,42 -17,50 -3,49 -382,56 -1.179,45 Source: EC Delegation in Paraguay and Uruguay. Calculations based on Central Bank of Paraguay data. 3DUDJXD\7UDGHE\UHJLRQ 0LOOLRQVRI86' 1.200,00 800,00 400,00 0,00 Mercosur UE Nafta Others -400,00 -800,00 Exports Imports Balance 25 May 2001 2 3DUDJXD\ )RUHLJQ'LUHFW,QYHVWPHQW Flows - Thousands of USD Country 1996 1997 1998 1999 Germany 26 Spain 9.979 France 510 14.402 United King Netherland 20.753 Italy -1.236 Portugal 225 Sweden 0 EU 44.659 Argentina 20.964 Brazil 6.579 Uruguay 5.963 33.506 Mercosur Canada -4.173 USA 32.326 Nafta 28.153 Colombia -34 Chile 21.567 4.943 China (Taiw Japan 0 -3.710 Liechtestein 10.505 Switzerland Others 33.271 Total 139.589 3.606 2.712 978 3.654 24.513 568 1.241 0 37.272 26.145 17.622 17.178 60.945 1.245 108.732 109.977 625 2.911 19.094 0 -1.118 -3.923 17.589 225.783 -3.741 6.637 5.189 5.845 26.668 2.929 -299 5.143 48.371 63.124 52.180 9.223 124.527 387 158.222 158.609 2.216 867 -14.654 8.142 8.540 -3.263 1.848 333.355 987 3.703 -1.888 -313 29.401 -842 428 -895 30.581 23.395 -24.744 5.466 4.117 788 16.056 16.844 148 -2.400 447 3.270 -4.008 13.471 10.928 62.470 )',LQ3DUDJXD\ )ORZV7KRXVDQGRI86' 180.000 160.000 140.000 120.000 100.000 80.000 60.000 40.000 20.000 0 1996 EU 1997 Mercosur 1998 Nafta 1999 Others Source: EC Delegation in Montevideo. Calculations based on Central Bank of Paraguay data. 3 3DUDJXD\ ,PSRUWV)URP(8E\3URGXFW Registered imports Other machinery and equipment Beverages and Tobacco Transport equipment Manufacture of Chemicals Fuels and Lubricants Manufacture of paper Foodstuffs Non-ferrous metal basic industries Textiles Iron basic industries Agricultural machinery and equipment Others 7RWDO Machinery and equipment Beverages and Tobacco Manufacture of Chemicals Fuels and Lubricants Others 7RWDO Millions of USD 94,51 29,39 23,72 23,41 9,34 7,88 3,94 3,35 2,90 2,24 1,54 29,85 232,07 Millions of USD 119,76 29,39 23,41 9,34 50,17 232,07 % 40,72% 12,66% 10,22% 10,09% 4,03% 3,40% 1,70% 1,45% 1,25% 0,97% 0,66% 12,86% 100,00% % 51,61% 12,66% 10,09% 4,03% 21,62% 100,00% 3DUDJXD\,PSRUWV)URP(8 Others 22% Fuels and Lubricants 4% Manufactur e of Chemicals 10% Machinery and equipment 51% Beverages and Tobacco 13% Source: EC Delegation in Paraguay and Uruguay. Calculations based on Central Bank of Paraguay data. 25-mai-01 4 3DUDJXD\ Exports to EU by Product - 2000 Registered Exports Product Oleaginous seedbed Leather Meat Wood Essential oil Vegetable oil Cotton Flour Manufacture of wood Sugar Cane Other cattle products Tobbaco Prepared fruits Furs Pellet Freezen cattle giblets Cannws fan plam Fresh fruits Yerba Mate Skilkworm cocoom Cereals Others 7RWDO Million USD 51,22 23,62 7,05 5,76 4,41 3,75 3,42 2,51 2,14 2,05 2,02 2,01 0,76 0,74 0,34 0,28 0,05 0,04 0,01 0,01 0,00 6,05 118,24 % 43,32% 19,97% 5,96% 4,87% 3,73% 3,17% 2,89% 2,12% 1,81% 1,73% 1,71% 1,70% 0,64% 0,62% 0,29% 0,23% 0,04% 0,03% 0,00% 0,00% 0,00% 5,12% 100,00% Product Oleaginous seedbed Leather Meat Wood + Manufacture of Wood Oils Cotton Sugar Cane Others 7RWDO Million USD 51,22 23,62 7,05 8,27 8,16 3,42 2,05 14,45 118,24 % 43,32% 19,97% 5,96% 7,00% 7,00% 2,89% 1,73% 12,22% 100,00% 3DUDJXD\([SRUWVWR(8 Sugar Cane 2% Cotton 3% Others 12% Oils 7% Wood + Manufactu re of Wood 7% Meat 6% Oleaginou s seedbed 43% Leather 20% 25-mai-01 Source: EC Delegation in Paraguay and Uruguay. Calculations based on Central Bank of Paraguay data. 5 3DUDJXD\ ,PSRUWVE\SURGXFW Registered imports Millions of USD % Fuels and Lubricants 312,68 15,2% Beverages and Tobacco 205,66 10,0% Manufacture of Chemicals 188,80 9,2% Transport equipment 183,23 8,9% Foodstuffs 139,17 6,8% Textiles 73,60 3,6% Manufacture of paper 71,98 3,5% Iron basic industries 63,46 3,1% Non-ferrous metal basic industries 20,75 1,0% Agricultural machinery and equipment 20,26 1,0% Other machinery and equipment 408,49 19,9% Others 362,31 17,7% Total 2.050,39 100,0% Source: EC Delegation in Montevideo. Calculations based on Central Bank of Paraguay data (CD). May 17, 2001 Millions of USD 312,68 611,98 205,66 188,80 139,17 592,10 2.050,39 Fuels and Lubricants Machinery and equipment Beverages and Tobacco Manufacture of Chemicals Foodstuffs Others Total % 15,2% 29,8% 10,0% 9,2% 6,8% 28,9% 100,0% 3DUDJXD\,PSRUWV Others 29% Fuels and Lubricants 15% Foodstuffs 7% Manufacture of Chemicals 9% Machinery and equipment 30% Beverages and Tobacco 10% Source: EC Delegation in Montevideo. Calculations based on Central Bank of Paraguay data. May 17, 2001 6 3DUDJXD\ ([SRUWVE\SURGXFW Registered Exports FOB Oleaginous seedbed Cotton Wood Meat Flour Leather Vegetable oil Cereals Pellet Essential oil Sugar Other cattle products Tobacco Prepared fruits Furs Vegetables and legumes Coffee Canned fan plam Yerba mate Fresh fruits Portland cement Skilkworm cocoom Others Total Millions of USD 290,04 92,53 75,06 72,73 62,38 55,98 41,96 31,74 14,51 10,02 8,37 3,72 3,67 1,73 0,91 0,43 0,38 0,34 0,30 0,16 0,13 0,08 103,76 870,94 % 33,30% 10,62% 8,62% 8,35% 7,16% 6,43% 4,82% 3,64% 1,67% 1,15% 0,96% 0,43% 0,42% 0,20% 0,10% 0,05% 0,04% 0,04% 0,03% 0,02% 0,02% 0,01% 11,91% 100,00% 1998 440,315 75,419 69,656 67,268 70,712 290,733 1014,103 1999 307,135 61,546 58,797 33,927 49,135 230,23 740,77 2000 285,924 78,493 75,062 70,37 42,029 319,063 870,941 2000 in % 32,83% 9,01% 8,62% 8,08% 4,83% 36,63% 100,00% 3DUDJXD\([SRUWV Others 36% Soya 33% Cotton 9% Vegeta ble oil 5% Meat 8% Wood 9% Millions of USD Soya Cotton Wood Meat Vegetable oil Others Total 2000 285,924 78,493 75,062 70,37 42,029 319,063 870,941 2000 in % 32,83% 9,01% 8,62% 8,08% 4,83% 36,63% 100,00% Millions of USD Soya Cotton Wood Meat Vegetable oil Others Total Source: EC Delegation in Montevideo. Calculations based on Central Bank of Paraguay data (February report, table 29). May 17, 2001 7 3DUDJXD\ *'3LQ 6HFWRU Agriculture Livestock Agriculture & Livestock Forestry Hunting and Fishing 3ULPDU\6HFWRU Mining Industry Construction 6HFRQGDU\6HFWRU Electricity Water Transport and Communications Commerce and Finance General Government Housing Other Services 7HUWLDW\6HFWRU *'3 D (Current) 1.192 % 16% 606 8% 1.798 24% 215 3% 11 0% 2.024 27% 37 0% 1.070 14% 425 6% 3.556 47% 489 7% 37 0% 419 6% 1.551 21% 465 6% 217 3% 766 10% 3.944 7.501 53% 100% Source: EC Delegation in Paraguay and Uruguay. Calculations based on Central Bank of Paraguay data. * Preliminary $JULFXOWXUDO/LYHVWRFN*'3 0LOOLRQRI&RQVWDQW*XDUDQLHV 290.000 270.000 250.000 230.000 1993 1994 1995 1996 1997 1998 1999 2000* $JULFXOWXUDO/LYHVWRFN*'3 RI7RWDO*'3 26% 25% 24% 23% 22% 1993 1994 1995 1996 1997 1998 1999 2000* 25-mai-01 8