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FTAA.sme/inf/112
August 12, 2003

Original: Spanish
Translation: FTAA Secretariat

FTAA – CONSULTATIVE GROUP ON SMALLER ECONOMIES

PARAGUAY

BASIC FORMAT FOR THE PRESENTATION OF SPECIFIC PROJECT PROFILES UNDER THE
HEMISPHERIC COOPERATION PROGRAM – RELATED TO AGRICULTURE

 

  1. PROJECT TITLE

    STRENGTHENING PARAGUAY’S NEGOTIATING CAPACITY: SUPPORT FOR THE HARMONIZATION OF AGRICULTURAL AND TRADE POLICIES

  2. EXECUTING AGENCY

    Government of Paraguay, through the Ministry of Agriculture and Livestock (MAG) – General Directorate of Planning. (Pte. Franco 475, Tel. 595-21-493-927)

  3. BACKGROUND

    The Government of the Republic of Paraguay, based on its 1999/2003 program to raise the standard of living and improve the quality of life of the Paraguayan people, designed and implemented the STRATEGIC ECONOMIC AND SOCIAL PLAN (P.E.E.S.). The goal of the plan is to lay the foundation for a new development model supported by private initiatives, by eliminating structural inefficiencies and obstacles from the country’s production and institutional systems in order to achieve a sustained increase in real GDP per capita and reduce poverty and inequality. The program framework requires that the country’s domestic policies be tailored and harmonized to the global economic situation, and particularly to international trade, as a means of achieving competitiveness in an era of globalization, and with a view to making a strong, genuine effort to consolidate socioeconomic development in the country. 

     
  4. RATIONALE

    Significant changes at the national and global level constitute huge challenges and demands for the agricultural sector: modernization, improved competitiveness, diversified and specialized production, increased international insertion, environmental sustainability, and improved rural living conditions are all goals—not always compatible—that must be urgently addressed by government programs, particularly in countries with smaller economies, such as Paraguay, that are highly dependent on agriculture and foreign trade.

    Sectoral strategy, therefore, must be brought in line with general economic strategy by harmonizing policies and instruments. Limited government resources, increasingly dependent on macroeconomic goals, require the optimization of procedures for prioritizing these goals, as well as innovations and improvements in public administration.

    The implementation of this project will help set in motion efficient mechanisms for involving all economic agents in the policy formulation process, as a way to establish a system to spur modernization and competitiveness in agricultural production in two ways: first, by establishing an economic information system that will be a key factor in establishing links between market agents and in identifying and making decisions with regard to investment projects.

    Second, by strengthening the administrative capacity of MAG negotiators to consistently fulfill their duties, in response to the increasing investment in international trade that characterizes the Paraguayan economy, and to the new and greater challenges for the agricultural sector that accompany this increase.


     
  5. PROJECT OBJECTIVES

     General Objective

    Modernize and strengthen the capacity of the General Directorate of Planning (DGP) and the Special Commission on International Trade and Integration (CECII) of the Ministry of Agriculture and Livestock (MAG), in order to optimize their contribution to the formulation of policies that promote the socially and environmentally sustainable development of the agricultural sector and that are harmonized with current rules of the economy and international trade.

    Specific Objectives

    • Strengthen and develop capacities to formulate and evaluate sectoral policies in production, foreign trade, rural development, and environmental sustainability.

    • Develop institutional and technical capacities to ensure an effective and timely dialogue with the various entities of importance for sectoral development. 

    • Achieve the technical capacities required to operate as a technical support secretariat for consultative bodies at the upper levels of the MAG.

    • Create the necessary technical capacities to optimize the allocation of institutional resources as a function of development objectives, organize international cooperation initiatives, and modernize institutional management.

    • Set up a comprehensive economic information system that would support public and private sectoral agents. 

    • Train DGP and CECII technicians in the basic skills required to understand the comprehensive trade relations between industrialized nations and smaller economies, such as Paraguay. 

     
  6. INPUTS

    The resources required for the project are as follows:

     

    COMPONENTS

    RESOURCES REQUIRED

    EXPERTS

    to formulate and design MAG agricultural and trade policy
     

    • 1 agricultural policy expert for a period of 10 months 
    • 1 international economics expert for a period of 8 months
    • 1 international trade expert for a period of 8 months
    Training of DGP and CECII technicians
    • Master's degree level
      - 2 in public policy
      - 2 in international trade

    • Specialization courses abroad
      - 4 courses of 2-6 months’ duration 

    • Specialization courses at the local level
      - 4 courses of 1-3 months’ duration

    • International seminars
      - 6 international seminars per year

    • National seminars
      - 6 national seminars per year
    Support for participation in agricultural negotiations  meetings
    • Cost of airfare and accommodations for an average of 5 technicians attending 5 international meetings per year 

    Support for participation in internships in plant health services

    • Travel and accommodation expenses for on average 5 technicians to participate in 5 international meetings per year

    Office equipment and supplies

    • Computers w/ printers
      - 5 Units

    • Internet services
      - 3 contracts

    • Fax machines
      - 2 units

    • Cameras
      - 2 units

    • Photocopiers
      - 2 units

    • Scanners
      - 5 units

    • Printer cartridges

    • Photocopying paper
       
    • Hiring of international consultants to conduct studies
       
    • Seminars and forums on agricultural and trade policies
       
    • Seminars and forums on international trade

    Support for the formulation of agricultural and trade policies
    • Hiring of international consultants to conduct studies

    • Seminars and forums on agricultural and trade policies

    • Seminars and forums on international trade



  7. EXPECTED RESULTS

    • The DGP and the CECII have qualified personnel, as well as the appropriate infrastructure and equipment required to fulfill their respective duties, and who are able to respond in a timely and efficient manner to the requirements of senior levels of government. 

    • The DGP and the CECII are the main contact point for governmental entities associated with the development of the agricultural sector.

    • The DGP and the CECII strengthen and increase their capacity to administer development and international trade policies and adapt such policies to the current global rules. 

    • The DGP and the CECII create information systems that serve as essential inputs in the decision-making process of public and private economic agents.

    • DGP and CECII technicians are trained to effectively manage public policy and international trade.

  8. Duration of the Technical Cooperation: 2 years
 
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