OEA/Ser.G

CP/doc. 3603/02

17 May 2002

Original: Spanish

ANNUAL REPORT OFTHE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENTTO THE GENERAL ASSEMBLY

This document is being distributed to the permanent missions and
will be presented to the Permanent Council of the Organization.

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SEVENTH REGULAR MEETING OEA/Ser.W/II.7

May 10, 2002 CIDI/doc. 3/02 Rev.1

Washington, D. C. 9 May 2002

Original: Spanish

ANNUAL REPORT OF

THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT

TO THE GENERAL ASSEMBLY

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CONTENTS

Page

COMPOSITION AND RESPONSABILITIES 1

PART ONE

I. SIXTH REGULAR MEETING OF CIDI 1

II. SEVENTH REGULAR MEETING OF CIDI 3

III. MEETINGS OF CEPCIDI 5

1. Regular meetings 5

2. Special meeting 7

IV. ACTIVITIES OF THE SUSIDIARY ORGANS AND CENPES 7

1. Activities of the Subcommittees and Working Groups 8

a. Subcommittee of Program, Budget and Evaluation 8

b. Subcommittee on Partnership for Development Policies 8

c. Working Group on Regulatory Provisions 9

d. nformal Working Group on Sustainable Development 9

e. Group responsible for organizing the First Meeting of Ministers of Tourism of CIDI

and the XVIII Inter-American Travel Congress 9

f. Working Group for drafting the Strategic Plan for Partnership for Development 9

g. Working Group responsible for organizing the First Meeting of Ministers of Culture

of CIDI 9

2. Activities of the Specialized Non-permanent Committees (CENPES) 10

V. CIDI SUPPORT FOR SECTORAL MEETINGS 10

VI. SUPPORT FOR COOPERATION ACTIVITIES 13

PART TWO

ACTIVITIES OF THE INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT (IACD) 13

I.  MEETINGS OF THE MANAGEMENT BOARD 13

II.  ACTIVITIES OF THE SPECIAL MULTILATERAL FUND OF CIDI (FEMCIDI) 15

III.  NEW COOPERATION MECHANISMS 16

BEST PRACTICES 16

1. Programs for Government Purchases 17

2. Electronic Government 18

3. Program for Municipal Development 19

4. Program for Health and Occupational Safety 19

OTHER MECHANISMS 20

1. Education Program 20

2. Rural Electrification Initiative and Telecommunications 21

3. Housing, Disaster Relief, and Funding in the Caribbean and El Salvador 22

4. Trust for the Americas 22

IV. HUMAN DEVELOPMENT 23

Regular Training Programs (PRA) 23

Special Caribbean Fellowships Program (SPECAF) 23

Short-term Training Courses 23

Rowe Fund 24

INNOVATIONS 24

The Educational Portal of the Americas 24

The Americas Leadership Fellowship Program “Alberto Lleras” 25

E-becas 25

Other initiatives 25

V. SPECIFIC FUNDS 26

United States Specific Fund 26

Other Specific Funds 27

VI. OPERATIONS AND FINANCE 27

VII. THE EXTRANET AND THE AGENCY’S WEB PAGE 28

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ANNUAL REPORT OF

THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT

TO THE GENERAL ASSEMBLY

This report contains a summary of the activities accomplished by the Inter-American Council for Integral Development (CIDI) and its Inter-American Agency for Cooperation and Development (IACD) for the period of June 2001 to May 2002. The activities of the Council and its Permanent Executive Committee appear in Part One, and the report on the IACD is in Part Two.

COMPOSITION AND RESPONSABILITIES

The Inter-American Council for Integral Development is an organ of the Organization of American States, directly answerable to the General Assembly and with decision-making power in matters of partnership for integral development. It also serves as a forum for the inter-American dialogue on issues of hemispheric interest in those fields. The Council was established through the entry into force of the Protocol of Managua on January 29, 1996. CIDI is composed of all member states at the ministerial or equivalent level and they participate in its regular, special, specialized or sectoral meetings. Its purpose is to promote partnership among its member states for the furtherance of their integral development and, in particular, to help in their efforts to eradicate poverty. The Council fulfills its objectives by carrying out the Strategic Plan for Integral Development.

Article 6 of the Statutes of CIDI established CEPCIDI as the permanent executive body of CIDI. CEPCIDI is responsible for making decisions and recommendations relevant to the planning, programming, budgeting, management control, follow-up and evaluation of the cooperation projects and activities executed within the framework of CIDI.

The Inter-American Agency for Cooperation and Development (IACD) was created at the twenty-ninth regular session of the General Assembly, with the approval of AG/RES. 1686 (XXIX-O/99). The Agency is a subsidiary body of CIDI and its purpose is to promote, coordinate, manage and facilitate the planning and execution of partnership for development programs, projects and activities within the scope of the OAS Charter and in particular, CIDI’s Strategic Plan for Partnership for Development.

PART ONE

I. SIXTH REGULAR MEETING OF CIDI

The Sixth Regular Meeting of the Inter-American Council for Integral Development was convoked by CEPCIDI and held on December 12, 2001 at OAS headquarters in Washington D.C.

The meeting, attended by representatives of all member states, was chaired by Mr. Arturo Montenegro, Minister of Economy of Guatemala. The vice chair was Mr. Héctor González Urrutia, Deputy Foreign Minister of El Salvador.

The meeting included a dialogue among the heads of delegation, special guests, and representatives of international cooperation agencies on the subject: “Cooperation mechanisms for facing the socio-economic impact of the terrorist acts of September 11, 2001 on the member states, and the damage caused especially to the most vulnerable and smallest economies.”

Participants in the dialogue agreed that it could not yet be determined whether the events of September 2001 would have deep and lasting effects in the hemisphere. However, they reaffirmed the importance of the multilateral approach and the need for consensus on development cooperation, which cannot ignore the objectives for long-term development. It was noted that the abovementioned events had serious effects in the hemisphere, especially in the smallest economies in the Caribbean and Central America. The participants reiterated the need for economic integration at the hemispheric and regional levels to establish a platform of competition that will mobilize the investment required for development. They concluded that democracy and prosperity will not be sustainable without a concerted action to eradicate structural poverty, social alienation, and inequality in income.

Decisions made by CIDI included the approval, subject to ratification by the thirty-second regular session of the General Assembly, of the Strategic Plan for Partnership for Development for 2002-2005, which sets forth the policies, programs, and action measures in the area of cooperation for integral development for that period. In this regard, the Strategic Plan establishes a field of action on two strategic levels, a policy level that is intended to strengthen dialogue, agreements, and institutional mechanisms, and a program level that includes a series of areas to ensure the focused and effective execution of the Plan. The Strategic Plan aims to generate and implement policies and programs for the reduction of poverty and inequality, as well as to implement and follow up on the mandates of the Summits of the Americas.

Among other measures adopted by CIDI, resolution CIDI/RES. 106 (VI-O/01) requested that the General Assembly amend articles 3(m) and 31(a) of the Statutes so that CEPCIDI can prepare guidelines for drafting a program-budget in the area of cooperation, based on the Strategic Plan.

In view of the fact that the new system of cooperation funded with resources from the Special Multilateral Fund of CIDI (FEMCIDI) requires changes in several provisions of its statutes and regulations, CIDI’s resolution CIDI/RES. 107 (VI-O/01) extended the provisional application of the new texts of articles 15, 17, 20, and 23 of the FEMCIDI Statutes until the Management Board of the AICD presents a report to CEPCIDI on the results of the implementation of the new cooperation system.

The regular meeting of CIDI also considered and approved rules of procedure for the operation of the Management Board of the IACD. In resolution CIDI/RES.109 (VI-O/01) CIDI approved the calendar of specialized or sectoral meetings for 2002, and in resolution CIDI/RES.110 (VI-O/01) it directed CEPCIDI to continue providing adequate support to encourage participation of national agencies for international cooperation in meetings and activities of the IACD.

Recalling the terrorist acts that occurred in the United States on September 11, 2001, CIDI deplored and firmly condemned them, deciding in resolution CIDI/RES.111 (VI-O/01) that the IACD, in its sphere of competence, will intensify efforts to support member states, especially those with the smallest and most vulnerable economies and those with less relative development, in the application of measures intended to mitigate the socio-economic impact of those terrorist acts. CIDI also called for holding, as soon as possible, a meeting of the Committee for Coordination of Programs of the Inter-American System to coordinate technical cooperation and development programs carried out by the various organs, agencies, and entities of the inter-American system represented on the Committee, especially as regards those aimed at softening the impact of the terrorist acts of September 11.

II. SEVENTH REGULAR MEETING OF CIDI

The Seventh Regular Meeting of the Inter-American Council for Integral Development was convoked by CEPCIDI and took place at the Headquarters of the Organization on May 10, 2002.

The Meeting held a plenary session that was opened by the Provisional President, Mr. Albert Preville, Alternate Representative of Saint Lucia. During this session, the Meeting’s agenda was approved and its officers elected..

The Permanent Representative of the Dominican Republic, Ambassador Ramón Quiñones, was elected Chairman of the Seventh Regular Meeting of CIDI by acclamation. Mr. Federico Villegas, Alternate Representative of Argentina, was elected as Vice Chairman of the Meeting, also by acclamation.

The session continued with consideration of the reports of CEPCIDI to CIDI and of CIDI to the General Assembly, which were approved. These reports are contained in documents CIDI/doc. 2/02 and CIDI/doc. 3/02 Rev.1, respectively.

CIDI then proceeded to elect five members of the Management Board of the Inter-American Agency for Cooperation and Development. The delegations from Canada, El Salvador, Grenada, Guatemala and the United States were elected by acclamation. These new members will carry out their functions for a two-year period.

In accordance with Article 31 c) of the CIDI Statutes, the Council received voluntary pledges to the Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI) for the year 2002. The delegations of Antigua and Barbuda, Belize, Chile, Honduras, Guyana and Ecuador confirmed their contributions at the same level as the previous year.

Brazil offered US$310,000; Canada $2 million Canadian dollars; Costa Rica US$ 32,900; Peru indicated that its contribution would be increased by 60% over that of the previous year; and, the delegation of the United States indicated that it had already made its pledge to the General Secretariat, without noting the amount.

CIDI considered and approved the following resolutions:

CIDI/RES. 113 (VII-O/02) Poverty, Equity and Social Inclusion

CIDI/RES. 114 (VII-O/02) Follow-up on the International Conference on Financing for Development

CIDI/RES. 115 (VII-O/02) Responsibilities of the Inter-American Agency for Cooperation and Development in accordance with resolution AG/RES. 1814 (XXXI-O/01)

CIDI/RES. 116 (VII-O/02) Continuing participation in the Inter-American Council for Integral Development by member states that have not ratified the Protocol of Managua

CIDI/RES. 117 (VII-O/02) The Socioeconomic and Environmental Effects of Climate Change on the Countries of the Hemisphere

CIDI/RES. 117 (VII-O/02) The Socioeconomic and Environmental Effects of Climate Change on the Countries of the Hemisphere

CIDI/RES. 118 (VII-O/02) Trade and Integration in the Americas

CIDI/RES. 119 (VII-O/02) Extension of the Deadline for the Application of Resolution CEPCIDI/RES. 67 (LXVI-0/01)

CIDI/RES. 120 (VII-O/02) Non-Permanent Specialized Committees

CIDI/RES. 121 (VII-O/02) Report on the XII Inter-American Conference of Ministers of Labor

CIDI/RES. 122 (VII-O/02) Report of the Second Meeting of Ministers of Education

CIDI/RES. 123 (VII-O/02) Report of the Third Regular Meeting of the Inter-American Committee on Sustainable Development (CIDS)

CIDI/RES. 124 (VII-O/02) Specialized or Sectoral Meetings of CIDI

CIDI/RES. 125 (VII-O/02) First Meeting of Ministers and High Authorities of Science and Technology within the Framework of CIDI

CIDI/RES. 126 (VII-O/02) XVIII Inter-American Travel Congress

CIDI/RES. 127 (VII-O/02) First Inter-American Meeting of Ministers and High Authorities of Culture within the Framework of CIDI

CIDI next decided to submit the following draft resolutions for the consideration to the thirty-second regular session of the General Assembly:

§  Modification of the Statutes of the Inter-American Council for Integral Development

§  Approval of the Strategic Plan for Partnership for Development 2002-2005

§  Poverty, Equity and Social Inclusion

§  First Meeting of Ministers and High Authorities of Science and Technology within the Framework of CIDI

§  Ministerial Meeting on Sustainable Development

§  XII Inter-American Conference of Ministers of Labor

§  Second Meeting of Ministers of Education

§  XVIII Inter-American Travel Congress

§  Trade and Integration in the Americas

§  Responsibilities of the Inter-American Agency for Cooperation and Development Mandated by Resolution AG/RES. 1814 (XXXI-O/01)

§  Continuation of the Participation in the Inter-American Council for Integral Development of Member States that Have Not Ratified the Protocol of Managua

§  The Socioeconomic and Environmental Effects of Climate Change on the Countries of the Hemisphere

§  Follow up on the International Conference on Financing for Development

§  Annual Report of the Inter-American Council for Integral Development

III. MEETINGS OF CEPCIDI

CEPCIDI and its subsidiary bodies held 70 informal and formal meetings and produced about 300 documents during the period covered by this report. In accordance with article 10 of the CIDI Statutes, the Executive Committee held regular and special meetings as outlined below.

1. Regular Meetings

At the Fifth Regular Meeting of CIDI, Ambassador Denis G. Antoine, Permanent Representative of Grenada to the OAS and Ambassador Luis Alfredo Ramos, Permanent Representative of Colombia to the OAS, were elected to the positions of CEPCIDI Chair and Vice-Chair, respectively, for the year 2001. At the Sixth Regular Meeting of CIDI, held in December 2002, Ambassador Ramón Quiñones, Permanent Representative of the Dominican Republic, and Ms. Margarita Riva-Geoghegan, Alternate Representative of the United States, were elected as Chair and Vice-Chair for the year 2002.

From June 2001 to May 2002, CEPCIDI held 15 regular meetings and one special meeting to deal with business in its area of responsibility, approving resolution on the suspension of rules of procedure, the holding of sectoral meetings at the ministerial level, the development and approval of rules for the operation of the IACD, the convocation of the meeting of the Specialized Non-permanent Committees (CENPES) for the year 2001, and the extension of the period for carrying out activities and projects of partnership for development funded with resources of the Special Multilateral Fund of CIDI (FEMCIDI)