Italian development aid in brief

1. Background

Firstly, the presence of our cooperation in Ecuador is connected with the commitment undertaken by Italy in support of the peace process following the 1998 Brasilia Convention, which sanctioned the end of a series of low-intensity conflicts with Peru which began in 1941 and accelerated in 1995 with the bursting of the War of Cenepa. Similarly, the Italian participation was consolidated with the signing of the Bilateral Ecuadorian Debt Conversion Agreement in March 2003 and the constitution of the Italo-Ecuadorian counter-value fund (FIE), which allowed the conversion of the Ecuadorian commercial debt against Italy, for a total of approximately $28 million in 114 development projects. The FIE represented the cornerstone around which different Italian initiatives are structured, to support the development of the country, particularly through assistance to small and medium enterprises, rural development and environment conservation. In 2012 the program was extended with the conversion, through a second phase, of a total of $ 35 million in direct support of the National Program of Environmental Conservation of the Amazon, Yasuni ITT. Ecuador was confirmed among the priority countries of the Italian Cooperation for the years 2013-2015, in sectors such as inclusive financial development, environment preservation and support for the process of health care reform. The framework agreement concerning the bilateral cooperation between Ecuador and Italy was signed by the parties in 1988.

2. Significant international donors different than Italy, relevant coordination and possibility of division of labor and joint evaluation exercises (so-called, Harmonization)

Despite the budget reduction, the Spanish Cooperation Agency (AECID) is confirmed as the main bilateral donor. Besides historical presence of agencies like USAID, Belgian Cooperation, and German GIZ, it is worth noting the growing presence of Asian cooperation agencies, such as the Japanese (JICA) and South-Korean (KOICA). China does not have a cooperation agency in the country, but the last three years it intensified its cooperation activities in Ecuador. At the multilateral level, the European Union, the Development Bank of Latin America (CAF) and the Inter-American Development Bank (IADB) are considered the main donors. The cooperation tools mostly used by the EU are general budget support (GBS) and sector budget support (SBS). The Technical Secretariat of International Cooperation (SETECI), section of the local Ministry of Foreign Affairs, is in charge of all activities concerning the coordination and harmonization of different development and cooperation initiatives. SETECI coordinates the Global Forum on International Cooperation, which in 2013 was at its third edition, as well as various specific thematic forums and in geographical and sectorial priority areas, such as gender equity, environment and cultural heritage, northern barrier, risk management and education. It could be considered that currently such forums are periodic moments of updating and interchange, rather than structured instruments for coordination; they are not structured joint assessment exercises.

3. Other means of the Italian Cooperation system in the country (NGOs, universities, local authorities, private sector) and methods for their involvement

Italian NGOs (AVSI, COOPI, Ibo Italy, Cric, Engim, Terra Nuova, Terre des hommes) were the first actors of the Italian Cooperation operating in the country, well before the formalization of the Bilateral Framework Agreement, and are currently present in most regions of the country with particular concentration in the center of the Andean province of Pichincha, in the coastal areas of the North and in the central woods. In the case of Ecuador, particular attention shall be given to University cooperation, which has intervened to consolidate the bilateral channel on several occasions. With regard to the Galapagos Archipelago, it shall be considered the project "Protection of health and prevention of the risks of anthropogenic pollution" launched by the University Ca 'Foscari of Venice in collaboration with the Municipal Government of the Island of Santa Cruz; the framework of the first Phase of the Bi-National Health Cooperation counted the support of the Centre for International Cooperation of the University of Parma, which - through the DGCS co-financing of 93,000.00 Euro - was involved in the training of personnel in the field of maternal, infant, neonatal and surgical health in the hospitals of the district. The University IUAV of Venice has finally intervened in collaboration with the Veneto Region in the framework of the ART Program of UNDP as part of the "Project for sustainable economic development in the context of a new framework for planning wetland Humedal Abras de Mantequilla" in the Province of Los Rios. During the next three years, and in view of the beginning of the mechanism of soft loaning, it will finally be important to fortify the Italian system through the use of the linked components, dedicated in these cases to actions of technical assistance and training

4. General objectives of the Italian Cooperation in the country, their sharing with counterparts and their consistency with international guidelines for development effectiveness 

The general objective of the activities of the Italian Cooperation for the period 2013 - 2015 is to support the efforts of Ecuador in the implementation of its National Plan of Buen Vivir (Good Living). Development plans are created by the Ecuadorian government for four years. Currently, the implementation phase of the 2009-2013 Plan is undergoing. The concept of buen vivir, in Quechua sumak kawasi is enshrined in the 2008 Constitution and is the guideline of national development policies. The Italians objectives and structures of operations are shared with local counterparts, both in the formulation and in the implementation. The Italo-Ecuadorian Fund contemplates a form of co-management through the presence of a Italian co-director and an Ecuadorian counterpart. The participation of the civil society is guaranteed both by the constant activity of connection of Italian NGOs, and by the FIE itself, which - through the structure of the Technical Committee - requires the presence of the Council of Development of Nationality and Peoples of Ecuador (CODENPE).

Regarding lessons learned, reference is made to the necessity of finding the point of balance between the progressive strengthening of the financing modality to ensure local ownership and the knowledge that a constant accompaniment in the form of specialized technical assistance (for both skills sector and for those managing the process) remains an absolute priority for the local authority, and often constitutes the sine qua non for ensuring the effectiveness and efficiency of Italian investments.

5. Priority areas of intervention and expected results

As anticipated, the document of reference is the four-year development plan 2009-2013. In light of the above, and following the consultation work carried out by the UTL, the following areas of intervention have been identified: 

• healthcare and public health 

• sustainable development and heritage environmental conservation 

• support to the national finance public sector and social economy 

• prevention of natural disasters 

• human rights, child and gender equity

In addition to the continuation of the projects still running, for the period 2013-2015, the following initiatives are planned. Two soft loans will be funded, respectively:

• investment project in equipment, infrastructure and training of human resources, particularly in the area of maternal and child health care network of Zone 6 of Ecuador, on behalf of the Ministry of Health, for a credit component equal to 12 million Euros, and a grant component of 98,000 Euro for the establishment of a experts fund. The project will last three years;
• programme to support the popular finance in the provinces of Carchi, Sucumbios, El Oro and Loja in favor of the National Bank of Finance and People's Solidarity (CONAFIPS), for a credit component equal to 3 million Euros, and a donation component of 120,000 Euros for the establishment of a experts fund. The project will last three years;
• it is under negotiation a donation of the Trilateral Cooperation Italy - Brazil - Ecuador. It consists of a Triennial Program concerning the forestry reduction and the use of fire alternatives in the Sierra and in the Ecuadorian coast. The program includes an Italian contribution equal to 1.5 million Euros, divided between budget support to the Ministry of Environment, experts fund and on site fund.
• It is expected that during the three years, the Italian technical assistance to the Conversion of Debt program will continue. The Italian contribution will be equal to approximately 175,000 Euros divided between experts fund and on site fund.
• Finally, conditions to replicate a donation to the technical support to the Ministry of Health of Ecuador, along the lines of the Peruvian experience, will be considered, so as to be able to capitalize on the Italian investment in the health sector through bilateral channels and programs on credit. The amount of the initiative would not exceed € 250,000 and would have an initial duration of one year.