Quarterly Report on the Use of Funds

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OEA/Ser.G

CP/doc.3982/05 add. 6

16 March 2005

Original: English

QUARTERLY REPORT ON THE USE OF FUNDS

ALLOCATED UNDER RESOLUTION CP/RES. 831 (1342/02)

BETWEEN OCTOBER 1 AND DECEMBER 31, 2004

Inter-American Council for Integral Development (CIDI)

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

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USE OF EXCESS RESOURCES OF THE RESERVE SUBFUND FOR CAPITAL INVESTEMENTS AND TO MEET OAS MANDATES

QUARTERLY REPORT TO THE PERMANENT COUNCIL ON ACTIVITIES OF THE INTERAMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT BETWEEN

OCTOBER 1 AND DECEMBER 31, 2004

Permanent Council Resolution 831 (1342/02) paragraph 1 c. resolves to appropriate four million dollars (US$4,000,000) to the Inter-American Council for Integral Development (“CIDI”) for the implementation of Summit of the American mandates, two million dollars (US$2,000,000) of which shall be spent on education initiatives with the support of the General Secretariat as specified in the pertinent applicable Executive Orders.

To this end, the Executive Secretariat for Integral Development is pleased to provide the Permanent Council with the following report (including the reports of the Office of Education, Science and Technology, the Office of Trade, Growth and Competitiveness (OTGC) and the OTGC’s Division of Tourism and Small Enterprises, all of them having executed activities in 2004 with resources from the fund):

Beginning Balance as of January 1, 2003:$4,000,000.00

Interest Earned and reported thru September 30, 2004109,101

Amounts Spent and Already Reported in Prior

Periods958,515[1]/

Balance as of September 30, 2004:3,150,586

Interest Earned period September/December 2004:24,627

Balance as of October 1, 20043,175,213

Expenditures for October 1 through December 31, 2004:130,961

Balance as of December 31, 2004:3,044,252

Unliquidated obligations as of Dec. 31, 2004134,594

Available Balance$2,909,658

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ANNEX I

QUARTERLY REPORT ON ACTIVITIES CARRIED OUT BY THE OFFICE OF EDUCATION, SCIENCE AND TECHNOLOGY FROM OCTOBER 1 TO DECEMBER 31, 2004

Permanent Council resolution CP/RES. 831 (1342/02); operative paragraph 3 of resolution CEPCIDI/RES. 89 (LXXXIX-O/03) of the Permanent Executive Committee of the Inter-American Council for Integral Development (CEPCIDI), whereby CEPCIDI resolves “to agree that besides the sectoral areas of education and trade, each of the other sectoral areas identified in operative paragraph 1 will receive up to US$190,833.33 to execute the projects they determine"; and operative paragraph 1 of the same CEPCIDI resolution, which refers, inter alia, to the areas of education, social development, labor, culture and science and technology.

In 2004, four of the five program areas of the Office of Education, Science and Technology were allocated resources from the Reserve Subfund. As of December 31, the social development area had not received any resources. However, on November 30, 2004, the members of the Inter-American Committee on Social Development (CIDES) approved the Work Plan and the distribution of Subfund resources for the next two years, which will begin to be executed in January 2005.

Consequently, attached hereto for presentation to the Permanent Council is information on the use of excess Subfund resources allocated to the areas of education, labor, culture and science and technology.

EDUCATION

Project 1
US$ / Project 2
US$ / Project 3
US$ / TOTAL
US$
Beginning Balance as of March 1, 2004[2]/ / 30,000.00 / 324,295.00 / 28,496.00 / 382,791.00
Interest earned to December 31, 2004 / 201.92 / 3,518.72 / 162.97 / 3,883.61
Total / 30,201.92 / 327,813.72 / 28,658.97 / 386,674.61
Amount spent and already reported in prior periods[3]/
April to June, 2004 / 17,150.00 / 3,700.00 / 17,619.54 / 38,469.54
July to September, 2004 / 4,400.00 / 48,674.51 / 0.00 / 53,074.51
October to December, 2004 / 8,477.50 / 28,125.00 / 0.00 / 36,602.50
TOTAL / 30,027.50 / 80,499.51 / 17,619.54 / 128,146.55
Balance as of september 30, 2004 / 8,631.52 / 274,098.37 / 10,982.01 / 293,711.90
Balance as of 31 december, 2004[4]/ / 174.42 / 247,314.21 / 11,039.43 / 258,528.06

LABOR

US $
Beginning Balance as of March 16, 2004[5]/ / 190,060.00
Interest earned to December 31, 2004 / 2,345.96
TOTAL / 192,405.96
Amount spent and already reported in prior periods[6]/
April to June, 2004 / 50,647.38
July to September, 2004 / 9,051.42
October to December, 2004 / 10,287.84
TOTAL / 69,986.64
Balance as of september 30, 2005 / 132,046.10
Balance as of december 31, 2004[7]/ / $122,419.32
US$
Beginning Balance as of March 11, 2004[8]/ / 190,000.00
Interest earned to December 31, 2004 / 2,860.02
Total / 192,860.02
Amount spent and already reported in prior periods[9]/
Abril to Junio,2004 / 7,013.05
Julio to Septiembre, 2004 / 24,141.20
October to December, 2004 / 4,836.85
Total / 35,991.10
Balance as of september 30, 2004 / $160.878.79
Balance as of december 31, 2004[10]/ / 156,868.92

CULTURE

SCIENCE AND TECHNOLOGY

Beginning balance as of January 1, 2003:$190,833.33

Interest earned:$_ 3,471.60

$194,304.93

Amounts spent and

already reported in prior periods:

July to September 2003$ 2,812.46

October to December 2003$ 97,517.55

January 1 to March 31, 2004$ 39,601.14

April 1 to June 30, 2004$ 19,484.73

July 1 to September 30, 2004$ 23,320.21

Balance as of September 30, 2004$ 11,510.79

Amount spent during the period from October 1 to December 31, 2004$ 12,451.38

Total adjustments credited to the account$ 2,660.86

Ending balance as of December 31, 2004 $ 1720.27

Activities in the Area of Education / Amount Spent
Oct.-Dic., 2004
US$

Project 1

/ Technical Secretariat activities in support of the Summit Project, hemispheric projects, and meetings of the

Inter-American Committee on Education (CIE)

- Consulting work / 8,477.50

Project 2

/ Regional Educational Indicators Project– Educational Quality Assessment (PRIE)
Funds assigned to Mexico: $182.575.00
Component A2. Development of indicators
28,125.00
Project 3 / Professional Development Course, “Ready to Learn:Early Childhood Education of Quality to Prevent Drop-Out”
No further activities were developed. / $0.00
EDUCATION - TOTAL / 36,602.50

Project 1.Technical Secretariat activities in support of the Summit

Project, hemispheric projects, and meetings of the

Inter-American Committee on Education (CIE)US$8,477.50

Consulting work. The Technical Secretariat continued to retain the services of two consultants working on the technical follow-up to the three hemispheric projects, including the translation of base documents, participation in and follow-up to the First Meeting of Experts of the Hemispheric Secondary Education Project and the Second Subregional Coordination Meeting, and follow-up to the preparatory work for the Fourth Meeting of Ministers of Education.

Project 2.Regional Educational Indicators Project– Educational

Quality Assessment (PRIE)US$28,125.00

The Second Meeting of the Authorities and Executive Committee of the CIE, held on April 16, 2004, in Washington, D.C., approved a lump sum of US$324,295.00, requested by the Governments of Brazil and Mexico. During the three-month period from October to December 2004, Mexico executed US$28,125.00 for component A2, “Development of Indicators.” Brazil did not incur any expenses in connection with the project.

Moreover, the Third Meeting of the Authorities and Executive Committee of the CIE, held on October 17, 2004, approved rescheduling, for the 2004-2005 period, of the funds for that project that had not yet been executed, and authorized, if necessary, in consultation with the coordinating countries, decision-making on use of the subfunds (see document CIDI/CIE/doc.14, “Agreements Adopted”).

Project 3.Professional Development Course, “Ready to Learn:

Early Childhood Education of Quality to Prevent Drop-Out”

US$ 0.00

The Second Meeting of the CIE, held on April 6, 2004, allocated US$28,496.00 for the Professional Development Course “Ready to Learn,” which took place in Nuevo León, Mexico, from May 20 to 25, 2004. As indicated in the previous quarterly reports (CP/doc.3920/04 add.4 and CP/doc.3955/04 add.9), that activity cost US$17,619.54, resulting in a positive balance of US$11,039.43, including interest earned as of December 31, 2004.

Activities in the Area of Labor / Amount Spent
US$
Support for the Declaration of Salvador and for the Plan of action of the XIII Inter-American Meeting of Ministers of Labor of the Organization of American States
Task 1 /

Meetings of the Working Groups of the XIII Inter-American Conference of Ministers of Labor (CIMT)

Support in the preparation of the Planning Meeting where Working groups activities for the year 2005 will be determined. / $813.05
Task 2 / Website and Virtual Forum design and maintenance
Contracts with the websites' and virtual fora´s designers and administrators. / 3,450.00
Task 3 / Management, development, and implementation of
didactic processing for the course: Job Skills Certification / 4,524.79
TOTAL / 10,287.84

Task 1.Meetings of the Working Groups of the XIII Inter-American

Conference of Ministers of Labor (CIMT)US$813.05

To follow up on the commitments of the Inter-American Conference of Ministers of Labor, particularly in the areas of health and occupational safety. To support preparations for the Planning Meeting for the CIMT, held on January 31 and February 1, 2005.

Task 2.Website and Virtual Forum design and maintenance US$1,250.00

Task 3.Management, development, and implementation of

didactic processing for the course: Job Skills CertificationUS$4,524.79

To carry out didactic processing of the contents of the virtual course, Job Skills Certification, on the basis of the experience acquired by CONOCER of Mexico.

Activities in the Area of Culture / Amount Spent
US$
Support fot the Declaration of Cartagena and for the Action Plan of the I Interamerican Meeting of Ministers and Highest Appropriate Authorities of Culture.
Task 1 / Support for the Second Ministerial Meeting

and the CIC meetings

Consulting work / 4,836.85
TOTAL / 4,836.85

Task 1. Support for the Second Ministerial Meeting

and the CIC meetingsUS$4,836.85

By decision of the authorities of the Inter-American Committee on Culture (CIC), three studies were commissioned that would serve as a basis for discussion and three thematic areas were endorsed for the Second Inter-American Meeting of Ministers and High Authorities on Culture, held in Mexico on August 23 and 24, 2004. The amount shown corresponds to the payment due one of the consultants and to the consulting work for web site design and maintenance and for preparation of information CDs for the Second Meeting of Ministers.

Activities in the Area of Science and Technology / US$
1-Hemispheric Cooperation and Scientific and Technological Policy Development / $3151.56
Task 1.1 Science Technology & Innovation for Competitiveness in the Productive Sector (Bank charge only – not detailed in paragraph below) / $504.94
Task 1.4 Consolidation of Hemispheric Policies in Science and Technology / $2646.62
2-Science, Technology, and Innovation for Hemispheric Competitiveness / $9,299.82
Task 2.1 Technological Services / $3,676.32
Task 2.2 Information Technologies, Connectivity, and Thematic Networks / $1,000.00
Task 2.4 Horizontal Cooperation in Cleaner Technologies and Renewable Energy / $3,324.50
Task 2.5 Gender and Science and Technology / $1299.00
TOTAL EXPENSES / $12,451.38
ADJUSTMENTS (credited to the account) / ($2,660.86)

The Division of Science and Technology (DST) of the Office of Education, Science, and Technology (OEST) has been implementing the Science and Technology Program of Activities for Hemispheric Cooperation, approved by the OAS member states at the Special Meeting of the Inter-American Committee on Science and Technology (COMCYT), held in Lima, Peru, from May 5 to 9, 2003. The projects “Hemispheric Cooperation and Scientific and Technological Policy Development” and “Science, Technology, and Innovation for Hemispheric Competitiveness” are the components of the aforementioned Program.

First General Expenditure(US$3151.56)

1. Hemispheric Cooperation and Scientific and Technological Policy Development

From October to December 2004, the Division of Science and Technology of the Office of Education, Science, and Technology continued with the implementation and follow-up of the activities of this Project.The Reserve Subfund partially covered expenses related to the preparatory meetings for the First Meeting of Ministers and High Authorities of Science and Technology within the Framework of CIDI.In particular, this fund partially reimbursed travel expenses for a COMCYT delegate to participate in the First Preparatory Meeting for the Ministerial, held at OAS headquarters in Washington, D.C., on June 23 and 24, 2004, and covered expenses related to room services for the Second Preparatory Meeting for the Ministerial, which was also held at OAS headquarters, on September 21 and 22, 2004.

Task 1.4 Consolidation of Hemispheric Policies in Science and Technology

This fund partially covered travel expenses for a COMCYT delegate to participate in the First Preparatory Meeting for the Ministerial on Science and Technology, as well as expenses related to room services for the Second Preparatory Meeting for the Ministerial. These preparatory meetings facilitated discussion among the COMCYT delegates with regard to preparation of the draft Declaration and Plan of Action of Lima, proposals for hemispheric cooperation, and parallel activities presented at the Ministerial Meeting on Science and Technology, held in Lima, Peru, on November 11 and 12, 2004. During the Ministerial, the Declaration and Plan of Action of Lima were approved, as were 15 hemispheric initiatives as an integral part of those documents.More information about the Ministerial may be found at:

Second General Expenditure(US$9,299.82)

2 – Science, Technology, and Innovation for Hemispheric Competitiveness

Within the framework of the second component of the Science and Technology Program of Activities for Hemispheric Cooperation, implemented by the Division of Science and Technology of the OEST, special attention is given to specific thematic areas, on which precise mandates emanated from the Summits of the Americas process.The Office’s efforts in each of these areas are the following:

Task 2.1 Technological Services

This fund partially covered the participation of the Division of Science and Technology in coordination activities of the Inter-American Metrology System (SIM) and the InterAmerican Accreditation Cooperation (IAAC).In particular, the Office, as Executive Secretariat of SIM--a regional entity consisting of the national metrology laboratories of the 34 OAS member states-participated in the Annual Meeting of SIM and in related activities carried out on Isla Margarita, Venezuela, from November 1 to 6, 2004. The Office also works in close collaboration with IAAC, which is the association of accreditation bodies in the Americas and other organizations interested in conformity assessment.

This fund also covered the services for “instructional design” and “didactic processing” of two publications of the OEST in the areas of quality and metrology in order to deliver them as on-line professional development courses. These on-line courses will be offered by the Office in coordination with the Educational Portal of the Americas.In addition, partial costs for the participation of a specialist of the Office in the First Meeting of Ministers and High Authorities of Science and Technology within the Framework of CIDI, held in Lima, Peru, on November 11 and 12, 2004, were covered by the fund.

Task 2.2 Information Technologies, Connectivity, and Thematic Networks

This fund partially financed the participation of an OEST specialist in the First Meeting of Ministers and High Authorities of Science and Technology within the Framework of CIDI, held in Lima, Peru, on November 11 and 12, 2004.

Task 2.4 Horizontal Cooperation in Cleaner Technologies and Renewable Energies

This fund covered interpretation costs required for the Second Preparatory Meeting for the Ministerial Meeting on Science and Technology, held at OAS headquarters in Washington, D.C., on September 21 and 22, 2004. The preparatory meeting facilitated discussion among the COMCYT delegates with regard to preparation of the draft Declaration and Plan of Action of Lima, proposals for hemispheric cooperation, and parallel activities presented at the Ministerial Meeting on Science and Technology.

Task 2.5 Gender and Science and Technology

This fund partially financed the participation of a COMCYT delegate in the Second Preparatory Meeting for the Ministerial on Science and Technology, held in Washington, D.C., on September 21 and 22, 2004.

ADJUSTMENTS (credited to the account during the period)$2,660.86

For this quarter, several adjustments related to travel expenses and miscellaneous for the hemispheric meetings coordinated by the Division of Science and Technology of the OEST, within the preparatory process for the Ministerial Meeting on Science and Technology, held in Lima, Peru, on November 11 and 12, 2004, were made to the account, in the amount of $2,660.86.

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ANNEX II

QUARTERLY REPORT TO THE PERMANENT COUNCIL ON ACTIVITIES OF

THE OFFICE OF TRADE, GROWTH, AND COMPETITIVENESS BETWEEN

OCTOBER 1 AND DECEMBER 31, 2004

To this end, the Office of Trade, Growth, and Competitiveness is pleased to provide the Permanent Council with the following information:

Beginning Balance as of March 2003:$855,000

Amounts Spent and Already Reported in Prior

Periods: through September 30, 2004(599,969)

Interest Earned and reported thru September 30, 200417,271

Balance as of September 30, 2004:272,302

Interest Earned period September 2004 /December 2004[11]/:1,183

Balance as of October 1, 2004273,485

Expenditures for October 1 through December 31, 2004:

A.- Support to countries in the preparation

of their TradeCapacityBuilding Strategies $ 9,919

B.- Implementation of Trade Capacity

Building Strategies

1.- TCB modules and activities$ 19,381

2.- Train the Trainers Program- 0 -

3.- Awareness and Educationactivities$ 11,820

C.- Dissemination of Trade Related Information andTransparency

1.- Enhancing transparency and facilitation

access to Trade Related information$ 4,500

2.- Support to the FTAA negotiations:

Secured Document Dissemination Services$ 24,000

D.- Support to the FTAA Administrative

Secretariat$ -0- .

Total expenses accounted October/December[12]/ 2004 $ (69,620)

Ending Balance as of December 31, 2004:$ 203,865 [13]/

Specific Activities undertaken and corresponding cost

A. Support to countries in the preparation of their Trade Capacity Building Strategies

TOTAL: $9,919.10

Description / Expense
Payment to Consultants / $5,799
Travel, per diem - 2 meetings Trade Capacity Building Group Andean-US FTA negotiations / $2,925.60
Travel, per diem - CAFTA TCB Committee meeting [14]/ / $1,194.50
TOTAL / $9,919.10

Results:

A consultant was hired to work on the development of project profiles related to various general needs identified in the Trade Capacity Building Strategies of the Caribbean countries and on tasks related to the execution of activities in the Caribbean as part of Phase II of the trade capacity building project financed by CIDA.

In addition, staff from the Office of Trade, Growth and Competitiveness participated in meetings of the Trade Capacity Building Group convened in the context of the Andean-United States FTA negotiations (Guayaquil, Ecuador, October 27-29 and Tucson, Arizona, November 30-December 2, 2004), to discuss their trade capacity-related needs in the areas of: participation in the negotiations, implementation of the agreements and development of internal agendas of productivity and competitiveness.

B. Implementation of TradeCapacityBuilding Strategies TOTAL: $31,231

1. TCB MODULES AND ACTIVITIES -- Cost: $19,381

Description / Expense
1.1 Travel, per diem– Workshop “Sharing the CAFTA Negotiating Experience” / $10,000
1.2 Travel, per diem and other expenses – Intensive Course on Investment Agreements / $5,324.57
1.3 Travel, per diem – 3 workshops for Andean SMEs / $4,197.48
1.4. Other / ($140.71)
TOTAL / $19,381.34

Results:

1.1. Seminar: Sharing the CAFTA Negotiating Experience. Montego Bay, Jamaica. December 13-14, 2004

The seminar, organized by the IDB-ECLAC-OAS Tripartite Committee, provided trade officials from CARICOM countries with an opportunity to meet with Central American CAFTA negotiators with the purpose of deepening their understanding of the most comprehensive and complex free trade agreement negotiated recently with the participation of small economies similar to theirs. Funds were provided to finance the participation of representatives from the OECS countries.