Establishment of 2014Algeria's Joint National Consulting Vision with 2030 IOs Chapter 1

Creating Rural Innovative Strategy for Sustainable Rural Development in

1. Vision 2030 and Indicator Analysis 2. Algeria and the Global Economy 3. Current Issues Facing Algeria’s Economy 4.Vision Scenarios 5. Conclusions ? List of Abbreviations

Abbreviation Full Description Departamento de Extensión Agrícola Ganadero (Paraguay) DEAG (Department of and Extension) DEAg Directorate of Agricultural Extension (Paraguay)

List of Abbreviations Dirección de Investigación y Extensión Agropecuaria y Forestal (Paraguay) DIEAF (Directorate of Research and Extension of Agriculture, Fisheries and Forestry)

DIGEAF General Directorate of Administration and Finances (Paraguay) DIGELAB General Directorate of Laboratories (Paraguay) General Directorate of Quality and Safety of Products of Animal DIGECIPOA Origin (Paraguay) DIGESETEC General Directorate of Technical Services (Paraguay) Presidency, General Directorate of Animal Health, Identity and DIGESIT Traceability (Paraguay) Dirección de Investigación y Producción Animal (Paraguay) DIPA List of Abbreviations (Directorate of Livestock Research and Production) DW Date Warehouse Abbreviation Full Description EDI Electronic Data Interchange AgriX Agricultural Integrated Information eXcellent System (Korea) EGDI E-Government Development Index ALAT Local Agencies Technical Assistance (Paraguay) FIA Farmland Improvement Association AIIS Automated Import Information System FTA Free Trade Agreements APC Agricultural Processing Complex GAP Good Agricultural Practice ASTI Agricultural Science and Technology Indicators GATT General Agreement on Tariffs and Trade BCSC Building a Country with Safe and Competitive Foods GCI The Global Competitiveness Index BNF Banco Nacional de Fomento (Paraguay) GDP Gross Domestic Product BPR Business Process Reengineering GHP Good Hygiene Practices BSE Bovine Spongiform Encephalopathy GITR Global Information Technology Report BQMS Border Quarantine Management System GMO Genetically Modified Organism CCP Critical Control Points HACCP Hazard Analysis Critical Control Point CD Community Development HKNU Hankyong National University Centro de Dèsarrollo Agropecuario (Paraguay) CDA Direccion de Investigacion Agricola (Paraguay) (Agricultural Development Centre) IAD (Directorate of Agricultural Research) COTA Official Certified of Animal Transit Instituto Agronomico Nacional (Paraguay) IAN CPI Corruption Perception Index (National Agronomic Institute) CSA Animal Health Commissions ICF International Competitiveness Forum DAC Development Assistance Committee ICT Information and Communication Technologies

024•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•025 List of Abbreviations List of Abbreviations

Abbreviation Full Description Abbreviation Full Description IDB Inter-American Development Bank NACF National Agricultural Cooperative Federation IICA Inter-American Institute for Cooperation on Agriculture NAQS National Agricultural Products Quality Management Service Instituto Nacional de Alimentación y Nutrición (Paraguay)(National INAN NGOs Non-Government Organizations Institute of Alimentation and Nutrition) OIE Office of International Epizootics INCOOP Instituto Nacional de Cooperativismo (Paraguay) PAHIS Paraguay Animal Health Information System INDERT Instituto Nacional de Desarrollo Rural y de la Tierra (Paraguay) PANAFTOSA Pan American Center for FMD INFONA Instituto Forestal Nacional (Paraguay) PDA Personal Digital Assistant IPPC International Plant Protection Convention PKI Public Key Infrastructure IPTA Paraguayan Institute of Agricultural Technology POS Point of Sales IRRI International Research Institute PQIS Plant Quarantine Integration System ISO International Organization for Standardization PrP Pre-requisite Program ISP Internet Service Providers, Information Strategy Plan QIA Animal and Plant Quarantine Agency (Korea) IT Information Technologies R&D Research and Development ITU International Telecommunication Union RDA Rural Development Administration (Korea) JICA International Cooperation Agency RPC Rice Processing Complex KAHIS Korea Animal Health Integrated System RR.HH Recursos Humanos KAQIS Korea Animal Quarantine Information System Servicio de Extensión Agrícola Ganadero (Paraguay) SEAG KOICA Korea International Cooperation Agency (Service of Agricultural and Livestock Extension) KOPIA Korea Project on International Agriculture SEAM Secretaría del Ambiente (Paraguay) KREI Korea Rural Economic Institute SENACSA National Service for Animal Health and Quality (Paraguay) KSP Knowledge Sharing Program SENAVE National Service of Seed Quality and Health (Paraguay) Integrated Management System for Agricultural and Rural KTF Korea Telecom Freetel SIGEST Development (Paraguay) MAF Ministry of Agriculture and Fishery (Korea) SIGOR Information System Management MAFRA Ministry of Agriculture, Food and Rural Affairs (Korea) SINAESA National Animal Health Emergency (Paraguay) MAG Ministry of Agriculture and Livestock (Paraguay) SME Small and Medium-sized Enterprise MDB Multilateral Development Bank SPF Specific Pathogen Free MECIP Modelo Estándar de Control Interno del Paraguay SSOP Standards Sanitation Operating Procedures MERCOSUR Common Market of the South SPS Sanitary and Phytosanitary Measures MFDS Ministry of Food and Drug Safety (Korea) Servicio Técnico Interamericano de Cooperación Agrícola MHW Ministry of Health and Welfare (Korea) STICA (Paraguay) (Inter-American Technology Service of Agricultural Cooperation) MOF Ministry of Oceans and Fisheries (Korea) TMR Total Mixed Ration MoSF Ministry of Strategy and Finance (Korea) TWGM Thematic Working Group Meeting

026•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•027 List of Abbreviations

Abbreviation Full Description USDA Department of Agriculture WB World Bank WEF World Economic Forum Summary WIPO World Intellectual Property Organization WTO World Trade Organization

Agriculture in Paraguay is very important. It accounts for about 23% of the total GDP as of 2013, including the livestock sector, and employs 23.8% of the total workforce as of 2011. The country has developed agriculture and livestock farming based on vast and fertile land with rich water and forest resources. Nevertheless, the agricultural economy has been vulnerable to external shocks, including climate change, which affect crop production and international price fluctuations of agricultural commodities.

The Paraguay’s livestock industry focuses on beef. The nation was ranked 11th in the beef export value and 8th in the beef export volume in 2011. However, there were economic losses in the beef industry due to the foot-and-mouth disease (FMD) outbreaks in 2011 and 2012. But as the country recently recovered the FMD-free with vaccination status, exports have been increasing.

Recently, the government established the “Agricultural Strategic Framework, Basic Guidelines 2014/2018” as its agricultural development strategy. This strategy aims to contribute to enhancing quality of life through agricultural development. The ultimate goal is poverty eradication by improving agricultural productivity and competitiveness for sustainable development. To achieve this objective, the government selected six key tasks: 1) strengthening agricultural competitiveness; 2) developing family farms and improving food security; 3) providing environmental services and sustainable forest development; 4) promoting the livestock industry; 5) managing climate change-related risks; and 6) creating employment by vitalizing agricultural enterprises for social integration.

028•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•029 Among the six key tasks, the KSP team reviewed the strategies to strengthen to provide the basis for the GAP system through facility improvement, consulting, agricultural competitiveness and to develop the livestock industry, which are and publicity activities. Expansion of GAP becomes one of the major government closely related to this study. Paraguay’s competitiveness was ranked 119th among projects. Building a Country with Safe and Competitive Foods (BCSC) initiative 148 member countries according to the Global Competitiveness Report, GCI (WEF, indicates that the policies have been advanced with the purpose of expanding the 2013) in 2013. The GCI especially pointed out the inefficient operation of national GAP application to agro-livestock products. organizations as an obstacle in strengthening the country’s competitiveness. The GCI analyzed the reasons as follows: the government policies’ inconsistency; the Traceability systems in Korea are divided into those for livestock products and organizations’ lack of sharing of the national development vision; the lack of those for agricultural products. The traceability system for livestock products has integrated management of related agencies; weak management of organizations; been introduced to record and manage the information ranging from the birth and insufficient development of human resources. Therefore, Paraguay’s of cows (pigs) to the process of breeding, butchering, processing, and selling. government seeks to set conditions for specialized agribusiness development Information including moving routes of livestock products due to transactions, to integrate competitive markets by nurturing agricultural human resources, country of origin of livestock products, results of grade and hygiene test, species of using resources in a sustainable way, and developing technologies. In this sense, cows (pigs), breeders, and slaughterhouses is provided to producers and consumers. the government tries to build an effective technology dissemination system by strengthening cooperative relations with related agencies at home and abroad for Korea’s agricultural technology development, extension and dissemination system technology development. The government especially aims to establish the system has transformed its organizations and key functions in order to adapt to the role and to disseminate proper technologies to producers by strengthening information function that the changing times require the agriculture industry and rural areas to sharing with IPTA (agricultural technology development) and DEAg (a technology perform. Before the 1970s, Korea suffered from persistent food shortages after the dissemination agency). In addition, the government will actively strengthen Korean War and had to depend on food aid. The 1970s were a time when the nation integrated information management by building the agricultural information achieved a sustainable self-sufficiency in rice through the Green Revolution. And system; modernize the existing technology system; establish clusters concentrated Saemaul Undong, a nationwide local development campaign, was adopted as a rural on the agricultural supply chain; and use ICT for infrastructure and market development strategy. The 1980s saw the so-called White Revolution which caused management. Therefore, this study focuses on the integrated management system development and dissemination of various agricultural technologies to increase of SIGEST and food, animal and plant safety and health. In addition, this study production of economic crops, other than rice. In the 1990s, the nation began to seeks for an effective way for technology transfer from IPTA to DEAg to the final join the international negotiation process for the market opening of agricultural producers based on best practices of rural areas in Korea to enhance agricultural products, and efforts to enhance multi-functionality of the agriculture and rural productivity and competitiveness. communities were made to overcome this difficult situation. To this end, technology development and dissemination in new fields like environment-friendly farming The increase in international trade due to globalization and expansion of free emerged as a main project. trade led to a rapid increase in the exchange of human labor and goods. In keeping with the trend, Korea’s quarantine system achieved scientific-based standardization Based on an analysis of the current situations of the related sectors in Paraguay as of animal/livestock products quarantine, and improved efficiency of the relevant well as a comparative analysis between the two countries, policy recommendations processes and the provision of high-quality public services while producing various on each area are proposed. Regarding food and animal safety and health, statistical data. strengthening the border quarantine and vitalization of the HACCP system are recommended to obtain the status of FMD-free country without vaccination in the In Korea, HACCP was introduced in 1995 and has been operated by the Ministry near future. In addition, recommendations on the sector emphasize the roles of local of Health and Welfare (MHW) for food and the Ministry of Agriculture, Food governments along with the importance of professional manpower, establishment and Rural Affairs (MAFRA) for livestock products, respectively, and has become of a preliminary safety management system, and a system for responding to SPS compulsory to be applied since 2005. The MAFRA enacted regulations on the scope measures. of foreign substances subjected to report and inspection and process to enable that an operator who receives complaints from consumers is bound to report the regarding matter to administrative agencies. The Ministry has been putting efforts

030•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•031 For agricultural technology development and extension, major problematic issues are raised, such as institutional weaknesses including budgets and absence of channels for efficient connection between agricultural R&D and rural extension service. Regarding the policy recommendations on the sector, an increase in budget for R&D and extension, investment in basic research, efficient measures for technology dissemination, and comprehensive extension system are proposed. Ⅰ Furthermore, an integrated management system for SIGEST is proposed utilizing ICT. Since Paraguay does not have efficient information sharing system supported by the government, SIGEST and related institutions have a poor communication Project Overview framework with other institutions and rely on face to face meeting, e-mail or phone calls, etc. In particular, the establishment and operation of an integrated information system among SIGEST of the Paraguay’s Agricultural Ministry and other related institutions will accelerate the sustainable growth of agriculture. As a part of the recommendation, 10 stages for the establishment of the system are proposed including a data center, an emergency response team and system, an integrated intranet, and a digitized signature system.

1. Project Background and Objectives

1.1. Background

The Inter-American Development Bank (IDB) and the Ministry of Strategy and Finance of Korea (MoSF) had signed the Memorandum of Understanding on the KSP, known as a Knowledge Sharing Program, in 2011; and collaborated to design and undertake the KSP project for Paraguay in 2014. For implementing the KSP project, the Export-Import Bank of Korea (Korea Eximbank), a government agency, selected the Korea Rural Economic Institute (KREI) and Hankyong National University consortium as the KSP consultants.

The agricultural sector is very important in Paraguay because the country traditionally has shown a high dependence on agriculture. In 2013, it accounted for approximately 23% of the total GDP including the livestock sector (5%); and the farming population took up 23.8% of the total workforce. In addition, the rural population made up 37% of the total population, according to the FAO statistics. The major agricultural products are , corn and beef; and those products, bovine product, particularly, take up a dominant position in export market (FAO, 2014).

This agriculture-dependent economic structure is vulnerable to external shocks such as the fluctuations of international commodity prices and climate factors

032•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•033 including drought, typhoon and other weather anomalies. In case of Paraguay, the big picture of the information sharing system. Furthermore, to figure out the moreover, approximately 45% of the rural population lives below the poverty line technical, operative and even political aspects of Integrated Management System for (Agricultural Strategic Framework, Basic Guideline, 2014/2018, 2013). Therefore, Agricultural and Rural Development (SIGEST) and the institutional framework of the development in agriculture sector has been considered significantly to achieve animal and plant safety and health related institutions is also important to establish economic growth and sustainable development in rural areas; and the Government a strong and cooperative partnership among those institutions. of Paraguay has focused on agriculture and rural development. To summarize the current status of food safety and animal and plants health In this regard, the MoSF and IDB agreed to implement a joint consulting and to diagnose the information sharing system among the institutions involved in project to develop Paraguayan agriculture with the topic, which is “Creating Rural the sector, such as the National Service for Animal Health and Quality (SENACSA), Innovative Strategy for Sustainable Rural Development in Paraguay.” the National Service of Seed Quality and Health (SENAVE), and the Directorate of Agricultural Extension (DEAg), the KSP consultant team visited Paraguay and implemented the field study from August 18th to 27th, 2014. During this visit, the 1.2. Objective team conducted a research to discover the current status and the demand of the related institutions. Primary surveys and interviews, such as visiting the related The project is designed to share the knowledge of the institutional framework government organizations and research institutions and having a meeting with high- for governmental institutions involved in the agricultural and livestock industries, ranking officials, were also implemented to collect information. income growth of small farmers, and the development of agricultural industry and rural areas. It aims to contribute to enhancing productivity and alleviating poverty by designing strategies for agricultural and rural development based on the need of the 2.1.2. Design for Strengthening Food, Animal and Plant Safety and Federal Government of Paraguay (GoP). Health

The livestock industry takes up a large part of the national economy in Paraguay, 1.3. Scope along with the crop industry. The crop and livestock industries are deeply related to each other in that farmers raise livestock during the fallow period and that they The scope of this joint consulting project includes (1) summary and diagnostic can be less affected by global crop prices by using perennial pastures when raising studies of institutions related to animal and plant safety and ; livestock. (2) design for strengthening agricultural research focusing on IPTA; (3) case studies on best practices of Korea in the sector and the institution conducting comparative Paraguay is one of the largest exporting countries, and has the status of analysis with Paraguay; and (4) designing strategies to secure food safety and a country free of foot-and-mouth disease with vaccination. Over 13 million strengthen animal and plant health based on the institutional framework of related throughout the nation are required to be vaccinated twice a year, and about 2.5 governmental institutions considering the possibility of incorporating Information million newborn calves are also required to be vaccinated to prevent foot-and- and Communication Technology (ICT) into the sector. mouth disease. The country exports 170,086 tons of beef (as of 2010), and 76% of the total volume is exported to and Russia (OIE, 2013).

2. Project Activities and Expected Results Animal disease and health control of livestock products are deeply related and mutually applicable. When any problems are detected in the distribution process, 2.1. Project Activities relevant products should be disposed and any risk factors should be eliminated by tracking along the route of distribution. However, Paraguay lacks the systematic health control in the overall livestock industry. 2.1.1. Summary and Diagnostic Study of the Animal and Plant Safety and Health related Institutions in Paraguay The GoP will see social and economic loss due to growing causes that threaten food safety, including a growing population moving from rural areas to urban cities, It is necessary to identify the functions, roles, structure and other distinctions of environmental changes in food and live animal business through international each institution in the animal and plant safety and health-related area to understand

034•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•035 trade, changes in eating habits, and the influx of pathogenic bacteria and antibiotic Korea has established policies to apply ICT to each stage of the process from resistant bacteria. production to consumption of agricultural products. For instance, agricultural technology service centers of each city, district and province provide business activation Paraguay recognizes the domestic and ISO standards for technical programs to enhance capacity of cyber marketing and e-commerce. Korea’s experiences standardization, and the National Institute of Technology and Standardization of applying ICT to controlled agriculture will serve as exemplary cases. (Instituto Nacional de Tecnologia y Normalizacion) controls every task related to marks-of-origin and technical standardization. All domestic and foreign products 2.1.3. Design for Strengthening Agricultural Research should present marks-of-origin and other essential information including contents, ingredients, weight, and expiration date. Although the food safety management Paraguayan Institute of Agricultural Technology (IPTA) has been leading agricultural framework is controlled by the INAN under the Ministry of Health and Social research conducting various areas of research. However, the outcomes and results from Welfare, it lacks integrated management throughout the entire food chain from the research conducted by IPTA have not been transferred to the practical field by DEAg. production to distribution. Therefore, the bottlenecks and an efficient way should be found by investigating the organizational structure, human resource management and administrative capacity, In Korea, the Ministry of Food and Drug Safety takes charge of a unified food training and educational programs, and other necessary areas. safety management system, conducting systematic supervision over the entire food chain from production to distribution, processing and consumption. Based on these The areas of research programs of IPTA include production technologies for experiences, the current status of food safety management in Paraguay will be crops, and , tropical commodities, livestock, and agribusiness, etc. An identified to examine problems and analyze laws and regulations of food safety. increase in profitability of agricultural products depends primarily on technological Ultimately, mid- and long-term solutions will be provided. innovations. Most of the production systems dedicated to agricultural commodities in Paraguay are characterized by small-scale producers, low level of technology Moreover, the ICT of Paraguay has fallen behind that of advanced countries, and adaptation, reflecting low yields and low product quality to compete in both has hardly shown progress, which means that the level of information technology domestic and international markets. In that sense, technological innovation led by among farmers and agricultural officials is relatively low. The networks in Paraguay IPTA should play the most important role in the agricultural and livestock sectors in consist of the national networks for the administrative and educational purposes Paraguay. and the private networks provided by internet service providers (ISP). Although diversified agricultural technologies have been known to be developed by IPTA and In addition, technology transfer from IPTA to DEAg to local producers should IICA in Paraguay, the dissemination of the technologies has hardly been carried out be systematically viable and practical. However, there is no sign of substantial to date. Therefore, bottlenecks of information transfer between the institutions improvement of the process of technology transfer among the organizations. Thus, of the SIGEST should be identified. Based on the identification, an efficient way of the problematic bottlenecks and shortcomings of the issue should be detected, and information transfer between the institutions should be proposed. the solutions should be proposed.

In addition, results and outcomes from researches done by IPTA should be To strengthen agricultural research focusing on a particular institute, IPTA, an transferred to DEAg for productivity and prevention from unnecessary social costs organizational structure and the current capacity-building programs such as human that might be occurred by neglecting the control of animal and plants diseases resource management and training and educational programs should be considered. and outbreaks. Under the circumstances, a better way to improve knowledge transfer from IPTA to DEAg will be recommended. Moreover, it is necessary to 2.1.4. Case Study on the Best Practices of Korea and Comparative develop various technologies applicable to many different conditions to enhance Analysis with Paraguay productivity of the agricultural industry, and to systematically use ICT to disseminate technologies considering the current status of agriculture in the nation. In particular, Since 1998, the Ministry of Agriculture, Food and Rural Affairs in Korea has ICT application strategies should be designed to establish an efficient management managed the food and livestock sectors from production to processing and framework of the SIGEST. distribution, while the Ministry of Food and Drug Safety has taken charge of food safety affairs.

036•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•037 For instance, the Korean government applies the Hazard Analysis Critical Control Development partners and stakeholders were invited to the dissemination seminar. Point (HACCP) to the stage of livestock rearing and animal feed manufacturing, and runs the examination system in the stage of butchery and the tracking system • Public sector: Officials of government departments, staff of national research of production records in the stage of distribution and sale in the livestock industry. institutes and organizations, officials of local governments, etc. However, in terms of food safety and health, the Ministry of Food and Drug Safety has applied different regulations to control the safety of the food products in a • Private sector: Central and local NGOs, private enterprises, etc. different examination and control system. Therefore, the team will need to analyze the current situation and regulations of Paraguay before sharing Korea’s experiences • Development partners: International organizations, heads of local offices of of the sector. Unfortunately, the expected analysis on the current status of food donor agencies, etc. and plant safety sector cannot be conducted in an appropriate way since the given information and data by related institutions have not been enough for the study. Nonetheless, best practices of Korea can be introduced along with a comparative analysis with Paraguay for each subject involved in the KSP project. 3. Project Implementation Plan

2.1.5. Capacity-Building Workshop 3.1. Project Strategies

th th A capacity-building workshop was held from the 28 of October to the 4 3.1.1. Management of Project Implementation of November, 2014 in Korea. The workshop included intensive programs about the integrated management system of agriculture, food, animal and plant safety • Project manager: Allocate task, identify the project results, and manage the and health, and the process of making strategies for ICT incorporation and rural schedule development. The participants of the workshop included six working-level officials from the MAG and related organizations such as SENACSA, SENAVE, INAN, IPTA, and • Field research: Conduct field research in Paraguay, and establish and make the DEAg. The program was aimed to reinforce their capacity to design and implement most of the consulting network of local experts agricultural policies. • Designating local experts: Support conducting interviews with candidates, In addition, the workshop consisted of effective modules and curriculum to collect information, etc. strengthen capacity of participants, combining theory lectures and field trips. The lecturers included researchers and professors (with Ph.D.) of KREI and HKNU, and • Forming an advisory committee working-level officials from related institutions including the Animal and Plant - An advisory committee will consist of domestic experts in related fields and Quarantine Agency, the Ministry of Food and Drug Safety, and the Korea Institute staffs from IDB, FAO, KOICA, and KOPIA for Health and Social Affairs. - Host consultation meetings

2.1.6. Dissemination Seminar • Conducting review sessions - 1st stage: Research on the current status The KSP team proposes policy recommendations by reflecting opinions of - 2nd stage: Develop strategies and action plans policymakers and experts on the focus areas based on Korea’s experiences and research findings. The results of the project were delivered to high-level government ※ When the 1st stage is completed, the interim report session will be conducted officials as well as working level officials through extensive discussions in a with a presentation on the current status and research findings. dissemination seminar which was held on December 3rd in Asuncion, Paraguay. The ※ When the 2nd stage and entire tasks are completed, the final report session and final report with policy recommendations reflects opinions of policymakers by fully a dissemination seminar will be held. explaining the project outcome to be applied to future policies in Paraguay.

038•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•039

Submission of Reports 3.2. Working Schedule June → July → September

Submit a project Conduct the 2nd review 2014 Stage Description implementation plan and → The 1st review meeting → meeting and the Interim AUG SEP OCT NOV DEC an inception report Workshop session Inception meeting and ↓ literature review December ← November ← October Field research (demand, Conduct the Dissemination Writing the final current status) Seminar, submit the report(draft) and the 4th Submit an interim report ← ← final report and project review meetings to revise and the 3rd review meeting Conducting the 1st completion report the draft review meeting and analyzing the status of institutions • Conduct the Interim Workshop Conducting research st nd - Complement the research result with feedback from the 1 and 2 review on best practices and a meetings, conduct the interim report session, and submit an interim report comparative analysis by reflecting feedback from discussions at the interim report session Capacity building - Hold the interim report session during capacity building workshops to reflect workshops (interim report session) opinions of both domestic experts and Paraguayan policymakers The 2nd review session, Implemen- an Interim Workshop • Conduct the Final Report Session tation - Complete and submit a final report based on feedback from the review meetings and the Interim Workshop Designing for - Hold a Dissemination Seminar on December 3rd, 2014 in Asuncion, Paraguay. strengthening the related sectors

Designing for strengthening

The System of Project Management the integrated management The 3rd review session, a draft of the final report The final report(draft), 4th review session Holding a Dissemination Seminar and submitting the final report Revising, submitting Completion and sharing the final report .

040•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•041 Paraguay is a constitutional republic ruled by democracy after a military dictatorship that had seized power during 1954-1989. In August 2013, Horacio Carters, the eighth president, took the office. Paraguay ranked 150th among 177 nations according to the evaluation result of the corruption perception index (CPI) in 2013, and corruption has arisen as a social problem, so the government is setting Ⅱ corruption eradication as state affairs’ first priority (Transparency International, 2013).

General Information The nation’s political structure is a presidential system, and its president with a single five-year term is elected through a direct election. The legislature has a bicameral system, and the seats are distributed according to the percentage of the votes won by each political party. The term of the two Houses’ members is five years (KOTRA, 2014).

As for Paraguay’s economic structure, its export to MERCOSUR members, including , and , accounts for 57% as of 2012, indicating high dependency on neighboring countries, with which the nation has maintained close political and economic ties. Due to President Fernando Lugo’s impeachment in 2012, Paraguay’s qualification for a MERCOSUR member was suspended, but 1. Introduction the country joined MERCOSUR in August 2013 again after the election of a new president. The Republic of Paraguay is in ’s southern center and is a landlocked country bordering Brazil, Argentina and . Paraguay has high Korea has maintained various political and economic relationships with Paraguay potential of agricultural development with rich hydroelectric resources and after the establishment of diplomatic relation in 1962, and has continuously electricity, fertile land and the proper climatic environment. The country’s total land expanded grant-type aid to the nation from 2006. Korea’s grant to Paraguay has area is 397,000㎢, about twice the Korean Peninsula, and the population is estimated grown nearly six-fold from 1.92 million dollars in 2006 to 11.63 million dollars in at 6.8 million as of 2013 (Korea Eximbank, 2013; FAO, 2014). 2010, and the cooperation areas have been focused on health and medical services, education, ICT master plans and transportation areas. The grant can be divided into cooperation projects, material support, visiting programs in Korea, dispatch of

Paraguay Map experts and volunteer groups, NGO support and emergency aid (Korean Interagency, 2013).

1.1. Economy

Paraguay’s economic growth rate has averaged 5% annually for the past five years with a high GDP growth rate of 13.6% in 2013 (Embassy of the Republic of Korea in Paraguay, 2013). The government seeks for a continual economic growth based on Latin America and the ’s stable economic growth, and is optimistic about its growth with the trend of expanding agricultural production and export centered on beef that stagnated for a while.

Source: http://geology.com/world/paraguay-satellite-image.shtml (Accessed on July 14, 2014)

042•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•043 industrial workforce and the diversification of manufacturing industry as national

Paraguay’s Economic Status tasks to achieve sustainable economic growth. Classification Details GDP/Per capita GDP • 26.8 billion dollars (2013)/4,338 dollars (2013) Therefore, Paraguay tries to improve agricultural products (mainly and beef) as well as its export-led economic structure through industrialization •Services: 45.1%; agriculture: 18.1%; livestock: 5%; others: 31.6% (2013) including the manufacturing industry, and to reduce poverty by improving the Industrial structure •Major exports: soybean, , , meat, skin, beef, corn backward infrastructure and technologies and agricultural export policies centered •Major imports: consumer goods, petroleum products, on only a few multinational companies and landowners with large-scale farms. In electronic devices, transport equipment, the agricultural sector, small-scale farms lost food, economic and land sovereignty, Major natural resources •Lumber, iron ore, manganese, marble, waterpower resources which resulted in a new form of the neglected social class. This might be caused by Economic strength •High potential of waterpower generation the failure of diversifying small farms’ agricultural products and adopting proper •High dependency on neighboring countries, the intensifying mechanization, inefficient public services and the limit of the financial support. Economic weakness income gap among classes and regions

Source: Overseas Economic Research Institute of Korea Eximbank (2013); Embassy of the Republic of Korea in Paraguay, website (http://pry.mofa.go.kr); FAO, 2014. 1.2. Agricultural Situation

Agriculture is important in Paraguay’s economy in that it accounts for about 23% Electric power production is also an important factor in economic growth, of GDP, and employs 23.79% of the total workforce (as of 2011). The country has produced in Itaipu, the world’s largest hydroelectric power plant with the generation developed agriculture and livestock farming based on vast and fertile lands with ability of 12.6 million KW, and has exported to neighboring countries such as rich water and forest resources. Nevertheless, its economic structure is vulnerable to Argentina and Brazil. Nevertheless, Paraguay is one of the countries with the external shocks including climate change affecting crop production and international highest poverty rate and income inequality among Latin America and the Caribbean price fluctuations of agricultural commodities. Since the manufacturing industry countries. Its poverty rate was 19.4% in 2010, up 0.6% from 18.8% in 1997, showing has not fully developed yet, most of consumer durables and capital goods are the deepening rich-poor gap with economic growth. In particular, rural areas’ dependent on imports. Recently, however, the food processing industry including poverty rate is 32.4%, over three times that of urban areas, 10.3%, indicating the meat, beverages and leather products is growing, and the clothing manufacturing serious urban-rural income inequality (Korea Eximbank, 2014). industry is being vitalized with expanding exports.

Paraguay’s economic structure is centered on the service industry (45%), and Paraguay is an agricultural country with a high percentage of the rural and agriculture accounts for about 23% of GDP, and the others, including manufacturing farm population (as of 2013). The farm population accounts for 860,000, 23.79% industry, accounts for 31.6%. Particularly, over 30% of the population engages in of 3.62 million workforce, and the rural population accounts for 37% of the total agriculture, which has been the primary industry in rural areas. As for subcategories population. The agricultural area accounts for about 53% of the nation’s total of GDP contribution, agriculture and livestock farming account for 23.1%, commerce land area, and acreage under cultivation is 39 million hectares, 18.6% of the total and financial business 17.6%, services 16.5%, electricity 11.2%, industry 10.1%, agricultural land (FAO, 2014). communication service 4.5%, the construction industry 3.6%, and others 14% in 2013 (FAO, 2014). The country’s agricultural structure can be divided into family farming, livestock production of beef, and large-scale mechanized farming with foreign capital The country’s degree of market opening is the highest among Latin America investment. About 350,000 households are engaged in family farming, concentrated and the Caribbean, and imports and exports account for 88% of GDP. This is in the central Oriental region. As for livestock production, the number of farm considerably higher than 25% of MERCOSUR members’ average and 53% of households is about 12,000, and the potential livestock land area accounts for 27 other Latin America and the Caribbean countries, showing that Paraguay depends million hectares (natural grassland, eroded and weathered forests account for mainly on inter-continental trade. The government considers securing its efficiency 20-25%), and livestock production technology is relatively developed. The large-scale and transparency, building institutional capability, reducing trade dependency on mechanized farms use advanced agricultural technology in which Brazil’s capital is MERCOSUR members, diversifying export items and markets, and nurturing the often invested. These farms mainly produce soybeans, corn, , and sunflower.

044•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•045 The farms are concentrated in the central Oriental area and near the Parana River of

Exports of Major Agricultural Products of Paraguay (2011) the eastern and southeast areas (Korea Rural Community Corporation, 2013). Classification Contents Exports (unit: 1,000 U.S. dollars) 5 Wheat 203,384
Agricultural Production in Paraguay (2012) 6 Soybean oil 200,000 Classification Contents Production (unit: 1,000 tons) 7 Sesame 46,500 1 Soybean 8,350 8 Beef 35,554 2 Sugar cane 5,450 9 Sunflower oil 22,000 3 Corn 3,079 Source: FAO STAT (faostat.fao.org), 2014. 4 2,560 5 Wheat 1,400 The Paraguay’s livestock industry focuses on beef. The nation was ranked 11th 6 515 in the beef export value and 8th in the beef export volume in 2011. However, there 7 Rice 380 were economic losses in the beef industry due to the foot-and-mouth disease (FMD) 8 Beef 354 outbreaks in 2011 and 2012, but as the country recently recovered the FMD-free 9 245 status with vaccination, exports have been increasing. 10 167 There are 12 large-scale slaughterhouses in Paraguay, and beef cattle are Source: FAO STAT (faostat.fao.org), 2014. slaughtered in 11 facilities to be exported. Annually, about 1.3 million to 1.5 million heads are exported. However, seven slaughterhouses among them are run by Paraguay’s major agricultural products are soybean, sugar cane, corn, cassava, Brazilian capital. wheat and beef. The main crop has been soybean. Paraguay became the world’s sixth soybean producer, producing 8.3 million tons in 2012, and the world’s fourth
Paraguay’s Livestock Products (Meat and By-products) Exports (2008-2012) soybean exporter, selling 5.01 million tons in 2011 (FAO, 2014). Recently, the soybean acreage has continually increased (2.96 million hectares in 2012 and 3 million Total Other Year Beef Skin By-products amount hectares in 2013). Nevertheless, farmers from Brazil, who are called “brasiguayo,” by-products (unit: ton) have dominated the soybean industry (Korea Rural Community Corporation, 2013). As native farmers’ land was incorporated into commercial soybean production area 2008 155,706 28,076 17,122 62,503 263,457 dominated by “brasiguayo,” small farmers’ land ownership was threatened, and 2009 163,231 36,430 19,102 65,059 283,822

thus, the number of poor farmers has increased. As a result, Paraguay’s traditional 2010 170,344 49,502 20,699 92,509 333,054 cultivation methods and seeds have been faded out (Korea Rural Community 2011 142,521 38,141 18,479 67,437 266,578 Corporation, 2013). 2012 165,216 49,903 21,054 88,664 324,837

Source: MAG/SIGEST (2013)

Exports of Major Agricultural Products of Paraguay (2011) Classification Contents Exports (unit: 1,000 U.S. dollars) The country obtained the FMD-free country with vaccination status and 1 Soybean 1,600,000 the Negligible BSE risk status from the World Organization for Animal Health 2 Dressed beef 542,606 (OIE) in 2014. Paraguay runs two beef traceability programs: one is for export to 3 Soybean meal 350,000 Chile and Russia (1,500 farms, 3 million heads), and the other is for export to the 4 Corn 296,537 European Union (EU) (about 40 farms, 300,000 heads) (USDA, 2013). The Livestock ViceMinister’s Office (Viceministerio de Ganaderia) under the Ministry of Agriculture

046•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•047 and Livestock (MAG) is in charge of establishing and executing livestock policies, and tasks: 1) strengthening agricultural competitiveness; 2) developing family farms and the National Livestock Quarantine Agency (SENACSA) is responsible for prevention improving food security; 3) providing environmental services and sustainable forest of epidemics. SENACSA’s main duties are preventing and eradicating animal diseases development; 4) promoting the livestock industry; 5) managing climate change- and managing livestock products’ sanitation and safety. related risks; and 6) creating employment by vitalizing agricultural enterprises for social integration (MAG/SIGEST 2013). 1.3. National and Agricultural Development Strategies

Composition of Paraguay’s National Development Plan Paraguay’s national development strategies consist of public policies for social development (Propuesta de Política Pública para el Desarrollo Social, Paraguay Vision of Paraguay para Todos y Todas 2010-2020, PPDS 2010-2020) by establishing a vision that (2010-2020) emphasizes the alleviation of inequality with a focus on the underprivileged and the Strategies of Economy and improvement of all people’s accessibility to basic and quality of life; Society (2008-2013) economic and social strategies (Plan Estratégico Económico y Social 2008-2013, PEES 4 Axis of Strategies 2008-2013); and strategies by area.

28 Goals of State National development strategies seek the link between national policies and sustainable economic development; pursue the economy’s stabilization based on the establishment of macroeconomic, financial and employment policies for poverty 131 Priority Policies and 45 Cross-Cutting Policies reduction; and the government is willing to implement the national development by strengthening the efficiency for budget allocation and implementation of action 11 Major Programs plans. In addition, the government actively tries to attract donor countries’ support and investment in the national development projects, and focuses on comprehensive Program and Project for Each Organization growth by enhancing the connectivity among inter-governmental agencies and departments. Source: Reorganized from Korea Interagency Report (2013)

Paraguay established major strategies for agricultural and rural development and Among the six key tasks, the KSP team reviewed the strategies to strengthen food security such as the poverty reduction strategy (Estrategía Naciaonal de Lucha agricultural competitiveness and to develop the livestock industry, which are Contra la Pobreza) and the national plan for food security, nutritional improvement, closely related to this study. Paraguay’s competitiveness was ranked 119th among natives Paraguayan economy and farmers’ food sovereignty (Plan Nacional de 148 member countries according to the Global Competitiveness Report, GCI (WEF, Soberanía Alimentaria 2009-2013). The main goals of the poverty reduction strategy 2013) in 2013. The GCI especially pointed out inefficient operation of national are to establish the social safety net (health and medical services, education, organizations as an obstacle in strengthening the country’s competitiveness. The nutrition, home, living environment) for the destitute through conditional cash GCI analyzed the reasons as follows: the government policies’ inconsistency; the support and to support the national plan for food security. The plan focuses on organizations’ lack of sharing of the national development vision; the lack of strengthening education programs, nutrition, rural development, and food security integrated management of related agencies; weak management of organizations; and safety (Korea Interagency, 2013). and insufficient development of human resources. In the meantime, Paraguay’s government seeks to set conditions for specialized agribusiness development Recently, the government established the “Agricultural Strategic Framework, to integrate competitive markets by nurturing agricultural human resources, Basic Guidelines 2014/2018 (Marco Estrategico Agrario Directrices Basicas 2014/2018, using resources in a sustainable way, and developing technologies. In this sense, MEA)” as its agricultural development strategy. This strategy aims to contribute to the government tries to build an effective technology dissemination system by enhancing quality of life through agricultural development. The ultimate goal is strengthening cooperative relations with related agencies at home and abroad for poverty eradication by improving agricultural productivity and competitiveness for technology development. The government especially aims to establish the system sustainable development. To achieve this objective, the government selected six key

048•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•049 to disseminate proper technologies to producers by strengthening information development of agriculture and rural areas. Particularly, it reasonably manages sharing with IPTA (agricultural technology development) and DEAg (a technology technical cooperation and budgets for ODA (Official Development Assistance) dissemination agency). In addition, the government will actively strengthen projects supported by international organizations and donor countries. integrated information management by building an agricultural information system; modernize the existing technology system; establish clusters that concentrate on the SIGEST holds the committee’s general meetings to make decisions on major agricultural supply chain; and use ICT for infrastructure and market management. issues, and its main duty is coordinating for assignment of roles to each organization. Nonetheless, there is an internal need to restructure the organization of related The strategy to develop the livestock industry aims to build a system that can agencies. In addition, internally, different opinions have been told to include them focus on export. The government is interested in accessing the Asian market under the MAG as affiliated organizations for consistent policy implementation. according to its judgment that consumption of livestock products is rapidly Placing the related agencies under MAG’s management is unlikely due to various increasing as India and China’s income increases recently. Also, it aims at vitalizing reasons including the lack of organizational management capacity, manpower and livestock production to meet domestic demand, and exporting livestock products budgets. However, food, animal and plant quarantine and sanitation management that meet the international standard through eco-friendly and sustainable ways. The are directly related to improving the people’s quality of life by increasing exports strategy to develop the livestock industry, as well as the agricultural development and supplying safe food, so the perception that the government’s role should be strategy, uses action plans focusing on technology dissemination by building a strengthened is commonplace. Therefore, the government’s annual administrative cooperative system with technology development organizations at home and plan includes the restructuring of related agencies, and methods to establish abroad. Moreover, this strategy includes establishing a system to produce high interagency cooperation channels are being prepared. quality meat products that satisfy the international standard and to diversify livestock products by building the comprehensive livestock production chain. Paraguay’s representative institutions related to animal and plant quarantine, safety and health are SENAVE (plant) and SENACSA (animal). In addition to SENAVE As the GCI pointed out, however, the government’s goal may not be achieved and SENACSA, IPTA is a research institute for technology development, and due to the inconsistency of animals, plants and food-related organizations’ policy needs close cooperation with DEAg in charge of disseminating technology to the implementation. The reasons are as follows: related agencies’ insufficient operation farmers and producers. Also, INAN in charge of food safety and health maintains capacity; MAG/SIGEST’s weak function of integrated management; the lack of a cooperative relation with SIGEST, although it is under the Ministry of Health and human resources for integrated coordination; and SIGEST’s insignificant tangible Welfare. outcomes so far. Thus, the government is eager to restructure the administration and technology-related agencies for harmonious operation, and is considering a political The KSP team was told that SIGEST held a meeting to discuss effective approach as well (MAG/SIGEST, 2013). implementation of the national development strategy of ODA with the Multilateral Development Bank (MDB), international organizations including FAO, IDB, and the World Bank (WB), KOICA, KOPIA, and the Japan International Cooperation Agency 2. The Institutions of Food, Animal and Plant (JICA). However, when the KSP team visited the related agencies that Paraguay’s Safety and Health in Paraguay government mentioned, they did not attend the meetings, so the meetings seemed to be under contemplation. Nevertheless, the government should maximize the 2.1. Relevant Institutions synergy effect by enhancing the aid harmonization through the strengthened links among internal projects and by avoiding overlapping ODA projects that are being conducted in Paraguay through the formation of the Thematic Working Group 2.1.1. Integrated Management System for Agricultural and Rural Meeting (TWGM), which international organizations are planning to improve the Development (SIGEST) aid harmony with the international community. Accordingly, SIGEST seeks TWGM’s extensive establishment and effective use of loan and grant cooperative projects by SIGEST, a committee under MAG, was established to play a role of coordination strengthening links with the international organizations. for integrated management of related agencies of the agricultural and livestock industries in 1992. SIGEST was founded to implement rural and agricultural policies by sharing mid- and long-term visions with related organizations. It seeks sustainable

050•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•051 SIGEST is expected to identify the related agencies’ programs and projects the quality management unit, and the inter-institutional commission. DIGESIT is an precisely for efficient implementation of the agricultural development strategy and organization in the SENACSA, which supervises and evaluates the entire technical manage them in an integrated way. However, the related agencies have secured and administrative activities related to programmes and projects implemented independent budgets by establishing their own operation plans, so it is hard for by SENACSA. It also coordinates the operative activities of prevention, control or SIGEST to coordinate policies. Therefore, there is a problem that information is not eradication of the diseases as well as the activities related to quarantine of live shared enough to be reflected in the policies. Also, although the final beneficiaries animals and genetic materials. DIGESIT has considered improving the current are producers, each agency’s level of understanding is different, so efficient policy mechanisms for animal identification and tracking system to control the operative implementation is difficult. Thus, it is needed to strengthen SIGEST’s role and activities in situations of animal sanitary emergency and the transit of animals and function and to establish concrete plans for integrated management to effectively products in the entry points and for the internal control at national level. implement Paraguay’s agricultural development strategy. DIGESETEC manages Information System Management (SIGOR III), the registration procedures of commercial firms for products and veterinary products,

Organization of SIGEST registration and inspection of new products, and commercial products for veterinary and animal feeds. It also supervises technical and administrative activities established in the plans and programs of SENACSA. In addition, DIGESETEC monitors epidemiological surveillance, research and analysis of the factors that influence the occurrence and behaviour of disease, and coordinates the implementation of serological sampling in animals. One of the main duties of DIGESETEC is to support the implementation of sanitary education strategies in order to inform and educate the public about animal health, quality and safety of products and by-products of animal origin, and also to coordinate the planning, evaluation, review and monitoring of institutional operating and strategic plans.

DIGECIPOA supervises the technical and administrative activities of SENACSA, specifically related to quality and safety of animal products’ origin. The institution also provides health certificates for animal products and byproducts, and coordinates the national plan of microbiological control and residues of animal products.

Source: Reorganized from the Agricultural Strategic Framework Basic Guideline 2014/2018, MAG/SIGEST, 2013 DIGELAB manages the activities related to laboratory diagnosis of animal diseases, quality control of biological products, veterinary medicines, quality control 2.1.2. National Service for Animal Health and Quality (SENACSA) and safety of animal products and production of biological materials. Its specific duties are to 1) provide materials and animals for laboratory use (mice, guinea pigs, The basic organizational structure of SENACSA is made up by Presidency, General SPF eggs), 2) manage the biosafety laboratory BL3A, 3) manage the performance of Directorate of Animal Health, Identity and Traceability (DIGESIT), General Directorate regional laboratory, and 4) conduct tests for microbiological and bacteriological and of Technical Services (DIGESETEC), General Directorate of Quality and Safety of other analysis of animal and veterinary products. Products of Animal Origin (DIGECIPOA), General Directorate of Laboratories (DIGELAB), General Directorate of Administration and Finances (DIGEAF), and DIGEAF prepares for the draft of annual and multiannual budget of the General Directorate of Cabinet (DIGEGAB). institution in relation to the general directions of each area. It coordinates the development of projects on collection regime of taxes, duties and tariffs that apply The Presidency is responsible for the institution´s regulations, criteria and to the consideration for the services provided. DIGEAF also manages the assets, directions, among other attributions. Supporting bodies are the Secretariat General, mobility. the internal audit and technical administration, the risk assessment group, trustees,

052•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•053 DIGEGAB advises the President to ensure coordination of institutional activities Law No. 2426 of 2004 established the National Service of Quality and Animal and to oversee public relations, ceremonial, protocol and media. It also proposes Health (SENACSA) as an autonomous body, which is directly under the Presidency of and establishes institutional channels of communication on matters within its the Government and has legislative power to issue certain legal acts (Resolutions). competence, and handles press and media about the issues related to the institution. According to that law, SENACSA was established in July 2004 as an institution under Regarding the matter, DIGEGAB establishes a communication plan, coordinating the MAG, but is operated independently. with other agencies’ activities, such as governmental and non-governmental institutions, national and international organizations, and other development For its independent operation, SENACSA has been creating its own budgets. programs and joint activities. In the case of 2014, it operates a budget of 158 billion Guarani (about 32 million US dollars). 15% of the budget is received from the Ministry of Finance, and 85% are from its own revenues. The main source of revenues is the export tax as 0.25%

The Structure of SENACSA of the FOB price. SENACSA has professionals, technicians and administrative staff distributed throughout the country. In 2014, it employs 1,629 people, of which 311 are veterinary professionals, 369 are professionals of sanitation desks, 246 are architects or lawyers, 703 are administrative assistants.

In the area of quarantine and border security, SENACSA maintains a program in relation to the prevention of FMD, even with the establishment and maintenance of areas of high epidemiological surveillance in their border areas of highest risk. To control imports of animals and animal products, SENACSA has 14 check points located on trunk routes on the borderline. The location of the entry points does not necessarily coincide with roads that were presented on the map of major routes.

For the control and eradication of FMD, SENACSA has utilized international programs to collaborate with neighbouring countries and trading partners to establish, implement and audit quarantine and border security that systematically cover all risks identified.

SENACSA has a business center and headquarter in the capital, Asuncion. There are 17 regional branches (Departments)—3 in area and 14 in Oriental area- Source: Report on the Epidemiological Situation of FMD in Paraguay (2013) -that are classified into two types. Under the branch, the total number of regional offices (Districts) is 226. The need to integrate into a single agency’s activities related to animal health and public order to cover the entire production chain and provide greater coverage, 2.1.3. National Service of Seed Quality and Health (SENAVE) efficiency and reliability to the services provided by the health institution, led to the promulgation on 28 July 2004 of Law No. 2426. National Service for Animal Health In 2004, SENAVE is formed from the merger of the Plant Protection Directorate, and Quality (SENACSA), an autonomous and independent entity that unifies the the Directorate of Seed, the Audit Bureau of Cotton and Snuff, and the Department official livestock service of Paraguay integrating the national animal health service, of Internal and External Marketing of Plant Products and By-products based on Act was created by Law No. 99/91 and the Directorates of Animal Protection (DPP) No. 2459. The implementing body of international conventions and agreements is and Control Standards Food of Animal Origin (DINOCOA) the Deputy Minister of related to the quality and plant health, seeds and plant varieties, and plant species. Livestock were created by Law 81/92. The major function of SENAVE is to support the agricultural production policy of Paraguay so as to contribute to competitiveness, sustainability, and equity of

054•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•055 the agricultural sector, to improve the status of productive resources regarding Major functions related to food safety are 1) formulating the government’s their conditions of quality, plant health, genetic purity, and prevention of damages sanitation policy and corresponding plans on food and nutrition, 2) promoting caused to humans, animals, plants, and the environment, and to ensure the safety the updating of standards, institutional structures and organizations, industry of humans, animals, and plants. SENAVE contributes to the agricultural development and national institutions, public and private entities, and organizations related to of the country through the protection, maintenance, and improvement of plant food and nutrition, 3) implementing a surveillance system in coordination with condition and quality of plant products, and prevents the plant pests from other the offices of the ministerial sector which are responsible for the disease control, countries. the prevention of food, and nutritional conditions, 4) planning and developing programs and activities related to control and protection of food safety, and SENAVE is recognized as an institution which has its technical capacity that 5) updating bromatological and sanitary conditions related to the production, enables excellent services and contributes to the socioeconomic development of the manufacture, transportation, storage, sales and consumption standards. country with the efficient organizational structure and advanced technologies. The main tasks include advising the Ministry of Agriculture in monitoring plant health INAN’s major initiatives include the Food and Nutrition Integral Program and quality along with production of seeds, to develop and modify the technical- (Programa Alimentario Nutricional Integral, PANI) and the Control of Micronutrient operative structure to fulfil its objectives in a better manner. (Control de Micronutrientes). The PANI is designed to support children, pregnant women and the underprivileged to take balanced nutrition, and the Control of SENAVE develops, coordinates and implements plans, programs, and projects that Micronutrient aims to measure and monitor micronutrients of crops. help to improve the quality of plants and products. In addition, SENAVE monitors the pesticide residue of imported agricultural products and set tolerance limits for INAN performs complex functions such as survey and inspection of hazardous antibiotics residue, etc. substances and quarantine. After receiving samples from the applicant company, INAN decides whether it is safe to consume by conducting experiments such as SENAVE was originally administered under the Ministry of Agriculture. However, microbiological analysis of food, chemical analysis of food, etc. It also grants a the SENAVE has recently started to work as an independent institution since 2005. registration card to the applicant company. SENAVE is operated by government financial support (5%) and its own revenues (95%). 5% means the cumulative summation of supported budgets from the In the food sector, INAN has been responsible for business approval such as government for years. Therefore, SENAVE is operated only by its own revenues. In establishment registration of food company, registration of food hygiene and safety the meantime, 30% of its revenues has been provided to DEAg and IPTA (15% to certification, granting of approved country registration of food (RSPA; Registro each institution). Sanitario de Producto Alimenticio) and packaging (food containers, etc.), registration of sales & processing locations, etc. If RSPA number is created by INAN, it is valid for 5 SENAVE is responsible for pesticide regulation, but does not have the chemical years. After that process, INAN transfers the business to the monitoring panel. laboratory for the inspection on pesticide residue. For about 2,000km borders on Brazil, Argentina and Bolivia, there is no distinguished river border, thus, the control When a company imports food, it submits the required information to the on imports and exports is very difficult. Inspectors of 571 have been working across relevant ministries and to INAN. INAN issues the certificate of import license after the country, but it is insufficient for thorough inspections. checking and inspecting the contents. In summary, major duties of INAN include registration of processed food, review and evaluation of submitted documents from 2.1.4. National Institute of Alimentation and Nutrition (INAN) private companies of food imports, notification of the hygiene inspection schedule and results, and field tests and inspection based on the checklists such as food INAN, an affiliated organization of the Ministry of Health and Social Welfare, processing & distribution process and warehousing & logistics of the relevant food. manages and supervises the regulations of food products to enhance the safety and quality and promote balanced nutrition status of the people. INAN protects the INAN also grants the registration card for food hygiene and safety certification health of people by promoting healthy diets, eating habits, and consumption of safe (effective for 3 years) and proceeds with the registration process for name, brand, food. INAN puts the priority on public policy of food and nutrition, national food products, food additive element, etc. Moreover, it operates the registration process programs, hygiene and food control, and technical standards of food services. of the technique and the law separately and respectively. INAN proceeds with

056•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•057 internal regulations of Paraguay based on the MERCOSUR regulations. In 2006, INAN

Organizational Structure of IPTA has introduced HACCP. HACCP has become one of the major procedures for exports in Paraguay. Regarding its operational budgets, INAN is provided by the Ministry of Agriculture and Livestock for 60% and its own revenue from registration fee and others for 40%.

2.1.5. The Paraguayan Institute of Agricultural Technologies (IPTA)

In 1943, the U.S. established the Instituto Agronomico Nacional (IAN) and demonstration farms in Caacupe, Paraguay through the Servicio Técnico Interamericano de Cooperación Agrícola (STICA), and supported the IAN to conduct research on wheat, , corn and cotton. The MAG was founded in 1950, and the MAG-affiliated agency of Servicio de Extensión Agrícola Ganadero (SEAG) was established in the following year. The SEAG was promoted to the Departamento de Extensión Agrícola Ganadero (DEAG) later in 1969. Meanwhile, the MAG transferred the tasks of the STICA to the Dirección de Investigación y Extensión Agropecuaria y Forestal (DIEAF). It also built demonstration farms in major agro-ecological zones and strengthened research on four major crops including cotton, wheat, bean and corn.

In the early 1990s, the organizations of the MAG including the DEAG and the DIEAF were restructured. As governmental organizations related to agricultural R&D and rural extension, the Direccion de Investigacion Agricola (IAD), the Dirección de Extensión Agraria (DEAg), which was basically the SEAG (DEAG) with a new name, and the Dirección de Investigación y Producción Animal (DIPA) were founded. The vice-minister of agriculture was in charge of the IAD and the DEAg, and the vice- minister of livestock was in charge of the DIPA. Later in 2010, the IAD and the DIPA were integrated according to the law (3788/10), and the Instituto de Paraguayo Tecnologia Agraria (IPTA), which has an independent legal status, was established (IPTA, 2011a). As a result, two major agencies conducting R&D and extension and

dissemination of agricultural technologies in Paraguay now are the IPTA and the Source:. Ministerio de Agricultura y Ganaderia (2014a: 9). DEAg.

The IPTA was established in 2010 under the National Act of No. 3788 to In the next section, we will look into the current status of the two organizations, strengthen and improve the agricultural research system. Located in the downtown which play a vital role in the area of Paraguay’s agricultural technology by improving area of Asuncion, the organization is responsible for conducting R&D and productivity through agricultural R&D and rural extension. Then, we will diagnose pilot projects in its own farms on agricultural and livestock technologies, and problems of the aforementioned organizations. disseminating the technologies to farmers. Under the Act, the general objective of IPTA is “to develop, discover, modify, apply, disseminate and transfer agricultural The organizational structure of IPTA is as follows. technologies, and manage the genetic resources of agriculture, forestry and livestock.” To this end, the IPTA has established the 10-year strategy plan (2012- 2021); the vision of “taking the initiatives in research on sustainable agricultural production and technological innovation to contribute to improving welfare of

058•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•059 the people,”; and the goal of “developing agricultural information, innovative and plans of the agricultural and livestock industry, designed by the MAG, 9) make technologies, and reliable and competitive production process and method through sure that the property and resources of the organization are reasonably used, social participation and human resources utilization” (Ministerio de Agricultura y managed and preserved, 10) manage financial resources necessary for operating the Ganaderia, 2014a: 5). organization at the request of the MAG, 11) cooperate with national agencies and international organizations, 12) recommend appointment, change or promotion IPTA’s main activities include animal and plants breeding, agricultural technology of the personnel in charge of technology administration who belong to the DEAg, development for productivity enhancement, new management practices for crop considering the skills of each job, and 13) conduct other tasks not stated above or production and protection, high quality genetics and health related research, and any tasks in the specialized area of the DEAg (Ministerio de Agricultura y Ganaderia, technology transfer to producers and other related entities, etc. 2014b).

IPTA aims at being a leader in research and technological innovation for Headquarters of DEAg is located in San Lorenzo. The DEAg has 20 Centers sustainable agricultural development so that it contributes to the entire nation’s for Agricultural Development (CDA) and 184 Local Agencies Technical Assistance welfare. (ALAT) in 15 departments across the country to provide technical support to farming families. The following is the organization chart of the DEAg. In addition, IPTA is a national research institute for agricultural technology. Its main activities include animal and plants breeding, agricultural technology for At the end of 2008, there were 514 staffs (employees), of whom 275 were productivity enhancement, new management practices for crop production and technicians that provided extension services for 28 thousand families. Currently, protection, high quality genetics and health related research, and technology there are 600 technicians and 200 staffs in charge of administrative support services transfer to producers and other related entities, etc. and about 30 thousand families (that is corresponding to about 240,000 farmers) are attending DEAg extension programs in 2014, although it is still less than 10% of total IPTA’s five strategic objectives are to 1) strengthen capacity of the institution, farmers. 2) develop human resources and knowledge management, 3) develop innovative, competitive and sustainable agricultural technologies, 4) diversify sources of Most technicians are graduates of agricultural high schools. Only about 10% institutional funding, and 5) establish strategies for the dissemination and transfer of of technicians graduated from agricultural colleges or universities. Technicians are technologies developed. stationed in the rural area throughout the country. One technician is responsible for about 80 farm households. This means that Paraguay lacks agricultural technicians 2.1.6. Directorate of Agriculture Extension (DEAg) significantly. Additional 1,200 technicians are needed for smooth performance of DEAg’s missions. In a simple calculation, for example, if 300 technicians are DEAg is an affiliate institution of MAG. It is responsible for the overall technical replenished, DEAg will be able to manage 50 thousand farm households. assistance to producers through the development of actions leading to the producers’ adoption of biological materials, management and marketing of their Five years ago, there were no chances of training for technicians. At present, products, and implementation of conservation techniques of productive resources with KFW (Kreditanstalt für Wiederaufbau) of Germany’s support program, and the environment (MAG, 2014c). 160 technicians are in training, and overseas trainings have been carried out--3 technicians in Korea, 2 in Japan, 2 in and some in Brazil, etc. The main tasks are to 1) establish the practicable policy in pursuit of the interests of the nation and the agriculture and livestock industry, 2) draw up the guidelines by Vice Minister of the MAG to achieve the objectives and goals regarding education and technology support, 3) apply and observe the criteria stated in the work manual, 4) perform the functions of extension services upon request, 5) assign tasks to divisions which constitute the entire organization, 6) make suggestions of appointment, dismissal, promotion and transfer of public officials, 7) approve and implement the annual task plan, 8) actively participate in projects, programs

060•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•061

Organizational Structure of DEAg

Ⅲ The Current Status of Food, Animal and Plant Safety and Health in Paraguay

1. Animal Safety and Health

The livestock production is one of the oldest and important economic activities of the country. Its origin starts at the beginning of the sixteenth century. In Paraguay, the bovine livestock is the main source of meat production, followed, in order of importance, by swine, ovine, and goat.

Classification of the Livestock Industry in Paraguay Species Population Density Farms Bees 61,228 0.15 11,515 Birds 16,055,854 39.47 233,369 Cattle 13,363,979 32.86 122,421 Buffaloes 12,477 0.03 ... Goats 129,898 0.32 9,689 Equidae 283,804 0.70 73,729 Sheep 364,514 0.90 23,134 Swine 1,072,655 2.64 199,895 Total 31,344,409 77.06 6,737

Source: Report of the Meeting of the OIE Scientific Commission for Animal Diseases, Paris, 13-17 February 2012

062•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•063 Traditional farmers include most farms located in the areas of natural grasslands

Georeferenced Distribution by Region of Land Use Destined to Livestock in Paraguay and wetlands (about 14 million hectares, 35% of the territory, distributed in both (2010) regions of the country). Even though they have better training, they continue using Natural Land Pasture Woods Region Total (1000ha) traditional production systems based on experience. They have productive and (1000ha) (1000ha) (1000ha) economic resources, especially large lands that are used exclusively in an extensive ORIENTAL 6,152 1,899 1,645 9,696 system with low productivity rates. Even though they have better resources, those CHACO 4,549 3,700 12,644 20,890 are still managed by the family. They have access to institutional and most of their investments are centered on infrastructure and animals for reproduction TOTAL 10,701 (35%) 5,597 (18%) 14,289 (47%) 30,586 purposes. They are completely integrated into the commercial chain, although most Source: Report on the Epidemiological Situation of FMD in Paraguay, 2013. of their production is destined to domestic markets. They participate actively in sanitary and disease eradication programmes. The livestock production can be characterized by mainly large extensive natural pastures, cultivated pastures, left over cereal and grazing in lowland bushes in some Large and modernized farms are considered as business enterprises in their regions, which constitutes an interesting bush pasturing in certain times of the year objectives and administration. They are the most dynamic forms of the livestock when the production of pastures or forage is scarce, especially during winter season sector in the country, and are responsible for the innovation in cattle production. due to unfavourable weather conditions. The finishing or fattening of animals for Besides the important investments in infrastructure, there is a continuous commercialization is exclusively carried out on cultivated pastures. The area is about improvement in genetics, sanitary plans and production intensification, with 26 million hectares, divided into natural pastures, cultivated pastures, and bush and inclusion of forest areas for cultivated pastures for breeding and fattening. They wetlands. own most of the cattle fit for international quality standards for international markets. 1.1. The Classification of Producers 1.2. Slaughterhouse and Livestock Processing Rural family farming focuses on smaller farms rearing up to 100 heads of cattle. It is characterized by low education, empirical experience and knowledge, high level of At present, Paraguay has 16 officially approved slaughterhouses, of which 11 poverty, dependence on livestock income, low production levels, livestock activities facilities contain one-stop operation system where slaughter and deboning activities complementing agriculture, scarce or null contact with the rest of the commercial are carried out. Three other slaughterhouses perform deboning activities only. chain, and slaughter for domestic consumption or local markets. The group accounts These facilities utilize carcasses slaughtered in any of the eleven slaughterhouses. for 87.70% of producers with 17.21% of the existing cattle population. At present, the country exports beef more than 30 international markets, including Russia, Brazil, Israel and Chile as major markets. Farms with 100-500 cattle are defined as medium-scale producers. Indicators are better than those of small-scale producers, having access to some kind of professional advice, generally from formal financial institutions. Production
Value of the Livestock Exports (2009-2012) levels are higher, being more integrated in the commercial chain, even though production is mostly sold to local or regional abattoirs; this group corresponds to 8.72% of producers with 17.80% of the existing cattle population.

Farms with more than 500 heads of cattle can be defined as large-scale producers. They are the main actors in beef production. The group accounts for 3.58% of the total producers with 64.99% of the existing cattle population of the country. However, there is great variability in the degree of development and production efficiency, and this group can be summarized into two subcategories; traditional farms and large and modernized farms. Source: Report on the Epidemiological Situation of FMD in Paraguay, 2013.

064•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•065 This figure illustrates the annual performance of meat and by-product exports. In 2006, Paraguay and bordered countries formed joint health measures that The value of exports has been on the rise each year, exceeding 800 million USD in were implemented to 1) establish a high surveillance zone that included a strip 2012. approximately 15 km wide on both sides of the borders of the countries involved; 2) apply individual identification of all susceptible animals; 3) adopt georeferencing of all livestock farms located in the strip; 4) apply systematic vaccination of cattle,

Annual Evolution of Beef Export (2007-2012) buffaloes, sheep and goats, and 5) form additional measures of movement control and seroepidemiological surveillance.

The FMD program of SENACSA contains a legal basis, Law 808/96, and its main objective is to maintain the entire country free of FMD virus. To do this, the actions carried out are focused on maintaining a high level of immunity of the cattle population, by implementing systematic and massive vaccination campaigns, procedures for the attention of suspected vesicular disease (interdictions, movement control, strategic vaccinations, etc.), early detection of compatible clinical cases and procedures in the eventual case of an outbreak that eliminate sources of infection, through stamping out of sick animals and contacts.

Programmed activities include timely vaccination, awareness of farmers about Source: Report on the Epidemiological Situation of FMD in Paraguay, 2013. the importance of vaccination for the eradication of FMD, control of livestock in transit within the country ensuring the compliance to the procedures, assistance This figure shows the annual export volume of beef. The export volume exceeded for producers who denounce suspected vesicular disease, long-term training for 160,000 metric tons in 2012. professional personnel, paraprofessionals and the administration of the institution, audits for public and private sectors, participation and effective reintegration of the private sector into the fight against the disease, protection of the cattle population 1.3. Management of FMD through the FMD vaccination, laboratory diagnosis to support safety purposes, detection of viral activity or possible carriers of FMD virus, research for immunity Paraguay initiated a FMD control program in 1967, implementing sanitary actions levels, and timely control in the case of FMD outbreak. according to guidelines adopted at regional level. In 1992, the FMD eradication program was implemented with the application of strategies and activities Epidemiological surveillance in Paraguay is based on field actions, epidemiology considering epidemiological characterization of the disease to achieve reduction and and laboratory throughout the national territory. At the same time, activities are prevention of outbreaks. implemented as passive surveillance in the cases of suspicion of vesicular diseases and notifications of diseases not characterized as suspicious based on field attention. In May 1997, Paraguay obtained an international recognition from Another important component is the surveillance executed in cattle holdings the International Office of Epizootics (OIE) as a “country free from FMD with through the SENACSA zone units, the staff of the Animal Health Commissions (CSA) vaccination.” In August 1999, vaccination was suspended with an objective of during vaccination campaigns, as well as control in cattle fairs, exhibitions, traffic achieving the certification of “a country free from foot and mouth disease without control points and entry points. vaccination.” In 2002, the certification was suspended due to the reintroduction of the disease in the district of Corpus Christi. In December 2004, a request was The FMD vaccine used in the country is trivalent, produced by using FMD virus submitted to the OIE to reinstate the sanitary status of “free from FMD with type O1, A24 and C3, with an oil adjuvant. Vaccines used in Paraguay are produced vaccination” and the restitution of the health status became effective in January 19, locally or imported from Brazil and Argentina. Vaccines are used after approval 2005. of the required official controls carried out at the laboratory of FMD at SENACSA. The control of FMD vaccine is ruled according to the standards of the manual of

066•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•067 diagnostic tests. Paraguay has two private laboratories producing FMD vaccine that Since the confirmation of the outbreak of FMD, the National Animal Health also export to other countries of the region, and also imports from Argentina and Emergency (SINAESA) was immediately activated which puts into operation of Uruguay. the contingency plan following the procedures set out in the Terrestrial Animal Health Code of the OIE and the manual procedures to deal with occurrences of Having the outbreaks of late 2011 and early 2012, SENACSA redefined the FMD and other vesicular diseases developed by the Pan American Center for FMD strategy for the vaccination campaign in combating FMD: executing three (PANAFTOSA). Immediate notification was sent to the OIE, dated 18/09/11 and six vaccination in a year, two for general livestock and buffaloes of all ages and one for (6) monitoring reports on the course of the event and development of research and cattle and buffalo of the lower category (weaning, male and females calves). surveillance activities.

Vaccination is organized and carried out by CSA through the technical

Stamping out in San Pedro staffs accredited from the service, composed by coordinators and sub-technical coordinators, certifiers and authorized vaccinators, with the control of SENACSA. Cows Steers Weaning Bull Calves Total 2 41 346 56 1 819 The information management system of regional offices (SIGOR III) of SENACSA Source: Report on the Epidemiological Situation of FMD in Paraguay, 2013. is a tool for health management of the service; it has a centralized database on producers of livestock in the country and records of cattle movements around the country through a network integrated by all zone units of SENACSA. The emergency surveillance activities were executed for the influenced areas of FMD outbreaks, performed by veterinarians of the official service that attended 19 The database includes vaccination registration, which in turn includes all data of cases of diseases of different ethologies, which described each case with the total human resources accredited for the effects and the registration of biological retailers animal population of each holding, animals observed or inspected, and description with trade volume. This system is used by 85 local units (100% of local offices of of the symptoms observed. Epidemiological surveillance in Paraguay is done through SENACSA), 11 slaughterhouses for export, 120 vaccine retailers, 4 cattle fairs, 20 field and laboratory activities throughout the country and for imported animals and animal health committees, and is currently open for use by livestock producers if by-products of animal origin at entry points constituting the main pillar of the FMD requested. national eradication program.

The system structure is composed of modules developed according to the need of The main objectives of the programs related to FMD are to conduct research involved sectors, which are zonal unit, retailer, laboratory and epidemiology, control to determine the absence of FMD virus circulation throughout the national points, slaughterhouses and abattoirs, animal health commission, livestock module, territory and to evaluate effectiveness of FMD vaccination through coordinated inter-institutional commission, and statistics divisions. field, laboratory, administrative and technical activities of SENACSA. Field staffs, represented by the coordination of health regions, zonal units and control points, All movements of cattle are compulsorily reported to have the Official Certified carry out sample collection within the routine surveillance activities throughout the of Animal Transit (COTA), which is issued through the SIGOR system, based on the country. fulfillment of compulsory vaccination and registration in SENACSA. During the year of 2012, in the framework of general surveillance, SENACSA independently conducted national serological sampling. An important number 1.4. Restoration of FMD-Free with Vaccination Status of samples have been collected with different purposes as monitoring animals for export as well as exhibitions and special breeding fairs, and the samples were sent On September 18, 2011, Paraguay notified the OIE of the occurrence of an to the laboratory producing results of remarking that all the animals reactive to outbreak of FMD in San Pedro located in north eastern region of the country, and in the ELISA 3ABC EITB tests were subjected to the EITB test and clinical surveillance of January 2, 2012, a second occurrence in the same area, which determined the loss of the holding of origin, in all cases. The results demonstrate full compliance with the the health status of the two free zones with vaccination. requirements so that Paraguay requests the OIE to restore the country’s status for the two areas in question as “FMD-free zones where vaccination is practiced.”

068•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•069 2. Technology Development and Extension

The IPTA’s Centers and Farms Service Categories Descriptions ① Hernando Bertoni Research Center (CIHB) Along with the function of carrying out R&D, the IPTA has the technology transfer department under its umbrella to run programs for technical training ② Capitan Miranda Research Center (CICM) and dissemination. In 2013, it conducted a total of 80 technical trainings in ③ Chaco Central Research Center (CICC) demonstration farms for local public servants, technicians, farmers and students, ④ Km 312 Animal Experimental Farm (CEG312) and provided experiment services on new crops, chemical fertilizer, soil, etc (IPTA, ⑤ Chore Experimental Farm (CECH) 2013a). More specifically, experience education on production of potato, onion, ⑥ Iobi Experimental Farm (CEY) garlic was carried out in Concepcion; educational programs for students and school parents were conducted in Ensenada, Mbocayaty del Yhaguy; artificial insemination ⑦ Rice Cropping Experimental Farm (CEA) of livestock was conducted in an experimental farm located in Caapucú, Paraguarí; ⑧ Experimental Farm (CECA) farm experience activities were carried out and the wheat variety of Itapúa 80 ⑨ Barerito Animal Experimental Farm (CEGB) was launched in CICM, Itapúa; the corm varieties of morotí, locro and sape were ⑩ San Juan Bautista Experimental Farm (CESJB) disseminated and training on crop production for self-consumption was conducted as part of a “program of enhancing food production of family farms.” The IPTA, its ⑪ Thomas Romero Pereira Animal Farm (CETRP) 11 regional research centers and demonstration farms across the country have run a variety of educational programs and held meetings (IPTA, 2013a). According to the Agricultural Science and Technology Indicators (ASTI), as of 2013, a total of 121 employees (4 with doctor’s degrees, 25 with master’s degrees, and 92 with bachelor’s degrees) are working for the IPTA’s R&D department. Among
The IPTA’s Centers and Farms them, approximately 80 research workers answered that 60% to 79% of their work is related to R&D while the rest of time is spent on education, extension and services, which are not related to R&D. The number of employees of research support (managers of laboratory or experimental field, etc.) is 150, and that of administrative staff (drivers, security guards, etc.) is 76 (ASTI, 2014).

The following table shows the revenues and expenses of the IPTA from 2011 to 2013 (ASTI, 2014). The IPTA is provided 70% of its budget from the Paraguayan government, and the rest comes from the IPTA’s internal revenue. The IPTA’s internal revenue is earned through sales of agricultural goods and services, collection of royalties of crop varieties, and transfer of technology of governmental organizations, such as SENAVE and INFONA (IPTA, 2013a).

When it comes to the IPTA’s expenses, over 70% accounts for payroll costs (84% in the case of the year 2013), and the rest consists of business operation fees and expense of assets (ASTI, 2014).

070•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•071 Among 215 projects conducted by the IPTA in 2013, 111 was related to breeding

Revenue and Expenses of the IPTA of plants and animals, 60 was to crop cultivation, and 44 was to crop protection (Unit: a million Guarani, %) (IPTA, 2013a). According to a survey of 2013, researchers spent 20% of their research Categories 2011 2012 2013 time on wheat, 10% on corn, 15% on bean, 16% on horticulture and 6% on Revenue livestock. When it comes to the subject of research, they responded that they gave Government’s support 19,692(71) 25,946(70) 25,048(69) a respective 20% of weight to the three subjects—genetic improvement of crops Sales of goods and services 7,799(28) 11,009(30) 11,161(31) including biotechnology, crop management and fertilizing, and pest management (ASTI, 2014). Expenses

Payroll costs 19,559(71) 28,212.8(76) 30,526.3(84) The following table shows those currently working for the DEAg. Among the total of Business operation 5,352(19) 7,521.2(20) 4,865(13) 621 employees, only one has a doctor’s degree (agronomist), nine has master’s degrees Expense of assets 2,580(9) 1,221(3) 817.7(2) (all of them are agronomists). Also, most of them are working for their specialty areas of Total 27,491(100) 36,955(100) 36,209(100) agricultural technology and agronomy (DEAg, year unknown).

Note : The figures in parentheses mean percentages. 1 USD = 4,708.2 PYG (Paraguay Guarani) (as of January 15, 2015)

Distribution of Academic Staff of the Department of Agricultural Extension Source: ASTI (2014 Title Amount Masters PhD Agronomist 123 9 1 The following table shows details on the IPTA’s budget expenditures through approved budgets in 2014. The government’s budget accounts for 69% of the IPTA’s Engineer Human Ecology 5 total budget, while payroll costs take up for 64% of the total budget spending (IPTA, Environmental Engineer 1 2013a). Veterinarian 21 Lawyer 6
Approved Budgets of the IPTA in 2014 Bachelor 85 (Unit: a million Guarani, %) Agricultural Technician Bachelor 136 Government’s Budget from the Item Total Humanistic Bachelor 98 budget IPTA’s income CPA 7 Payroll costs 33,445 26,323 7,122 Teacher 20 Costs other than payroll costs 4,146 2,043 2,103 Other Official 86 Fixtures and consumables 5,773 2,672 3,102 Total 582 Commodity costs 6,186 3,900 2,286 Source: DEAg (year unknown). Costs for technology transfer (education) 2,218 900 1,318 Other costs 182 82 100 51,950 35,919 16,032 Extension and dissemination services of the DEAg are conducted in ways as Total (100) (69) (31) follows. First is a one-on-one individual method, in which extension agents pay visits to farming families, or they provide consulting in offices or by telephone. Second Note: The figures in parentheses mean percentages. 1 USD = 4,708.2 PYG (Paraguay Guarani) (as of January 15, 2015) is a group method, which includes field guidance, meetings, introduction of pilot Source: IPTA (2013a). projects and their results, technology transfer, lecture, technology dissemination, etc. Third is a bulked method, which utilizes printed materials and promotion through newspaper, radio and television programs.

072•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•073 Extension work of the DEAg is related to production technology including soil, into new procurement and consumption markets (Röller, L. H. and L. Waverman, water and forest, food safety, diversifying of money crop production, management 2001; Torero, M., K. C. Shyamal and S. B. Arjun, 2006). ICT also plays a key role in of farm organizations or agricultural enterprises, improvement of the quality of boosting the innovative capacity of economies that are becoming increasingly life, counselling for women and young adults, and enhancement of organizational knowledge-based. power (MAG, 2014c). In general, measuring the impacts of ICTs is a complex task, and the development Meanwhile, beneficiaries of the DEAg’s technology transfer should satisfy the of rigorous quantitative data to do so is still in its infancy. As a result, many of the following conditions: first, they should be family farmers, rather than commercial dimensions where ICTs are producing important impacts—especially when these farmers, who struggle to make ends meet; second, they should stay in their own impacts are not directly translated into commercial activities, as is the case for the farms and secure income from production and management activities related to environment and for health—cannot yet be covered. Therefore this sub-index should agriculture, stockbreeding and forestry; third, they should have no more than 50 be regarded as a work in progress that will evolve to accommodate new data on hectares of farming land in the case of Eastern Region, and no more than 500 many of these dimensions as they become available. hectares in the case of Occidental Region (MAG, 2014c). In order to capture as comprehensively as possible, all relevant dimensions of societies’ networked readiness should be examined. One of the effective measures 3. ICT Application of the Institutions would be the Networked Readiness Index (NRI). The NRI is composed of a mixture of quantitative and survey data. The NRI consists of four sub-indices that measure 1) the 3.1. The ICT in Paraguay environment for ICTs; 2) the readiness of a society to use ICTs; 3) the actual usage of all main stakeholders; and 4) the impacts that ICTs generate in the economy and the society. The three first sub-indices can be regarded as the drivers that establish the 3.1.1. Overview of ICT Level in Paraguay conditions for the results of the fourth sub-index, the impacts of ICT. These four sub- indices are divided into 10 pillars composed of 54 individual indicators in total. The rapid development and increasing global distribution of modern information and communication technologies such as PCs, the internet, e-mail and mobile Since 2002, WEF has published the Global Information Technology Report (GITR) phones have transformed the way economies operate. They also have let individuals, once a year. The report has accompanied and monitored ICT progress for more than societies and states interact with each other (BMZ, 2013). Modern ICT has drastically a decade. Through the lens of the Networked Readiness Index (NRI), the driving reduced the cost of communication and interaction, and of obtaining, processing factors and impacts of networked readiness and ICT leveraging have been identified. and storing information. As a result, ICT can play a major role in increasing the efficiency, effectiveness and transparency of measures and process flows. ICT also opens up new opportunities for large sections of the population to participate at the

The NRI Index of Paraguay political, cultural and societal level. Rank Sub-index Pillar Score value (out of 148 countries) A study conducted by the World Bank shows that increasing the diffusion and the Environment •Political and regulatory environment 2.66 136 use of ICT significantly boosts productivity and economic growth. The study found Sub-index •Business and innovation environment 3.94 96 that increasing utilization of ICT by 10% would boost economic growth by about •Infrastructure and digital content 4.10 72 Readiness 1.12% in low and medium-income countries (World Bank, 2009). •Affordability 5.81 50 Sub-index •Skills 3.89 105 The economic growth that can be generated by ICT is due to a number of factors. •Individual usage 2.79 98 Usage •Business usage 3.27 105 For example, technologies such as telecommunications, the internet and e-mail Sub-index •Government usage 3.33 120 significantly reduce the cost of communications, and stimulate lively exchange and Impact •Economic impacts 2.95 99 interaction between individual actors. This improves the flow of information across Sub-index •Social impacts 2.78 125 economic sectors—from agriculture to production and service industries. ICT also Note: Score value is on 1- to -7(best) scale streamlines processes and transactions. What is more, it enables companies to tap Source: WEF, The Global Information Technology Report 2014, p.10 – 14, 2014.

074•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•075 According to “the Global Information Technology Report (GITR) 2014,” the (GITR 2014, p. 253 – 321). It also shows that Paraguayan government’s administrative NRI of Paraguay is 3.47 and ranked 102nd among 148 countries in 2014. Paraguay service and its ICT implementation and utilization policies gained quite low scores. is considered to be lack of important factors in the development of its ICT In contrast, the government earned relatively high scores in the section of online infrastructures and the innovation and entrepreneurial conditions that could help service and households with internet access. fully leverage.

ICT Status of Paraguay (2014) Ⅲ On the radar chart of Figure -3, the blue line plots the economy’s score on Rank Score each of the 10 pillars. The black line represents the average score of all economies Index Criterion (out of value in the income group to which the economy under review belongs. The country 1 4 8 ) Mobile network Percentage of the total population covered classification by income group is defined by the World Bank and reflects the situation 94.0 110 as of December 2013. Paraguay is one of the countries with the GDP amounting to coverage rate by a mobile network signal between 3,000 USD and 8,999 USD, which is the third level with low income out of How available is digital content via multiple Accessibility of platforms (e.g., fixed-line Internet, wireless five levels. Paraguay can use ICT at relatively low cost compared to other countries 4.4 109 digital content Internet, mobile network, satellite)? with the similar level of GDP, but the country is recognized to fall behind in the [1 = not available at all; 7 = widely available] aspects of ICT-related policy, institutions, social influence and the ICT utilization in Mobile telephone Mobile telephone subscriptions (post-paid 101.6 89 the government. subscriptions and pre-paid) per 100 population Internet users Percentage of individuals using the Internet 27.1 96
The NRI of Paraguay and Lower-Middle-Income Group Average Households with a Percentage of households equipped with a 24.3 89 personal computer personal computer Households with Percentage of households with Internet 22.8 83 Internet access access at home Fixed broadband Fixed broadband Internet subscriptions per Internet 1.2 104 100 population subscriptions Mobile broadband Mobile broadband Internet subscriptions per Internet 6.0 99 100 population subscriptions How widely used are virtual social networks Use of virtual social (e.g., Facebook, Twitter, LinkedIn)? [1 = not 5.3 92 networks used at all; 7 = widely used] To what extent does the government have Importance of ICTs a clear implementation plan for utilizing to government ICTs to improve your country’s overall 2.8 135 vision of the future competitiveness? [1 = no plan; 7 = clear plan] Government The Government Online Service Index Online Service assesses the quality of government’s delivery 0.46 80 Index of online services on a 0 – to - 1 (best) scale To what extent does the use of ICTs by Source: WEF, the Global Information Technology Report 2014, p – 97, p – 206, 2014. ICT use and the government improve the quality of government 3.1 130 government services to citizens? [1 = not at efficiency Table Ⅲ-8 is part of indices related to the status of ICT evaluated by WEF. The four all; 7 = to a great extent] sub-indices of NRI in Figure Ⅲ-3 is a combination of the evaluations for ten pillars How successful is the government in Government promoting the use of information and which are comprised of 54 individual indices (GITR 2014, p. 6-8). To assess the status success in ICT 3.4 127 communication technologies (ICTs)? [1 = not Ⅲ promotion of ICT in Paraguay, 15 out of 54 indices were selected and presented in Table -9 successful at all; 7 = extremely successful]

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ICT Status of Paraguay (2014)
E-Government Developing Index of Paraguay

Rank Telecomm, Human Score Online Service Index Criterion (out of Division EGDI Infrastructure Capital R a n k value Component 1 4 8 ) Component Component To what extent do ICTs enable access for Impact of ICTs on Paraguay 0.3740 0.2283 0.2236 0.6700 122 all citizens to basic services (e.g., health, access to basic 3.5 120 education, financial services, etc)? World Average 0.4712 0.3919 0.3650 0.6566 - services [1=not at all; 7=to a great extent] Note: Score value is on 0 - to - 1(best) scale The E-Participation Index assesses, Source: United Nations, “E-Government Survey 2014: E-Government for the Future We Want,” p.202, 2014. on a 0 – to - 1 (best) scale, the quality, E-participation relevance, and usefulness of government 0.16 77 Index websites in providing online information and participatory tools and services to their he E-Government Development Index (EGDI) of Paraguay in 2014 is 0.3740 and citizens ranked 122nd among 193 countries. The Index of Human Capital Component is

Source: WEF, the Global Information Technology Report 2014, 2014. slightly higher than world average. However, indices of online service component and telecommunication infrastructure component are very low. 3.1.2. E-Government Considering that the EGDI is a broad relative index, caution should be taken against interpreting positional changes in rankings across similarly ranked countries. E-government and innovation can provide significant opportunities to transform ‘Higher’ rankings do not necessarily mean ‘better’ or ‘desirable’ outcomes. As such public administration into an instrument of sustainable development. E-government countries must decide the level and extent of their e- government initiatives based is “the use of ICT and its application by the government for the provision of on their specific national development context. information and public services to the people” (UN E-Government survey 2014). More broadly, e-government can be referred to as the use and application of However, it is clear that national income certainly does not, by itself, constitute information technologies in public administration to streamline and integrate or guarantee advanced e-government development, as evidenced by many outliers workflows and processes, to effectively manage data and information, to enhance highlighted in Figure III-3. Some countries have significantly advanced their public service delivery, and to expand communication channels for engagement and e-government development ranking despite their relatively low national income, just empowerment of people. as there are many countries which are lagging despite their relatively high income and thereby have good opportunities for future improvement. The opportunities offered by the digital development of recent years, whether through online services, big data, social media, mobile apps, or cloud computing, The main enabler of good e-government progress is often putting in place an are expanding the way we look at e-government. While e-government still includes effective governance framework to support and manage a citizen-centric service electronic interactions of three types—i.e. government-to-government (G2G); delivery model, including a national ICT policy and e-government strategy, as well as government-to-business (G2B); and government-to-consumer (G2C)—a more holistic strengthening institutions and building the capacities of public servants. and multi-stakeholder approach is taking shape.

Since its inception in 2003, the conceptual framework of the United Nations 3.2. The Application of ICT in the Related Institutions E-Government Survey has adopted a holistic view of e-government development resting on three important dimensions: (i) the availability of online services, (ii) 3.2.1. SIGEST telecommunication infrastructure and (iii) human capacity. The methodological framework has remained consistent across survey periods while carefully updating MAG/SIGEST has posted agricultural information and ICT plans on Portal its components to reflect evolving successful e-government strategies, pioneering Agropecuario (Agricultural Portal). Portal Agropecuario is one of the most visited practices and innovative approaches to tackling common challenges for sustainable websites in Latin America and the Caribbean, and has provided information and development (UN E-Government Survey 2014). perspectives of the agricultural sector. Portal Agropecuario separates agriculture

078•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•079 from livestock, and for agriculture, it divides information into technical support, The SITRAP1) is subjected to verification and control procedures, in collaboration agricultural information, forms of technical expertise, production support, etc., with stakeholders, allowing continuous improvement. SITRAP is a system of and for livestock, it divides into technical support, livestock sector information, auditable information, which allows providing satisfactory guarantees of export production support, etc. It also has posted agricultural information on Facebook, certification markets requiring traceability through individual identification Twitter and e-mail system, etc., and has communicated via interactive dialog system. and registration of residences and nutritional health/activities of an animal. This traceability program is more needed in the areas of high surveillance elements, which are implemented by permanently authorized personnel of SENACSA.

Portal Agropecuario (Agricultural Portal) Unfortunately, traceability in other sectors, if any, has no such resource efficiency and dedication.

SENACSA has the authority to notify the OIE animal safety and health situation of the country and other relevant matters, in accordance with established procedures. The notification to the OIE of the presence of animal diseases, mainly in other animal species, is not regular. Irregular notification to OIE is due to a lack of transparency, and to a lack of national surveillance and control programs for animal diseases.

As for the monitoring and control of FMD in the region, SENACSA demonstrated their capacity and competence to implement zoning, through maintaining areas

Source: www.mag.gov.py of high vigilance in its neighbouring borders of highest risk. At the moment there is no other control program, although certain sectors such as poultry and pig could benefit from using the tool. 3.2.2. SENACSA 3.2.3. SENAVE The SENACSA applies and complies with audits of quality management requirements for meat exports. In addition, it shares information on traceability and Since its establishment in 2004, SENAVE has built and administrated its database HACCP to provide technical information, reports of meetings and distance learning system, but it has been a hard task to systematically establish the necessary programs courses with evidence of achievements in this regard. such as a traceability system and effective quarantine systems for the entire plant safety and health sector. If any pest or other harmful diseases occur, officials present Regarding SENACSA, traceability has the authority and capability to identify that information to public media at first, and then the media, including newspapers, bovine animals and products of their origin to be traceable so as to show its history, announces the occurrence to the public. In addition, SENAVE is supposed to notify location and distribution. SENACSA created a traceability system effectively running to the MAG, then the MAG should provide official actions to local governments and by concrete support from a rural association of Paraguay. Within SENACSA, 4 agencies. However, the Internet and cellular phone systems are not fully equipped Directorate Generals have responsibilities for the RMP (Residue Monitoring Plan). for efficient management for these purposes. Among them, Directorate General of technical services is responsible for blocking cattle holdings in the national electronic database (SIGOR) in the event of non- The integrated system between the customs and SENAVE has been constructed. compliant results and providing information. SIGORII is also a national wide system In order to provide users with an innovative, useful and consistent service for the established and developed for compulsory mass identification of cattle herds and technological development, SENAVE launches an application for mobile devices, primarily designed for the sake of eradication of 13 contagious animal diseases. Senavemóvil, freely available at the institutional portal and virtual Play Store Nowadays, the system is installed in all zonal units, markets, several internal control (Android). posts and slaughterhouses. 1) It was a task undertaken by public and private sectors, namely; the National Animal Health Service (SENACSA), the Rural Association of Paraguay (ARP) and the Paraguayan Chamber of (CPC), to meet the requirements for the export of vaccine to the European Union (EU) meat.

080•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•081 With this service segment aimed at users of mobile devices, SENAVE adheres to 3.2.5. DEAg technological development to provide the service to producers, business operators, merchants and law enforcement agencies for a platform of entering data records. “Centra Importancia” of DEAg has the information and communication The application contains tag data issued by the institution, where the applicant may technologies (ICT) such as mobile radio and telephones at a comprehensive and low verify all data related to the product by simply entering a designated number. In this cost, as a part of information transfer. For network connections of DEAg, its server first phase of launch, Senavemóvil offers a complete platform for seed labels, where system has linked up with 18 CDA via internet. However, most of small farmers users can check the application number, the name of the producer, variety, grade have difficulties in access to information over the internet because of a low level and the date of delivery. In a second step, the application will have data on labels, of connectivity for the internet service. In particular, users can speak Guarani, the agrochemicals and plant products, i.e., traceability of all products that are under official language, but in many cases, they have difficulty in reading the language, so the SENAVE regulatory. The importance of this application lies in the new service it is not possible for them to take advantage of the information written in Guarani, to check the accuracy of the information found on all products sold in the country, posted on the internet. confirming that all requirements have been met.

Network Connection of DEAg
Operational Structure of Senavemóvil

Source: Compiled by author. Source; DEAg, La Estrategia de La Nueva DEAg2), 2014. 2) 3.2.4. INAN

ICT Operation Structure of INAN

In the file queries of the home page, it is possible that the applicants can apply after direct entering when they want to register such as processing area, sales registration of food manufacturers, registration of food, packaging and registration of state, etc. Because INAN have kept in the form of document type about information such as the issuing procedure of RSPA registration and transference of monitoring board, etc., however, INAN’s information level is insufficient.

Besides all procedure as such registration and permitting processes have been proceeded only at the central authority in Asuncion, thus, the system should be expanded for the regional access. In order to expand this feature to the local area, creation of a specific ICT system is essential. Source: Compiled by author.

2) The Strategy of the new DEAg

082•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•083 3.3. Implications of the Status of ICT in Paraguay

Level of ICT Maturity of Paraguay E-Government The ICT of Paraguay has lagged behind, and has hardly shown progress, which means that the level of information technology among farmers and agricultural officials is relatively low. Concerning Paraguay, in terms of the level of ICT, some indicators show that Paraguay belongs to a country group of a low level, even taking its income level into account. The rates of penetration of the internet and broadband are 1.6% and 0.9%, respectively, while cell phone subscribers are expected at 99 out of 100 inhabitants (E. Borensztein, S. Miller, G. Sánchez, and P. Valenzuela, 2014).

The networks in Paraguay consist of the national level for the administrative and educational purposes and the private level provided by internet service providers (ISP). Paraguay can improve online services by ensuring high-level political support and administrative leadership and by strengthening institutional capacity and public accountability.

National capacity for innovation is generally conducive to online service Source: KOICA, Paraguay ICT Master Plan, 2010 development. Specifically, higher online service scores are associated with increased levels of online creativity in the broader economy as evidenced by WIPO’s global innovation index (WIPO, 2013). Countries that have a more vibrant Based on the IT maturity model, the stage of e-government of Paraguay is information society are better able to leverage talent and ICT services for improved on the Enterprise Integration Level. Most organizations are in Level 2 or Level e-government performance. This positive connection underscores the fact that the 3. As a result, to get them out from the Process Integration Level and to enter ICT policy encompassing telecommunication strategy, the internet governance and the Enterprise Integration Level, following actions are required: redesign and tertiary education in science, mathematics, engineering and technology can be a key integration of business processes; establishment and implementation of the driver of online service expansion in public administration. Information Strategy Planning (ISP) or a IT master plan; formulation of IT regulations; operation of IT training program for employees; changing computing models to Based on the result of the comparison of the WEF and UN indices between web-based structures; construction of a business supporting system; and creation of Korea and Paraguay, the two countries have a large gap in every aspect including performance assessment indexes for IT system (KOICA, 2010). the ICT infrastructure, skills and participation level.3) However, although Paraguay falls behind in the aspect of the internet access and use, the country shows a lot of In the meantime, it has turned out that farmers who speak only Guarani, potential in the mobile network and informatization, leaving a large implication for accounting for the majority of small-income farmers in Paraguay, were completely the future ICT policy direction. The biggest gap between the two countries is found excluded from the benefits of ICTs. In general, language barrier and digital divide are in the e-government index.4) Paraguay is lack of the online service for government considered to be the biggest obstacles to the provision and promotion of ICTs. policy information and ICT infrastructure and its usage. In general, the function of the e-government system and the information sharing connection are important to Guarani is an indigenous language that belongs to the family of Tupian enhance transparency of administrative process, and the system reduces time and languages, and it is one of the official languages, along with Spanish, of Paraguay. improves efficiency in the evaluation and use of common information to be shared Moreover, Paraguay is known for its high rate of bilingualism; around 40% of the with other departments and institutions. population is monolingual in Guarani, 50% bilingual and just over 6% monolingual 3) NRI of Korea is 5.54 and ranked 10th among 148 countries in 2014 (WEF, The Global Information Spanish (Gynan, 2002). Obviously, the large majority of software and Internet sites in Technology Report (GITR), 2014). the country are in Spanish. So Guarani language constitutes an important barrier to 4) The E-Government Development Index (EGDI) of Korea in 2014 is 0.9462 and ranked 1st among 193 countries (United Nations, E-Government Survey 2014: E-Government for the Future We Want, ICT diffusion. 2014).

084•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•085 In early years of ICT diffusion, the digital divide was defined as ‘‘the gap between individuals, households, business and geographic areas at different socio-economic levels with regard both to their opportunities to access ICTs and to their use of the Internet for a wide variety of activities.’’ More recently, the digital divide has evolved and it encompasses the quality of access dimension. For example, the ITU define it as “the gap between those who benefit from digital technology and those who do Ⅳ not” (ITU, 2005) (M. Grazzi and S. Vergara, 2012). The digital divide has become a relevant public issue, receiving increasing attention and taking different dimensions. Researchers have shifted their attention from the traditional distinction between Case Study of Best Practices in Korea haves and have-nots to the new concept of “digital inequality.” This inequality refers not only to mere differences in access, but also to different ICT usage patterns (DiMaggio and Hargittai, 2001).

Therefore, there is a need to develop ICTs for small-income farmers and Guarani speakers in order to enhance the competitive power of Paraguay’s agriculture. In particular, taking into account an increasing use of mobile phones in the country, it is important to develop and disseminate mobile applications as a platform to access the internet.

The explosive growth of mobile phones demonstrates the appetite for change 1. Animal Safety and Health in Korea across. Mobile phones are now being used as a platform to provide access to the internet, to applications, and to government services. The wider use of ICTs in government is bringing more transparency and openness, for instance through the 1.1. Historic Occurrence of Animal Disease in Korea use of Twitter and Facebook to provide various information. There are 65 types of contagious livestock diseases that are regulated by the The growing social and economic dependence on ICTs brings new challenges, Livestock Infectious Disease Prevention and Control Act in Korea such as Livestock not least the need for infrastructure to become more robust and resilient, and for Epidemic Category 1 (FMD, Rinderpest, HPAI, CSF, ND, 15 types included), Livestock services to become more reliable. Issues of cybersecurity and data protection will Epidemic Category 2 (BSE, Br, TB, Rabies, 32 types included), and Livestock Epidemic also come to the fore as security and trust become increasingly important. ICTs now Category 3 (Leptospirosis, PRRS, PED, 18 types included). In reference, OIE’s notifiable offer major opportunities to advance human development—from providing basic diseases consist of 93 types of epidemics. access to education or information to making cash payments. Mobile phones are now being used as a platform to provide access to the internet, to applications and The historical events of outbreaks of animal diseases in Korea included the to government services (The World Bank and the African Development Bank, 2012). occurrence of Rinder Pest, Anthrax, Rabies, and CSF between 1905 and 1910. From 1911 to 1934, FMD in cattle and swine had occurred sporadically throughout the nation. From 1911 to 1945, 25 animal diseases were reported such as contagious bovine pleuropnumonia, bovine ephemeral fever, glanders, equine infectious anemia, piroplasmosis, TB, pullorum disease, foul typhoid, foul coccidiosis, etc. In addition, from 1950 to 1999, various diseases such as bovine ephemeral fever, piroplasmosis, TB, brucellosis, anthrax, IBR, leptospirosis, Akabane disease, CSF, swine erysipelas, TGE, PED, PRRS, ND, pullorum disease, foul typhoid, and foul coccidiosis occurred sporadically even up to the present time in Korea. In March 2000, FMD virus type O occurred in cattle and swine. And 2 years later, FMD virus type O occurred again in swine. In January 2010 and 2011, FMD virus A type and O type occurred

086•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•087 epidemically through the nation except 3 provinces. The massive economic and The KAQIS can be considered as an integrative information system for the psychological damages and loss were estimated at 3 billion USD by the occurrence. purpose of enabling on-line request for animal/livestock products quarantine, reception of the request by quarantine officers, issuance of quarantine certificates, From November 2003 to 2009, High Pathogenic Avian Influenza (HPAI) virus type and submission of the quarantine results to Korea Customs Service through EDI, H5N1 occurred in Korea. In September 2011, Korea reinstated the sanitary status of thereby achieving computerization of the overall quarantine administration. free of HPAI. In May 2014, Korea obtained an international certification from the OIE as a “FMD-free country with vaccination.” Unfortunately, in July 2014, FMD occurred As MAFRA took over sanitation management for butchery and milk collection in in 3 swine farms, and Korea has lost the status of FMD-free country with vaccination. accordance with the Livestock Product Processing and Treatment Act (effectuated in In January 2014, HPAI virus type H5N8 occurred epidemically, and economic loss 1998) and livestock products processing, storage, transportation and sales businesses estimated around 1.2 billion US dollars. in accordance with the Food Sanitation Act, thereby taking charge of the general matters from livestock breeding to consumption (farm to table), the KAQIS system went through major changes to account for exported/imported livestock product 1.2. BQMS: Quarantine Management System quarantine.

1.2.1. Animal Quarantine Information System The KAHIS is created to prevent livestock diseases and to support for rapid protection measures. It is used by approximately 10 thousand users including local 1) Background governments, civil disease prevention personnel, the MAFRA, and quarantine agencies since its operation. Database construction and computerization of quarantine information was implemented to actively adjust to rapid changing quarantine environment due In addition, as mentioned earlier, the BQMS was established in 2011 to to increasing workload of domestic and international transactions of livestock enforce mandatory entry/exit report for livestock-related personnel travelling to commodities. Considering the fast changing environment of the sector, the Korea countries with livestock disease outbreaks. It allows for declaration and disinfection Animal Quarantine Information System (KAQIS) began as a system for handling civil management at the airports and ports. The BQMS began operation in July 2011, complaints for quarantine request and certificate issuance. It was developed in 1995 followed by the adoption of kiosks and a passport-reader system which reduced and began operation in 1996. Later, the Automated Import Information System (AIIS) stand-by time and improved convenience for quarantine officers. was introduced to eradicate any wrong handling of quarantine works. In addition, Korea started transmitting quarantine results to Korea Customs Service through The BQMS provides real-time border quarantine information in conjunction with Electronic Data Interchange (EDI) to proceed with the customs procedure, which KAHIS, and the local government can verify those who failed to report and register greatly improved convenience of the complainants in 1998. domestic protection actions and their results by logging into the KAHIS.

The Border Quarantine Management System (BQMS) was established in 2011 to 2) Performance comprehensively manage livestock-related people travelling overseas, who were pointed out as the major cause of the FMD outbreak in 2010. In addition, the project The increase of international trade due to globalization and expansion of free for construction of the Korea Animal Health Integrated System (KAHIS), a system trade led to a rapid increase of exchange of labor and goods. In keeping with the capable of comprehensively managing livestock diseases in conjunction with BQMS, trend, South Korea’s quarantine system achieved scientific-based standardization for was implemented starting from 2008, and the system began to be used in 2013. animal/livestock products, and improved efficiency of the relevant processes and the provision of high-quality public services while producing various statistical data. An electronic payment/complaint system was established to allow for on-line request and payment, and a data warehouse (DW) was set up to improve timeliness and efficacy of non-regular and non-typical statistical information, caused by safety issues related with imported livestock products, so as to provide information.

088•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•089

Quarantine Inspection Performed on Exported/Imported Animals and Livestock 1.3. HACCP Management System Products (2009~2013)

Classification ’95(A) ’97 ’00 ’04 ’06 ’12(B) B/A(%) 1.3.1. Introduction Number of Trading Countries 79 83 86 100 101 114 44↑ HACCP stands for Hazard Analysis Critical Control Point and is a systematic, Quarantine Cases (thousand) 46 44 65 73 106 126 174 ↑ scientific and preventive approach to food safety management. HA means “Analyze Note: Include quarantine request for each case, reception thereof, precision inspection, fee payment, quarantine certificate Hazards” such as biological, chemical, and physical agents. CCP means a step or issuance, transmission of quarantine result (pass/reject) to customs service, and post-management of rejected items procedure to prevent or eliminate a food safety hazard or reduce it to an acceptable Source: Animal and Plant Quarantine Agency (QIA), 2014. level.

The KAQIS used EDI to transmit and receive cargo manifests and quarantine

HACCP System Compared with Existing Food Safety Systems results of animal/livestock products without paper document, redundancy and Classification HACCP System Former System possibility of entry error, which allowed for improvement of speediness and timeliness of process as well as speedy customs process with the one-stop Specificity Pre-Prevention After-Management information service based on information sharing between related agencies. Each Step of Control target Final Product Manufacturing Qualification Efficiently supported field-oriented quarantine works are due to rapid increase Management Pre-Process Control After Sample Test in the number of trading countries and quarantine volumes after expansion of free

trade of animals and livestock products. With the national economic growth and Source: Animal and Plant Quarantine Agency (QIA), 2014. market opening, the number of trade and trading partner countries of Korea have been on the rise. It increased from 79 in 1995 to 114 in 2012, a 44% increase, and that of quarantine cases also soared from 46 thousand in 1995 to 126 thousand in The previous hygiene management system was operated in the form of 2012, a 174% increase. post-control method through sanitary inspection on final products, whereas the HACCP system employs a scientific, advanced and precautionary method that reduces hazard by analyzing risk factors for food safety through the preliminary

Exit/Entry Report by Livestock-related People through BQMS management of working process and setting up management points in each major Persons Subject working process. Classification Reporter Non-reporter Report Rate to Report 2011 53,238 52,726 512 99.0%
The History of HACCP 2012 75,302 75,159 143 99.8% 2013 79,064 79,005 59 99.9% Year Details NASA of the U.S. adopted the HACCP System for the manufacturing of 2014 40,471 40,334 137 99.7% 1959~60 space food in the condition of 100% safety food Source: Animal and Plant Quarantine Agency (QIA), 2014. Notification of HACCP outline from the NCFP (National Conference of Food 1971 Protection) in USA FAO/WHO supplied HACCP Guide Line to the nations. With the implementation of BQMS, the annual number of livestock-related 1993 CODEX Conference recommended the adoption of HACCP people subject to report exit and entry reached a total of 40.5 thousand in 2014. Korean government adopted the HACCP System in food The actual number of reports was 40.3 thousand, accounting for 99.7% of the entire 1995~1998 -1995: General food (Ministry of Human Welfare and Health) number of people subject to report. -1997: Livestock Products (Ministry of Agriculture and Food)

Source: Animal and Plant Quarantine Agency (QIA), 1998.

090•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•091 In 1959 and 1960, the HACCP system was first introduced as a part of a space should include hygiene management programs such as the Good Agricultural Practices development plan of NASA to produce 100 percent safe space food in the (GAP) and the Good Hygiene Practices (GHP). Also, regulatory requirements should be microbiological aspect. In 1993, FAO/WHO provided the guidelines for application satisfied in advance to implement the HACCP system. For the application of HACCP, five of HACCP, and Codex Alimentarius Commission (CODEX) suggested in its general preliminary steps and seven HACCP principles should be observed as well. assembly meeting that all the countries around the world adopt the hygiene standard based on the concept of HACCP. In order to secure food safety and enhance

Hazard Element in Livestock Products the global competitiveness of the food industry, the Ministry of Human Welfare and Health revised the Food Sanitation Act and introduced HACCP in December 1995, Classification Hazard Cause Human Health and made a public announcement for the implementation of HACCP in December Infection: Salmonellosis , Vibriosis 1996. A year later, the MAFRA amended the Livestock Products Processing Act Bacterial Food Poisoning Toxin: Staphyliococcus, (currently Livestock Products Sanitary Control Act) and applied the HACCP system to Food Poisoning symptom Biological Botulinus slaughterhouses and livestock processing plants annually from 1997. Elements Pathological O-157:H7, etc. BSE, TB, Anthrax, Rabies, V-CJD, TB Zoonoses In 1997, MAFRA applied HACCP to processing plants and slaughterhouses in HPAI, Malaria, etc. (Chronic Disease) 2000, meat-cutting plants in 2001, the feedstuff industry and meat retail shops in : mushroom, 2005, and expanded to livestock breeding farms in 2006. Since then, HACCP has Potatoes etc. Natural been applied from swine farm to cattle farm and /duck farm and evaluated Fisheries: Swellfish, Shellfish, Food Poisoning annually. Also, the Korea livestock products HACCP accreditation service under MFDS Chemical etc. Cancer, Elements Mould (aflatoxin), etc. is responsible to designate HACCP accreditation and management. In recent years, Neuro disease, (Poisoning) Pigment, Antiseptics, the status of HACCP accreditations is turned out to be 100% in slaughterhouses, Food Additives (Chronic Disease) Preservatives, etc. 85% in livestock breeding farm, and 55% in livestock processing plants (The Korea Livestock Products HACCP Accreditation Service, 2014). Hazard Heavy metals, Pesticides, Poisoning Dyoxin, etc. Physical Physical Metals , Glass, Lead, Nail, etc.
Composition of HACCP Plan Elements Hazard

Source: Bae, Sang-Ho, FTA Agreement and HACCP Management, 2014.

Hazard refers to a biological, chemical and physical factor (or status) that may have harmful influence on human health, which can be classified biological, chemical and physical elements. Biological elements include infectious diseases such as bacterial food poisoning and zoonoses. Chemical elements include toxins such as food poisoning caused by natural poison, food additives and hazardous substances. Physical elements include physical hazardous substances. Bacterial food poisoning is classified into two types: infection-type and toxic type. Infection-type food poisoning is caused by salmonella and vibrio, while toxic-type food poisoning is caused by Staphylococcus aureus, botulinum and pathogenic O157:H7.

Source: Bae, Sang-Ho, FTA Agreement and HACCP Management, 2014. Zoonoses can be transmitted to both human beings and animals. This type of disease includes bovine spongiform encephalopathy (BSE, so-called mad cow disease), tuberculosis (TB), anthrax, HPAI (so-called avian influenza) and food The HACCP system can be managed properly when a sound groundwork of pre- poisoning. Chemical factors that cause food poisoning include natural poison, food requisite programs is laid first. The pre-requisite programs for livestock breeding farms additives and hazardous substances. Natural poison that causes food poisoning

092•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•093 includes vegetable, animal and mold toxins. Food additives such as pigment, The food safety management has been implemented in a manner in which the preservatives and antiseptics can also cause food poisoning. Hazardous substances Ministry of Food and Drug Safety (MFDS) is in charge of safety inspection for the that cause the disease include heavy metals, remaining pesticides and dioxin. Physical entire value chain, while the MAFRA and the MOF are deputed for the enforcing elements that cause hazard include pieces of iron and glass, lead and nails. function at the stage of production.

1.3.2. Expectation of HACCP The MAFRA is in charge of safety management in agricultural products at farms and wholesale markets. As for livestock products, safety and hygiene management The HACCP system is expected to create several effects: to enhance productivity from breeding farms to slaughterhouses and milk collection stations is conducted by and prevent livestock diseases by standardizing the management system for the MAFRA as well. In addition, the function of product management and disease operation and records of livestock breeding farms; to prevent hazardous factors control, which is closely related to the support for the producers of livestock products effectively and respond to any outbreak of diseases in a swift and accurate method; and marine products, is implemented by the MAFRA and the MOF as in the past. and to secure food safety and lay the groundwork for safe livestock production.

Perception on HACCP
Safety Management by Item and Distribution Stage and Entrusted Agencies Classification Details Segment Entrusted Field Remit of the Ministry of Food and Drug Safety • Most priority to safety over price, quality - Regulation (Safety > Quality > Origin > Price) and standard Consumer Agricultural ○ Place of production • Want to choose more reliable products, which are produced application products - Wholesale market under well recognized program such as HACCP regarding safety - Collection places for - Retail stages inspection Farmers, Manufacturers • Prepared for adaptation, but feel burdensome loads and joint markets including - Establishment of and Distributors • Satisfied with outcome and economic profit a general plan for department stores, Source: Animal and Plant Quarantine Agency (QIA) Website (www.qia.go.kr). supermarkets, safety inspection convenient stores, - Check on the state ○ Place of production of progress of - Storage place e-commerce, As an effect of HACCP, livestock farms with the HACCP certification will be able entrusted agro- (producer) traditional Marine products livestock and to produce safe, high-quality livestock products based on thorough hygiene control - Wholesale market markets, etc. marine products and standardized breeding management. Consumers will increasingly prefer safe - Collection places for safety inspection loads, joint markets, livestock products, so producers will have to go through hardships in preparing for plans and consignment the certification of HACCP. However, they will eventually see an increase of income - Joint response with markets by earning trust from consumers. the departments in - Meat and milk charge in the case processing plants, of a safety accident In the meantime, NACF announced the productivity of HACCP accredited department stores, - Safety regulation livestock farms is much higher than general livestock farms. In case of beef cattle, - Breeding farms supermarkets, inspection - Slaughterhouses butcher shops, HACCP accredited farms which obtained from 7.4%p to 11.1%p higher income of according to Food - Milk collection franchise stores, Sanitation Act rd wholesale prices than general farms (Livestock Newspaper, 3 of December 2014). stations (farms, convenient stores, - Foods stored and slaughterhouses, milk etc. Livestock products displayed for the collection stations; - standard purpose of selling 2. Food and Plant Safety and Health in Korea HACCP included) application - Wholesale markets, (inspections of and operating collection places slaughterhouses and status checking for loads, joint milk collection stations with regard to markets, and 2.1. The Current Status entrusted to cities and slaughterhouses consignment provinces) and milk collection markets 2.1.1. Food Safety and Plant Quarantine station facilities

094•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•095 The MFDS manages and supervises the entire process of the value chain for 2.2. Major Food Safety and Plant Quarantine Policy agricultural products, livestock products, and marine products including imported agricultural commodities in Korea. Among the organizations of the MFDS, 3 bureaus and 250 personnel are related to food safety including the Food Safety Policy 2.2.1. Food Safety Inspection Bureau, the Food Nutrition and Dietary Safety Bureau, and the Agro-Livestock and Safety inspection of horticultural products is mostly a duty of the MFDS; however, Fishery Products Safety Bureau. The 6 regional administrations are in charge of the related works are also conducted by the Rural Development Administration (RDA), inspection on imported foods including safety inspection on agricultural products in the National Agricultural Products Quality Management Service, and the institutes of domestic circulation, while local governments of cities, provinces, and districts also health and environment of cities and provinces. conduct agricultural product safety inspection.

The MFDS and RDA set the maximum residue levels (MRLs) for pesticides, while

Organization Chart of the Ministry of Food and Drug Safety the 6 affiliated regional administrations are in charge of collection of samples and inspection at the stages of wholesale and retail. In the meantime, RDA establishes the standard of pesticide usage so that the amount of remaining pesticide in the agricultural products during harvest seasons does not exceed the MRLs.

The National Agricultural Products Quality Management Service (NAQS) manages the safety of agricultural products at the production stage according to the Pesticide Control Act and the Agricultural and Fishery Products Quality Control Act. The institutes of health and environment of each city and province are implementing safety inspection and tests at the wholesale and retail stage in the regions. Wholesale markets in Seoul and some regions are preparing their own inspection facilities to conduct safety inspection as well.

Duties by Agency Related to the Safety of Vegetables

Agency Duty •Ministry of Food and Drug Safety •Setting the MRLs for pesticides •RDA •Setting the pesticide safety usage standard Source: Ministry of Food and Drug Safety Website (www.mfds.go.kr). •National Agricultural Products Quality •Checking the remaining pesticide at farm Management Service and local market •Institutes of health and environment of •Inspecting the remaining pesticide in the The MFDS is comprised of a total of 1,758 personnel: 588 at the headquarters, 396 provinces circulated agricultural products •Public wholesale markets •Inspecting the remaining pesticide in the at the National Institute of Food and Drug Safety Evaluation, and 774 at regional circulated agricultural products in the market administrations. Among them, 622 are researchers, accounting for 35% of the total Source: Ministry of Food and Drug Safety homepage www.mfds.go.kr number of staff. In 2014, the Ministry was allocated a budget of 344.6 billion won, approximately 0.3 billion USD, 14.5% up from 2013. Safety management of meat products comprises feed management, disease control, and safety inspection. Feed management is conducted by the National Agricultural Products Quality Management Service (NAPQMS), which tests the components of feeds and harmful substances. The MFDS is implementing safety management of domestic livestock products; management of livestock diseases is a duty of the Animal and Plant Quarantine Agency, an affiliated agency of the MAFRA. For efficient operation, safety and hygiene management from livestock

096•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•097 breeding farms to livestock products slaughterhouses and milk collection stations is deputed to the MAFRA. Also HACCP at the stages of farms, butcher shops, and milk collection stations is consigned to the same Ministry, while inspection of

Organization Chart of Animal and Plant Quarantine Agency slaughterhouses and milk collection stations is a duty of cities and provinces.

Duties by Agency Related to the Safety of Livestock Products

Agency Duty

•Testing feed ingredients •NAPQMS •Monitoring livestock diseases •QIA •Setting the permissible amount of •Ministry of Food and Drug Safety remaining substances including antibiotics

•Inspecting meat products at distribution •Livestock experimental hygiene stations of level cities and province •Inspecting meat products at the stage of butchery and milk collection

Source: Ministry of Food and Drug Safety Website (www.mfds.go.kr).

Safety inspection includes domestically circulated foods and quarantine of Source: Animal and Plant Quarantine Agency (QIA) Website (www.qia.go.kr). imported foods. With regard to the agricultural products at the production stage, NAQS is mainly in charge of checking whether the permissible amount is observed at the storing stage or the stage before shipping based on the Agricultural and 2.2.2. Safety Labeling and Certification System Fishery Products Quality Control Act. For safety inspection of agricultural products at the retail and circulation stage, regional administrations of the MFDS and the Safety labeling and certification system provides information so that consumers institutes of health and environment of cities and provinces collect samples to can assess the necessary information on foods that they are willing to purchase, conduct the inspection. Inspection on harmful substances in imported agricultural which includes Certification of Eco-friendly Agricultural Products, Certification of products, processed foods, and livestock products belongs to the duties of regional Organically Processed Foods, and HACCP certification. Certification of Eco-friendly administrations, and is conducted at imported food inspection centers at harbors or Agricultural Products is a certification system with regard to organic and pesticide- airports. Quarantine of imported animals and livestock products is performed by the free products instated by Environment-Friendly Agriculture Fosterage Act. Animal and Plant Quarantine Agency, an affiliated agency of the MAFRA. HACCP certification was introduced in 1995 as consumer concerns increased on food safety, which has been selected as one of the hygiene conditions of international food trade. The system identifies risk factors that can occur from the production of raw material through processing, preservation, and circulation to delivery to customers, and provides certification to hygiene management systems that decide critical control points (CCP) in advance.

Systems including country of origin labeling and GMO marking require revealing the information on whether the products are domestically produced or genetically modified, which is directly or indirectly related to food safety.

098•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•099 2.2.3. Plant Quarantine on areas (places) with hygiene issues along with 174 thousand agro-livestock and fishery products and processed products (health related complementary foods With the expanded trade scale due to factors including FTAs, it is expected included) of 320 items and 42 food groups in total, of which 1,241 products were that the work regarding plant quarantine will continue to increase. In addition, disapproved (disapproval rate at 0.7%). The Ministry then disclosed information in as exports of agricultural products are having more attention and quarantine real time through the emergency report system on disapproved food and swiftly requirements in partner countries are becoming stricter, it is required to reinforce banned from selling of the products while recalling, seizing, and discarding the export quarantine negotiations and systematically control disease and pests with products at the same time. regard to export complexes. Moreover, with the increasing inflow of subtropical foreign disease and pest due to the climate change, forecasting and epidemiologic The Ministry also developed and propagated the automatic banning system investigation shall also be reinforced. for sales of harmful products (foods), which is a cooperative system for the private (circulation businesses) and the public sectors, that enables banning the disapproved Plant quarantine affairs of the QIA are handled by the headquarters and regional foods by scanning bar codes on the product at checkout counters. As 34,762 offices. The total number of personnel in charge of plant quarantine is 429: 61 at stores including 28 large, medium, and small distribution enterprises, Nadle stores the headquarters and 368 at regional offices. Among them, 358 are researchers (SME stores established by the government), and the military welfare agency are and agricultural experts, taking up 83% of the entire employees. The proportion of participated autonomously in 2012, safe consuming environment is provided to 15.3 agricultural experts in the plant quarantine field is large because this field lays more million consumers every day. emphasis on the inspection against imported and exported plants than on general administrative works. The 2014 budget of the plant quarantine field was 10.9 billion Moreover, the previous post-management system, in which results of research won, approximately 10 million USD, a 11% decrease from the previous year. including collection and inspection until then were quickly presented to ban the circulation and sales of the harmful foods when the risk occurs or is likely to occur, was replaced with a more effective system, in which the circulation and sales are first 2.3. Food and Plant Safety Policies stopped temporarily, and then risk assessment is conducted to notify the result to the public and to perform active measures to ban the sales completely. 2.3.1. Ministry of Food and Drug Safety 2) Establishing Safety Management System for Imported Foods 1) Enhancing Safety on Foods While the self-sufficiency rate of food in Korea decreased from 54.9% in 2010 to The Ministry of Food and Drug Safety is executing nationally integrated control 45.3% in 2011, the number of imported items and the volume as of 2012 increased on facilities, such as school food service buildings, catering service institutions, by 10.8% and 6.6%, respectively, due to economic globalization including the wholesale and retail services, etc., while disclosing the names of the businesses conclusion of free trade agreements (FTA) between Korea and the European Union conducting inadequate hygiene management (violation rate at 3.1%) and ordering (EU) (July 2011), and between Korea and the U.S. (March 2012). the businesses in violation to correct and improve their management to maximize efficiency for food safety regarding foods in circulation. The Ministry also establishes However, according to the result of a survey on safety awareness regarding a basis for safe food provision to prevent food poisoning in advance as well as to imported foods, 6 out of 10 people (54.7%) responded that they do not feel safe preemptively manage food-related businesses. with the foods, indicating that the public concern for imported foods are still high; therefore, reinforcing safety management of imported foods is more important than The Ministry enacted regulation on scope of foreign substances subjected to ever. report, inspection and process. If an operator receives complaints from a consumer who found foreign substances inside foods, the operator is responsible for reporting The MFDS checked the status of hygiene management of local manufacturers in the matter to administrative agencies so as to inspect and analyse the cause of the exporting countries and banned import of the products made by the problematic substance contained in the food. In addition, for efficient collection and inspection manufacturers to relive public concern on imported foods by enforcing safety of foods in circulation, the Ministry expanded the scope of collection and inspection management of the foods, and enacted Sensory Inspection Standards to prevent

100•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•101 corrupted or spoiled agricultural products from being imported by reinforcing safety management. As various food-related incidents continue to occur, it is currently management. In addition, it issued the Order for Inspection so that importers should urgent to expand HACCP to provide safe food to consumers, improve the level of conduct safety inspection in advance, while tightening management on importers to hygiene management of the food industry, and secure global competitiveness of the avoid importing disapproved foods. industry.

3) Labeling System A research has found that if HACCP is applied to food businesses, sales and short-term net profit increase, and the number of consumer claims decreases, which The MFDS has provided standards for labeling of foods, etc., which requires indicates that the application of HACCP helps to raise profit of businesses. For labeling of the detailed ingredients, dates of manufacture and expiration (quality consumers, expanded application of HACCP will bring a wider scope of choice for maintenance date), and nutritive components to provide accurate information safe food and higher assurance on the overall food. to consumers, and preservation and storing method along with precautions for handling for hygienic treatment on the container or packing of the foods. Since HACCP was introduced in 1995, and management standards for small businesses were provided, the duration of civil affair handling decreased (60 days → The Ministry reviews items to be revised every year to reflect on the system to 40 days), the number of required paperwork decreased, and the application fee for operate a labeling standard. Meanwhile, frequent revision of labeling items can lead HACCP designation ($200) was temporarily exempted (until November 30, 2014). to burden on the industry due to replacement of remaining packing materials and resource. Therefore, the Ministry is operating the Joint Enforcement Date System for Furthermore, the basis of frequent inspection and assessment on the businesses Food Labeling Standards so as to render that the standards are enforced all at once in violation of the Food Sanitation Act is prepared to reinforce post-management at the same date every year (e.g. January 1st) so that food industry holds less burden of HACCP-applied businesses. In addition, financial support (funding for facility caused by replacing packaging according to the changed labeling standard, while improvement) and technical support projects were operated and expanded for wider consumers can more easily choose foods when the food information changes that HACCP application in SMEs, while enhancing publicity activities including launching can be understood more clearly. TV commercials, consumer tour programs, and exclusive product selling corners to raise consumer awareness on HACCP. As a result, the number of HACCP designation In addition, the Ministry is exerting continuous effort to improve the labeling increased from 476 in 2007 to 3,029 in 2012. items: first, it is now conducting a research project to find a solution to simplify the name of additives and to use information technologies (IT) because the labels are 2.3.2. Ministry of Agriculture, Food and Rural Affairs hard to read with so many information contained in the limited labeling space. Second, it is conducting another research project to identify more food that cause Main goals of the MAFRA are to expand basis for stable supply of eco-friendly allergies based on clinical outcomes produced by medical experts and to make the and safe agricultural food, reinforce pre-emptive safety management, and enhance labeling of such foods compulsory. Lastly, to reinforce safety management of the consumer capabilities for proper dietary life. instruments used for manufacturing and selling foods, the Ministry plans to require labeling of “for foods” on the instruments so that they can be identified as used for foods, as it is currently difficult to identify the purpose of use of the instruments, which leads to the instruments for foods being mixed with those not for foods due to no identifying labels.

4) Hazard Analysis Critical Control Point (HACCP)

As mentioned earlier, HACCP is a scientific and pre-emptive food safety management system in which risk factors that can be caused in the entire process from raw material of foods through manufacturing, processing, cooking, and circulation to consumption are identified, analyzed, and be subjected to focused

102•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•103 For eco-friendly food production management, the resource cycling eco-friendly

Core Challenges and Major Contents of MAFRA for Food Safety farming system needs to be established. For this, the Ministry selected each of the Challenges Major Contents resource cycling complex in metropolitan regions and small eco-friendly farming areas in villages to build the sustainable, specialized, and grouped eco-friendly agricultural product production basis. In addition, supports for organic fertilizers are •Strengthening certification management, discovering expanded and soil conditioners are continuously provided to increase soil fertility. Expanding the basis of eco- new demands, securing large circulation channels  friendly agricultural products •Reinforce producer instruction and seek substantiality of supporting policies 2) Agro-livestock Product Safety Management

To secure agricultural product safety and preserve farming environments, Good •Expanding GAP·HACCP Reinforcing preemptive safety  •Establishing safety management network focused on Agricultural Practice (GAP) shall be activated, in which harmful substances such as management vulnerable sectors pesticide or heavy metals that can remain in farming environments and agricultural products at the stage of managing and distribution after producing and harvesting Enhancing communication •Expanding the Country of Origin Labeling system the products are properly managed.  with consumers •Improving the labeling and certification system The government has been revising policies since 2010 with minimizing required Source: Ministry of Agriculture, Food and Rural Affairs Website (www.mafra.go.kr). paperwork by integrating certification processes or not requiring repetitive documents to activate the GAP system, mitigating the duty to pass via GAP- 1) Establishing the Basis of Safe Food Production designated facilities, and reinforcing harmful factor management. In addition, it has been putting efforts to provide production basis for the participation of farms in To establish the basis of safe food production, management of the producing the GAP system by financially supporting the GAP facility improvement project and environments of agro-livestock products shall be first reinforced. For this, the providing consultation, instruction, and publicity activities. Ministry has continuously been conducting a research on the status of contamination by harmful substances in the production environment, which comprises selecting Supply expansion of GAP agricultural product is included in one of the major farmland and water that can be contaminated by heavy metals to investigate the government projects, which indicates that the policies have been advanced with the current status, selecting materials including manure and fertilizers that can be purpose of expanding the GAP application to agro-livestock products. contaminated by harmful substances, and checking the heavy-metal contamination status of farmlands and agricultural products in the area including abandoned The Ministry has strongly recommended GAP-certified farms to use the GAP mines. facilities at producing areas considering proper conditions with soil and water management and organizational structure. The farms are also provided with Managing pesticide and animal drugs is important for securing safety in the technical consulting from the experts focusing on applications of agricultural production stage. The Ministry is performing all-the-year-around instruction and technologies. To mitigate the burden of farms which applied for GAP certification, publicity activities for safe pesticide use targeting at farms to check the quality and the government supported the entire costs of safety analysis on farming circulation of pesticide in order to block the distribution of defective farm materials environment (including soil and water) and agricultural products. In addition, GAP and to prevent illegal application. In addition, experimental researches on the facilities were expanded by a project of complementing circulation facilities and subjects including expansion of pesticide registration of minor crops to secure the equipment at production areas including agricultural processing complex (APC). safety of agricultural products, effects and damage of pesticide, residue in crops, are being conducted mainly by the Rural Development Administration, along Regional agricultural cooperatives and the national agricultural cooperative with the work of reviewing and reassessing the safety and validity of drugs for federation have expanded GAP-certified agricultural products while inducing large animals. Furthermore, the Ministry is expanding HACCP designation of Total Mixed enterprises to pull the sales to increase transaction sales of GAP-certified agricultural Ration (TMR) feed plants and conducting thorough inspection and test at the feed products. As a result of such efforts, the number of GAP-certified farms has increased manufacturing and distribution stage. by 3,000, on average, for the last 3 years, and the number of GAP-certified farmers rapidly increased as well in 2013, exceeding the target of 45,000.

104•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•105 Currently, the participation rate is only 4% due to the complex GAP certification The act was first applied to the breeding phase in December 2008, and expanded process, the lack of awareness, and low demands for GAP agricultural products. To further to the distribution phase starting from June 2009. tackle this, various improving measures are being conducted, including integrated certification processes, seeking substantiality of certification standards, developing In December 2012, the act was extensively amended as the Livestock and guidelines, supporting costs for safety analysis, expanding demand through school Livestock Products Traceability Act (unofficial title) to make a legal basis for the Pork food service, and reinforcing instruction and consulting. Traceability System. The preparation for the new act has been carried out in stages to implement the act from the second half of 2014. Since October 2012, every hog- 3) Country of Origin Labeling System raising farm has been granted a farm identification number, and the movement and butchery of pigs without stamps that indicate an identification number have been Labeling of country of origin of food provides accurate information to consumers prohibited. From 2012 to 2013, the pilot project was expanded from the distribution about products, affecting the consumer choice of foods. In 2013, the MAFRA and the phase to the sales phase by issuing traceability numbers to part of farms with brands. MOF expanded the items subjected to country of origin labeling at restaurants from Ten producers participated in the first pilot project in 2012, and 30 producers in the 12 items (including beef, pork, and rice) to 16 items (including lamb, goat, Pollack, second one in 2013. mackerel, and cutlass fish). For effective public activities regarding the country of origin labeling system at restaurants, many methods are employed including In the case of pork traceability system in farms was established in May 2011, honorary observers, outdoor billboards, and NH (national agricultural cooperative) and a pilot project has been conducted since 2012. After consultation for working bank ATM machines to help the policy to be settled. level officials, the project was expanded to 46 farms in 2014. As for the scale of participation in the pilot project, 1,355 farms (3,200 animals), 32 slaughterhouses, 27 4) Traceability System processing plants, and 74 markets participated.

The traceability system is divided into those for livestock products and those for Production traceability management of pigs comprises assigning farm agricultural products. The traceability system for livestock products is introduced to identification number (6 digits) for each pig breeding facility, regularly reporting record and manage the information from the birth of cows (pigs) to the processes breeding status, reporting when moving pigs between farms (butchering and of breeding, butchering, processing, and selling so that if a disease or a hygienic or shipping included). Circulation traceability management includes assigning and safety issue occurs, swift response is possible by tracking the trace of the situation. marking trace number (12 digits) on the body based on the farm identification Thanks to this, information including moving routes of livestock products due to number when butchering, processing based on the trace (grouping) number, and transaction, country of origin of livestock products, result of classification, result of marking the trace (grouping) number for management at the selling stage. hygiene test, species of cows (pigs), breeders, and slaughterhouses is provided to producers and consumers. The traceability system for agricultural products is conducted mostly for GAP and eco-friendly agricultural products. Even though the traceability management The Beef Traceability System Project is aimed to manage data about birth records system has been introduced and operated mostly for livestock products since the of cattle and the entire process of butchery, processing and sales, in order to swiftly global outbreaks of mad cow disease; however, it is not yet generalized in fact that trace related records and respond to any sanitary issues. The system will enhance the the participation rate is low and the system is operated autonomously. In the EU, efficiency of livestock health control and secure the safety of beef products, thereby the introduction of the traceability system is compulsory mostly for meat; the actual protecting rights and interests of consumers and contributing to the growth of participation is minor. Detailed standards for the tracing are decided autonomously livestock and related industries. by the private sector.

Since October 2004, the authorities have implemented pilot projects by selecting In the meantime, the MAFRA is operating Foodnuri, a consumer-participating nine farms with exemplary brands, added regional units from 2006 to 2007 to integrated information network, since January 2014. In addition, consumer expand the scale of the project, and finally enacted and announced the Cattle and monitoring groups are composed to conduct on-the-spot coverage of the Beef Traceability Act in December 2007. production, selling, and quarantine of agro-livestock products in the midst of the shipping season, and are encouraged to directly participate in content planning and

106•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•107 assessment process. Moreover, the purchase guide for fresh and seasonal foods based means of arbitrary or unjustifiable discrimination between countries where the on consumer researches and tests is provided every quarter in Agricultural Food same conditions prevail, or a disguised restriction on international trade, nothing Inside, a consumer report for agricultural food. in this Agreement shall be construed to prevent the adoption or enforcement by any contracting party of measures.” Article XX (b) is related to animal and plant As direct transactions or contract farming for supplying good agricultural food quarantine, which stipulates that “necessary to protect human, animal or plant life is limited in the public sectors including school food service, the consumption of or health.” good and safe domestic agricultural food is not being expanded. Therefore, the MAFRA is funding for operation of school meal service centers to secure the safety Agreement regarding the application of sanitary and phytosanitary measures of food materials of school foods. To continue to supply safe agricultural food, the expresses that the members take harmonious SPS measures based on global Ministry is concentrating on expanding good agricultural food program by enacting standards, guidelines, and recommendations of related international organizations food guidelines and designating more businesses that supply good food materials. including the Codex Alimentarius (Codex Commission), the International Office of Exemplary businesses supplying food materials are designated by comprehensively Epizootics (OIE), and the International Office of the International Plant Protection assessing quality and hygiene level of agricultural foods, HACCP certification Convention (IPPC). The SPS agreement basically grants a right to take SPS measures that management, the usage of GAP products, etc. are necessary to protect human, animal or plant life or health; however, such measures shall be applied only within the scope of necessity according to scientific basis. 5) Sanitary and Phytosanitary (SPS) Measures In the Korea-U.S. FTA and Korea-EU FTA, a content regarding animal and plant Sanitary and Phytosanitary (SPS) measures, also known as animal and plants hygiene quarantine was finished at a declaratory level that the WTO hygiene quarantine measures, refers to the global regulation regarding SPS measures quarantine agreement (SPS) shall be observed. The Korea-U.S. FTA reaffirmed the to protect health of human, animals, and plants. With the expansion of global rights and duties under the WTO/SPS agreement, expressed consent for following trades, food safety along with possibility of disease or pest inflow is drawing much the WTO conflict resolution process for conflicts between both parties regarding SPS attention. measures, and for establishing a SPS commission to consult the quarantine process regularly. In addition, the agreement includes a clause that scientific risk assessment In FTA negotiations, it is general to follow the regulations of multilateral trading and technical consultation between professional organizations shall prevail to system with regard to hygiene quarantine related to animal and plants. Most FTAs prevent the commission becoming the means of applying trade pressure. include a declaratory phrase that WTO (World Trade Organization) multilateral trading rules are observed, or stipulate additional elements to the WTO regulations. In particular, tackling issues regarding hygiene quarantine between FTA parties is a 3. Agricultural Technology Development and major purpose by establishing consultation bodies (commission, practice commission, Extension System in Korea etc.) related to hygiene quarantine. 3.1. Introduction Agricultural trade is often restricted by technical regulations such as tariff and non-tariff barriers. Acknowledging the fact, Agreement on the Application of Korea’s system of agricultural R&D, extension and dissemination has been Sanitary and Phytosanitary Measures (hereinafter “SPS agreement”) was adopted developed in order to play the roles and functions that are supposed to be done by at the Uruguay Round (UR) in addition to the WTO agricultural agreement, and the public institutions. Before the 1970s, Korea suffered from persistent food shortages animal and plant hygiene and quarantine measures of WTO members are regulated after the Korean War and had to depend on food aid such as PL480 provided by by the agreement. the U.S. In this situation, the nation’s key task was to increase the production of food crops especially rice, the staple crop. From the mid-1970s, the nation achieved Animal and plant hygiene and quarantine measures are exempted from a sustainable self-sufficiency in rice through “Green Revolution.” The 1980s saw the application of the basic principles of GATT, etc. according to Article XX of GATT so-called “White Revolution,” which created various agricultural technologies to 1994 (General Exceptions), which lists exceptions after stating that “subject to the increase production of economic crops, other than rice, including horticultural crops requirement that such measures are not applied in a manner which constitute a such as fruits and vegetables for raising rural incomes.

108•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•109 In the 1990s, Korea began to join the international trade negotiation process for 2) In the 1970s the market opening of agricultural products, and to enhance multi-functionality of the agriculture and rural communities to prepare for the openings. To this end, In the 1970s, the Korean economy experienced a remarkable growth thanks to technology development and dissemination in new fields like environment-friendly accelerated industrialization, mainly in the heavy chemical industry, and progress farming emerged as a new direction. in urbanization. The RDA worked on creating a new variety of rice since the late 1960s and finally succeeded in providing farmers with Tongil variety of rice, the one 3.1.1. Historical Background that has advantages of the long-grain variety to make up for the disadvantages of medium-and short-grain varieties (that is, a short cultivation period, low yield, etc.). 1) In the 1960s With this new variety, the nation achieved rice self-sufficiency in 1974. The The agricultural technology development and dissemination system established government made the rice price stable by buying up, leading to the farm household its foundation in the early 1960s when Korea began to promote economic growth. incomes higher than that of urban workers in the mid-1970s. The new rice variety The introduction of related regulations and system improvement were carried development resulted from international cooperation that technology personnel out based on the advisory report (May 1956) written by H. Macy, then Dean of of the RDA lengthened the test cultivation period to winter season by utilizing the the Agricultural College at the University of Minnesota after the Korean War. The pilot packaging process of the International Rice Research Institute (IRRI) located in report recommended that the agricultural extension service conducted separately the Philippines. The Community Development project conducted by the RDA was by several governmental agencies should be managed by a single governmental incorporated into the nation-wide national campaign of “Saemaul Undong” (Lee agency. The recommendation led to the Agricultural Education Act promulgated in Sung-woo, 2010). February 1957 and the establishment of “the Institute of Farming” (Ko Soon-chul et al., 2014). In order to speed up the process to set up a stronger institutional reform, 3) In the 1980s the Agricultural Community Development Promotion Act was promulgated in March 1962, and in April the Rural Development Administration (RDA) was founded After the high-yield variety creation led to self-sufficiency in rice in the 1970s, the as an independent governmental organization to take charge of the agricultural priority was transferred to development of cash crops and agricultural management extension and R&D functions. to raise farm household incomes. The previous agricultural system rapidly shifted to commercial farming involving both livestock and horticultural production, and to The Community Development (CD) project, which had been conducted by the high-quality low-volume production of vegetables and fruits (Lee Sung-woo, 2010). Ministry of Rehabilitation and the Ministry of Construction as a rural development Accordingly, the function of agricultural extension began to change its focus to program, was also transferred to the RDA (Chung Ki-whan, 1999). Therefore, technology development for garden products like vegetables and fruits (Ko Soon- extension agents implemented this demonstrative rural development projects also, chul et al., 2014). The vinyl mulching and tunnel cultivation techniques for cash crops residing in model villages to carry out a wide range of activities: disseminating such as chili pepper, sesame and had been introduced in the 1970s; however, technologies; conducting studies on the status of villages; planning the village the year-round cultivation using vinyl greenhouses started during the 1980s (Lee development strategy; and improving the livelihoods of rural areas (Ko Soon-chul et Sung-woo, 2010; Ko Soon-chul et al., 2014). The area of greenhouse cultivation al., 2014). showed a three-fold increase in the 1990s compared to the 1980s (Lee Sung-woo, 2010). In addition to the agricultural extension offices at the level of cities and counties, 1,473 township branch offices were established by 1975 (Ko Soon-chul et al., 2014), With the pilot project of rice farming mechanization, cultivators, rice-planting thereby completing the technology dissemination and extension system that could machines, combines, etc. quickly came into wide use (Lee Sung-woo, 2010; Ko Soon- cover farm households at the level of villages. The number of personnel working for chul et al., 2014). In the industrialization period, rural residents migrated to urban the offices rose to 7,628 in 1977 (Ko Soon-chul et al., 2014). areas in large number, and the mechanization was actively conducted as a solution to shortages of agricultural labor force.

110•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•111 4) In the 1990s and beyond The table below shows the policy directions of agricultural technology R&D and dissemination after the introduction of economic growth plans. Since the rapid industrialization, the rural population had sharply declined and the agriculture industry accounted for a far smaller share of the national economy.

Major Policy Directions of Agricultural Technology Dissemination Project by Period In 1990s, in the wake of global opening of Korean agricultural market, agricultural sector’s multiple functions were put more emphasis also noting that the rural areas Classification Details were not just the place for production activities. Particularly, as farm surpluses Establishing Technology increased due to enhanced productivity and consumers paid more attention to Dissemination Project • Disseminating basic agricultural production technologies healthy food and the impact on the environment, the government launched a Foundation to increase food production (1962~1970) policy to promote environment-friendly farming during this period, which led to technology development in organic farming and low input agriculture (Lee Sung- Achieving the Green Revolution • Disseminating new varieties and production technologies woo, 2010). Moreover, diverse policies for rural sightseeing and comprehensive (1971~1980) to achieve food self-sufficiency rural development were adopted to help rural communities raise their non-farming incomes by utilizing tangible and intangible resources in rural areas as tourist The White Revolution and attractions. Mechanization • Disseminating technologies to enable year round farming (1981~1990) Reflecting these transformations, many institutional changes had occurred to Quality Improvement and the R&D and technology dissemination system. As the rural and farm population • Mechanization and dissemination of labor-saving Diversification shrank, agricultural extension branches were led to closure or reduction in township technologies including facility automation (1991~) areas from late 1980s. Their roles were transferred to the agricultural extension

offices at the city and county levels (Ko Soon-chul et al., 2014). On the other hand, Source: Ko Soon-chul et al., 2014: p60. the function of higher-unit offices was reinforced to have a specialized extension system by, for example, establishing 13 specialized crop experiment sites under the supervision of the county offices (Ko Soon-chul et al., 2014). The township branch Since the late 2000s the agricultural technology development and rural offices closed down and the workers were relocated to the city or county offices extension project have transformed into a public service of collecting and providing in 1998, which reduced the workforce to 5,000 in 1999 (Ko Soon-chul et al., 2014). information and knowledge necessary for the entire process of agricultural sector, In the closed branch offices, consultation centers were operated by one senior from developing and disseminating agricultural technologies to education and extension agent (Lee Sung-woo, 2010). Also, most of the research/extension agents consumption (Lee Sung-woo, 2010). who had worked for the city or county offices became the agents belonging to local governments, meaning that the functions of the agricultural extension offices as well

Paradigmatic Shift in Agricultural Extension as the appointment and management of workers, were entirely or partially under the supervision and direction of the mayors or governors. The agricultural extension office changed its name to the Agricultural Technology Center (Ko Soon-chul et al., 2014; Lee Sung-woo, 2010).

The focus of the agricultural technology development and extension and dissemination system changed to the extension function for rural development, instead of the agricultural technologies. Extension groups in charge of environment- friendly technologies and rural resources development were subject to the reorganization plan of the RDA headquarters and its affiliated agencies in order to support exploring new income sources in environment-friendly farming and rural Source: Ko Soon-chul et al., 2014: p60. sightseeing (Ko Soon-chul et al., 2014: 48).

112•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•113 3.1.2. Organization of RDA 3.1.3. Performances of R&D and Extension

As the agricultural technology centers are now managed by local governments, As the Korean economy continues to grow, the agricultural technology R&D has the Rural Development Administration (RDA), a central governmental agency, now been conducted in order to meet the demand for a different role of the agricultural has a total of 1,856 permanent employees (www.rda.go.kr; as of Nov. 12, 2014). sector. From the 1950s to the 1970s, the role of the sector was to support the economic growth and to address food shortages; in the 1980s to increase farm The departments that conduct projects in the RDA’s headquarters include household incomes through agricultural commercialization after achieving self- the Research Policy Bureau, the Extension Service Bureau and the Technology sufficiency in staple grains; and in the 1990s to develop sophisticated technologies in Cooperation Bureau. The RDA also has four affiliated research agencies classified preparation for competition with low-priced agricultural imports due to the market by function: the National Academy of Agricultural Science, the National Institute opening and for various ways of food consumption. of Crop Science, the National Institute of Horticultural & Herbal Science and the National Institute of Animal Science. The most famous achievement that agricultural technology R&D institutes including the RDA made in the early 1970s was the successful development and dissemination of Japonica-indica hybrid rice, so-called Tongil rice variety, which

The Organizational Structure of RDA remarkably enhanced productivity and permanently eliminated staple crop shortages in Korea. It made it possible to keep rice price low and to reduce living expenses of consumers during the industrialization period. The rice field area in which the new variety was planted covered 78.1% of the total area in 1978, and the average rice production of farm households reached the world's highest level of 4.94 tons per hectare in 1977. This year, the supply of rice surpassed the demand by recording 108.6% of rice self-sufficiency rate (Kim Seok-dong et al. 2012).

Other technology development such as protected rice nursery, and development of related industries, e.g. polyethylene film (vinyl) and agricultural machines, followed to support productivity improvement as well as chemical inputs like fertilizers.

3.1.4. Methods of Extension and Dissemination

A variety of methods to disseminate the development outputs of agricultural technology have been developed, and key methods among them are explained below.

1) Pilot Projects by Utilizing Demonstration Farm

A demonstration farm and a pilot project are important ways to disseminate technologies. Pilot projects are necessary to conduct application tests to apply new Source: :Rural Development Administration (RDA) Website ( www.rda.go.kr). materials and technologies including new seeds, cultivation technology, agricultural machines and fertilizers and pesticides. Based on pilot projects, the first step for extension and dissemination of agricultural technologies to farmers is to show how to apply technologies by using demonstration farms. Farmers will have an opportunity of on-site training to learn new technologies and application methods

114•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•115 (Ko Soon-chul et al., 2014). Now the education program is aimed to conduct practical training courses to design agricultural management plans for a new year or the following year (Lee Sung-woo In Korea, new seeds of crops, cultivation technology, soil management and 2010). Summer farming season education was administered as on-site extension manure enhancement technology, disease and insect monitoring and prevention services. Training courses are customized for each type of trainees, including farmers and mechanized agricultural management have been disseminated through of young generation, leaders of rural areas, professional farmers, agricultural diversified methods of demonstration farm installation, pilot project complex management instructors and those who return to rural areas from cities (Lee Sung- establishment, trial performances and local workshops and evaluation meetings (Ko woo, 2010). Training courses vary in channel and method, including collective Soon-chul et al., 2014). In particular, trial performances and exhibitory education education by using leaflets and audiovisual materials and comprehensive education including short training courses and workshops have been most often used methods for farmers through television, radio, newspapers and magazines. in the early stage (Lee Sung-woo, 2010).

Pilot projects serve as a crucial opportunity to win trust from farmers as a process 3.2. Features of Agricultural Extension to respect users’ point of view, not as a unilateral training and dissemination of technologies (Ko Soon-chul et al., 2014). 3.2.1. Efficient Connection between Functions of Research and Extension and Dissemination 2) Education by Residing Extension Agents One of the salient features of the Korean R&D and extension system is that Education by extension agents was introduced in Korea in the 1960s and 1970s, various functions are managed by a single organization, RDA (Ko Soon-chul et in which extension agents, who were trained for a certain period of time and al., 2014). Since its foundation, the RDA carried out three functions: experimental built capability, resided rural villages to teach technologies and carried out local research, extension and dissemination, and training as shown below (Lee Sung-woo, development activities. 2010).

Right after the Community Development (CD) projects were introduced, a total

Functions Conducted by the Rural Development Administration of a thousand college graduates were selected to be trained as local development instructors (the position title changed to “agricultural extension agent” in 1962) Classification Details from 1958 to 1963 (Chung Ki-whan, 1999). They carried out surveys, organized •Experimental research for agriculture and living condition enhancement community groups (such as a development committee), collected opinions from Experimental research residents, designed development plans, conducted self-development and aid projects •Production of high quality crops and seeds •R&D for agricultural management and development and improved living conditions of residents (Yoon Seok-jin et al., 2013; Chung Ki-whan, 1999). With residing agents, rural villages were strongly willing to employ •Dissemination of scientific knowledge and technologies for agriculture and living condition enhancement new science and technologies for agricultural management and had high level of Production of high quality •Dissemination of techniques and knowledge for side jobs crops and seeds techniques for cultivation of major crops, with higher average income per household •Education for farmers, fosterage of farmers’ groups and than other villages (Ko Soon-chul et al., 2014). establishment of pilot project in rural areas

3) Education and Training of Farmers R&D for agricultural management and •R&D for agricultural management and development development Farmers were provided with education mostly in winter agricultural off-season and summer farming season. The off-season education was originally intended to Source: Lee Sung-woo, 2010 p31~32. provide side job training and conduct anti-illiteracy projects to eradicate gambling and binge drinking issues during winter season in which farmers had no income source. Since 1969, the education program changed to more systematic official The functional connection and organizational integration are aimed to swiftly training courses for farmers based on extension centers in each city and county. disseminate the outcome of agricultural R&D and to reflect demand from farmers on

116•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•117 agricultural R&D. The outcomes of about 2,000 studies were reflected on agricultural countermeasures of meteorological disasters, they carried out concerted measures policies and technologies during the 1970s and 1980s, according to a study (Ko Soon- with local governments in provinces, cities and counties (Ko Soon-chul et al., 2014: chul et al., 2014: 16). 50). The separation of administration and R&D and extension was specified in the related laws, and thus the human resources were not allowed to be engaged in other works other than their own project tasks (Ko Soon-chul et al., 2014: 51).

Efficient Integration of R&D and Extension Functions

Meanwhile, consultative bodies were established for cooperation and connection between two institutions such as provincial or city/county level Rural Advancement Committees and the Farming Research and Extension Committees (Ko Soon-chul et al., 2014: 50~51; Lee Sung-woo, 2010: 33). The RDA also made efforts to cooperate and connect with other agricultural organizations working at the local level. One of the examples was for the RDA to make an agreement with the National Agricultural Cooperative Federation (NACF), and appoint the directors of private organizations under the management of the RDA as the executives of the low level cooperatives of the NACF (Lee Sung-woo, 2010: 33). Moreover, the agricultural-educational cooperation commission was operated in cooperation with schools and universities that provide formal education, including colleges of agriculture, and carried out a Source: Ko Soon-chul et al., 2014 p48. variety of joint research and cross-education courses for rural areas (Ko Soon-chul et al., 2014: 51). There have been various attempts to connect the two functions. Training instructors learns new agricultural technologies and related knowledge from lectures 3.2.3. R&D and Extension/Dissemination System Led by the or practices conducted by the training department and related institutions with Government researchers. They also frequently participate in the research design and evaluation meetings to understand the R&D process, and provide suggestions based on on-site In the 1960s and 1970s, Korean government took the initiative in economic extension experiences (Ko Soon-chul et al., 2014: 49). In this process, training growth and social mobilization. Agricultural R&D and extension activities were instructors enable researchers to carry out more realistic and field-oriented research also carried out in “the government-aided system” (Ko Soon-chul et al., 2014) or and development by delivering demand from farmers. Researchers also frequently “the government-organized system” (Lee Sung-woo, 2010). Under the Agricultural visit the fields of rural extension projects, demonstrate their R&D outcomes, and Community Development Promotion Act, a single government-initiated system with participate in pilot projects to collect realistic information and opinions for the the RDA was established as early as in 1962. Any extension services by institutions development and fulfillment of research (Ko Soon-chul et al., 2014: 49). other than the RDA, including local governments and institutions in cities and counties, were required to earn approval from or cooperate with the RDA (Ko Soon- 3.2.2. Separation and Cooperation between Related Institutions chul et al., 2014; Lee Sung-woo, 2010).

For effective implementation of technology extension service at the local The RDA’s budget for extension services has been entirely provided by the Korean level, it is crucial to separate the administrative works and technological service government from the very beginning to ensure that the RDA carries out R&D and provision activities. To this end, the RDA became an agency independent of the extension and dissemination services in a stable manner. In 1964, the RDA’s budget MAF in the early stage and maintained the separate management of human for extension work, which excludes labor costs, was 528 million won (approximately resources and budget. Before local human resources were incorporated into 460 thousand USD), 53.2% of which was provided by the government, 5.2% by administrative institutions in cities and counties in the late 1990s, rural development provinces and 41.6% from city or county governments. Therefore, Korea’s RDA agencies in provinces and agricultural extension offices in cities and counties was not in need of internal revenues. Proportion of budget amounts supplied by were also run as independent ones. When the R&D and training institutions the central government dropped to 9.1% of the total in 1992, and then rose to needed administrative assistance for prevention of disease and insect pest or 33.4% in 1997. Meanwhile, during the same period, the proportion of the RDA’s

118•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•119 budgets provided by the local governments had been on the move in the opposite (seedling, horticulture, forestry, livestock and agricultural management) and fishery, direction with those provided by the central government. Nevertheless, the RDA contributing to nurturing young professional human resources with thorough has always acquired its total budget amounts from the nation (the central and local knowledge (Lee Sung-woo, 2010; http://www.af.ac.kr/websh/index.asp). governments) as a central governmental agency in charge of R&D and extension and dissemination of agricultural technologies since its foundation (Ko Il-ung, 1999). 3.2.5. Variety of Extension Projects

3.2.4. Professionalism of Human Resource and Education Agricultural education institutions have carried out extension projects in diverse areas. In addition to extension and dissemination of key R&D outcomes, they also The RDA and its affiliated local agencies taking care of agricultural R&D and rural run farmers’ organizations and participate in local development. That is, three key extension have many extension workers. At the beginning of the RDA, there were areas are focused on: extension and dissemination of agricultural technologies, 3,173 workers, and 2,918 of them were deployed in cities and counties. In the early agricultural resource development and enhancement of living conditions, and 1960s, 43% of the workforce was filled with highly-educated college graduates. education and cultivation of agricultural human resources (Lee Sung-woo, 2010: 27). Since then, the proportion of high-school graduates has been on the rise as R&D, and extension services based on expertise and experiences have become important As shown above, the two functions—R&D and extension and dissemination—are (Ko Il-ung, 1999). The number of the RDA’s extension workers sharply increased to major traditional tasks and these functions have been integrated in an effective 7,979 in 1989, and it dwindled to 6,839 as the organization underwent restructuring way among the central government institution (the RDA) and local institutions (Ko Il-ung, 1999). in provinces (rural development agencies) and cities and counties (agricultural extension offices). The authorities have made much effort to secure professionalism of human resources for education. Multiple measures have been designed and among them What is noteworthy in Korea is that these organizations have also involved in were “the Rules of Specialization of Extension Agents” in 1974 and “Guidelines enhancement of living conditions in rural areas. This is because after the liberation of Specialization of Extension” in 1989, which were designed to dispatch human from the colonial rule and the Korean War, rural residents needed programs for resources to each level of extension institutions depending on individual capabilities enlightenment, human resource development, social education for enhancement (Ko Soon-chul et al., 2014). Under these rules, human resources were classified into of living conditions and improvement of quality of life. These programs were the professional instructor group and the specialized instructor group. The former expanded to target female rural residents, the elderly and consumers, and included was dispatched to the centers in provinces, and the latter to the centers in cities and the development and utilization of material resources in rural areas (Lee Sung- counties (Ko Soon-chul et al., 2014). Specialties of instructors were classified by the woo, 2010). In addition, the Rural Nutrition Institution was established under the type of crops—grains, vegetables and —and by the type of functions—farm RDA in 1978 to improve dietary life and nutrition in rural areas. The name of this management, living conditions and social development—for more professional organization changed to the National Rural Living Science Institute in 1994, and technology education (Ko Soon-chul et al., 2014). This system contributed to the organization has been in charge of technology development and education to enhancing capabilities of instructors and human resource management. apply science to rural life. Projects in the 1990s include employment of female rural residents, improvement of farming conditions and health management (Lee Sung- Professionalism of human resources for agricultural technology development woo, 2010). and dissemination could be improved thanks to strong enthusiasm for education in Korea. The authorities could secure high-quality human resources by providing them with stable jobs, and thus the proportion of staff with college degree in the RDA increased to 48% in 1965 (Lee Sung-woo, 2010).

The National Agricultural College (three-year course) was installed in 1997 under the management of the RDA. In 2009, the college was expanded to Korea National College of Agriculture and Fisheries (four-year course) under the MAFRA, and turned out about 2,300 graduates every year from 2000 to 2010 with majors of agriculture

120•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•121 In consideration of increasing satisfaction level of the agriculture and forestry 4. Agricultural ICT Application projects clients (agricultural people, municipal and district officers, officers of the MAFRA) and to reduce the tasks of the public service officers, the Agricultural 4.1. Agricultural Integrated Information System (AgriX) Integrated Information eXcellent System (AgriX) was born under the slogan of “innovation of business operation.” 4.1.1. Background First, the application form was standardized and the major tasks were redesigned The MAFRA is conducting an investment and loan program of 1,190 billion won for unreasonable and unnecessary processes. Also, the information strategy plan (about 1.2 billion USD) through over 130 agricultural and forestry projects for the (ISP) was preceded. In addition, with the biggest objective to reduce tasks of officers development of the agriculture and rural sectors. However, the agriculture and in charge, various opinions were summed up from the initial stage of the project forestry projects have administrative limitations in improving efficiency and clarity to make the system more effective through the preliminary tests and examinations because such projects are linked to various institutions (central administrative before the opening. Through these processes, the first stage of AgriX system has institutions and other related institutions), local communities and those engaged in successfully launched on May, 1, 2006. As a part of the project, approximately 2,000 the agricultural sector in complex layers. As a result, the beneficiaries are scattered officers in charge were trained. all over the country. 4.2.1. Functions of AgriX

AgriX System Configuration AgriX is a system that updates the management of agriculture and forestry projects into an online web format. Agricultural people can connect to the agriculture and forestry projects portal site (www.agrix.go.kr) and easily find and apply for the agriculture and forestry projects that fit their own situation. After applying, they can find out the progress status of the projects whether they are selected or not.

For the public service officers and officers of the MAFRA, they could connect to after electronic authentication process (Public Key Infrastructure, PKI) and manage all the related tasks online, and also monitor the progression status in real-time. Since it is linked to the Ministry of Government Administration and Home Affairs G4C (Government for Citizen), the detailed information such as addresses are Source: http://www.agrix.go.kr inputted automatically by entering the name and the residence registration number of the applicant. Through linking data with other institutions, agricultural land Hence, there were constant complaints raised from agricultural producers, records, agricultural land ledgers and land registers are available in real-time. public service officers of related institutions, municipal governments, and officers of the MAFRA. The main complaints included that an existing offline business Since many agriculture and forestry projects are in progress simultaneously, operation method, which required a lot of time and effort in understanding various some projects should not be benefited repeatedly to one person. In the past, it was agricultural and forestry projects, application of project, receiving financial support not easy to investigate whether the benefits are repeated but now, the repeated and verification of eligibility, was very complex and inconvenient. Especially, public application is automatically checked at the time of application to block repeated service officers had to manage projects application manually, repeating the same benefits in advance. In the past, to collect information to understand the progression tasks every year and submit the reports to upper local administrative institutions status of agriculture and forestry projects, it required a minimum of one month. occasionally. In the higher level of administrative institutions such as municipal or However, now, it is available in real-time regardless of time and place. Since the district offices, it was not easy to organize the records of each institute since they related information is input into the system directly, the comprehensive status can be were not in a unified format. Also, for the officers of the MAFRA, it was hard to reviewed easily. Because the real-time check is available, there is no need for making make plans ahead because of instable budget allocation of the government. separate reports.

122•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•123 It will be hard to narrow the information gap between the agricultural people for Animal Products Quality Evaluation (KIAPQE), 3) the livestock farm disease and the computation since the beneficiaries and supporting methods are various and control data system of the Livestock Health Control Association, 4) the agricultural complicated. However, AgriX will play a role of its ground as a new culture. fisheries business information system and agricultural business integrated information system of MAFRA, 5) the national resident registration system of the Ministry of Security and Public Administration, 6) foreigners’ working visa 4.2. The ICT Applications of Related Institutions information of the Ministry of Justice, 7) the weather forecast system of the Korean Meteorological Administration, 8) the farming information system of the national 4.2.1. Korea Animal Health Integration System (KAHIS) agricultural cooperatives, and 9) a swine pedigree management system of the Korea Animal Improvement Association (KAIA). The KAHIS is a computerized system that aims to control diseases at the very beginning in a scientific way by creating a pan-government integrated disease By using the data bases, the KAHIS conducts pathogen management, gene control system. To do this, the system is designed for the automoization of related mutation analysis, and AI forecasting simulation, as well as managing epidemiology, tasks and real-time report and monitoring. operation of the vehicle registration system, and farm ID information, etc. All information is classified into prevention, surveillance, diagnosis, control, and follow- Jointly accessible by QIA, the MAFRA, local governments, and livestock disease up management stages, and the emergency control system is operated for livestock control agencies in cities and provinces, the KAHIS is an animal health integrated disease control monitoring and emergency notification. For instance, the system system that manages information on animal disease control by putting data traces registrated vehicles’ access to livestock facilities and location information together from the border quarantine disinfection management system which to prevent aminal diseases and automatically collect data on epidemilogical analyzes inforamtion from the Ministry of Foreign Affairs and Trade (passports), investigations. the Seoul Regional Aviation Administration (flight information), and the Minstry of Justice (immigration control), as well as information on livestock transportation

Enrollment Status of the System (As of September 2014) management by utilizing data of the domestic vehicle registration system. (Unit: thousand vehicles)

Registration of Vehicles Accessing Livestock Facilities

Source: Animal and Plant Quarantine Agency (QIA) of Korea, 2014.

Source: Animal and Plant Quarantine Agency (QIA) of Korea, 2014. As of September 2014, the number of vehicles’ visit to livestock facilities stood at 47.3 million with 22.5 million of livestock hauling, followed by feed provision (9.8 Also, the system is building database that covers information on animal million), milk collection (0.7 million), and consulting (4.1 million), all of which are farms, stockbreeding facilities, livestock officials, livestock transportation, and registered and managed. stockbreeding facility visitors by exchanging data from 1) livestock administration systems in local governments, 2) the cattle traceability system of the Korea Institute

124•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•125

In the case of the outbreak of FMD or HPAI, the livestock in question is registered

Current Status of Major Computerized Systems Introduced by Year to the KAHIS, and then the System offers the information to related agencies across the country with SMS (short message service). At the same time, other information needed to establish standards to contain a disease in the first stage is also offered, such as the location of the farm based on GIS information and the current status of livestock breeding facilities nearby.

4.2.2. Plant Quarantine Inspection Process System

1) Periodic Background

In Korea, full-scale implementation of plant quarantine informatization began in 1996 as the plant quarantine information system (PQIS) was established. The PQIS

was operated as distributed processing system with a two-track approach where Source: http://www.pqis.go.kr the system was built by the branch and the local office to computerize quarantine

tasks independently. For statistical analysis of the quarantine information, only In 2005 a plant disease system and a pest information system were established in summarized data were sent to the major computerized system of the head office. order to make a database of all information on plant diseases and pest and statistical data of quarantine inspection, allowing all quarantine officers to utilize the system As broadband national network infrastructure was built in 2001, internet access in real time. Also, the real-time inspection data processing system was developed became common. PQIS was also rebuilt in epoch making ways such as internet- to make it possible to keep civil petitioners posted on the process of quarantine based, centralized processing, and real-time data processing. inspection through SMS as soon as they paid, and now, the quarantine officer are able to use a PDA for registering the inspection result and they can obtain approval In 2003 as the online application system for inspection was connected with PQIS, in real time and send it to the Korea Customs Service through Electronic Data civil petitioners (importers or agencies) have been able to apply import and export Interchange (EDI) system—thereby it is possible to reduce time sharply for processing inspection services and check the inspection progress in online without visit to the inspection results and expense burdens on civil petitioners of waiting for customs plant quarantine stations. The online application system has contributed to reducing clearance. time and economic burdens on civil petitioners. Besides tasks of quarantine officers could drastically reduce the work burden such as manual registrations of application In 2006, the plant quarantine integrated information system was introduced, data and telephone responses to civil petitioners, etc. which allowed for access to all existing operating systems with only one-time online connection. Also, web robots began to be used for a regular and automatic collection of latest information from home and abroad.

In 2007, plant disease and pest remote diagnosis networks were introduced in order to help civil petitioners to get plant diagnosis through internet protocol videos, instead of their posting samples to officers or officers’ taking an official trip for the job. In addition, programs were developed to support quarantine inspection, such as plant pest control management, management of honorary watchmen for plant quarantine inspection, designation and management of quarantine stations, inspection and management of LMO (living genetically modified organism), etc.

126•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•127 2) Development of QIPS and Acquisition of the ISO 9001 Certificate ensure specialized information by the field inspection to be searched in detail, through being offered information needed for the identification and classification Six computerized systems, which had completed from 2004 to 2007, were of the disease or pest would been found at the quarantine site. In addition, the integrated to make it possible to deal with plant quarantine processes from establishment of homepage of the plant quarantine station in 1999 have prompted inspection application to certificate acquisition through a one-stop service—which online accesses to required information for foreign diseases and pests related to became as a brand called “QIPS (Quarantine Inspection Process System).” The QIPS plant quarantine, import and export plant quarantine, and procedures of plant has heightened the efficiency of export and import quarantine and strengthened quarantine. Data regarding the control of import and export plant quarantine services for customers by rapidly offering a range of information. began to be offered in 2003.

The head office and three branch offices obtained ISO 9001 from the In 2001 an e-mail system began to be utilized in order to send quarantine International Standardization Organization for its quality management of plant information to major customers, and in 2006 the introduction of the PCRM (Partner quarantine administration. The acquisition of the ISO 9001 is considered to prove Customer Relationship Management) made it enable to informatization with their transparency and reliability of their plant quarantine services. relevant data, allowing the management of major customers by field through database and the regularly sending of quarantine information leaflet or newsletters. 3) EDI System and On-line Issuance of Certificate 5) Construction of the Plant Quarantine Network The construction of the EDI system in 1998 have enabled plant quarantine stations to transmit certificates for imported plants to the Korea Customs Service As LAN (Local Area Network) was constructed to connect the head and branch through online, making it obsolete to issue a certificate in the form of paper offices in 1996, the first network was established for quarantine officers to share document. Also, the introduction of online business process and the Report Tool in information. However, the level of the network at that time was no more than a line 2001 made it possible to print in real time about a range of data, including all kinds of communications similar to the landline. In 2001, the ATM (Asynchronous Transfer of ledgers, certificates, and statistical data, and then make jobs such as arranging Mode) was introduced for the plant quarantine information network by using the ledgers and issuing certificates through word processing unnecessary. super-speed information network system established at the government level. In addition, as PDAs were introduced for officers’ quarantine information job processes In 2004, an electronic sanitary certificate system was established, allowing for in 2005, an independent radio net was built using the KTF network. international online exchange of plant sanitary certificates. However, the suitability between systems among nations has hindered active exchanges. As a result, it is In 2006, as major places were connected through broadband, local offices were currently being employed in a limited scale: certificate exchange for plants for equipped with the infrastructure of a transmission speed of 2MBps. In the meantime, planting only with Holland; confirmation of whether the issued certificate of export plant quarantine sites with limited access to a communications network, such as and import plant inspection could be forged or not through online checkout with airports, ports, and checkpoints, etc., were connected with VPN (Virtual Private Taiwan and Australia. In 2013, as the IPCC adopted the international standard for Network), thereby resolving blind spots in terms of information communications. exchange of electronic plant sanitary certificates, it is expected that an endeavor is Therefore, in any place where plant quarantine officers provide regular service, the made at the international level to put the standard to practical use. Korea is also relevant information communication network became accessible. planning to contribute to pioneering related discussion. 6) Operation Status of the Plant Quarantine Integration System (PQIS) 4) Provision of Information Korea has developed and run the Plant Quarantine Integrated System that Information related to plant quarantine used to be offered in the form of paper enables the timely provision of integrated quarantine information of each user. document, such as statistical yearbooks of quarantine inspection information, This system integrates and standardizes database, programs and informatization but after the Rural Development Administration (RDA) introduced database of resources of 18 different information systems in the aspect of quarantine works. foreign plant disease and pest in 1998, relevant data began to be accessible online. In addition, this integrated system saves the management costs of the system The disease and insect pest information system have developed and operated to and application programs by employing the e-government standard framework

128•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•129 technology. It also reduces time by standardizing quarantine work process and The quarantine administrative affairs part is related to the prevention of disease prevents overlapping entry of information by sharing integrated information. and insect pest before quarantine inspection and follow-up management, and is also comprised of several specific systems: the disease and insect pest forecast and prevention system that handles the registration of the result of the disease and

Structure of Plant Quarantine Integration System insect pest forecast and prevention and the management of monitoring agents (honorary plant quarantine monitoring agents); the wooden packaging quarantine system that deals with the disinfection and management of wooden packaging and disposal of imported wooden packaging that has not been disinfected; the restricted goods management system that operates the database of coded stages ranging from approval to proliferation, transfer and disposal of restricted goods and genetic resources; the disease and insect pest information system that provides to quarantine officers with database of information related to alien diseases and insect pest; the disease and insect pest remote diagnosis system that enables experts in a different location to assist the classification of diseases and insect pest through internet video conferences; and the quarantine support system that manages the special judicial police, honorary monitoring agents, fines, quarantine equipment, inspection Source: http://www.pqis.go.kr stations, import-restricted countries and violations of importing/exporting partners, etc. The system consists of a common management function and four specific functions: quarantine inspection, quarantine administrative affairs, external The statistical analysis part provides analytical information for designing affairs and statistical analysis. The common management function refers to the quarantine policies, and is comprised of the plant quarantine integrated control standardization and integration of areas and contents that can be managed in system, the plant quarantine statistics system and the performance evaluation common through the entire information system. This part covers the information system, etc. square, user management, code management, community management and integrated portal service, etc. The external affairs part consists of the exported plant quarantine support system (that provides information related to producers, exporters and quarantine The quarantine inspection function is directly related to the inspection of management in the agricultural products export complex) and the system to deal imported and exported goods, a core task of plant quarantine works. This part with other external affairs related to pest controllers and companies in charge of consists of several systems: the plant quarantine information system that handles heat treatment and disinfection of wooden packaging. data related to quarantine of imported and exported plants; the laboratory information management system (LIMS); the electronic quarantine certificate information system that enables check and exchange of the information about quarantine certification issuance between importing and exporting partner countries; the online plant quarantine system that handles online quarantine requests, SMS information about the progress of quarantine and customer service improvement; the isolated cultivation management system that efficiently and swiftly handles the movement of isolated cultivation items between institutions and the management of this type of cultivation; and the real-time on-site quarantine information system for work process using smartphones, which enables real-time electronic authorization and EDI transmission.

130•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•131 according to global standards; export over 160 thousand metric tons of meat products (amounting to 800 million USD) to Chile, Russia, Brazil, Israel and other countries (as of 2012); and take the initiative in the export of over 240 thousand heads of cattle to foreign markets in South America (Brazil, Uruguay and ), Middle East, Asia and Africa each year. Ⅴ Now Paraguay needs to establish the FMD-free environment to enhance productivity and global competitiveness, thereby increasing profits of the livestock Policy Recommendation industry. Therefore, the country should come up with continuous and tightened animal health control plans to earn the status of FMD-free country where vaccination is not practiced.

Under the SPS agreement of the WTO, any country is allowed to restrict the import of animals and livestock products from FMD- or other malignant animal disease-affected countries/areas in order to maintain the health of its people and prevent animal/plant diseases, even if the country has signed a FTA with FMD- affected countries.

Paraguay’s SENACSA has an advanced organizational structure and functions In this chapter, policy recommendations on each area are presented based on the for animal health control, livestock product sanitation and laboratory diagnosis. results of the research on background, the current situations on each area, and the This organization has pushed forward with detailed and strong policies to wipe out following outcomes of a comparative analysis. Regarding the comparative analysis, malignant infectious diseases such as FMD and submitted a specific implementation exemplary cases of Korea have been considered. plan and an epidemiological investigation report for the eradication of FMD to the OIE.

1. Strengthening Food, Animal and Plant In May 1997, Paraguay gained the status of FMD-free country with vaccination, Safety and Health Sector but lost the status in 2002 as the disease broke out in the area of Corpus Christu. However, the country regained the status of FMD-free country with vaccination in 1.1 Animal Safety and Health the 179th OIE general assembly meeting in May 2011. And since the disease occurred once again in Saren Loma, a northeast area of Paraguay, on September 18th, 2011 nd In Paraguay, the livestock industry is a major driving force of the national and in San Pedro on January 2 , 2012, the country lost the status again. Accordingly, economy along with the grain industry. Livestock breeding is a key industry in rural Paraguay has made efforts to eradicate FMD with special countermeasures since areas, which started in the 14th century. As of 2013, a total of 122,000 farms are then. In the 182th OIE general assembly meeting, Paraguay officially gained the currently raising 13.4 million heads of cattle by utilizing broad grassland, along with status of FMD-free country with vaccination again in 2014. other livestock such as horses, sheep, pigs, poultry and bees. The Paraguayan government’s mid- and long-term development plans for the Small-scale livestock farms with less than 100 heads of cattle take up 88% of livestock industry will contribute to gain the status of FMD-free country without the entire industry, but the number of cattle of these farms accounts for only 17% vaccination, thereby accomplishing the goal of becoming a leading livestock- around the country. Farms and farming enterprises with over 100 heads of cattle producing country and boosting the cattle industry based on abundant grassland achieve high productivity and utilize innovative commercialized breeding methods. resources. In order to eradicate FMD and other animal diseases and produce and These large-scale farms actively participate in grassland improvement, breeding stock supply safe livestock products, Paraguayan government and SENACSA should improvement and fattening business; slaughter cattle and process beef products consider following suggestions.

132•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•133 1.1.1. The Mid- and Long-term Plan For the prevention of and swift response to outbreaks of diseases, the authorities could consider the PAHIS to integrate the collection and management The goal should be set up to obtain the status of FMD-free country without of information about animal diseases and livestock health control. To strengthen vaccination in the near future. From 2014 to 2016, Paraguay needs to maintain the border quarantine, moreover, the authorities should also consider the BQMS, the current status as a FMD-free country by conducting continuous vaccination in which livestock-related persons who visit any livestock disease-affected countries and examining the possibility of the recurrence of FMD in 2016 and 2017. In 2017 mandatorily report their entry and exit records and the authorities can manage such and 2018, suspending vaccination for over a year in accordance with the OIE reports and disinfection of travelers at each airport and harbor. standard, Paraguay will be able to apply for the status of FMD-free country without vaccination from 2018 to 2019 if everything is under control. In connection with the PAHIS, the BQMS provides real-time information of border quarantine including entry and exit and disinfection records of livestock- A basic requirement for the endorsement of FMD-free country without related people who have visited disease-affected countries, and local governments vaccination is one year of stabilization without vaccination, then the country may get access to the PAHIS to check non-reporters. request for a preliminary inspection to the Committee on Science and Technology of the OIE by submitting the investigation result of antibody titer and the monitoring

Overview of Korea Animal Health Integrated System (PAHIS) results.

Once the country gains the FMD-free status with vaccination and maintains the stabilization period, Paraguay can carry out an assessment project after 2016 by analyzing risks of each scenario with consideration for the status of foreign countries, border quarantine and domestic animal health control conditions and estimating the risk level of the suspension of vaccination, in order to decide whether the country can make further efforts to become a FMD-free country without vaccination.

A plan for the suspension of vaccination for each type of livestock or area needs to be reviewed and implemented in stages. Priority of vaccination will be put on beef cattle which move less and is raised and slaughtered in a short-term and based on the risk assessment result, the status of “a FMD-free area without vaccination” should be granted to a county or a farm when the OIE requirements are satisfied. Source. : Internal data of Animal and Plant Quarantine Agency, 2014

1.1.2. Strengthen the Border Quarantine The entire procedure that this study proposes is as follows: establishing an informatization plan with mid- and long-term strategies including the detailed Since Paraguay is located in the middle of South America, bordering on Brazil, process and system to accomplish goals by 2015 → establishing the foundation of Argentina and Bolivia, the country should control the movement of livestock and informatization by creating a database of livestock farms and laying the groundwork strengthen the border quarantine. According to a report from the OIE, most South for the animal health control system by 2016 → creating the livestock movement American countries maintain vaccination against FMD in each area. The FMD virus control system by 2017 → developing the border quarantine management system can be transmitted through animals (livestock), human beings, vehicles and even and conducting pilot projects by 2018 → expanding and disseminating the livestock air, so each country should conduct thorough border quarantine as well as domestic health control system by developing a system that issues an identification number animal health control to shut out any FMD virus transmission from neighboring to each livestock farm by 2019 → operating the livestock health control system and countries. organizing relevant laws and regulations.

134•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•135 In the meantime, the BQMS was designed to collect and manage entry/exit The PAQIS is an integrated information system that is designed for the records of livestock-related people who have visited foreign countries with relatively informatization of the overall administrative works related to quarantine. Under high risk of diseases. In particular, when they come back from livestock disease- this system, the request for quarantine of animals and livestock products can be affected countries, they should be disinfected at the airport or harbor, and the registered online. And then quarantine officers conduct inspection, issue certificates authorities should selectively manage these travelers to block malignant contagious and send the result to Korea Customs Service in the form of EDI to proceed customs diseases from abroad. clearance.

The brief procedure is as follows: sending real-time information of entry and Procedure of the PAQIS: Sending a shipping invoice of imported goods in immigration result of livestock-related people (from the Immigration Office to the form of EDI → bringing goods subject to quarantine → requesting transport SENACSA) → the border quarantine management system automatically identifies of goods subject to quarantine (requester) → issuing a letter of notification whether or not a subject is a livestock-related person (SENACSA) → if the subject for transport of the goods (quarantine officer) → transporting the goods to turns out to be a livestock-related person, his/her information is delivered to a quarantine station → conducting inspection on the goods (quarantine mobile phones of quarantine officers in real time (from SENACSA to an officer) → officer), requesting quarantine online (Korea Customs Service or the quarantine quarantine officers identify the relevant livestock-related person at an immigration headquarters system) and receiving the result of the inspection on the goods checkpoint, guide the person to get disinfected, provide necessary information and (SENACSA) → receiving quarantine requests (quarantine officer) → selecting goods issue a certificate of disinfection (SENACSA). subject to precise inspection → transmitting and receiving precise inspection request and result (between SENACSA systems) → making a final decision (pass or fail) → issuing a certificate of quarantine and sending the result in the form of EDI (from

Overview of Border Quarantine Management System (BQMS) for Livestock-related Personnel SENACSA to Korea Customs Service)

Operating System for Animal/Livestock Products Quarantine Information System

Source: Internal data of Animal and Plant Quarantine Agency

The PAQIS is a system dealing with the request for quarantine of imported and exported animals and livestock products and the issuance of quarantine certificates. For the operation of this system, the Automated Import Information System (AIIS) should be employed to fundamentally block any wrongdoings in quarantine works. The quarantine result is delivered to Korea Customs Service in the form of Electronic Data Interchange (EDI) to proceed the customs clearance, thereby enhancing Source : Internal data of Animal and Plant Quarantine Agency convenience of citizens. Border quarantine should be strengthened to prevent disastrous livestock infectious diseases by improving the management system of the border quarantine

136•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•137 targeting at livestock-related personnel, establishing the report system of travelers of livestock products. The Paraguayan government (SENACSA) has implemented the carrying livestock products, and strengthening the control system against restricted beef registration and traceability system since 2004 to secure the safety of livestock livestock products products. But the system should be reinforced even in the distribution process to gain trust from consumers. New kind infectious diseases such as Ebola hemorrhagic fever should be in quarantine. In addition, considering the increasing possibility of infection by new- type zoonosis from subtropical regions, there should be countermeasures against 1.2. Food and Plant Safety and Health infection by new kind diseases including West Nile Virus, Hendra virus and Nipah virus. In Korea, the National Plant Quarantine Service, an independent organization, was integrated into the QIA in 2010 and has continued to take charge of plant When there is a request to import animals and livestock products, the import of quarantine affairs. In Paraguay, likewise, the single department of SENAVE is in certain goods should be decided by conducting the import risk analysis in accordance charge of plant quarantine works. Although there is no detailed information on the with relevant laws and regulations including the Livestock Infectious Disease plant quarantine manpower in Paraguay, it appears that the country has allocated Prevention and Control Act and global standards. less workforce and budget to this sector compared to Korea. In case of Korea, a sufficient number of professional manpower for plant quarantine is secured and The import risk analysis should be conducted based on the import risk analysis thus administrative personnel accounts for only 17% in the field of plant quarantine. methods, considering prohibition of imports from certain countries, and the analysis guidelines. The import risk analysis system should be realized for the consistency with Korea’s plant quarantine policy is focused on the establishment of science- the WTO/SPS agreement and other global standards consolidating to enhance the based border quarantine system, development of plant quarantine technology in analysis to the advanced level. response to climate change, reinforcement of manpower and facilities for border quarantine, and enhancement of capabilities for bilateral negotiation related to In the process of risk assessment, the evaluation system should be strengthened plant quarantine. Paraguay places a priority to the inspection of imported plants based on the consultation of external experts, and the information on the rather than exported products, and is also faced with insufficient human resources, assessment needs to be released for the transparency and trust-building. facilities and equipment, particularly with the lack of nurturing and training of professional manpower.

1.1.3. Vitalization of the HACCP System Since 2013 in Korea, agricultural food safety affairs have been handled by a single organization—the Ministry of Food and Drug Safety. The central and regional offices The vision of food safety management with the HACCP system is to create safe share related duties, and local governments also conduct internal safety inspections, dietary life and healthy society, and its goal is to operate in advanced level of food performing the function of monitoring agricultural food safety. In particular, they safety management system enough to gain trust from the public. carry out inspections on agricultural products to find any remaining pesticides and heavy metals, thereby aggressively blocking out contamination by harmful Key challenges are as follows: 1) preemptive hazard control to establish a substances in the production process. In Paraguay, agricultural food safety affairs foundation for safe food production; 2) scientific hazard assessment to reinforce the are handled along with nutrition affairs by INAN, and the scale of the organization function of hazard evaluation; 3) active participation to strengthen communication is estimated to be smaller than its counterpart in Korea. The country’s regional channel with consumers and consolidate the domestic and international cooperation offices in charge of agricultural food safety control also appear to be inadequate, among central, local and other related institutions; and 4) establishment of healthy and so does the preliminary safety management in the production process. There food culture to improve nutrition. is no detailed data about Paraguay’s safety control manpower and budget, but the country seems to have less workforce and budget in this field compared to Korea. The Paraguayan government legalized the HACCP system (Resolution Nº 689/2006) in 2006 and has applied it to slaughterhouses and livestock product Korea has specialized institutions for food risk assessment such as the National processing facilities. Still, the system should be applied to all commercialized Institute of Food and Drug Safety Evaluation, the Animal and Plant Quarantine livestock breeding farms to actively promote animal health control and sanitation Agency, and the National Fisheries Research & Development Institute. The country

138•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•139 also runs both central and regional offices in charge of safety control and assessment stage. In particular, with regard to imported agricultural products, export complexes for thorough supervision, whereas Paraguay has not established sufficient shall be designated and prior inspections on items including remaining pesticide organizations and structure for agricultural food safety control yet. before shipping to secure the safety of imported agricultural products.

Korea’s policies related to agricultural food safety are mainly focused on the Establishment of preliminary safety management system at the production stage expansion of safety inspection in the production phase, reinforcement of safety assessment in the distribution and importing processes, expansion of the use of The application of GAP (Good Agriculture Practices) shall be expanded with HACCP certification and the food traceability system, and prevention of food regard to imported horticultural products including fruits to raise reliability of the poisoning in school meals. Paraguay has made efforts to strengthen the agricultural quality of imported agricultural products. For this, GAP instruction and consulting for food safety assessment by expanding related facilities and strengthening hygiene farms need to be provided. The application of HACCP shall be expanded with regard education. However, the country is still faced with the lack of manpower and to slaughterhouses, meat processing businesses, milk collection stations, and milk facilities in this field. The preliminary safety inspection on agricultural products is factories to increase the safety of livestock products. inadequate, and there is no proper foundation to introduce relevant institutions such as the traceability system or HACCP. Establishment of a system for responding to SPS measures

Securement of professional manpower and expansion of budget for plant SPS is a global regulation regarding sanitary and phytosanitary measures to quarantine and agricultural food safety protect human, animal and plant lives and health (regulations regarding diseases and contaminants). As global trade increases with the expansion of FTAs, the possibility Paraguay’s manpower for plant quarantine is insufficient in the aspects of the of food safety compromise along with the disease and pest inflow is increasing. scale and professionalism. If Paraguay is planning to place an emphasis on the Therefore, the WTO SPS regulations shall be observed, while quarantine organizations export of agricultural and livestock products in the future, the country needs to and manpower on the border shall be reinforced by building more animal and plant secure professional human resources for quarantine. In particular, experiment and quarantine offices in the border area and securing additional residing personnel. research for animal and plant quarantine require expertise, so universities and national research institutes should run expert training courses in the long term. The food safety sector has poor manpower and a proper structure compared to the 2. Agricultural Technology Development and nutrition sector. Therefore, the country should strengthen its competitiveness in Extension System exports by enhancing the safety level of agricultural products exported. At the same time, a sufficient number of manpower is required to tighten the assessment and 2.1. Weakness of Agricultural Technology supervision for strengthening the safety level of agricultural products in the domestic Development and Transfer in Paraguay market including imported products.

In order to reinforce plant quarantine and secure safety of agricultural food, it is 2.1.1. Institutional Weakness urgent to allocate sufficient budget in this sector first. If Paraguay intends to put top In 2010, the IAD and the DIPA were integrated into a new organization called the priority on expanding the export of agricultural food and securing public health, the Instituto Paraguayo de Tecnología Agraria (IPTA). The IPTA established the 10-year country should assign sufficient budget to reinforce manpower and secure required strategy plan and the 5-year mid-term plan. These strategic plans point out flaws facilities. of Paraguay’s agricultural sector as follows: The country’s agricultural R&D sector along with the IPTA itself does not obtain enough budgets; Paraguay lacks capacity Enhancement of monitoring for agricultural food safety by local governments to develop innovative technologies; and it suffers brain drain due to low wages for technicians (IPTA, 2011b). Safety inspection system on remaining pesticide shall be built based on the standard of harmful substances established in SENAVE so that local governments In reality, of course, not only the R&D sector but also many other sectors do can thoroughly manage harmful substances including pesticide from the production not acquire enough investment. Because of insufficient investment, the IPTA

140•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•141 lacks international competitiveness and confronts many problems in regards to Many of the IPTA’s problems are pointed out not only in regards to the R&D sector, management and operation of the organization and facilities and equipment. The but also in regards to the process of extension and dissemination (IPTA, 2013b). Such following table shows each sector’s internal and external problems suggested in the problems can be categorized into the problem of dissemination system and equipment, IPTA’s strategic plan. the problem of farmers’ attitude towards extension and dissemination, and the problem of various conditions related to extension and dissemination.

Internal and External Problems of the IPTA
Problems in the Process of Extension and Dissemination

Classification Sector Details Classification Problem Unable to provide Lack of resources for operation including fuel and equipment Lack of better conditions than private firms or universities competitiveness Inappropriate evaluation system Low level of credibility on public agricultural research institutes Extension system and equipment Social and political pressure from those who attempt to Lack of an institutional system for evaluating capacity of extension External risks use local farms in ways that are not related to agriculture agents Outside pressure Political influence when plans and programs are being Lack of interests and participation in the part of farmers implemented Mistrust and lack of bonds between farmers and instructors and Restriction on Farmers’ attitude Unable to take into account the environment sufficiently between farmers research range towards extension and dissemination Lack of related laws Passive attitude of farmers Farmers’ mistrust towards extension agents Organizational and Excessively centralized decision-making processes Conditions relate institutional problems Lack of institutional marketing (promotion) Frequent changes in institutional guidelines to extension and Lack of feedback from partners and technology users dissemination Arbitrary management of matters by relative authorities Incomplete transfer of assets due to organizational integration Source: IPTA (2013b). Lack of infrastructure including buildings for operation Insufficient R&D and services facilities and Lack of equipment, machinery, tools, vehicles, basic inputs 2.1.2. Difficulties in Conducting Mid- and Long-term Basic Research equipment. and laboratories Lack of system and equipment for group communications The IPTA’s budget for development of agricultural technology consists of the and technical dissemination government’s support, which accounts for three-fourths of the total budget, and the Internal weaknesses Lack of management policies for human resources IPTA’s internal revenues. As stability in budget is not guaranteed, it is hard for the Difficulties in organizing a technology team for R&D and IPTA to consistently work on mid- and long-term basic research. The IPTA is currently extension and dissemination heavily dependent on Brazilian farmers who work in Paraguay to obtain major Lack of planning, monitoring, evaluation and agricultural technologies, especially in regards to production of bean, sugarcane and management for better achievements cattle breeding (IPTA, 2011b). Lack of capacity Lack of a manual for technical and administrative to manage the procedures organization and Weakness in security systems of local farms and research R&D in the agricultural sector cannot make achievements in a short period human resources centers of time because crops are affected by seasons and raising livestock takes time. Lack of a system to set priorities to achieve the Therefore, it is important to secure a stable source of revenue and to conduct R&D in organization’s goals a consistent manner for an extended period of time. When part of R&D expenses is Lack of a culture that accepts changes and innovation required to be filled with internal revenues, researchers tend to focus on short-term Inefficient management of intellectual property profit-making projects, such as R&D for demanders and sales of already-developed technologies, rather than on the request of peasants, consumers, and those in Source: IPTA (2011a).

142•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•143 charge on agricultural policies. Sufficient support from the government is a must for Therefore, in some cases, the roles of the two organizations regarding the extension research organizations to faithfully conduct R&D for a large number of peasants and and dissemination system of agricultural technologies are overlapped, which leads to to disseminate the outcomes and results of the technologies developed. inefficiency. To tackle this problem, there should be measures to build an efficient system by securing close communications and coordination between them. 2.1.3. Lack of Channels for Connecting R&D and Dissemination 2.2. Enhancing the Technology Transfer System DEAg is a key agency to implement technology transfer. It is very natural that it educates and trains farmers and producers new technologies that have been Three problems may be pointed out regarding the agricultural R&D and rural developed by IPTA. Therefore, technology transfer from IPTA to DEAg to local extension system in Paraguay. First, as shown in the IPTA’s strategy plan, the producers should be systematically viable and practical. However, there is no sign agricultural R&D sector does not receive enough budgets from the Paraguayan of substantial improvement of the process of technology transfer among the government, which leads to external weaknesses—the IPTA’s lack of competitiveness, organizations. strong outside pressure, restrictions on research range, etc.—and internal weaknesses—the problem of organization and institution, insufficient research The following table describes the roles of the DEAg and the IPTA facilities and equipment, lack of capacity to manage organization and human resources, etc. Second, the stability of budget for development of agricultural

Role of the IPTA and the DEAg technologies is not guaranteed, so it is hard to conduct mid- and long-term basic research. It is also hard to focus on R&D for peasants, consumers, and policymakers DEAg IPTA and to work on extension services. Third, channels for efficient connection between It is in charge of development, As an organization that implements agricultural R&D and rural extension are not sufficient. adaptation, verification and agricultural policies in rural areas, Role dissemination of agricultural it provides training and technical technologies, as well as agricultural When looking into the examples of the IPTA and the DEAg in Paraguay and the RDA support to farming families genetic resources. in South Korea, differences between the two countries can be described as follows.

Source: IPTA (2013b).

Comparison between Paraguay and South Korea

As demonstrated, the IPTA is in charge of development of agricultural Classification Paraguay South Korea Difference Implication technologies and dissemination of them in a department level, while the DEAg is Whether responsible for training and dissemination of agricultural technologies for individual both R&D and extension In both peasants in rural areas. It is easy to understand that a close coordination between functions are countries, the two organizations is necessary in order to disseminate new technologies performed governmental The IPTA is by a single developed in a laboratory or a demonstration farm. The RDA, agencies are in charge of organization or which is a taking care of agricultural R&D not is decided governmental R&D and rural However, the DEAg admits that the functions of R&D and dissemination are not while the DEAg by historical Composition of agency, is in extension, is in charge of backgrounds. closely coordinated. Currently the DEAg is just holding meetings and consultations organization charge of both but there is a rural extension. When the two with relative agencies including the Ministry of Agriculture and Stockbreeding agricultural difference in Both are functions are R&D and rural whether both and the IPTA (DEAg, year unknown). One of the strategic goals described in the governmental performed extension functions are IPTA’s strategic plan is “to establish a strategy to disseminate newly-developed institutions by separate performed by organizations, technologies” (IPTA, 2011a). The IPTA is a R&D institute, and it carries out a variety one agency or an efficient of technical training and extension programs. Not only its headquarters but also its not coordination 11 regional centers and farms are working for this technology transfer. But the DEAg between them is also conducts technology transfer through its 20 CDAs and 184 ALATs across the country. important.

144•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•145 In the following section, recommendations are proposed to tackle the problems

Comparison between Paraguay and South Korea of Paraguay’s agricultural sector. Classification Paraguay South Korea Difference Implication The IPTA Both countries 2.2.1. Expanding Support for Agricultural R&D has research used to centers and run central Due to a The RDA used demonstration government- dwindling Basically, the Paraguayan government’s support for agricultural R&D should be to have its farms in a affiliated local importance of increased. Paraguay invests 0.08% of its GDP in scientific technology, while other affiliated local department organizations. agriculture and Operation of organizations, countries in Latin America and the Caribbean invest an average of 0.6% of their GDP. level. The Now in Korea, decentralization, organization but now they This proves that Paraguay does not invest in R&D as much as it needed (IPTA, 2014 DEAg operates however, central are operated technology small local organizations project profile). The IPTA and many Paraguayan governmental organizations under by each city or support offices organizations are likely to be the umbrella of MAG currently have to acquire a considerable proportion of their county in a smaller are regarded streamlined budgets through internal revenue. Under the circumstances, it is hard for them to administrative administrative unit organizations. invest in human capital and equipment for mid- and long-term basic research. R&D in the agricultural sector requires mid- and long-term basic research, which in turn In Paraguay, Taking features leads to the need for a stable inflow of budget and support. agricultural R&D of agriculture is focused on into account, the short-term budget support Unlike the case of Paraguay’s IPTA and DEAg, Korea’s RDA is not governed by the needs of the is required to Ministry of Agriculture, Food and Rural Affairs. The RDA is a lower-level organization Part of budget The whole demander, while be expanded (about 30% of budget is than the MAFRA, but it is a central governmental institution, whose budget is Security of in Korea it is to revitalize the total) needs supplied by the budget considered to the agricultural completely supplied by the government. to be filled with central and local be a national sector and internal revenue governments. project, which enable mid- enables mid- and long-term 2.2.2. Securing a Stable Source of Income for Mid- and Long-term and long-term research to be Basic Research basic studies to carried out in a be conducted. stable manner Three quarters of IPTA’s budget for development of agricultural technology South Korea come from the government’s support. It means that for normal situation the conducts The two A Paraguay organization always needs to search for funding sources for the remaining a quarter R&D and rural countries differ comprehensive conducts or thirty percent of total budget. Due to the lack of certainty in budget operation, extension, in the extent extension and agricultural and provides to which dissemination it is not feasible for the IPTA to implement basic—but most important—studies and R&D and rural Major projects comprehensive development system needs to researches in the long- or mid-term period. extension, support to of rural areas be established, and supports rural residents are included especially in development of For now, it is practical to set aside a part of the budget for research for basic and including the in extension underdeveloped some rural areas. improvement of services regions long-term researches, which would, however, definitely put constraints in operating living conditions the organization’s annual budget. The best way is to gradually increase the share of

As a new the governmental support to the organization to become nearer to one hundred organization, percent. The IPTA’s Paraguay’s 10-year long- The RDA’s own Mid- and long- IPTA is in need term plan and annual business term strategy of mid- and 2.2.3. Finding Efficient Measures to Connect R&D and Dissemination 5-year mid-term plan long-term plan of New Technologies development strategy. DEAg is the key agency to implement technology transfer. It is very natural that it educates and trains farmers and producers new technologies that have been

146•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•147 developed by IPTA. Therefore, technology transfer from IPTA to DEAg to local who engage in farming to make ends meet. It also tries to improve the peasants’ producers should be systematically viable and practical. quality of life, support women and young adults in rural areas, and strengthen rural organizations. In order to improve both economic and social conditions of farmers, As of now, the IPTA’s both 10-year strategy plan and 5-year mid-term plan do the DEAg is required to build a more comprehensive extension system by expanding not indicate any type of cooperation and coordination with the DEAg. Therefore, the organization and its projects and re-establishing the roles of training and institutional devices are inadequate to connect the two organizations’ tasks in an extension agents. efficient manner.

In order to connect Paraguay’s agricultural R&D and dissemination of new 3. An Integrated Management System of technologies effectively, Korea’s case, in which the RDA and relative agencies SIGEST with ICT are working in close coordination, can serve as a good reference. In the short term, a cooperation system between organizations needs to be formed to ensure 3.1. The need to promote integrated ICT system agricultural technology newly developed by the IPTA’s local centers and farms to be disseminated to farming families with the help of extension agents from the DEAg’s Paraguay does not have an integrated information sharing system supported CDAs and ALATs. In the long term, by analyzing the tasks of the IPTA’s technology by the government. Therefore, SIGEST and related institutions have a poor transfer division and the DEAg’s affiliated organizations, manpower needs to be communication framework with other institutions and rely on face-to-face meetings, restructured and divisions need to be reorganized to ensure a closer and more e-mails or phone calls, etc. systematic coordination between them. Moreover, most officials of these institutions repeat the same process for the 2.2.4. Designing Comprehensive Extension System same type of work and suffer from inefficiency relying only on documents. Services for citizens also cause inconveniences due to the different working process among At the time of agricultural development and the establishment of an extension institutions. system, Korea was an impoverished agricultural country, whose agricultural sector was in need of development to enhance productivity. There needed a However, most institutions do not want to connect with other institutions comprehensive development to satisfy basic needs of its rural residents including including SIGEST. They all desire to govern their own organization for the better education, medical services and infrastructure of rural areas. Therefore, independent management. Of course, each government institution and its officials the country implemented a comprehensive extension system, in which rural are well aware of the importance of an integrated information system and the development agents in charge of agricultural development and training were connection of information at the government level, and also emphasize that it is dispatched to underdeveloped regions. It is desirable for Paraguay to learn from urgent to integrate different systems to enhance work efficiency and services for Korea’s example and come up with measures to send agents who can work the people. Nevertheless, according to pursuing irrational advantages for their for comprehensive extension services including dissemination of agricultural institutions, a strong opposition is expected. technologies and the establishment of rural development plans for underdeveloped regions. To this end, Paraguay can make a remarkable shift in the E-Government part, the most vulnerable field of the country, through benchmarking of the establishment What Paraguayan farmers want are practical help from the government and a process and usage of the E-Government in Korea, which has been recognized as the close coordination among farmers, extension agents and government agencies on an world’s top-class system in the UN assessment since 2012, and technology transfer equal footing. Meanwhile, extension agents want to work in harmony with farmers and cooperation between the two countries so that they could help farmers accept new technologies, and they also wish to support rural development by expanding the range of extension and dissemination (IPTA, 2013b).

The DEAg provides extension and dissemination services mostly for peasants

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EGDI of Paraguay and Korea
Comparison of ICT Status in the Agricultural Administrative Sector in Paraguay and Korea Paraguay Korea Classification Score Value Rank Score Value Rank Classification Paraguay Korea Non-existing EGDI 0.3740 122 0.9462 1 IT Governance (independent work process Existing Organization • Online Service 0.2283 0.9764 in each institution) • Telecomm, Infrastructure 0.2236 0.9350 Internet Electronic Payment Non-existing. Existing • Human Capital 0.6700 0.9273 System EDI (Electronic Data Source: UN, E-Government Survey 2014. Non-existing Existing Exchange) System

In particular, the establishment and operation of an integrated information Public Key Infrastructure Non-existing Existing

system among SIGEST of the Paraguay’s Agricultural Ministry and other related Electronic service for civil Non-existing Possible institutions will accelerate the sustainable growth of agriculture, which takes up an affairs important part of the Paraguayan economy. Agricultural Knowledge Non-existing Existing Management System Here, we would like to suggest a policy direction based on the comparison of ICT status of Paraguay’s SIGEST (the target of this project) and other institutions with Real-time Traceability System Non-existing Existing that of Korea’s MAFRA and other related institutions. Large Digital divide (only a Spanish service Non-existing exists)

Comparison of ICT Status in the Agricultural Administrative Sector in Paraguay and Korea

Classification Paraguay Korea In the current structure of Paraguay, it is impossible to integrate and utilize data and connect works due to the independent operation of ICT system at SIGEST Existing Non-existing Integrated Administrative (information sharing among and each of other institutions. In this structure, it is hard to accomplish cooperative (independent ICT system in System all government institutions policy implementation and budget allocation and integrated policy direction for the each institution) and other organizations) growth of agriculture. This system is very inefficient for institutions to communicate Non-existing with each other. Therefore, there should be proper policies and measures to make Integrated Intranet for (connecting institutions the communication system smooth and swift. For example, the policies must Existing internal works of officials by e-mail, phone calls and enhance the efficiency of the administrative process including the decision-making meetings) framework and services for the public, thereby reinforcing the competitiveness of Non-existing agriculture. To this end, the Integrated Agricultural Information System should be (those who have civil Existing Service Portal for the public established and implemented. complaints need to visit the (Minwon24) center in person) The following recommendations will contribute to an environment for successful Drawing up documents first integration for sustainable development: Setup legal and institutional frameworks Document management and then computerizing Digitalized to enable freedom of information, privacy and data protection in order to secure a them safe environment; Build on existing e-government initiatives, platforms and channels Non-existing already used by citizens to create visibility, a stronger relationship and trust with Integrated Data Center (independent establishment Existing in each institution) the public at low cost; Promote the use of ICTs, digital and social media tools to enhance the spread of information and citizen engagement; Ensure the integration

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Planned Structure of the Integrated Agricultural Information System service enhancements; Empower people through capacity development for digital media literacy to educate citizens and foster the development of skills, transfer of knowledge and outreach initiated by the public. Above all, the important thing is that the implementation process must be carried out step by step depending on the circumstances of funds and technology.

3.2. Establishment of an Integrated Agricultural Management System

3.2.1. Main Objective of the System

The Integrated Agricultural Information System should desire to improve the efficiency of policy administration and services for the public by establishing the Integrated Agricultural Information System that connects agricultural administrative works of MAG-affiliated organizations (SIGEST, SENAVE, SENACSA, DEAg, INAN and IPTA) and 17 local governments (departments), thereby enhancing the country’s competitiveness and contributing to agricultural sustainable growth of Paraguay. Next, SIGEST and DEAg should establish a generation system of basic First, it is essential to design a mid- and long-term plan to connect each of the data—such as farmland legers database, current status and usage of farmland, current independent ICT systems of SIGEST and other institutions, and then establish sowing method management (soybeans), and grassland management—by the Integrated Agricultural Information System that handles administrative works computerizing agricultural administration tasks. Also, they should cooperate with related to agriculture, forestry, livestock and food in an electronic method. In the other departments in connecting information systems regarding residents, land long term, the administrative environment in which paper documents are not transaction, cadastral information, thereby removing redundancy of tasks and required should be established by dealing with administrative tasks related to obtaining latest information. agriculture, plant, livestock and food in an electronic way. To do this, it is necessary to introduce EDI (Electronic Data Interchange) to improve convenience of civil petitioners. In addition, an online civil application system should be constructed

Establishment Process of the Integrated Agricultural Information System in connection with all kinds of civil services related to administration, as well as an electronic payment system that makes it possible to pay fees online. Classification Details •Business Process Reengineering (BPR) Establishment and •Information Strategic Planning (ISP): Suggesting the planning of department in direction, effects and investment amount of informatization charge •Feasibility assessment •Design, source code, components •Editor, compiler, debugger/ Providing test equipment •Standardized foundation structure including the methods Introduction of standard of dealing with screen, work processes, data, connection, framework encryption, file compression /decompression •Providing automation functions, configuration management equipments and maintenance equipments, etc.

152•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•153 Moreover, in the future, an agricultural administration connection system

Establishment Process of the Integrated Agricultural Information System should be constructed to utilize agricultural administration data generated from Classification Details local governments and private organizations such as associations, cooperatives •The civil service request system, the administrative and NGOs, etc. Also, the information system should be made to ensure that all Establishment of the information exchanging hub server and security foundation foundation for information officers can register or employ and operate information and analyze data, trends, for clients sharing and implications, etc. statistically through online. Over the long run, forecasting •Legal basis or simulation models through an integrated monitoring system should be used to •Developing a standard model for operating and managing generate much necessary information needed for policy decisions. the information system •Providing technology training services •Introducing, disseminating and managing the standard 3.2.2. ICT Plan & System Construction Establishment of the framework Integrated Data Center •Step 1: Gradual integration of information resources of each institution Establishing BPR and ISP for the Integrated System •Step 2: Rearrangement of resources between institutions and systems By linking between work processes and IT strategies for integrated management •Step 3: Integration of the foundation of cloud computing of agricultural administration, a systematic and consistent information system that Organization of the •Receiving and dealing with reports of incidents such as hacking helps the achievement of business targets should be constructed. First of all, through response team and system •Preventing and recovering from security problems for cyber security •Establishing a security policy and guidelines Business Process Reengineering (BPR) and Information Strategic Planning (ISP), trials •Establishing the standard work management system for and errors resulted from establishing the system can be reduced, and a blue print work management, scheduling, policy and instruction that includes application, data, infrastructure, and operation of institutions from management and document management and delivery, etc. a wider viewpoint can be made. In this process, over-investment or overlapped Development of the •Supporting work management, information sharing and investment can be prevented, and system requirements can be satisfied in a way that Integrated Intranet efficient decision-making •Conducting the system utilization method and managing changes enables the actual establishment of the system and long-term planning. During the •Organizing and operating a temporary team in charge of the planning process, decision makers can suggest directions and effects of IT and the system introduction amount of money invested. They can search for new opportunities by introducing •Establishing the electronic signature system, selecting and IT that reflects job characteristics of each institution. Also, by actively accepting an Establishment of the Public operating related institutions organization’s policies and culture, directions can be set in a way that raises cost Key infrastructure •Enacting the act of electronic signature •Selecting agencies for registration efficiency and operation efficiency. Establishment of the •A system to identify the personal reference of civil servants administrative electronic and administrative organizations Based on analysis results of Paraguayan agricultural administration, strategies for signature system •A system to prevent forging and falsifying electronic documents building the integrated agricultural information system can make clear the purpose •Registering internal knowledge of SIGEST and foreign of the business, and lead to a more effective implementation of BPR and ISP. BPR information and ISP need to be conducted by each institution’s IT department, and all the other •Establishing a connective system among institutions, local departments are required to cooperate for a smooth operation of the project. In governments and associations Establishment of the •Expanding databases managed by each institution regards to determining further directions, it is advised that feasibility studies be Integrated Agricultural •Establishing an integrated internet system for registration, carried out to analyze the adequacy of each project, and BRP and ISP be conducted Information System authorization and assessment especially for key projects. •Broadband Internet, 2G, 3G and 4G mobile network •Cloud Computing: open access software, social media, Facebook, crowdsourcing, etc. Introduction of a Standard Framework for Integrated Agricultural Administration Informatization Education •Establishing and running education programs for each stage for officials and Considering interoperability and reusability in SIGEST and related institutions, of informatization agriculture-related persons the standard framework comprised of reusable design, source code and components needs to be introduced. By doing so, each institution’s base for information

154•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•155 development and operations can be standardized and development productivity immediate application of the standard framework seems to be difficult. Therefore, can be enhanced, which in turn leads to an effective development, maintenance and it is necessary that Paraguay introduces the standard framework in phases and learn management of the system. from South Korea’s experiences.

One of the major functions of the standard framework is that it reduces Preparing a Base for Joint Use of Information unnecessary efforts for building the development environment by providing test tools including editors that can develop applications, compilers, debuggers, etc. Also, The base that will be help SIGEST and related institutions reduce communication by standardizing implementation development, the quality can be guaranteed and problems needs to be introduced urgently. This system enables people to use maintenance process can be made simple. agricultural administration-related information, thereby reducing required documents for civil petitioners. In this case, civil petitioners can file a civil complaint Moreover, it helps developers to focus on the development of business logic with without having to visit several institutions. Also, they can save a lot of time by the help of already-made templates and components. The standard framework visiting a nearby institution instead of a far-away institution, thus enhancing should provide the standardized base structure that enables common functions for efficiency in administrative work. This system is in relation with the concept of the execution environment, such as screen handling, business handling, connection, placing the exchange hub of administrative information in the center, instead of encryption, encoding, ZIP/UNZIP, build automation functions, configure and change connecting each institution’s information system separately. management tools as well as maintenance tools, etc. SIGEST should be in charge of the administrative information exchange hub since it is in the position of overseeing related organizations. It is also required to provide

E-Agriculture Standard Frame foundation services that support the common use including security regarding the use of administrative information, data link, post-audit, etc.

For the joint use of administrative information that includes personal information, first of all there should be a legal basis as well as a consensus on the range of provided information and its use among institutions. Also, the public key infrastructure (PKI) is necessary because a high level of security is required.

The administrative information exchange hub should be connected with a large volume of data by a batch process, while the administrative information joint use service will enable users to search for smaller units of administrative information in real time. Therefore, in the short term, the administrative information exchange hub, which is easy to build and use, needs to be established. Then in the medium and long term, the administrative information joint use service needs to be built for the conveniences of civil petitioners.

But this service has a limitation in that it can be made effective only after However, the standard framework for integrated information system has digitalization of each institution’s business is completed. Therefore, this service problems in that it requires education for developers and consistent training needs to be introduced to the organizations that already finished digitalization programs. Even after the establishment, common functions of which each of information. As for other organizations, it should be made mandatory organization is in need should be added. Also, the standard framework is required that administrative information joint use functions are built in the process of to be consistently enhanced and upgraded according to the technology trend. digitalization of business information. By doing so, both the digitalization of Therefore, a department in change should be formed, and it is required to be administrative work and the joint use can be made possible at the same time. supported by other departments. Considering the current state of Paraguay, an

156•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•157 Technically, the administrative information exchange hub consists of the Organizing a Cyber Emergency Response Team & System administrative information exchange hub server, which serves as an information exchange hub like an email server, and the administrative information exchange hub As the Paraguay’s social infrastructure is switched from offline to online mode client, which is installed in an organization’s server and plays a similar role with an increasingly, the country’s dependency on ICT services will also increase. Thanks to email client. Based on SOAP and Socket, it has functions including data encoding, ICT, Paraguayans will be able to easily use services whenever and wherever they ZIP/UNZIP, PKI, electronic signature, etc. need, and the government and companies will be able to work in a more efficient manner. Such an increased dependency on ICT, however, can pose a new risk to Establishing the Integrated Data Center the national infrastructure and national life through cyber breaches on the ICT infrastructure, such as hacking, virus, spam, etc. In order to prevent a national The center can help the institutions in reducing the total cost of execution, crisis and protect the ICT infrastructure, which is important, a propulsion system enhancing stability for system management, and strengthening security of the that includes a taskforce and propulsion procedures should be built. As for the digital divide among institutions. More specifically, it makes it easy for organizations integrated agricultural information system, cyber emergency response team must to exchange information and enhances task continuity and stability by strengthening be formed to establish a security system that prevents information breaches. The the ability to cope with disasters and information breaches. It also upgrades cyber emergency response team is responsible for addressing cyber accidents as economic feasibility through effective use of ICT resources and the economy of scale, well as preventing accidents and repairing the damage within the jurisdiction of thereby improving ICT technology capability. In addition, the integrated data center SIGEST and related institutions. Its major duties include establishing plans for security can develop and supply the standard model for operation and management of the activities, preparing security measures and guidelines, reviewing the level of security, information system, and it also provides technical training services that are needed and managing the performance of security activities. Basically, it is ideal that each for construction, alteration, managing and monitoring of the information system. institution has its own cyber emergency response team. However, it seems more Such technical support activities of various kinds help facilitate each institution’s desirable that a team taking care of information security is placed within SIGEST for digitalization and narrow the digital divide among different institutions. An an efficient operation of the integrated administrative system and then subdividing information technology support group in the integrated data center is responsible the roles of the team. not only for the introduction and dissemination of the standard framework, which is one of the action programs, but also for a consistent maintenance of it. The standard Constructing of the Integrated Intranet framework can serve as a tool that helps facilitate digitalization of the agricultural administrative sector. The information technology support group can also promote The intranet should desire to connect with functions and tasks of SIGEST and the technology and carry out training for institutions, thereby contributing to related institutions. Also the system should be operated for managing business tasks advancement of agricultural administrative information in Paraguay. In the first step, and performances in a systematic and consistent manner and recording various the integrated data center integrates information resources owned by individual opinions during the decision-making processes. Major functions include managing organizations according to types of institutions and systems. In the second step, standardized work and supporting business management, information sharing and information resources in each institution and system are relocated to maximize the efficient decision-making. Standardized work management enables to record and resource use rate. In the long term, it is desirable that information resources are manage the decision-making process on the system, which is related to political integrated based on cloud computing, and they are operated in a flexible manner subjects and directions. By accumulating business knowledge, this system manages according to each institution’s usage amount of information resources. However, each institution’s conduct of business and work progress clearly, and enables to some institutions may feel antipathy to integration of information resources because manage and share each institution’s documents, tasks, or unit work. It also helps they think they are deprived of their own information resources. To tackle this support communications between SIGEST and related institutions. In the case of problem, the Paraguayan government is required to consistently promote these Paraguay, a separate business system among institutions has not been developed processes and persuade institutions to accept it, as well as to forcefully executing yet, so it is better to build an integrated intranet to encourage users’ access. But proceedings according to related laws. first of all, establishment of each institution’s infrastructure needs to be preceded so that the users can use it on the web. The integrated intranet is a multi-dimensional system that includes overall administrative information, so it takes time to learn its concept and functions. As for the public servants who are not accustomed to

158•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•159 computer utilization, it takes even more time to adapt to a new system. In severe The designated CA should be safely managed digital certificates such as issuance cases, some public servants would complete the jog manually first to do computer and revocation, secured reliability over online transactions, and have been a liability work later, which would double their burden. Therefore, it is important to come up of reparation in case of an accident as a service provider. A registration authority with measure to help users to adjust to a new system by providing enough training, refers to an organization that identifies the subscriber (citizens) in person and managing changes, and establishing a special team for introduction of a system. register and issue the certificate on behalf of the client. Therefore, authentication institutes should be authorized by the government through a strict screening that Major systemic functions of the integrated intranet include work management, are reliable and easily accessible on the part of the public, such as identification schedule, policy direction management, document management, document delivery, offices, local administrative offices, and banks, etc. etc. Such major functions can be connected with policy management, work review and work classification according to directions of the Paraguayan government. As for South Korea, as the advancement of information and communications technology has boosted the rapid spread of the Internet access and electronic As for general administrative work, the integrated intranet can be connected transactions, the government has established the Digital Signature Act in order with integrated knowledge, audit, information release, legal information, unified to secure safety and reliability of electronic documents, build a safe environment budget management and record management; as for local governments, it can be for electronic transactions, and manage CAs efficiently. Under the Act, the PKI was connected with local administrative information, human manpower information built for public digital signature, including the designation of the Korea Internet and budgets of local governments. With the help of the integrated intranet, all the and Security Agency as the root certificate authority. In addition, with the aim of works in the agricultural administrative sector can be classified according to aims and offering convenience to digital certificate users, the public key certificate system functions. Also, work progresses and performance degree can be managed even in was integrated in 2011 to ensure that all online banking services could be done with the most basic unit. In addition, document production and work procedures can be one single digital signature. Public key certificates are required for online banking standardized, and transparency and accountability are guaranteed in regards to the services and online securities transactions as they, compared to the use of IDs and decision-making process. passwords, are a better safe tool in protecting an individual’s information and prevent the denial of electronic transactions. In its early days after the introduction, Establishment of the Public Key Infrastructure (PKI) the digital signature system was only used in electronic finance such as online banking and securities transactions, but it has recently been expanded to all business The Agricultural Integrated Information System should be equipped with the PKI transactions spanning from e-procurement to taxation, including online apartment for a safe environment for administrative information and reliability so that services application, electronic civil services, income report, etc. for civil requests or registration could be available online. Above all, it is vital for Paraguay to establish the PKI at the pan-government level as an increasing number As digitalization of administrative business began to be accelerated, it has of Paraguayans are using the Internet and therefore, it is expected that electronic emerged as a vital issue to secure reliability and safety of such digitalized tasks of transactions will be also boosted. However, when the country attempts to construct the government. Against this background, the Korean government has worked on the Agricultural Integrated Information System, it is also necessary to establish the establishing the PKI in order to protect electronic information at the government PKI. Therefore, Paraguay should select and operate an organization suitable for the level for the identification of public officials when dealing with digitalized data, roles to make legislation or an institution for accredited certificates ‒whether it is a the prevention of forged electronic documents, and the safe distribution of pan-government level, or the SIGEST level. The legislation and institution related to administrative digitalized documents. the electronic signature system should include the designation of the best possible certification authorities (CAs), procedures of designation of CAs and their roles, The public certification system for administrative digital signatures is composed certificate issuance processes and rules, application scope and usage of electronic of the root certificate authority, 6 certification authorities, and 28 registration public keys, and punishment for unlawful use. The CA, designated through strict authorities and remote-registration authorities. Also, the service is being operated in screening, should be equipped with technology, financial resources, and facilities/ tandem with National Public Key Infrastructure (NPKI) of the private sector. equipment through which the organization can safely construct and manage the system. In addition, the Korean government has established the integrated digital certification system in order to build the certification standard at the government

160•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•161 level and suggest consistent certification policy. As a result, compatibility between The construction of the administrative digital signature system makes it possible e-government services and the certification system was developed, suited to each to strengthen identification and authority management of public officials who deal protection level for respective systems. with agricultural administration services, and reduce damage resulting from ID/PW disclosure. Major features related to the system include: the constant management of reliability that makes it possible to differentiate certification, suited to each business Construction of Systems by Level environment, the coherent security system that enables an integrated management of accounts and authority, along with automatic data process for reorganization or At the early stage, the basic frame for the system is established, and internal transfer of the personnel, the access control system that is operated to control DBMS, knowledge of SIGEST and foreign information are input into the system. At the systems, and application access through an integrated certification gateway, the second stage, a connection system is constructed between local governments and monitoring system that is implemented to control DB access, cryptography, SSO, and related institutions (SENAVE, SENACSA, INAN, and DEAg, etc.) and other associations, certification, and inspection and monitoring system that is also conducted to detect etc. Also, each organization should continue to expand its own exclusive database, unlawful access. while establishing a system to vitalize knowledge exchange. In this process, an online integrated system should be built to ensure that each organization can deal with Construction of the Administrative Digital Signature System registration, licensing, and evaluation.

As the business environment of the agricultural integrated management system The system should be made taking it into account that the ever-growing use of shifted from the paper-based one to digitalized one, major information is likely mobile phones has prompted the Internet to be accessible through 2G, 3G, and 4G, to be at risk of disclosure, falsification, and mutilation. Therefore, it is vital to as well as broadband connections. In particular, mobile-based applications would be secure reliability and safety of administrative services and to prevent the loss of more suitable for farmers and others engaged in agriculture living in remote areas. administrative information by the loss or damage of public keys, thereby ensuring As technology related to data storage and information exchange has rapidly been the continuity of the services. To address these problems, it is important for the developed, the capacity of hard drives and the speed of microprocessors are also on government to establish the information protection system in order to identify the rise, with the cost for data storage going down. As for cloud computing, it offers public officials and administrative organizations, prevent falsification of digitalized a host of shared computing resources, including sharable tools, applications, and documents, and to secure a safe distribution of electronic documents. Currently, a intelligently linked content and data. Therefore, investment should be made into number of organizations in the Paraguayan government are employing their own the systems and ICT new technology from a long-range perspective. Also, it is vital PKIs, and it is expected for more organizations offering major services to join in to form strategy to aggressively make use of open access software, social media (e.g. constructing the PKI. On the part of users, however, they may find it inconvenient Facebook), and crowdsourcing. to get each certification issued from respective organizations. To improve such a problem, the Paraguayan government should establish an integrated certification system in which users can utilize the entire system with one single public key.

The management system for administrative digital signatures is hierarchically composed of the root certificate authority that manages and supervises certification authorities that are responsible for managing digital certificates and registration authorities that engage in user identification and registration. It is vital to develop an integrated public key system operated in tandem with the private sector’s PKI. Based on such integrated infrastructure, the SIGEST and related organizations can be equipped with a high level of security through certification when dealing with administrative services.

162•2014 Joint Consulting with IOs : Inter-American Development Bank [IDB] Chapter 1 _ Creating Rural Innovative Strategy for Sustainable Rural Development in Paraguay•163 References

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