GTZ is now GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit
Since 1 January 2011, GIZ has brought together under one roof the long-standing expertise of DED, GTZ and Inwent. For further information, go to www.giz.de/.
Since 1 January 2011, GIZ has brought together under one roof the long-standing expertise of DED, GTZ and Inwent. For further information, go to www.giz.de/.
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Sustainable economic development in Central AmericaProject description
Title: Sustainable economic development in Central America
Context
Central America’s efforts to integrate into the international trading system are making good headway with the establishment of a regional customs union, the enforcement of the free-trade agreement CAFTA-DR and an Association Agreement with the EU concluded in May 2010. Increasingly, the national governments of El Salvador, Guatemala and Honduras are coming to rely on the dynamic force of innovative micro, small and medium-sized enterprises (MSMEs). However, to date, these MSMEs have not been able to fulfil their designated roles as engines for growth or seize the opportunities generated through trade liberalisation. Moreover, the innovative forces within the MSME sector in particular will be under substantial pressure to modernise in future. However, neither the political nor the institutional framework conditions are suitable for promoting the commercial and technological competence in innovative MSMEs. ObjectiveThe political and institutional framework for promoting the commercial and technological competence of innovative MSMEs has improved. ApproachThis programme supports the establishment of a coherent regional and national system of MSME promotion in Central America, with a special focus on commercial and technological competence, as well as EU alignment. The approach taken by the programme includes interventions at the supranational level in Central America and at the national policy level (macro level), as well as at the implementational level (meso level). The programme involves process-oriented advisory services, inter-institutional capacity building, exchanges on successful pilot schemes and their transfer throughout the region, as well as the (transnational) networking of national and regional organisations that deal with trade, innovation and technology. The aim is to improve the institutional performance of individual actors, as well as that of associations of private and public actors, along with their respective framework conditions. Other components of the intervention include sector policy advice and strategic advice on trade and innovation. Results achieved so farTrade component The move to improve services for businesses has led to the development of e-learning courses that are designed to strengthen foreign trade competence. Offered by universities in El Salvador and Honduras, more than 100 people have taken part in them in El Salvador to date. A mentoring programme was also set up to assist start-ups by women and to support women working in management positions within a company. To date, women have been trained as multipliers in five countries. By sharing their know-how, they are helping other women to build up their entrepreneurial potential, too. In cooperation with the Central American Center for the Promotion of MSMEs (Centro para la Promoción de la Micro y Pequeña Empresa en Centroamérica – CENPROMYPE), the programme has produced publications on trade policy in Central America, manuals on negotiation strategies for trade agreements and on MSME promotion policy, and product and marketing information for Central American goods that are seen to have potential on the European market. Having been given better, more transparent information and training in foreign-trade dealings, MSMEs are now able to make better use of the opportunities afforded them by the EU Association Agreement. To facilitate trade, initial steps have been taken to reduce regional trade barriers. In cooperation with CENPROMYPE and the UN Economic Commission for Latin America (Comisión Económica para América Latina – CEPAL), the programme conducted a study intended to improve logistics processes and customs procedures, and it has also compiled a fact sheet with successful case studies from the region and a list of its needs. Innovation component
In El Salvador, Guatemala and Honduras, actors from the national innovation systems (NIS) representing politics, business and science come together at round tables (mesas técnicas de innovación) to promote coordination and cooperation. Joint initiatives have already been implemented, such as the organisation of innovation competitions. A start-up platform, First Tuesday, has been launched with the support of the programme. In El Salvador this was done by the Salvadorian Foundation for Economic and Social Development (Fundación Salvadoreña para El Desarrollo Económico y Social – FUSADES), and in Honduras by the industrial association ANDI (Asociación Nacional de Industriales de Honduras). Over 1,500 new and established entrepreneurs and interested individuals have attended the networking events to exchange information and initiate business contacts that take place on the first Tuesday of every month. The programme strengthens the structures of national IT specialist networks and advises on the elaboration of sustainable business models. It backs institutional restructuring processes, promotes cooperation with the public and the academic sector and assists with the formulation of strategic and implementation plans. In Honduras the programme helped set up the first IT association, directing the focus to knowledge-intensive products and services and developing new economic potential. In regional terms, the programme initiated the creation of a network of national IT associations that implements prioritised change management projects (basic and further training, certification). The fund for the promotion of MSME competitiveness (FOEX-FONDEPRO) from El Salvador has been adopted by the Guatemaltekan Ministry of Economics as an example of a regional success story. Another case of a successful South-South transfer is the replication of the Costa Rican non-profit start-up association ‘ParqueTec’ by the Salvadorian Foundation for Economic and Social Development (FUSADES). Further information
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