Archive for the ‘El Salvador’ Category

The Consultative Process: From Diaspora Communities, To Partner Countries, To Congress

Friday, February 29th, 2008

MCC headquarters, for those of you who haven’t visited us yet, is a relatively small space designed to house the 300 people who work in our organization. Its size notwithstanding, we maintain an open-door policy and welcome as many individuals and groups as possible to learn about MCC, our ongoing projects in partner countries, and to talk about how we can learn together from this process and tackle the problem of systemic poverty worldwide. Just this week, over 260 people have been in our offices, as we hosted public outreach sessions: one celebrating our most recent $698 million compact with Tanzania signed by President Bush and President Kikwete, and one focusing on ongoing implementation progress with our $461 million compact with El Salvador.

I view these meetings as a continuation of the all-important and all-inclusive consultative process — something we expect from our countries as a hallmark of our model, and something MCC does here in the U.S. with our stakeholders. This process doesn’t end when compacts are signed or in implementation, and our public discussions are indicative of this commitment.

We explored investment opportunities in Tanzania this week, so that private- sector investments can complement MCC efforts and encourage deeper long-term growth. Small- and medium-sized companies, including those owned and operated by minorities and women, came to ask questions about our work and how they can get involved. Together with the government of El Salvador and Vice Minister Margarita Escobar, we explored similar areas of opportunity in the northern region of El Salvador. The message of the meeting was clear: There are exciting things happening in this region of El Salvador because of MCC’s work through FOMILENIO (the local entity responsible for implementing MCC’s $461 million grant) and investors are the ones who can help the people increase the pace in their battle against poverty. We heard about Salvadorans who are building new tourism projects, investing millions of private dollars that are leveraged by MCC’s public investment in roads, education, and training. We are very excited to see the Salvadoran diaspora taking advantage of these opportunities by investing in their home country and creating hundreds of jobs, and more important, generating hope for the poor people living in El Salvador’s Northern Zone.

The consultative process is more than just meetings with investors and stakeholders from our partner countries. This week I testified before the House Appropriations Committee Subcommittee on State and Foreign Operations in what could also be considered part of this open, transparent dialogue on MCC. The hearing was — as it should be —rigorous and probing, and allowed MCC to talk to one of its most important stakeholders, the US Congress, about our progress to date and our plans for the future. I am keenly aware that the funds we at MCC administer are taxpayer investments. When you are before a group of elected officials, as I was on Tuesday, you must demonstrate how your organization is fulfilling its mission. I was proud to be able to tell Congress that MCC is doing what it was designed to do: helping countries reduce poverty and sustain growth, based on a sound foundation of good government policies. I was pleased to note the positive and encouraging reaction of certain committee members and told the group as a whole that we welcome further dialogue with them — as we do with all our stakeholders — on MCC’s work. That’s what makes this a real consultative process and guides us in fulfilling our mission in even better ways.

Strengthening Education—and the Environment—with our partners in El Salvador

Saturday, January 26th, 2008

“I can now give it my best and reach the goals I set for myself.” These were the words of Jennifer, one of the students who today received a scholarship for technical and vocational education in El Salvador. I was pleased to be part of this ceremony and watch as these teenagers were recipients of something more than money for school – today they received a chance to succeed. This pilot scholarship program for youth in the impoverished Northern Region is just one aspect of a broad initiative on education that MCC is proud to fund as part of our $461 million compact with El Salvador.There is a clear link between education and economic development in El Salvador, where human capital is one of the country’s more promising – and precious – resources. Infrastructure improvements are greatly enhanced by our sustained investment in the Salvadoran girls and boys that will be shaping the economic and social future of their country. The scholarships that we awarded today underscored this link and pointed to a visible commitment by the government of El Salvador to invest in the education of its people. President Saca and I discussed this issue at length during our trip to and from the events today in Chalatenango.Another issue at the forefront of my meetings in El Salvador was the environment. Working in developing countries, MCC recognizes our responsibility to help partners prioritize social and environmental considerations within their compact design and implementation process. Many people are aware of the environmental indicators that are already part of our selection process. Fewer people know, however, of the environmental impact assessments and other considerations that are an integral step in our ongoing work with MCC partner countries.In the case of El Salvador, the environment is the subject of the country’s first-ever strategic environmental assessment. I was presented with a copy of the report this morning as part of what has been a very public discussion of the issue here in the country. A product of MCC’s collaborative relationship with the World Bank, the report takes a hard look at both the individual and cumulative environmental impacts of development projects in the Northern Region where MCC and other donors work. This has enabled identification of key opportunities for strengthening the framework for social and environmental sustainability, and filling gaps in the institutional structure at both the local and national levels.This is the sort of cooperation that makes MCC a sound investment in these partner countries, and a good investment of U.S. taxpayer dollars. Our assistance is helping make our neighborhood – in this case the Western Hemisphere – a more democratic, more prosperous, and more stable place.

Great Expectations – and a Great Foundation – in El Salvador and Nicaragua

Friday, January 25th, 2008

My schedule today began in Nicaragua and ended in El Salvador – two very different countries that nonetheless brought to the forefront one common concept: “country ownership” of MCC projects. Those who follow the MCC and our compacts in 16 countries worldwide know that we talk a lot about this principle. Today in El Salvador, meeting with the men and women of FOMILENIO (the Salvadoran entity charged with the implementation and monitoring of our $461 million compact with the country), I re-emphasized the important role this concept plays in our efforts to fight poverty.

“Country ownership” is a fundamental part of the MCC process from beginning to end. It is not a solely academic concept or intangible idea – it is one of the driving forces behind MCC programs. When creating a compact, negotiating it, and implementing it, the country’s government, civil society, and ultimately those who benefit from our assistance, must be fully invested in the programs. They need to be the ones participating in oversight of activities to ensure results are achieved. This is definitely the case in El Salvador. During the in-depth conversation this afternoon at FOMILENIO headquarters about the status of the El Salvador compact, it was clear that the Salvadorans are aware of the challenges – and tangible benefits – of carefully designing projects that will benefit the country in the long term, projects that will reduce poverty and sustain economic growth.

El Salvador’s MCC compact, four months since entering into force, is in the early phases of implementation. I want people to understand, as I have come to appreciate, what exactly goes on in our partner countries during this phase. The Salvadorans who are implementing this program are setting up the structure that will make the roads, water, rural business development, education, and rural electricity programs planned for the next five years work effectively. They are working with a firm to manage procurements efficiently and transparently. Over the next six months, they are purchasing over $150 million worth of goods, works, and services that will make these MCC projects a reality. They are putting out advertisements (locally and internationally) for the very best experts who can design and carry out these projects. As is required with any solid business plan, they are mapping out – in a detailed and professional way – the sequence of events that will maximize the investment that comes from MCC, which is the investment of precious American taxpayer resources.

The more I talk to the people on the ground who are designing and implementing MCC projects in our partner countries, and specifically today here in El Salvador, the more I am struck by the professionalism of the teams implementing these programs. They are experts in their field, and are people whose backgrounds match the task at hand – implementing the largest MCC compact in this region. I told my friends at FOMILENIO that I was encouraged by their attention to detail and their focus on efficiency. Finding the right balance between responding rapidly, yet responsibly, to poverty reduction is the only way to ensure that the results will stick and the benefits will last.

Speaking of details, the MCC is currently looking at ways to better present and communicate details of the implementation of our projects, to the U.S. taxpayer. Transparency is our responsibility at MCC as much as it is the responsibility of the entities working in our partner countries. I welcome feedback on how we can better communicate the progress and successes in our compact countries, many of which I have seen first-hand in my travels. (Feel free to contact MCC at info@mcc.gov at any time.)

FOMILENIO shared some powerful images with me, of a few of the projects underway in the northern region of the country that so desperately needs infrastructure improvements to stimulate its economy. I am attaching a few of them here so that you can see the current appalling condition of a sampling of the roads that will be rebuilt and the river crossings that are in desperate need of bridges.

While the day ended with a discussion of progress on the ground in El Salvador, it began with an exciting, momentous day in the history of U.S.-Nicaragua relations. I was honored to be able to preside at the opening of the new U.S. Embassy in Managua. Together with Ambassador Paul Trivelli and an impressive array of representatives from the full spectrum of Nicaraguan society, I was pleased to participate in the official opening of an impressive, efficient, and beautiful new structure that is a worthy symbol of the U.S. government’s constructive engagement in that country.