Private sector initiatives (PSI)

The project was implemented by Federation of Private Sector Entities in Central America and Panama (FEDEPRICAP). Under the dynamic leadership of its Executive Director, FEDEPRICAP has strengthened its role as regional private sector leader, becoming the sector"s representative at regional and international fora, and increasing the sector"s participation in Central American economic cabinet meetings; its most productive and efficient period was from late 1991 to 1992. Although FEDEPRICAP"s critical role in inserting Central America into international markets is widely recognized by entities such as the Permanent Secretariat of the General Treaty of Central America of Economic Integration (SIECA), the organization has failed to develop a plan for fully exploiting potential private sector opportunities. Also, the national agencies that make up FEDEPRICAP are not fully aware of the organization"s achievements; nor have the national agencies been subjected to the in-depth analysis needed to identify those with the greatest potential. The following lessons were learned. (1) FEDEPRICAP should work vigorously to gain the recognition of groups working to promote integration of Central America into the international market. These include private sector promotion groups, the private enterprise sector, and development organizations in each Central American country. (2) FEDEPRICAP will play a very significant role in the North American Free Trade Agreement (NAFTA) process; in preparation, FEDEPRICAP should strengthen its relationship with its members and other private sector promotion organizations, and should participate in all regional fora related to NAFTA. (3) To increase its financial sustainability, FEDEPRICAP, which has very high operating costs, must decrease its staff and expenses.