Project assistance completion report : private sector initiatives, cooperative agreement no. 519-0336-A-00-7589-00

The project was implemented by the Salvadoran Foundation for Economic and Social Development (FUSADES) and contained two components: the Program to Strengthen Local Business Associations (FORTAS), and activities of FUSADES" Department of Social and Economic Studies (DEES). FORTAS was terminated 1/91 after it was determined that it had successfully attained its objectives. Under the program, 36 business associations were strengthened; 6,000 association managers and members received training in areas such as communications, marketing, and information systems; and 177 business leaders were trained in association management and communications. Additionally, FORTAS promoted the principles of free enterprise through a national publicity campaign that reached 1.8 million people nationwide; programs for students, employees, reporters, and journalists; and support for the introduction of market economy subjects into the curricula of selected private universities. As a result of FORTAS" efforts, 25 private associations have sponsored 139 infrastructure projects in 65 low-income areas in San Salvador, including construction of fences, walls, cisterns, and sewage canals; street lighting; and improvements in community halls. DEES is now considered the best economic think tank in the region. DEES has carried out more than 70 studies in macroeconomics, microeconomics, and social issues, and has succeeded in developing its own research capacity. DEES" economic policy recommendations have been disseminated through bulletins, reports, seminars, conferences, and educational projects, such as a course on social evaluation of projects at the Catholic University of Chile, and numerous audiovisual presentations. USAID is currently funding DEES under project 5190287.01 and will do so until that project"s 9/94 PACD. The following lessons were learned. (1) FORTAS has contributed significantly to solving the basic needs of the country"s neediest population, successfully promoting both free enterprises and private sector participation in social programs. However, while the private sector has been generous, its economic resources are limited; future projects should include feasible investment plans to guarantee the most efficient utilization of resources. FORTAS and FUSADES have also gained valuable experience in coordinating different public and private entities to implement short-term projects and provide community leadership. (2) DEES has grown into a center for applied research; however, its initial stage of contracting outside research consultants was very useful to the local staff, who took advantage of all the knowledge transmitted by the consultants. The dissemination of the principles of free market economy has been a very beneficial, but slow and constant process, and will be a permanent activity for DEES. DEES" collaboration with the Government"s economic policy team has paid off; several DEES staff have assumed important ministerial positions, facilitating dialogue between DEES and political leaders.