USAID/Mexico Competitiveness Program 3rd Quarter Report (April-June 2009)

The Program seeks to strengthen governance to improve economic competitiveness and environmental management, and to preserve biodiversity. The Program's three governance areas address environmental management, more efficient and effective government, and more efficient factor and precursor markets. Environmental management focuses on improving environmental governance, sustainable forest management, and alternative incomes for small producers in high biodiversity areas. More efficient and effective government involves strengthening policies and programs that promote the competitiveness of small and medium enterprises, as well as strengthening the capacity of the Federal Competition Commission. More efficient factor and precursor markets include increasing access to capital for productive investment, improving the quality and sustainability of urban water service, and promoting investments in renewable energy. During the third quarter, the Program had several important achievements. In environmental management, the Program collaborated with SEMARNAT on the climate change agenda, provided critical organizational and logistical support to the environment ministry in two international events, and solidified the Mexican government's commitment to pursue a global climate change agenda. The Program also organized a two-day workshop to develop the methodology for a USAID-financed study of competitiveness obstacles in Mexico's forestry sector. In more efficient and effective government, the Program established an agreement with the State of Chihuahua to provide technical assistance on setting up the state's new Value Added Institute. The Program also published its first newsletter, which was well-received by the Federal Competition Commission, and held a meeting to develop a legislative agenda for the year. In more efficient factor and precursor markets, the Program held a bidding process for a firm to carry out diagnostics of microfinance institutions that work with FIRA. The winning firm, Accion Microfinanzas, will carry out the diagnostics in the 4th quarter. The Program also co-organized a conference with the Government of the Distrito Federal on standards for solar heating of water and organized a seminar on "Micro-lending Investment Projects Using Renewable Energy" in Tuxla Gutierrez, Chiapas. Grant management was also a key focus during the third quarter. Committees composed of experts, government officials, and internal staff evaluated 11 grant proposals received from 7 NGOs in three different rounds. By May, USAID Mexico approved all 8 grants recommended by the evaluating committee, and all grant agreements were signed, with activities underway with all grantees. Deliverables included reports on characterization and definition of communities, acts stating communities' commitment to the REDD project, and foundational acts stating commitment to conserve the Lacantún area. Field visits were also conducted, including a visit to the National Reserve of El Ocote in the State of Chiapas to participate in the community selection for AMBIO's REDD project, jointly with CONANP.