|
|
|
|
World Bank support for poverty reduction impact of Central America - US Free Trade Agreement:
|
|
|
|
Through competitiveness projects, the World Bank supports the following countries to prepare for CAFTA:
 El Salvador
Guatemala
Nicaragua
Honduras
 El Salvador: Competitiveness Enhancement Technical Assistance Project — $16 million (IBRD).
This project supports the Government's program to accelerate outward-oriented private sector development and raise productivity. The project, approved in 1995, has facilitated change by improving: the business environment, lowering the cost of doing business in El Salvador the environment for technological capabilities of private sector firms and labor, in order to raise productivity and international competitiveness the environment for building consensus on economic competitiveness issues, by facilitating the flow of public information and public sector-private sector dialogue
In doing so, the project has contributed to El Salvador's capacity to compete under more open trade conditions. In addition, the project has been restructured to allow building consensus on the benefits and challenges that a CAFTA agreement would generate.
 Guatemala: Competitiveness & Financial Markets Technical Assistance Project — $20.3 million (IBRD).
This project is helping to reduce poverty by supporting reforms to help small businesses increase their incomes. It supports legislative changes to promote competition and foreign investment, while providing training to employees to promote improved quality of products and services, thereby helping Guatemala prepare for CAFTA.
 Nicaragua: Competitiveness Learning and Innovation Project — $5 million (IDA).
This $5-million zero-interest credit finances a pilot program to support small business and the government in improving the country's investment climate and competitiveness. The loan has been restructured to allow for specific support to Nicaragua's entrance into the CAFTA, specifically, support will be provided for consultation and broad policy dialogue on the requirements and implications of CAFTA, supporting key cluster/sectors that are likely beneficiaries of the free trade agreements. A second competitiveness credit is also being prepared along similar lines.
 Honduras: Trade Facilitation and Productivity Enhancement Project - $28.06 million (IDA)
This $28.06 million zero-interest credit to Honduras is designed to improve the country's investment climate, boost firms' productivity and export capacity, thereby promoting economic growth and reducing poverty and inequality. Specific initiatives for this project include: improving the country's policy framework for private sector development promoting private sector innovation by creating Technology Innovation Centers and developing a National Quality System implementing training reforms improving the investment climate at the local level by developing and implementing local competitiveness strategies developing a communication campaign on the various initiatives described above and on themes related to competitiveness. |
|
|
|
|
RSS