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What to Watch for in El Salvador

June 06, 2006

In reaction to my search for bold, innovative MCC programs, a former MCC official told me recently to keep an eye toward El Salavador -- that it was going to be "truly innovative stuff." I'm really looking forward to seeing the process unfold, including perceptions on the ground that can help inform and improve the process. I recently received an email from the SHARE Foundation, an established development and solidarity organization working exclusively in El Salvador. SHARE raises three issues with El Salvador's emerging MCA proposal, quoted here:

"1) Consultation Process: The consultation process was not conducted in its proper order: instead of the Saca Administration approaching civil society to consult on proposal ideas, it already had a proposal when it came to the consultations. At meetings with NGOs, it has presented its proposal for commentary. This is not our understanding of what the MCC intended "consultation" to look like, nor what authentic consultation really is. In spite of the Saca Administration's claim that consultations have been conducted since 1998 via the National Commission on Development, our partners wonder who has been part of that process aside from the private sector and a limited segment of civil society.2) Poverty Impact Analysis: The majority of MCC funding will be used to build a highway in northern El Salvador. It is uncertain how the highway will help Salvadorans in the region move out of poverty, particularly small and medium-sized farmers who are threatened by rice and dairy imports from the US with CAFTA. Instead, we expect the highway to be used by multinationals. Growth alone is not enough: MCA countries must look at the distributional effects of that growth. We do not see evidence that this is being done in El Salvador, in spite of the well-phrased presentation offered by the Saca Administration.3) Impact of the MCA on the budget process: We are concerned about the potential for MCA funds to replace core humanitarian funds in the US foreign aid budget."
As always, I would love to hear other views from the field that can constructively inform the MCC compact development process.

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CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.

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