The Community Fund Program PRESENTATION Executive Summary Part One: Background and Justification...

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Transcript of The Community Fund Program PRESENTATION Executive Summary Part One: Background and Justification...

The Community Fund ProgramPRESENTATION

Executive Summary

Part One: Background and Justification

Part Two: The IOM proposal

Part Three: The Building of Milestones

International Organization for Migrations--IOM. Guatemala, February, 2002

A country with two Economic HistoriesA country with two Economic Histories

La Cochinilla

Second HistorySecond History

COFFEECOFFEE

YEAR 1875YEAR 1875

PASTPAST FUTUREFUTURE

LA COCHINILLA COFFEE

YEAR 2001YEAR 2001

PastPast FUTUREFUTURE

?COFFEE

CRISESCRISES

SOLUTION: To Look for new

export products

IOM: besides new products, now there is a need to build another economic platform.

Guatemala Pyramidal Country Organization

83 percent live in poverty

•60 percent have less than one dollar per day per capita. Extreme Poverty

•23 percent have less than two dollars per day per capita. Poverty

Guatemala year 2000: 11 Million inhabitants.

Figures from the United Nations: Human Development Report, year 2,000.

There is a line that divides and separates us all.

Why?

We need to explain why we have reached the XXI Century with more than 80 percent of the people living in poverty.

Throughout our history:

The country has been organized in three different pyramids: in top and bottom structure. Municipal

MarketsCapital City Market

International Export-Import Market

It may be drawn like this:

Connecting the three markets, there is common platform that reunites the three markets into one economic system.

This economic platform divides the country into two separated groups:

Those who have access and can move within the platform: which is a small group.

And those who live in poverty and cannot reach the economic platform

According to the International Labor Office--ILO--the country needs to generate 1.0 Million jobs to meet the employment requeriments of the year 2000.

It is estimated than 1.0 Million Guatemalan workers have migrated to the USA.

The outcomes:

Problems increase instead of diminishing within a national environment of violence.

Part II: The IOM Proposal

END Part One: Background and Justification

Value of present offer

Sales and Profits

Investment

Current Business

We are going to use a very well known business model to explain the Guatemalan situation. This is our departing premise: a company has two parallel ways--or cycles-- to invest.

ONE: is to improve its current business

The second cycle, is to invest on the development of future products and services that will come from their business environment.

Value of present offer

Sales and Profits

Investment

Current Business

Business Ecosystem

Improve Commercial Platform

Value of core offer

Sales and Profits

Investment

Current Business

Business Ecosystem

Improve Commercial Platform

Export System

Financial System

Business Communities

Coffee System

Improve Commercial System Jobs

This is Guatemala

Value of core offer

Sales and Profits

Investment

Current Business

Business Ecosystem

Improve Commercial Platform

Export System

Financial Sysstem

NO development in the rural Communities

Coffee System

NO Improvement in the Commercial System Jobs

NO investment in the development sector of the economy.

More than 130 years investing only in one sector of the economy.

Not enough Jobs: people migrating to USA

Value of core offer

Sales and Profits

Investment

Current Business

Business Ecosystem

Improve Commercial Platform

Export System

Financial Sysstem

NO development in the rural Communities

Coffee System

NO Improvement in the Commercial System Jobs

Year 2001: The Coffee Crash.

An 880,000 job problem.

Not enough Jobs: people migrating to USA

Our Proposition

Value of core offer

Sales and Profits

Investment

Current Business

Business Ecosystem

Improve Commercial Platform

Work on a NEW Export System

A FRESH Financial System

Development in the rural Communities

Work on a NEW ECONOMIC System

Work on a NEW Commercial PLATFORM

New Jobs

The starting point: the creation of a new financial bridge.

GO BACK to the rural communities where the richness of the country comes from