pdf.usaid.govpdf.usaid.gov/pdf_docs/PDAAB527D1.pdf · 2 The IESCA program also puts leaders from...

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lI_iI _. . ' (5<n(1) / SI - . -' . . - AI O" I); &01 (PR OP) , I'" ." II NONCAPITAL PA PER , I I .. . liT " f!j ". gi No' Free Labor Development:· for -"" Free Labor Jleve1"1""'nt (AIFID) , ' '0. ""0: ""'" J. nECIPI[HT ( .. ,ully) 4. L.l rE OF PROJeCT g ' 0"' '' '" - "" 62 o COUNTRY UECt!'lS ICY -REV. I<l . fA n 75 CONTR.fPAS'" Df:f'!lO tNTltAn!: CIOtUol. [@: I , C. D. ... , . D. •. rONOjll (; PF.IHoOtINEI. PAIlTIC IPANTS COMMOO· OTHIl:R pl\s!,/cmHR . I ' : 5 us_ I . "' '" '" '" '" ITII!S COSTS '" '" I " . , "'ISCAt. , , , Yf.AR ". , "" (o'no, f.ltA ,,., '0"" ) '"', '"'" .. , - ";:; 58;821 ) 75 3, &7. 3,672 , ;c, ,. , ;.;; :; .. , o,C'," .. ". , 62 . 493 'rOTA I. -_ . 11. orlHlJI nOllon CCtlTnmUTIOIIS 1 .... "T'ij""" ,, -;:;C-Ui;Oo"iTc; il · - ._-- -_.- -- --" r" ". <00-;;-' --- (Ill KitH' e.r - -- Ill. OrUGtll"TlHC. OFFice CLt:ARAlICE - u s@!te?fl-"JC.(t'/- , onAFrr:H TITI.I: OATr; Fred L. PrQ:Jra,ll AnalYf; t ti7' 1'L zr . -l--;;C: - ), '::L.t::hnll ll CI: OfFlcr;n \ 111 LL OATE Donor 1·1. Lion, U" ""- Director . 2"A "-/7J''___ . .- IV. I'nO)IiCT AUTIIO ll lZ/l TI Otl . -- - . _- , CONIl11IOU$ Dr " ..... HOYA' 'I'his PHOP is for a $145 ,0 00, one time, 6 mos. Central lunericnn l .. nbor Economics 'l'raining Pl"ogl "am. - .---- ), r. .. r.1\1I4 I1C L!o - . lIun 0" ", - ., 3oIGNA1Ufl t: U.glf 1' 1111 or". SIGNA T ime I) "lr will' .-.-- J:. N. - S/bl ! Ulia"N J. J,,,ckard (droft) 5/19/75 . Q ILCo",· 71 .·. z,)-C:.CZf' .. l 'yemra PPC P. 'l 'hornlt.1lm (d r aft) £I,r-h( WOPNS C. - -_. -;;] ---- '\ ! W a:. _ L ._ , __ 1.-fS ", .. 1'" OF fl or ""I"',IOVAL A A,O AI .I>, 10),'. 1 \'/ r, - .'G·, .,u.tr ; ;2 :' :4 :.c:: .... c -G .$. - ;7 """ , I 1" L I N\lJ.l\ Hemun "', ) MIH",n"10,., AGI :lIC Y "o u ,I '"

Transcript of pdf.usaid.govpdf.usaid.gov/pdf_docs/PDAAB527D1.pdf · 2 The IESCA program also puts leaders from...

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bull lI_iI ~ _

(5ltn(1) SI - - -~

AIO I) amp01 1 1 I ~~~pound~tEET l (PROP) I II NONCAPITAL PA PER

I I liT fj g iNo Free Labor Developmentmiddot ~~ican [nstit~te for -

Free Labor Jleve11nt (AIFID) )~oo_ 0 0 J nECIPI[HT ( ully) 4 Ll rE O F PROJeCT

g 0 ~H~~ -

62 o COUNTRY UECtlS ICY ~ -REV NO~~ Iltl fA n 75 CONTRfPAS DfflO tNTltAn CIOtUol

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COMMOOmiddot OTHIlR plscmHR I 5 us_

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- --Ill OrUGtllTlHC OFFice CLtARAlICE -

~unfJlt u stefl-JC(t- onAFrrH TITII OATr

Fred L PrQJrall AnalYf t ti71Lzr -l--C -) Lthnll ll CI OfFlcrn 111 LL OATE

Donor 1middot1 Lion TA~ffig~ltgt( U - Director 2A -7J___ -IV InO)IiCT AUTIIO ll lZl TI Otl - - - _- CONIl11IOU$ Dr HOYA

Ihis PHOP ~evision is for a $145 0 00 one time 6 mos Central lunericnn l nbor Economics lraining Ploglam

- ----) r r11I4 I1C Lo -

lIun 0 - 3oIGNA1Ufl t Uglf 1 1111 or SIGNA T ime I) l r

will --- J N latc(cl~middotaft) - Sbl UliaN J Jckard (droft) 51975 Q ILComiddot 71middotz)-CCZf i~ ~

lyemra e~lupQ 1-1~h~-PPC P lhornlt1lm (dr aft) poundIr-h( WOPNS C - -_-]---- W a _ L _ Lund~ __ ~ 7 1-fS -~OIJAI 1 OF fl o r Oll~___ ~ bull IIOVAL A AO f~ ~ AIIgt 10) 1 r -

1~_~ Gmiddot utr 24 ~ ~I ~loN UI II

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I 1 L I NlJl Hemun Klcin~ )MIHn10 A GI lIC Y ou IN 11 ~ NIIIOAll tJVkI O ~1 I

The purpose of this revision is to approve a sub-project A 6 month Centralmiddot American Labor EconomicsIntegration training program to be carried out approximately from June 15 to December 15 1975

Introduction

1he General Treaty of Central American Inteshygration vas signed in Dec8J11ber of 1960 and establish(x1 the Central American Common larked (CACM) Since that time the CACM countries have experienced subshystantial grOmiddotrtlJ ThG period VJi tilcssed tllG ulJoli tion of intermiddotnal tariffs on some 970 of all P)()(1l1Cts in thG Central Aln8riea Unifo ill CUtOlCl NOTlloJlC 1lt1 Lu rn the adoption of a unifonl (JuLide iJli f[ ll fJigrdiic(mt ineJcasc in the g)ovth rl~te of U1e (~l-(S ])(Jiil( tic lrodnct il ubs1onUil CXPl111EjOl in hoth prjvatc inc public invc~ tnwmiddot1 llnd it Etunnil1~) 9 eitll cdmiddot in intritrC(JiolitJ tiHle Some ~middotlo(( IJ in ~rC (h n-Jmiddott(Fgt set in rt f to~ J ~l (j (i Jnl t til c Cil C)middot JJ C f] J Oi i ~~ l f of J- ecov ly bull l S IJCmiddoti f~ [ udy rOir~) c t( (~ i il ( t_ ~middotmiddotx~~middot 1 r 7 2 uxc1_Tidned themiddot ill t~rr ~lli crJ 11 1 V UI C~)J i aid i ir (In ))1 (HI

and eonclndcd tbilt funrlltlilcmiddot)tal n~jtructtlJillCj of middotthe CClmmon JJlrllt middotI(ll~Jd h nCjuirclti lu (~ch middotCvmiddot~ (Lcc(~l) Cr1L1c )~(t tc rJh~middot fmiddotmiddotilmiddot~i1~ lJ()] (I(~ ())It tii((l ef f cctiv (~ lon~I- tu~m int) J~ij()1 ) I (1 temiddot J J raquo~1 i] t on s iunlj cr Lll rr tbrln becr tr (dc (mel viOulel require tackl n~T ecollomic social jmtituti one] al1c1 human prob lClI~~ ihi c lJ ni1 11 ad lin ( ( Vi Cell rc~ () J v ( tli r mshyselv(~~ in tlt(~ ]0 of CXJgt~l1l(~rJ tmiddotlh lil~llc pust in tcra tion 11ila been ~yrJu~lyn-u~j ol UJ [rcc trade 110 the conccpL 1111J~l h~ (middotmiddotT~l(lJic iJlclt(lc intcshygratiot i n 1 lltt~C~J bJOlIC) C()Jlt lljch inltlclcs ~con( middot~ic I roci 1 f1i htLltil cmiddotl(TIlc]lU-~ i c Cl CClItJaJ l~n8riciln )conujll~_c (In(1 Sc)ciil COlwniLy (ChJmiddot~~C) bull

For seve )_ (11 ye c1~~ thc~ iTlK1 ic lll r n s t i 1 tl tlt~ f OJ

Free IJn]x)l Development (iIFLD) Iw~ C~I1~ra~wrl in pro~jJllIlS def_j~)ncd cd lCi1Gi in P([ to strcn~Jihen lilbo) r- J~olc ill the CcntclJ lltlCLicDn int(~ltJTution pLoec~middot

011 0 J C lT]) [lJrjp r ( ((llmiddotmiddotmiddotmiddotmiddot~) lIIImiddotmiddotJmiddotj C-I IJ11J 011 ~ bull ) bull bull J 1 L ) l bull L (J bullbull _ bull l - _ IJ

StUc1il~j In ci tu l( (IESClI) )elt]iOll 1 tliL1nili9 program This is elll adult Cduciltion progllm for giving middle level trade union leaders in Central AmericCl some busie unc1on~tandin9 of what cconoliLlc integration is and why it is importanl to the lClbor movement

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The IESCA program also puts leaders from various Central American countries together in the same classrooms and thus promotes cross-national ties within Central ~nerican labor IESCA provides a wide base of support and understanding within labor for the integration effort but it cannot turn out the higher-level specialists middotin the complexities of int0rnational economic iLtegration which the n~ovement needs for the years to come

The second and most recent AIFLD pJogram which is expected to have useful effects in support of economic il1tpg1~atiol1 r is the new Documentation and Research Center loc2ted in Costa Rica with research contributon in each Central AJllcrican country While the major thrut of middotthis project is in support of lab(JJ in colJccmiddotitVC L~ugoining r i t i~ also producing some data ufefuJ for union lcadecs involvc~d in tlw in t00J-lti01 jJloccrs If it is to COlJ(ll1UC vddL--tiol1al lcitdcn3 wi tll ((onomie tnd ning middotiLl be lleeded in CClltrcJ hmcTicl to rplmiddotnd pal~ioc1s middoto)Lin~r [or tIlt CCl1L(middot- flj )(-~(lrcll contriLmiddotlilOl~S RoseiuclJ conb middot buLoc il( ITid ~ un UJl~ -ls lOCilmiddotccd in Ccni)] 7mmiddotrC~ n conllt)ie~j ilo h~_~v( n((j ved l11J]) tC(ildn~j ll1cy collrct tJc1 1)mi t to the RC[3cnch Conte spccifie infon1~lti(ln 1)(((lC(middot from thcjJ councry for Cl resench Pr(J~i (ct tile Cell tc i CCiLl1(~middotin~r lhc~y ilre paid only fo LLc 01) (Omiddot~- on the JJ~ojoctl r)UJ( than a L~illary 7t prc~3cll tmiddot I only a part o[ the rcscurch contributcmiddot~3 ure t1ilincd labor economics grlJduil tcs beciuse lllOt glClt1UlltCS ltlre involved in other activities both in tl1C 1ilL)Q)~ 1110( nl~ld Clnd in some ca~cs yeni th govelJlncntf

IlH Ulicc1 pcograll1 I Vil~ch l~s f30)VU[ C(l1tnll lJnoJic( cmc1 oilJmiddotr cECiU 0C Lotir llllcrica [or tho past ciltJht YlUr heS beon clio Jntcn-lllIcricCln Labor Ecollomics ProC1ram (11JEl) This progrr1l11 las be011l1 to meot a need of Latj n lmerican tLClc1e unions for IVben- oconoinic~3 i lllel ior tll(~ collection 11(1 use of sta Us ticC 1 il1ftl)r1illmiddotiull as colJccti vo ))~lllt]uining in thc r~gi()JI l)(~cilIW i ilcreafingly sophisticated and technictl Jhc JLEP qrClc1U( to rctunHd VIi th Cln

academic yCllLmiddotI~ tlaininrr in )x~jc economics - both micro an c1 Ill~l C j~c) r S ta Li tj ( ll nc1 ind tiS tr i lt11 J cIa tions re=cltlrcll Ihir LJ -ltlillllJ9 u dc~igncc1 to llIal~e the graduates u~cful in cOllductiJl~r collective bilrgaining affocting na tiontll economic policies serving on social wclfare boards and advul1cing international

economic integration efforts The shortcomings of th~ program from a Central American integration standpoint were that most of the work dealt with national rather than regional situations and the scale was not well adapted to the Central American scene

A ProCJram Goal

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1he goal of the propmmiddoted pro~jJilm is to snppoX thp effOJts of Central Anlerican onJunized labor to participatc mOJ-e actively in the ccol1omic and Dod lt11 integration of the region and to enjoy the benefits thereof Jlle eighth Congress of Lhe Centrol ]mmcin t~orl~eJ~s COllfoc1cJation (CTCA) in cTuly 1971) JeC0i11iTpnU(J to middottbrir atfiliatcs J) lg)~ee Lo SUPPCq t thc CC))-hdJ lmcr iCin CCmTIlor2 I1ackc~ l Lnd pJ cCIlt]( co SILr( jrll~j(lx tltllC( to th(~ subject in ellJ il)lcrTcUuJltl fmthl[J ~) bClC~ RctiOllJ to chl-ll UW -lCUC v(lnc~ (1f Ccn-Lrmiddotl middotlmiddot)iC1)1

PJO(hwtJ in i nhTnatioll) 1 mu()l~~~) l) ~middotmppcI ini Lcmiddot tiv Le) c~J(vltllmiddot( CC~)l)~l Nncri ( )1 fJlc1)(l )(j~ of JiriJ~

lli(LI~E~middot~~ Li )llmiddotlIh~~n ( Lll1Cl Lni~~))CiC Ll1c j~lrJmiddotmiddot~ l)~PC 1 ~_~

of tl1(i)~ COLFI lr jes nld~ and IF ~)ucll a(ti(o~ fiVO)~Lmiddothly

aff(middot~c-t tlvgt Ti())~ling CL~3- not only the lJivilccqed C J cl Jh C (OJ lt1 C ~~ lJ~ 0 Jocc _)IC1C tlJ i t i C(l)](

I~cnl(lt Ltcr1y chociJ Ly 1Jb)( flClC C c(~h nidiu~l cOlnJittcc Gtlll1 CltlC)1 cclLon of ~UCj~

1 r1eusur(~ of Col ]rhiovcmc~nt

gvic1el(~ of proltj1osr toviLImiddota tbf~ goul should be ref lee ted in

Cl C(~j)t1ltl liiICLiCilll (middotIqJni~~8c1 L1L))~ will have [ull lllCnll)(~r rCpnsCnt~ Li 0)1 on tlH~

rcgiolvll lIiltJh L8V(J Commi tt(c Cind 5 naUollilJ bodies formulating integruti Oll

policy (one in oach Celltnd ]~r1cJ~ican country) lt1nJ rill pljticiptc in dcci[ion~~

nffecUn9 winimum -yc~- Llj)or 1l10bi li ty SOCLll Eecur i ty bcn(~[ i ts and other issuos tlf feeting 1orl)middoteJ~s

h Fl~C8 lllOV(llWmiddott of JDbo)~ from 0)( Ccnt)il llmerican country to another in response to work opportunities in industry and agriculture

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2 Basic Assumptions of Goal Achievement

Goal achievement will depend not only upon the direct impact and effective delivery of the project inputs but al~o upon the integration process itself and the willingnes~ of the national governments to cede some autonomy in the interests of furthering progress of the Central American Economic and Social Community

It is Clssumed thnt national governments their minirmiddottries I boards ctc dealillg vi th economic and social integration and the various soctions of SIECA and others will seriously consider recommendations made by organized lltb(~Y

In order to r82li ~o the PlOj ect qool it is LlSSnUtC( thclC tlw cun~cni Jlisrh levlls of jnt(rc~t chrpJlyect by Lho fimiddotl~ ~TOV(~nshylI1cnts in trin~locmi))9 tlJC Cellbil hIljiciil Common l-ia3c L into the CenlJo1 lmiddotltCricin EcoLomic [c~L Cunrrlll ily lL 11 C(JJl CillUC bull

Inhen [ n the i))iVI ifgt tIle aSsUl11LUOI1 that (c-wl lllcw)(r (l11n-[ is cnnvilJC(-d that CUf3()(ilt-lti()li 1 ell lU n i~TI~middot U(cCi (ACLmiddoti is in its cwn b0~t intc~cst

B 1118 p]~oi (-~C PUrT)()[ (~ --- _ _ - ---~-- - ----

1110 pUlporc of the proi 8Ct i~ tlu-c]old u fo ~~tTCl](J Ull~n COInm icc t iUj- and rappOJ~t betwCtl1 Centdl American tJ ctdc ullioris and the iJtcrshynational (~coJ)omic integrlt1tion 2gcncic- in Ccntrill Amel~icLl ilS 011 l~ nati0l1il1 governmcnt ~linistri~s and bOtJC1s b Jo stl011gth8ll the efj-Ol~ts of In1ltn)ltiollJl rtcJr Scc)middotcctt)Ciiir to ~upport Central llncdeiln trilde union particip] tion in economic jntc~lrlllion c 10 plmiddotovide (=lCldi tionCll hUIniln rc~ou)~C(~~ to thc rencnrch efforts of the DOGumentltion C8nter in CO~3tLl Rica

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2 Conditions Expected at the End of the Project

a Eight graduates will be working for Central American unions federations or confederations represented on national br regional planning boards commi ttecs or agencies concerned vi th forming national policy in one or more areas of economic and social integration or on regional integration bodies 1he graduates way perform research for the labor organization which leads to or supports a position taken by the labor 0l~9ani zation for whom they arc vlocking 01 may th0lftfclves rcpr8~JCl1t the liDOr organization

b Thn)e of the prU_cipull~ dill he select(~d froh1 Jegional integ1ltttion Clgencicr Upon their return they should be d(si9Ilatc~(J lalx)r speciclists wi th1n thc5r JcrpectimiddotI) aSfel1cics Selection cd these UF(~C p1cticipi 8 will b~ HJI(~ b~7 l~OClP

c At 1Cil~ tJl1CC of thc pn Li cip-rJ U])011 return to lllciJ home cuunhirs I will b~~ p)lvidl-~l1 iHt C) 1) ipr J) Tr)te ~) it LiO)il I J(~ Sec LiCi u Ju Clctj vc in tlJl~ (1 cmiddotC [() cn~ 011[ Jgtro~j cc L tl))[

jtncJios OJ) a Jcqional Jgt~Ji appliccLlc to theiJ~ sec lc) rlIC JI~ Jill then hc~ in (1 posi ti C 1 to 1 C ~J) (inc tC) ~((1 ~ ~Imiddotmiddot~- t~ E )-()dl J t ( )~~ () J~ ~ l t n i z c - un fJ Vii-hin thCL 1~c(pccU_vc ccConj

d One qrLlduate li1l be worl~irg a yellJ (intcrl1J1p) fur the CCJ~Jzl1 llH(~ri CiJn rorl~el s Confcrie)~citi(ln (CJCl) Ccn~r21 jmcrican Jnstitute of Union tuliiC3 (IESe)) DocuTIel1 ta tion Con l(~r in COSLl rmiddoticC

rho f 0 ~ lemiddot in Sf 1iho)middot 0 ( li ~a t iUll J i1 c~ n~rr( ell to )In)v ide jn[(ln~jhip r r L a ficd tim(~ or plcmancn Uy crtlploy gTllc1Ull tcs upon complction of thc coun(j =

l (lJmE)

1((1c11c)s Fl(middotIc]~~Iioi or CO~t )ic - two tJJ~ilclthtCr fQ)~ on8 yCllr

2 13nlwod~cJ~j federation of Guatemala (FBSED) - permlll1cnUy clilploy one gTilC1Ull te

3 Federation of GUtltcffilan vorkcrs (FESE13) - permanently employ one graduate

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

The purpose of this revision is to approve a sub-project A 6 month Centralmiddot American Labor EconomicsIntegration training program to be carried out approximately from June 15 to December 15 1975

Introduction

1he General Treaty of Central American Inteshygration vas signed in Dec8J11ber of 1960 and establish(x1 the Central American Common larked (CACM) Since that time the CACM countries have experienced subshystantial grOmiddotrtlJ ThG period VJi tilcssed tllG ulJoli tion of intermiddotnal tariffs on some 970 of all P)()(1l1Cts in thG Central Aln8riea Unifo ill CUtOlCl NOTlloJlC 1lt1 Lu rn the adoption of a unifonl (JuLide iJli f[ ll fJigrdiic(mt ineJcasc in the g)ovth rl~te of U1e (~l-(S ])(Jiil( tic lrodnct il ubs1onUil CXPl111EjOl in hoth prjvatc inc public invc~ tnwmiddot1 llnd it Etunnil1~) 9 eitll cdmiddot in intritrC(JiolitJ tiHle Some ~middotlo(( IJ in ~rC (h n-Jmiddott(Fgt set in rt f to~ J ~l (j (i Jnl t til c Cil C)middot JJ C f] J Oi i ~~ l f of J- ecov ly bull l S IJCmiddoti f~ [ udy rOir~) c t( (~ i il ( t_ ~middotmiddotx~~middot 1 r 7 2 uxc1_Tidned themiddot ill t~rr ~lli crJ 11 1 V UI C~)J i aid i ir (In ))1 (HI

and eonclndcd tbilt funrlltlilcmiddot)tal n~jtructtlJillCj of middotthe CClmmon JJlrllt middotI(ll~Jd h nCjuirclti lu (~ch middotCvmiddot~ (Lcc(~l) Cr1L1c )~(t tc rJh~middot fmiddotmiddotilmiddot~i1~ lJ()] (I(~ ())It tii((l ef f cctiv (~ lon~I- tu~m int) J~ij()1 ) I (1 temiddot J J raquo~1 i] t on s iunlj cr Lll rr tbrln becr tr (dc (mel viOulel require tackl n~T ecollomic social jmtituti one] al1c1 human prob lClI~~ ihi c lJ ni1 11 ad lin ( ( Vi Cell rc~ () J v ( tli r mshyselv(~~ in tlt(~ ]0 of CXJgt~l1l(~rJ tmiddotlh lil~llc pust in tcra tion 11ila been ~yrJu~lyn-u~j ol UJ [rcc trade 110 the conccpL 1111J~l h~ (middotmiddotT~l(lJic iJlclt(lc intcshygratiot i n 1 lltt~C~J bJOlIC) C()Jlt lljch inltlclcs ~con( middot~ic I roci 1 f1i htLltil cmiddotl(TIlc]lU-~ i c Cl CClItJaJ l~n8riciln )conujll~_c (In(1 Sc)ciil COlwniLy (ChJmiddot~~C) bull

For seve )_ (11 ye c1~~ thc~ iTlK1 ic lll r n s t i 1 tl tlt~ f OJ

Free IJn]x)l Development (iIFLD) Iw~ C~I1~ra~wrl in pro~jJllIlS def_j~)ncd cd lCi1Gi in P([ to strcn~Jihen lilbo) r- J~olc ill the CcntclJ lltlCLicDn int(~ltJTution pLoec~middot

011 0 J C lT]) [lJrjp r ( ((llmiddotmiddotmiddotmiddotmiddot~) lIIImiddotmiddotJmiddotj C-I IJ11J 011 ~ bull ) bull bull J 1 L ) l bull L (J bullbull _ bull l - _ IJ

StUc1il~j In ci tu l( (IESClI) )elt]iOll 1 tliL1nili9 program This is elll adult Cduciltion progllm for giving middle level trade union leaders in Central AmericCl some busie unc1on~tandin9 of what cconoliLlc integration is and why it is importanl to the lClbor movement

2

The IESCA program also puts leaders from various Central American countries together in the same classrooms and thus promotes cross-national ties within Central ~nerican labor IESCA provides a wide base of support and understanding within labor for the integration effort but it cannot turn out the higher-level specialists middotin the complexities of int0rnational economic iLtegration which the n~ovement needs for the years to come

The second and most recent AIFLD pJogram which is expected to have useful effects in support of economic il1tpg1~atiol1 r is the new Documentation and Research Center loc2ted in Costa Rica with research contributon in each Central AJllcrican country While the major thrut of middotthis project is in support of lab(JJ in colJccmiddotitVC L~ugoining r i t i~ also producing some data ufefuJ for union lcadecs involvc~d in tlw in t00J-lti01 jJloccrs If it is to COlJ(ll1UC vddL--tiol1al lcitdcn3 wi tll ((onomie tnd ning middotiLl be lleeded in CClltrcJ hmcTicl to rplmiddotnd pal~ioc1s middoto)Lin~r [or tIlt CCl1L(middot- flj )(-~(lrcll contriLmiddotlilOl~S RoseiuclJ conb middot buLoc il( ITid ~ un UJl~ -ls lOCilmiddotccd in Ccni)] 7mmiddotrC~ n conllt)ie~j ilo h~_~v( n((j ved l11J]) tC(ildn~j ll1cy collrct tJc1 1)mi t to the RC[3cnch Conte spccifie infon1~lti(ln 1)(((lC(middot from thcjJ councry for Cl resench Pr(J~i (ct tile Cell tc i CCiLl1(~middotin~r lhc~y ilre paid only fo LLc 01) (Omiddot~- on the JJ~ojoctl r)UJ( than a L~illary 7t prc~3cll tmiddot I only a part o[ the rcscurch contributcmiddot~3 ure t1ilincd labor economics grlJduil tcs beciuse lllOt glClt1UlltCS ltlre involved in other activities both in tl1C 1ilL)Q)~ 1110( nl~ld Clnd in some ca~cs yeni th govelJlncntf

IlH Ulicc1 pcograll1 I Vil~ch l~s f30)VU[ C(l1tnll lJnoJic( cmc1 oilJmiddotr cECiU 0C Lotir llllcrica [or tho past ciltJht YlUr heS beon clio Jntcn-lllIcricCln Labor Ecollomics ProC1ram (11JEl) This progrr1l11 las be011l1 to meot a need of Latj n lmerican tLClc1e unions for IVben- oconoinic~3 i lllel ior tll(~ collection 11(1 use of sta Us ticC 1 il1ftl)r1illmiddotiull as colJccti vo ))~lllt]uining in thc r~gi()JI l)(~cilIW i ilcreafingly sophisticated and technictl Jhc JLEP qrClc1U( to rctunHd VIi th Cln

academic yCllLmiddotI~ tlaininrr in )x~jc economics - both micro an c1 Ill~l C j~c) r S ta Li tj ( ll nc1 ind tiS tr i lt11 J cIa tions re=cltlrcll Ihir LJ -ltlillllJ9 u dc~igncc1 to llIal~e the graduates u~cful in cOllductiJl~r collective bilrgaining affocting na tiontll economic policies serving on social wclfare boards and advul1cing international

economic integration efforts The shortcomings of th~ program from a Central American integration standpoint were that most of the work dealt with national rather than regional situations and the scale was not well adapted to the Central American scene

A ProCJram Goal

3

1he goal of the propmmiddoted pro~jJilm is to snppoX thp effOJts of Central Anlerican onJunized labor to participatc mOJ-e actively in the ccol1omic and Dod lt11 integration of the region and to enjoy the benefits thereof Jlle eighth Congress of Lhe Centrol ]mmcin t~orl~eJ~s COllfoc1cJation (CTCA) in cTuly 1971) JeC0i11iTpnU(J to middottbrir atfiliatcs J) lg)~ee Lo SUPPCq t thc CC))-hdJ lmcr iCin CCmTIlor2 I1ackc~ l Lnd pJ cCIlt]( co SILr( jrll~j(lx tltllC( to th(~ subject in ellJ il)lcrTcUuJltl fmthl[J ~) bClC~ RctiOllJ to chl-ll UW -lCUC v(lnc~ (1f Ccn-Lrmiddotl middotlmiddot)iC1)1

PJO(hwtJ in i nhTnatioll) 1 mu()l~~~) l) ~middotmppcI ini Lcmiddot tiv Le) c~J(vltllmiddot( CC~)l)~l Nncri ( )1 fJlc1)(l )(j~ of JiriJ~

lli(LI~E~middot~~ Li )llmiddotlIh~~n ( Lll1Cl Lni~~))CiC Ll1c j~lrJmiddotmiddot~ l)~PC 1 ~_~

of tl1(i)~ COLFI lr jes nld~ and IF ~)ucll a(ti(o~ fiVO)~Lmiddothly

aff(middot~c-t tlvgt Ti())~ling CL~3- not only the lJivilccqed C J cl Jh C (OJ lt1 C ~~ lJ~ 0 Jocc _)IC1C tlJ i t i C(l)](

I~cnl(lt Ltcr1y chociJ Ly 1Jb)( flClC C c(~h nidiu~l cOlnJittcc Gtlll1 CltlC)1 cclLon of ~UCj~

1 r1eusur(~ of Col ]rhiovcmc~nt

gvic1el(~ of proltj1osr toviLImiddota tbf~ goul should be ref lee ted in

Cl C(~j)t1ltl liiICLiCilll (middotIqJni~~8c1 L1L))~ will have [ull lllCnll)(~r rCpnsCnt~ Li 0)1 on tlH~

rcgiolvll lIiltJh L8V(J Commi tt(c Cind 5 naUollilJ bodies formulating integruti Oll

policy (one in oach Celltnd ]~r1cJ~ican country) lt1nJ rill pljticiptc in dcci[ion~~

nffecUn9 winimum -yc~- Llj)or 1l10bi li ty SOCLll Eecur i ty bcn(~[ i ts and other issuos tlf feeting 1orl)middoteJ~s

h Fl~C8 lllOV(llWmiddott of JDbo)~ from 0)( Ccnt)il llmerican country to another in response to work opportunities in industry and agriculture

4

2 Basic Assumptions of Goal Achievement

Goal achievement will depend not only upon the direct impact and effective delivery of the project inputs but al~o upon the integration process itself and the willingnes~ of the national governments to cede some autonomy in the interests of furthering progress of the Central American Economic and Social Community

It is Clssumed thnt national governments their minirmiddottries I boards ctc dealillg vi th economic and social integration and the various soctions of SIECA and others will seriously consider recommendations made by organized lltb(~Y

In order to r82li ~o the PlOj ect qool it is LlSSnUtC( thclC tlw cun~cni Jlisrh levlls of jnt(rc~t chrpJlyect by Lho fimiddotl~ ~TOV(~nshylI1cnts in trin~locmi))9 tlJC Cellbil hIljiciil Common l-ia3c L into the CenlJo1 lmiddotltCricin EcoLomic [c~L Cunrrlll ily lL 11 C(JJl CillUC bull

Inhen [ n the i))iVI ifgt tIle aSsUl11LUOI1 that (c-wl lllcw)(r (l11n-[ is cnnvilJC(-d that CUf3()(ilt-lti()li 1 ell lU n i~TI~middot U(cCi (ACLmiddoti is in its cwn b0~t intc~cst

B 1118 p]~oi (-~C PUrT)()[ (~ --- _ _ - ---~-- - ----

1110 pUlporc of the proi 8Ct i~ tlu-c]old u fo ~~tTCl](J Ull~n COInm icc t iUj- and rappOJ~t betwCtl1 Centdl American tJ ctdc ullioris and the iJtcrshynational (~coJ)omic integrlt1tion 2gcncic- in Ccntrill Amel~icLl ilS 011 l~ nati0l1il1 governmcnt ~linistri~s and bOtJC1s b Jo stl011gth8ll the efj-Ol~ts of In1ltn)ltiollJl rtcJr Scc)middotcctt)Ciiir to ~upport Central llncdeiln trilde union particip] tion in economic jntc~lrlllion c 10 plmiddotovide (=lCldi tionCll hUIniln rc~ou)~C(~~ to thc rencnrch efforts of the DOGumentltion C8nter in CO~3tLl Rica

5

2 Conditions Expected at the End of the Project

a Eight graduates will be working for Central American unions federations or confederations represented on national br regional planning boards commi ttecs or agencies concerned vi th forming national policy in one or more areas of economic and social integration or on regional integration bodies 1he graduates way perform research for the labor organization which leads to or supports a position taken by the labor 0l~9ani zation for whom they arc vlocking 01 may th0lftfclves rcpr8~JCl1t the liDOr organization

b Thn)e of the prU_cipull~ dill he select(~d froh1 Jegional integ1ltttion Clgencicr Upon their return they should be d(si9Ilatc~(J lalx)r speciclists wi th1n thc5r JcrpectimiddotI) aSfel1cics Selection cd these UF(~C p1cticipi 8 will b~ HJI(~ b~7 l~OClP

c At 1Cil~ tJl1CC of thc pn Li cip-rJ U])011 return to lllciJ home cuunhirs I will b~~ p)lvidl-~l1 iHt C) 1) ipr J) Tr)te ~) it LiO)il I J(~ Sec LiCi u Ju Clctj vc in tlJl~ (1 cmiddotC [() cn~ 011[ Jgtro~j cc L tl))[

jtncJios OJ) a Jcqional Jgt~Ji appliccLlc to theiJ~ sec lc) rlIC JI~ Jill then hc~ in (1 posi ti C 1 to 1 C ~J) (inc tC) ~((1 ~ ~Imiddotmiddot~- t~ E )-()dl J t ( )~~ () J~ ~ l t n i z c - un fJ Vii-hin thCL 1~c(pccU_vc ccConj

d One qrLlduate li1l be worl~irg a yellJ (intcrl1J1p) fur the CCJ~Jzl1 llH(~ri CiJn rorl~el s Confcrie)~citi(ln (CJCl) Ccn~r21 jmcrican Jnstitute of Union tuliiC3 (IESe)) DocuTIel1 ta tion Con l(~r in COSLl rmiddoticC

rho f 0 ~ lemiddot in Sf 1iho)middot 0 ( li ~a t iUll J i1 c~ n~rr( ell to )In)v ide jn[(ln~jhip r r L a ficd tim(~ or plcmancn Uy crtlploy gTllc1Ull tcs upon complction of thc coun(j =

l (lJmE)

1((1c11c)s Fl(middotIc]~~Iioi or CO~t )ic - two tJJ~ilclthtCr fQ)~ on8 yCllr

2 13nlwod~cJ~j federation of Guatemala (FBSED) - permlll1cnUy clilploy one gTilC1Ull te

3 Federation of GUtltcffilan vorkcrs (FESE13) - permanently employ one graduate

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

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Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

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American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

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i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

2

The IESCA program also puts leaders from various Central American countries together in the same classrooms and thus promotes cross-national ties within Central ~nerican labor IESCA provides a wide base of support and understanding within labor for the integration effort but it cannot turn out the higher-level specialists middotin the complexities of int0rnational economic iLtegration which the n~ovement needs for the years to come

The second and most recent AIFLD pJogram which is expected to have useful effects in support of economic il1tpg1~atiol1 r is the new Documentation and Research Center loc2ted in Costa Rica with research contributon in each Central AJllcrican country While the major thrut of middotthis project is in support of lab(JJ in colJccmiddotitVC L~ugoining r i t i~ also producing some data ufefuJ for union lcadecs involvc~d in tlw in t00J-lti01 jJloccrs If it is to COlJ(ll1UC vddL--tiol1al lcitdcn3 wi tll ((onomie tnd ning middotiLl be lleeded in CClltrcJ hmcTicl to rplmiddotnd pal~ioc1s middoto)Lin~r [or tIlt CCl1L(middot- flj )(-~(lrcll contriLmiddotlilOl~S RoseiuclJ conb middot buLoc il( ITid ~ un UJl~ -ls lOCilmiddotccd in Ccni)] 7mmiddotrC~ n conllt)ie~j ilo h~_~v( n((j ved l11J]) tC(ildn~j ll1cy collrct tJc1 1)mi t to the RC[3cnch Conte spccifie infon1~lti(ln 1)(((lC(middot from thcjJ councry for Cl resench Pr(J~i (ct tile Cell tc i CCiLl1(~middotin~r lhc~y ilre paid only fo LLc 01) (Omiddot~- on the JJ~ojoctl r)UJ( than a L~illary 7t prc~3cll tmiddot I only a part o[ the rcscurch contributcmiddot~3 ure t1ilincd labor economics grlJduil tcs beciuse lllOt glClt1UlltCS ltlre involved in other activities both in tl1C 1ilL)Q)~ 1110( nl~ld Clnd in some ca~cs yeni th govelJlncntf

IlH Ulicc1 pcograll1 I Vil~ch l~s f30)VU[ C(l1tnll lJnoJic( cmc1 oilJmiddotr cECiU 0C Lotir llllcrica [or tho past ciltJht YlUr heS beon clio Jntcn-lllIcricCln Labor Ecollomics ProC1ram (11JEl) This progrr1l11 las be011l1 to meot a need of Latj n lmerican tLClc1e unions for IVben- oconoinic~3 i lllel ior tll(~ collection 11(1 use of sta Us ticC 1 il1ftl)r1illmiddotiull as colJccti vo ))~lllt]uining in thc r~gi()JI l)(~cilIW i ilcreafingly sophisticated and technictl Jhc JLEP qrClc1U( to rctunHd VIi th Cln

academic yCllLmiddotI~ tlaininrr in )x~jc economics - both micro an c1 Ill~l C j~c) r S ta Li tj ( ll nc1 ind tiS tr i lt11 J cIa tions re=cltlrcll Ihir LJ -ltlillllJ9 u dc~igncc1 to llIal~e the graduates u~cful in cOllductiJl~r collective bilrgaining affocting na tiontll economic policies serving on social wclfare boards and advul1cing international

economic integration efforts The shortcomings of th~ program from a Central American integration standpoint were that most of the work dealt with national rather than regional situations and the scale was not well adapted to the Central American scene

A ProCJram Goal

3

1he goal of the propmmiddoted pro~jJilm is to snppoX thp effOJts of Central Anlerican onJunized labor to participatc mOJ-e actively in the ccol1omic and Dod lt11 integration of the region and to enjoy the benefits thereof Jlle eighth Congress of Lhe Centrol ]mmcin t~orl~eJ~s COllfoc1cJation (CTCA) in cTuly 1971) JeC0i11iTpnU(J to middottbrir atfiliatcs J) lg)~ee Lo SUPPCq t thc CC))-hdJ lmcr iCin CCmTIlor2 I1ackc~ l Lnd pJ cCIlt]( co SILr( jrll~j(lx tltllC( to th(~ subject in ellJ il)lcrTcUuJltl fmthl[J ~) bClC~ RctiOllJ to chl-ll UW -lCUC v(lnc~ (1f Ccn-Lrmiddotl middotlmiddot)iC1)1

PJO(hwtJ in i nhTnatioll) 1 mu()l~~~) l) ~middotmppcI ini Lcmiddot tiv Le) c~J(vltllmiddot( CC~)l)~l Nncri ( )1 fJlc1)(l )(j~ of JiriJ~

lli(LI~E~middot~~ Li )llmiddotlIh~~n ( Lll1Cl Lni~~))CiC Ll1c j~lrJmiddotmiddot~ l)~PC 1 ~_~

of tl1(i)~ COLFI lr jes nld~ and IF ~)ucll a(ti(o~ fiVO)~Lmiddothly

aff(middot~c-t tlvgt Ti())~ling CL~3- not only the lJivilccqed C J cl Jh C (OJ lt1 C ~~ lJ~ 0 Jocc _)IC1C tlJ i t i C(l)](

I~cnl(lt Ltcr1y chociJ Ly 1Jb)( flClC C c(~h nidiu~l cOlnJittcc Gtlll1 CltlC)1 cclLon of ~UCj~

1 r1eusur(~ of Col ]rhiovcmc~nt

gvic1el(~ of proltj1osr toviLImiddota tbf~ goul should be ref lee ted in

Cl C(~j)t1ltl liiICLiCilll (middotIqJni~~8c1 L1L))~ will have [ull lllCnll)(~r rCpnsCnt~ Li 0)1 on tlH~

rcgiolvll lIiltJh L8V(J Commi tt(c Cind 5 naUollilJ bodies formulating integruti Oll

policy (one in oach Celltnd ]~r1cJ~ican country) lt1nJ rill pljticiptc in dcci[ion~~

nffecUn9 winimum -yc~- Llj)or 1l10bi li ty SOCLll Eecur i ty bcn(~[ i ts and other issuos tlf feeting 1orl)middoteJ~s

h Fl~C8 lllOV(llWmiddott of JDbo)~ from 0)( Ccnt)il llmerican country to another in response to work opportunities in industry and agriculture

4

2 Basic Assumptions of Goal Achievement

Goal achievement will depend not only upon the direct impact and effective delivery of the project inputs but al~o upon the integration process itself and the willingnes~ of the national governments to cede some autonomy in the interests of furthering progress of the Central American Economic and Social Community

It is Clssumed thnt national governments their minirmiddottries I boards ctc dealillg vi th economic and social integration and the various soctions of SIECA and others will seriously consider recommendations made by organized lltb(~Y

In order to r82li ~o the PlOj ect qool it is LlSSnUtC( thclC tlw cun~cni Jlisrh levlls of jnt(rc~t chrpJlyect by Lho fimiddotl~ ~TOV(~nshylI1cnts in trin~locmi))9 tlJC Cellbil hIljiciil Common l-ia3c L into the CenlJo1 lmiddotltCricin EcoLomic [c~L Cunrrlll ily lL 11 C(JJl CillUC bull

Inhen [ n the i))iVI ifgt tIle aSsUl11LUOI1 that (c-wl lllcw)(r (l11n-[ is cnnvilJC(-d that CUf3()(ilt-lti()li 1 ell lU n i~TI~middot U(cCi (ACLmiddoti is in its cwn b0~t intc~cst

B 1118 p]~oi (-~C PUrT)()[ (~ --- _ _ - ---~-- - ----

1110 pUlporc of the proi 8Ct i~ tlu-c]old u fo ~~tTCl](J Ull~n COInm icc t iUj- and rappOJ~t betwCtl1 Centdl American tJ ctdc ullioris and the iJtcrshynational (~coJ)omic integrlt1tion 2gcncic- in Ccntrill Amel~icLl ilS 011 l~ nati0l1il1 governmcnt ~linistri~s and bOtJC1s b Jo stl011gth8ll the efj-Ol~ts of In1ltn)ltiollJl rtcJr Scc)middotcctt)Ciiir to ~upport Central llncdeiln trilde union particip] tion in economic jntc~lrlllion c 10 plmiddotovide (=lCldi tionCll hUIniln rc~ou)~C(~~ to thc rencnrch efforts of the DOGumentltion C8nter in CO~3tLl Rica

5

2 Conditions Expected at the End of the Project

a Eight graduates will be working for Central American unions federations or confederations represented on national br regional planning boards commi ttecs or agencies concerned vi th forming national policy in one or more areas of economic and social integration or on regional integration bodies 1he graduates way perform research for the labor organization which leads to or supports a position taken by the labor 0l~9ani zation for whom they arc vlocking 01 may th0lftfclves rcpr8~JCl1t the liDOr organization

b Thn)e of the prU_cipull~ dill he select(~d froh1 Jegional integ1ltttion Clgencicr Upon their return they should be d(si9Ilatc~(J lalx)r speciclists wi th1n thc5r JcrpectimiddotI) aSfel1cics Selection cd these UF(~C p1cticipi 8 will b~ HJI(~ b~7 l~OClP

c At 1Cil~ tJl1CC of thc pn Li cip-rJ U])011 return to lllciJ home cuunhirs I will b~~ p)lvidl-~l1 iHt C) 1) ipr J) Tr)te ~) it LiO)il I J(~ Sec LiCi u Ju Clctj vc in tlJl~ (1 cmiddotC [() cn~ 011[ Jgtro~j cc L tl))[

jtncJios OJ) a Jcqional Jgt~Ji appliccLlc to theiJ~ sec lc) rlIC JI~ Jill then hc~ in (1 posi ti C 1 to 1 C ~J) (inc tC) ~((1 ~ ~Imiddotmiddot~- t~ E )-()dl J t ( )~~ () J~ ~ l t n i z c - un fJ Vii-hin thCL 1~c(pccU_vc ccConj

d One qrLlduate li1l be worl~irg a yellJ (intcrl1J1p) fur the CCJ~Jzl1 llH(~ri CiJn rorl~el s Confcrie)~citi(ln (CJCl) Ccn~r21 jmcrican Jnstitute of Union tuliiC3 (IESe)) DocuTIel1 ta tion Con l(~r in COSLl rmiddoticC

rho f 0 ~ lemiddot in Sf 1iho)middot 0 ( li ~a t iUll J i1 c~ n~rr( ell to )In)v ide jn[(ln~jhip r r L a ficd tim(~ or plcmancn Uy crtlploy gTllc1Ull tcs upon complction of thc coun(j =

l (lJmE)

1((1c11c)s Fl(middotIc]~~Iioi or CO~t )ic - two tJJ~ilclthtCr fQ)~ on8 yCllr

2 13nlwod~cJ~j federation of Guatemala (FBSED) - permlll1cnUy clilploy one gTilC1Ull te

3 Federation of GUtltcffilan vorkcrs (FESE13) - permanently employ one graduate

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

economic integration efforts The shortcomings of th~ program from a Central American integration standpoint were that most of the work dealt with national rather than regional situations and the scale was not well adapted to the Central American scene

A ProCJram Goal

3

1he goal of the propmmiddoted pro~jJilm is to snppoX thp effOJts of Central Anlerican onJunized labor to participatc mOJ-e actively in the ccol1omic and Dod lt11 integration of the region and to enjoy the benefits thereof Jlle eighth Congress of Lhe Centrol ]mmcin t~orl~eJ~s COllfoc1cJation (CTCA) in cTuly 1971) JeC0i11iTpnU(J to middottbrir atfiliatcs J) lg)~ee Lo SUPPCq t thc CC))-hdJ lmcr iCin CCmTIlor2 I1ackc~ l Lnd pJ cCIlt]( co SILr( jrll~j(lx tltllC( to th(~ subject in ellJ il)lcrTcUuJltl fmthl[J ~) bClC~ RctiOllJ to chl-ll UW -lCUC v(lnc~ (1f Ccn-Lrmiddotl middotlmiddot)iC1)1

PJO(hwtJ in i nhTnatioll) 1 mu()l~~~) l) ~middotmppcI ini Lcmiddot tiv Le) c~J(vltllmiddot( CC~)l)~l Nncri ( )1 fJlc1)(l )(j~ of JiriJ~

lli(LI~E~middot~~ Li )llmiddotlIh~~n ( Lll1Cl Lni~~))CiC Ll1c j~lrJmiddotmiddot~ l)~PC 1 ~_~

of tl1(i)~ COLFI lr jes nld~ and IF ~)ucll a(ti(o~ fiVO)~Lmiddothly

aff(middot~c-t tlvgt Ti())~ling CL~3- not only the lJivilccqed C J cl Jh C (OJ lt1 C ~~ lJ~ 0 Jocc _)IC1C tlJ i t i C(l)](

I~cnl(lt Ltcr1y chociJ Ly 1Jb)( flClC C c(~h nidiu~l cOlnJittcc Gtlll1 CltlC)1 cclLon of ~UCj~

1 r1eusur(~ of Col ]rhiovcmc~nt

gvic1el(~ of proltj1osr toviLImiddota tbf~ goul should be ref lee ted in

Cl C(~j)t1ltl liiICLiCilll (middotIqJni~~8c1 L1L))~ will have [ull lllCnll)(~r rCpnsCnt~ Li 0)1 on tlH~

rcgiolvll lIiltJh L8V(J Commi tt(c Cind 5 naUollilJ bodies formulating integruti Oll

policy (one in oach Celltnd ]~r1cJ~ican country) lt1nJ rill pljticiptc in dcci[ion~~

nffecUn9 winimum -yc~- Llj)or 1l10bi li ty SOCLll Eecur i ty bcn(~[ i ts and other issuos tlf feeting 1orl)middoteJ~s

h Fl~C8 lllOV(llWmiddott of JDbo)~ from 0)( Ccnt)il llmerican country to another in response to work opportunities in industry and agriculture

4

2 Basic Assumptions of Goal Achievement

Goal achievement will depend not only upon the direct impact and effective delivery of the project inputs but al~o upon the integration process itself and the willingnes~ of the national governments to cede some autonomy in the interests of furthering progress of the Central American Economic and Social Community

It is Clssumed thnt national governments their minirmiddottries I boards ctc dealillg vi th economic and social integration and the various soctions of SIECA and others will seriously consider recommendations made by organized lltb(~Y

In order to r82li ~o the PlOj ect qool it is LlSSnUtC( thclC tlw cun~cni Jlisrh levlls of jnt(rc~t chrpJlyect by Lho fimiddotl~ ~TOV(~nshylI1cnts in trin~locmi))9 tlJC Cellbil hIljiciil Common l-ia3c L into the CenlJo1 lmiddotltCricin EcoLomic [c~L Cunrrlll ily lL 11 C(JJl CillUC bull

Inhen [ n the i))iVI ifgt tIle aSsUl11LUOI1 that (c-wl lllcw)(r (l11n-[ is cnnvilJC(-d that CUf3()(ilt-lti()li 1 ell lU n i~TI~middot U(cCi (ACLmiddoti is in its cwn b0~t intc~cst

B 1118 p]~oi (-~C PUrT)()[ (~ --- _ _ - ---~-- - ----

1110 pUlporc of the proi 8Ct i~ tlu-c]old u fo ~~tTCl](J Ull~n COInm icc t iUj- and rappOJ~t betwCtl1 Centdl American tJ ctdc ullioris and the iJtcrshynational (~coJ)omic integrlt1tion 2gcncic- in Ccntrill Amel~icLl ilS 011 l~ nati0l1il1 governmcnt ~linistri~s and bOtJC1s b Jo stl011gth8ll the efj-Ol~ts of In1ltn)ltiollJl rtcJr Scc)middotcctt)Ciiir to ~upport Central llncdeiln trilde union particip] tion in economic jntc~lrlllion c 10 plmiddotovide (=lCldi tionCll hUIniln rc~ou)~C(~~ to thc rencnrch efforts of the DOGumentltion C8nter in CO~3tLl Rica

5

2 Conditions Expected at the End of the Project

a Eight graduates will be working for Central American unions federations or confederations represented on national br regional planning boards commi ttecs or agencies concerned vi th forming national policy in one or more areas of economic and social integration or on regional integration bodies 1he graduates way perform research for the labor organization which leads to or supports a position taken by the labor 0l~9ani zation for whom they arc vlocking 01 may th0lftfclves rcpr8~JCl1t the liDOr organization

b Thn)e of the prU_cipull~ dill he select(~d froh1 Jegional integ1ltttion Clgencicr Upon their return they should be d(si9Ilatc~(J lalx)r speciclists wi th1n thc5r JcrpectimiddotI) aSfel1cics Selection cd these UF(~C p1cticipi 8 will b~ HJI(~ b~7 l~OClP

c At 1Cil~ tJl1CC of thc pn Li cip-rJ U])011 return to lllciJ home cuunhirs I will b~~ p)lvidl-~l1 iHt C) 1) ipr J) Tr)te ~) it LiO)il I J(~ Sec LiCi u Ju Clctj vc in tlJl~ (1 cmiddotC [() cn~ 011[ Jgtro~j cc L tl))[

jtncJios OJ) a Jcqional Jgt~Ji appliccLlc to theiJ~ sec lc) rlIC JI~ Jill then hc~ in (1 posi ti C 1 to 1 C ~J) (inc tC) ~((1 ~ ~Imiddotmiddot~- t~ E )-()dl J t ( )~~ () J~ ~ l t n i z c - un fJ Vii-hin thCL 1~c(pccU_vc ccConj

d One qrLlduate li1l be worl~irg a yellJ (intcrl1J1p) fur the CCJ~Jzl1 llH(~ri CiJn rorl~el s Confcrie)~citi(ln (CJCl) Ccn~r21 jmcrican Jnstitute of Union tuliiC3 (IESe)) DocuTIel1 ta tion Con l(~r in COSLl rmiddoticC

rho f 0 ~ lemiddot in Sf 1iho)middot 0 ( li ~a t iUll J i1 c~ n~rr( ell to )In)v ide jn[(ln~jhip r r L a ficd tim(~ or plcmancn Uy crtlploy gTllc1Ull tcs upon complction of thc coun(j =

l (lJmE)

1((1c11c)s Fl(middotIc]~~Iioi or CO~t )ic - two tJJ~ilclthtCr fQ)~ on8 yCllr

2 13nlwod~cJ~j federation of Guatemala (FBSED) - permlll1cnUy clilploy one gTilC1Ull te

3 Federation of GUtltcffilan vorkcrs (FESE13) - permanently employ one graduate

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

4

2 Basic Assumptions of Goal Achievement

Goal achievement will depend not only upon the direct impact and effective delivery of the project inputs but al~o upon the integration process itself and the willingnes~ of the national governments to cede some autonomy in the interests of furthering progress of the Central American Economic and Social Community

It is Clssumed thnt national governments their minirmiddottries I boards ctc dealillg vi th economic and social integration and the various soctions of SIECA and others will seriously consider recommendations made by organized lltb(~Y

In order to r82li ~o the PlOj ect qool it is LlSSnUtC( thclC tlw cun~cni Jlisrh levlls of jnt(rc~t chrpJlyect by Lho fimiddotl~ ~TOV(~nshylI1cnts in trin~locmi))9 tlJC Cellbil hIljiciil Common l-ia3c L into the CenlJo1 lmiddotltCricin EcoLomic [c~L Cunrrlll ily lL 11 C(JJl CillUC bull

Inhen [ n the i))iVI ifgt tIle aSsUl11LUOI1 that (c-wl lllcw)(r (l11n-[ is cnnvilJC(-d that CUf3()(ilt-lti()li 1 ell lU n i~TI~middot U(cCi (ACLmiddoti is in its cwn b0~t intc~cst

B 1118 p]~oi (-~C PUrT)()[ (~ --- _ _ - ---~-- - ----

1110 pUlporc of the proi 8Ct i~ tlu-c]old u fo ~~tTCl](J Ull~n COInm icc t iUj- and rappOJ~t betwCtl1 Centdl American tJ ctdc ullioris and the iJtcrshynational (~coJ)omic integrlt1tion 2gcncic- in Ccntrill Amel~icLl ilS 011 l~ nati0l1il1 governmcnt ~linistri~s and bOtJC1s b Jo stl011gth8ll the efj-Ol~ts of In1ltn)ltiollJl rtcJr Scc)middotcctt)Ciiir to ~upport Central llncdeiln trilde union particip] tion in economic jntc~lrlllion c 10 plmiddotovide (=lCldi tionCll hUIniln rc~ou)~C(~~ to thc rencnrch efforts of the DOGumentltion C8nter in CO~3tLl Rica

5

2 Conditions Expected at the End of the Project

a Eight graduates will be working for Central American unions federations or confederations represented on national br regional planning boards commi ttecs or agencies concerned vi th forming national policy in one or more areas of economic and social integration or on regional integration bodies 1he graduates way perform research for the labor organization which leads to or supports a position taken by the labor 0l~9ani zation for whom they arc vlocking 01 may th0lftfclves rcpr8~JCl1t the liDOr organization

b Thn)e of the prU_cipull~ dill he select(~d froh1 Jegional integ1ltttion Clgencicr Upon their return they should be d(si9Ilatc~(J lalx)r speciclists wi th1n thc5r JcrpectimiddotI) aSfel1cics Selection cd these UF(~C p1cticipi 8 will b~ HJI(~ b~7 l~OClP

c At 1Cil~ tJl1CC of thc pn Li cip-rJ U])011 return to lllciJ home cuunhirs I will b~~ p)lvidl-~l1 iHt C) 1) ipr J) Tr)te ~) it LiO)il I J(~ Sec LiCi u Ju Clctj vc in tlJl~ (1 cmiddotC [() cn~ 011[ Jgtro~j cc L tl))[

jtncJios OJ) a Jcqional Jgt~Ji appliccLlc to theiJ~ sec lc) rlIC JI~ Jill then hc~ in (1 posi ti C 1 to 1 C ~J) (inc tC) ~((1 ~ ~Imiddotmiddot~- t~ E )-()dl J t ( )~~ () J~ ~ l t n i z c - un fJ Vii-hin thCL 1~c(pccU_vc ccConj

d One qrLlduate li1l be worl~irg a yellJ (intcrl1J1p) fur the CCJ~Jzl1 llH(~ri CiJn rorl~el s Confcrie)~citi(ln (CJCl) Ccn~r21 jmcrican Jnstitute of Union tuliiC3 (IESe)) DocuTIel1 ta tion Con l(~r in COSLl rmiddoticC

rho f 0 ~ lemiddot in Sf 1iho)middot 0 ( li ~a t iUll J i1 c~ n~rr( ell to )In)v ide jn[(ln~jhip r r L a ficd tim(~ or plcmancn Uy crtlploy gTllc1Ull tcs upon complction of thc coun(j =

l (lJmE)

1((1c11c)s Fl(middotIc]~~Iioi or CO~t )ic - two tJJ~ilclthtCr fQ)~ on8 yCllr

2 13nlwod~cJ~j federation of Guatemala (FBSED) - permlll1cnUy clilploy one gTilC1Ull te

3 Federation of GUtltcffilan vorkcrs (FESE13) - permanently employ one graduate

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

5

2 Conditions Expected at the End of the Project

a Eight graduates will be working for Central American unions federations or confederations represented on national br regional planning boards commi ttecs or agencies concerned vi th forming national policy in one or more areas of economic and social integration or on regional integration bodies 1he graduates way perform research for the labor organization which leads to or supports a position taken by the labor 0l~9ani zation for whom they arc vlocking 01 may th0lftfclves rcpr8~JCl1t the liDOr organization

b Thn)e of the prU_cipull~ dill he select(~d froh1 Jegional integ1ltttion Clgencicr Upon their return they should be d(si9Ilatc~(J lalx)r speciclists wi th1n thc5r JcrpectimiddotI) aSfel1cics Selection cd these UF(~C p1cticipi 8 will b~ HJI(~ b~7 l~OClP

c At 1Cil~ tJl1CC of thc pn Li cip-rJ U])011 return to lllciJ home cuunhirs I will b~~ p)lvidl-~l1 iHt C) 1) ipr J) Tr)te ~) it LiO)il I J(~ Sec LiCi u Ju Clctj vc in tlJl~ (1 cmiddotC [() cn~ 011[ Jgtro~j cc L tl))[

jtncJios OJ) a Jcqional Jgt~Ji appliccLlc to theiJ~ sec lc) rlIC JI~ Jill then hc~ in (1 posi ti C 1 to 1 C ~J) (inc tC) ~((1 ~ ~Imiddotmiddot~- t~ E )-()dl J t ( )~~ () J~ ~ l t n i z c - un fJ Vii-hin thCL 1~c(pccU_vc ccConj

d One qrLlduate li1l be worl~irg a yellJ (intcrl1J1p) fur the CCJ~Jzl1 llH(~ri CiJn rorl~el s Confcrie)~citi(ln (CJCl) Ccn~r21 jmcrican Jnstitute of Union tuliiC3 (IESe)) DocuTIel1 ta tion Con l(~r in COSLl rmiddoticC

rho f 0 ~ lemiddot in Sf 1iho)middot 0 ( li ~a t iUll J i1 c~ n~rr( ell to )In)v ide jn[(ln~jhip r r L a ficd tim(~ or plcmancn Uy crtlploy gTllc1Ull tcs upon complction of thc coun(j =

l (lJmE)

1((1c11c)s Fl(middotIc]~~Iioi or CO~t )ic - two tJJ~ilclthtCr fQ)~ on8 yCllr

2 13nlwod~cJ~j federation of Guatemala (FBSED) - permlll1cnUy clilploy one gTilC1Ull te

3 Federation of GUtltcffilan vorkcrs (FESE13) - permanently employ one graduate

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

4 Honduran North Coast Plantation Workers Union (SITRATERCO) - one graduate for one year

6

5 Hopduran North Coast Workers Federation (FESIlRANH) - permanently employ three graduates

The following International Trade Secreshytariats have offered to grant one year internships to one graduate

1 Postal Telegruph Telephone Intershyna tiollal (prlI)

2 Intorn~tional Federation of Technical iorkc~cs (FIEi)

3 AInc)icl1 Fec1(~)a tion of Teacbcrs (AFr)

rho jf1111V~ ior nn(1cdy3 rJ the Cc i~ln of tllC proi ec i i~ t11 1L lclUi ol~Jini ttlion ~~ ltt Of In tcr l1DmiddottiOl1nJ 1riuc f~middot~cCCt(1LitS vliJl empluy unc1 uti li ( ~c l~J i1igthmiddot~ ~ lJ) Jon CGlnp J c tiCmiddotfl of U i ~~ tr c i n jn~j

IJitPY Lbo ())middot~F)lL(~LltjCiI L~rC n(lV~ n Leicnl ~1

on nationlll anu rOltjlOlldl policy entities and lllbor representative are faced vlith incrcLtsiWJly COflljlJC2X is[uc[ iliill Jilraquon~chJn~J cifccts middot1Iicl1 they Cln~ not adcqll~c1 Y Pl-(PilJCc1 to hilnd 1e

JhcJ( is a J~(~C(IYtd rv~ctl VlL tit Ccntrnl llmcicmiddotm )1)0) Eo) in hrll~ ci1pabiJjly to pctfon1 ltI nciJyJi~ and )~CfC)ych 1hich m(Jl~cf this a rca011llJle aJ~Uil)-[j on

C r)oic(~t OLiDut ~ -~ ~ ~-- - -

1 rhc PJ~ojcct ontput is 15 lltlbor economists truLn(~cJ vith concentration given during the tritillin9 to Con trul Amcr iean In tegra tion

lhe training would he conducted at t-lount Vernon Collcgc Itli th some instructors from Georgetown University and described as follows

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

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10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

7

Duration

26 weeks One week orientation two weeks field trips outside Washington two semesters of 11 weeks each and one week at the end for on-site training in Central America

Content

The course curriculum would feature such topics as previous and current unification attempts by nutional governmrnts Clnd intershynational financial institutions in the 50cioshypoli tical [tnc1 market structures of Central Americ(l and the rolc of tmLclns in tlJcse prOCCfJe~ compuii sons of the Centxal lim8ric2Jl financiltll tn1Ctun~ witIl those of deveJoped countJ~ils and tlie conmiddot~ic(~(di()n of the PltHt intcll1lt11iol1al fintl1Ce pluys in CClllTal 1JII0TiCi

and i b effcci~ Ojl lOrkcl on] 21)1 ~iImiddot ion3 the role of nO))rnc)Jctry LiJliwal inLilutionf arc1 UW) Il1cJnin9 [Ol~ I1nionr i fOmiddotciJmiddotJ trcdr 1laquo1) ( h(~ii~ltjl Ccn) 1 ll1wic ll othc (Ire) o~ th~ ie le iUl F~rU c1 (Jimiddottntiu 1

to (un~)Joltl(j tLci and lH1t~~1lilli on1 C(jjV(yction~3

aniJ tJ j(middoti J~ illir(~~ on o~ Lei ~ i ~ p C~ ci l teell1 iq llC~ s 0[ m1lcl lUiY in Ccnjitl jqI(J iI~ l)cti Ul1il inC(lJtI ilnd]yi~ bull )1 lci-(~)I~J1d(~n incJu(lin~f lirniLlciom uf fillance policy in Clrli_lcl America clnd of middotTllltJ8 dotcrminition Cllso CcmLrn l l~i~1J~ Jnunetary po] i_cy illJd its sprcial prublcldL in CCl)tr1 7ImC)icil ctr VicLt as balance of payn1(llt~ is~ue3 fur the region llpp lill J1Jdll t1 i~ll Pe Li tioll- II nc lyi by Secl-())~ 0111( )-- pco~(rill1gt (Lhir Juld leIle cmiddott tJc~ ilJPl_ of the 11 wJ CluJd )Y2

tiel i Jl 1 L(l to tile nccC_~ elf i-Je lJucurL(m~(l tion Center) All statisticlll series would of COU]~SC I be done ill Centxtll l~ncrican terms thrmiddotoug1CJlt

VU1~in9 tho fJccond scnwLtt~r I follovling the 11lt18 lCty of gcnCl-i1J ccollCJrnic cOl1c(pb I reseDxc and 3[lt1 ti[tical tcchniques and informa tiol1 on U(~ re9iollrll institutions thcmiclves I

pClrticipCllltf vCJuld bc~ (1~i9TJcll 10 on-thc--job training experiences suitablC to their intcrcsts and expe)~tise The ITS people vould work wi th their 11S representa tives

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

8

as outlined previously Others would be assigned to technicians in regional branches of research departments of organizations such as the OAS Certain participants would be attached to Central American units of developmental institutions like the World Bank and the Inter-American Development Bank The selectee of the (Central American) Documentation Centel who would be programmed to work for that entity upon his or her return would do their on-the-job training with the organizations producing the materials valuable to future Cent~r projects eg Bureau of Labor Statistics Libr~ry of Congress etc (Approprict te programs have tontuti vely been lined up where the participants could function li thin thr pound2prI2r~~~ language frLln12middotJO)~l)

2 Basic Output Asswoption

J~h i (u]L fi cd Cc1J)CA Lei de S vlil1 be Ll v il i lble J~h( ~)~l~C(Jliitcs I ()I tllc~ ~oune i1rr (1) EUUCltltlon ~1lificicll to Plaquo((-())II UliV(l~ity JovcgtJ )Jl~ 511 ri middotlliimiddotic iJnd 1 K1) ~CO)lt L(~ r

11middot~rcmiddot1)1 11 n5 nLl JJi ni~q jn (COlV I(

(2) 1(IC tll1lcn IlC)nldp lt1 1 1 lIc~middotivimiddot~y imiddotith p 0 pc ts r (Y c) d -j j 1 ( actmiddoti i ~y (Jr C s LlL 1 i shed ])Jmiddotcctir 0 i i~ I ilJeJ) JilC~- i(~~ j J LI fie( uniOl cU(rd~~ iho pJIn~~ hl CUlUiJtH in middothl pLctice

USAID HissiollS in all sb Centrl Jmcrican COUll tr i o=- (in c 1 ucl illJ P l1iUTIti) 111 ve ic1Cl) til i(-~d quo lLr i eel CJJ 1(( idel tmiddot [j bull

a U S GovcrmI(~nL

(1) ProSiJ LI ( JmiddotCC-[-O iUec ~GCj~I ry (2) fn1VC J r in ten 1 illiunil 1 ltTId U S bull ) 3) Pel di(~il~ lhilc traveling (I) Sub-colltrilcts middotith Jount V0n10n

College for ]o~~ing and cl~ssroom (5) f3ub-c()nLl~ict wi tJl CCOlgctoon

Universi ty for il1~jtrllction (6) Other costs for education materials

etc

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

9

b Regiopal Integration or Central American governmental agencies

(1) Salaries of participants during training

(2) Program support - orientation and material

c Labor organizations

(1) Salaries of participants (or arrange for employer to pay) and salaries for 1 year upon completion

(1) Slarier of gcadl1a tcs upon completion

2 Ni1qllLtlJclE~ of Tnints --~ --~- -- -_ _- -- ----

a AID $16SOOO

b p (0iV J jJi ~~L a tiun a rd Gov Clll1n(lll iJ ~ eL CJi gt

$9000

Total Illputs $2311000

a liIT) iLI 1)Inrvc tile pnjccmiddotL middotdll h(~ (tVitiU))c

1lt1 [lnds

b Intcljrumiddottiort usrcncicf_ r Intell tiona1 lr(lclc SccrctarLt ls and lubor orguni7cltions ill be willing and able to PllY p(ll~ticipants 1

sali1rier middotllilo itl-c~1l8Ln9 the counc llllcl upon Uwit nturn

Hationalp

Section GOl of the Foreigll lfsistance lct of 1961 as amended declares it 10 be the policy of the United States to encourage efforts to strengthen free labor

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

-

10

unions in less developed countries It continues to be AID policy to strengthen the d evelopment c apabi lities productivity freedom and we lfare of working men and women In a Policy Determination Paper signed rmiddot1ay 2 1973 former Administrator Hannah stated the-fo~lowing

Economic growth is not the end purpose of development but rather is one of the means for attaining development objectives A major such objective is to meet the aspirations of 10rkers and 1heir fami lies for a better life with dignity and freedom and to help spread the benefits of economic progress among the wage and salary composhynents of the labor force In providing development assistance AID should enCQulmiddotuge the deve l opment of 8t)ong independent responsible and d emocratic organizations of VorkC1 6 s -lhioh C(lll engage in collective barg ilining and p e rfor m other useful functions in the ilnprO oment of the econorrSo and sociul life of tlwir membe ls It

The Po) icy paper further rtataf~

Free amI re~pon5iLle lllbOl t1l1ion r enjoyj ng the right to e ngage in collective bargainshying can have an importnnt role in the procem~ of modernization nnd the socia l and economic d evelopment of the less developed countries For example by actil19 a~ forums for the e xchange of il1fOlmotion ancl illstnunonb- for 1111shytudilml chunge on vitn dnv e lop emnt i ss ues such as b1il1ging to the fore diJjpoundicult questions of social Helfal~e and equitable distribution of income see)dng to improve the conditions under which commitment of l abor to industr y tlkCf p Inel antJ helping advtlnce population llnd family planning goals labOl~ union~ may 5 tl-engthen the forc e fi in a society gthic h arc impelling it to modernize

Although organized lubor ha~ participated to a large degree in the process of Central ]merican economic and social integration its role has been limited As

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

11

an important olement or produotion nnd n lOrQo po~ Ion of t he total population ot Contr 1 AMerioon oonouorsect labor Dhould havo an eHoct on naUonal lntoQraUon polioioD

1n in-houBo cnpaci ty to porform analyDU And studies of integration houeH will po i lobor l ea ders to take rational pOB1tionD o n cOl1Iplox Inu bull

rfhe luooricnn Instituto fot PrOQ Lltbor Dcwolo nt (AIFLD) j s nn incorporatctl privuto antic) with r1-pa rti te Htpport from t ho 1loorio PodQrhllon Or bull oborshyCongreso of Industrial Organiltntlonu (lJIr~CrO) lit lmerican Lm uine tw community Bnd thu US Govern h AIPLD iHi a priva t e orgol1iGation olounly naaooJfttfI Hh the An-CIO not only orfo)I tho fluKiblllly typica l of AI D con tructoru but aluo bring too thb Latin 1IOorioDn labor plogrum tho ogtporLion prOIJ thlo und cuppert of t he U S laoor InOvtnlOJll 11110 Itt successfully conducted l abor cconoinica traill il1fJ l or Latin me l ~ enns for the pos t eig ht )Oll)

In s1nLlnary the rationalo for hTD nnnJntlct ttl AIFLD to cnrry out tho Cun trhl Mod cmJ Tctbor Economin51ntegr atlon proCJlllm rODlu 011 lho clu l p rcmis c tlHt t the Cen1rll l JIloriclIn commi Lmont to the integration procels i~ n ponnnnont our- nm] lh specitlli uH1 tJaini llg of labor lCllUelU or 11ll11 ntaf i~ eOJcm1 lCl l to permit orgilnb~ad lnllor to pnrt1uilJlJ t in a melaquonillgful middotmy in p olicy dotcrlninn llon of technical ilnd complex iSGuo fJ

Conroe of Action

Once the PHOP is npplovccl Contract 1tIlJn-C nTO vdth lUJ D lould be amc nded to incll1do t ho proIJ1-(tr1

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

_ - - ---- ~ middot middotmiddott

ii2l- _ f ca

- - I -- - 6 _ ___

~~ ~~~~~ Aarttn crampM1 au ct1oi1dp ta at m u_ ~ a u iwrodu

bull

bull

- _s

o

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

bull

bull bull ~

bull

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

l middot~nmiddotmiddotmiddot -- bull free LJbor i( elOjl~~t SiS-1S-41C-10l

0_ ~t~l-~ C11 Llbor Eeooie~~oraio~ Proampt

Cmiddot~~

Fi fteen Labor eeo~is$ tra1=~~ V1tb eoceatra t 10l 00 Certtll ~t1=~ iAtcampraUoo

bull

1 Thr~c t r 1icc kha r ccooistSI 0 ~ork fo ~ I ~r~iolal Trac e I Sfe r~ 3ats I 2 ~1S~t trained l=~c r ~colo1 bull bull

I to 0- for llbtr fccrOlo- 0= I bull conf~d~rOl1cs 1 CtOll f~~r1~

I 3 Cr~ trai~d lOl~or ccc=ois t~1

Imiddotmiddot r o r ~e C~rtt l erlcl I ~lseOlrch 3nc Dc~n ti Catter

~ 7~r~c =r31 l=~cr coc=iStS

I t bull 01lt 1l~ r t o= o r epoundi ~ jlOlicyplOln1lamp osecics

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

Free ~=or O~vcop~cnt Cen~ral Acr1c~n ~~or

(AlaO) 595-15-410-101middot middot 7c~ncci~$Inc~~r~~ion ~OZ~

-- - - - -TLl1iV- e-~Umiddot~middot---- I Cmiddot middot-+t-t ~ ~ ~ o

~h~~~ltr 8= --- -I ~~ O~it middotd Q

lrtvel co c Die I

Inst~ctors ar~ c~u=~e ~t6riels

I 2 2 aefio~l ~te~atio~ 9

I

4

3

4

bull i~ bull bullbull

11 D filnciampl -eco c3 azd AIFUl VQUCrpound-s

Atter~acce at ccurse

Attencelce lot cotgtc arc IFIll ti~ ~oj6ct repor~

bullbull T 15 _ ----- ----- _------ --

Aar bull fet IvHrj ~I

1 bullbull 1- 0-- ~~ )o)ct ~ fris -rill r bullbullbull ~Igtsect

IrtEbamptilr poundt Ir_tE~o~icr_C -coc SEc~witI~ Erz Ie ==-flltshyetior ~ill e Err t) F Fs--ishyeipcts cl-cs ~ ~~=i - CI1~~ oi -d -~- lgt~=

1-

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

fAlltSDiL

Nay 22 1975

ACTION Nl~NORANDml FOR THE ASSISTANT ADHINISTRATOR LA

FRO

SUBJECT

Problem

LAHRSD Donor H Lion T Free Labor Development Centrnl American Special Labor EconomiesIntegration frainill~-Progni11 l~cviston to the PROP

To consider upprov8l of PHOll revision [or suhj8ct progrull

Di~~~J~_C22l_ A DAEC mccting cOJlvcned on l1oy 12 1975 to revieH thf suhjc(t PRUP reVJSHro The gtlOP revision propo~e8 funding the pro 1 a ffi (VfSOOO in FY 75 The DACC rlcomlliendcd ilppovnl of th~ PROP reVifLOn

Conglesdcnal lwlfJc[JtLO1 is not nec(rEmy The tot-ol oblLented [01 th0 lyr)J p1oi(~Ci inclll~inr the $LliS 000 rC1llireJ foc tltis prf)Ll~ll middotiLL be J1 thin the CougnrSi(lllal ln~sln tation funding LeVel t1~1Cl 1hi[ plmiddotO[lmiddot~jll fii Jithin Lhe COllgreEsiollOJ PrcscntLltion dcrcripshyti(11 of triinill[ l~ k C(IJI(1uc ful by IIFLD

Th t the PROP revision ve approved

~j 11 Approved ~

Attllhwcmiddotnts 1 Hinutcs of DAEC Heeting 2 Frce Lobor Devc1cpment PROP Rev No 2

LAImiddotmsnL rZl~fll r6 52275 (

ClenrH1Cl~[ LADl Fcldmun (draft) LADP HiTute (dllft) OILAH Heope (draft) IACEN JLc1cknrd (draft) LAOrNS CUyc1lilrn LAGe LLundy (tlrJft) LAPAN JCI~Ilt1Ur (draft) PPCPDA lThormnllTl (draft)

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

BUREAU FOR LATIN AMERICAN DEVELOPMENT ASSISTANCE EXECUTIVE COHl1ITTEE (DAEC)

SUBJECT DAEC Review of Special Centru1 American Labor EconomicsIntegration Training Program Revision to A1rLD PROP

MEETING LOCATION Room 3886 NS

DATE May 12 1975 - 1500-1605

PARTICIPANTS IIermul1 Kleine lIAL chairman l~ feldman lIRA-LADR

B7CKGROTJND

F vJ Tai(~ ]HA-LADJ H Cope OLM3 J locklrd lIlV-LljCEN L Lnndy hRi--LIGC P FOi-eJllltlJ1 PPClDJ George 1 Phillips AHJ-middotLlrmSDL Frcc1 J ~uJl1ill t II lu-LlMl-~ml

Rev i~ion No 2 of tlle hULD PlWP is to ~lppj~OVC ltl G-middotmon lll training pLo~jlam by which 1-1D through the lImericln Institute for Free L3bor Develo0oent (JIFLD) will provide Labo)~ Economi C~3 trzliniJlIJ to 12 CentrCll JIm()j~icltln tJmiddotolle unionists and thnc p)ofessio))-tls from agcllcic~j in the Ccntrol lm(~r ireal socio-middoteconomic intclt]r(1 tion process lIl thouqh ldFLD lw [ conducted dhOl Econ( )]5( t1lt1 ining pro~rnllns [roll1 1966 to 1971 for ]l Un lImtic(1n tJH18 unionist~] thi[~ C011rrc vill lx fjpecif icalJy directed to Central lmCJicC1 Clnd isjwS (1f LccUng O)(j~llizcd labor arising fl-om Contrell lmer iCCln c~f forts to create a social-ccOllonic cOlnlllunity

lIppruiJnatcly olwmiddote middotfourLl1 of cJ~~rOU11 tillt~~ -ill bC devoted to integration utilizinq the preliminary drgt[t of till 1I1lreaty Cre(1ti nlJ the Central IlmoJjcClll Economic eWC 50cilt11 Communi ty IS the primary source UOCUTi1l~1l t ~iiuc1cn l~ middot11 J pOl-fonll Hscarclt proj ncts which support U18 (ont)-al llcricl1n Lilbor Studies rceurch Center

During u portion of thc~ trainj I1g pLlrticipants Jill have the opportlllli Ly to rcc(~ivc on-the-job training in Spunish under the direct f3U )(T V ision of tcchnj c ilt 11 from the Or9anizatioll of imorici1l1 St(1tcs the Wor1L1 13ank and Rcscilrch Depill~tmcllt of Intcrlll1tional lr(1r1e Secretariats or US Ltbol ()rg~lnizltiOlS

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

-2-

Some instructors wi~l be provided through a sub-contract with Georgetown University others will be volunteers from US trade union movements Classrooms and housing will be provided by s~b-contract with Mount Vernon College

ROC~P suggested bhe three participants fromintegration agencies be included in the program The integration agencies particularly the Permanent Secretariat (SIECA) lack labor expertise The participants will be assigned as labor speciulists within their agencies upon completion of Uw COU1SC

FINDnIGS CW JHE REVrEl

It wa gencrally agreed that the projc~cl J~ in line lith the ForcigJl l~Jshtunce Jct It is the policy of the Uni ted StaLI2S to encu1 cCl~Te of fortf to strencJ then f~e labor llnicJl1s in 1 cf cJcvclopcd countries rho tycojram contributl~~ to 7JD Jlbor policy to meet the clSpirclli ons of workers nnd their [2milic~ for a bnt~cr life with c1ignl1 ancl f]_CC~lUlil tInct to lklp rp(eLc1 tltc~ bt)Jlcfit~ of cconcl1l C lJO(c -j (11 0 11~1 thc~ 1 ~F-~ [I n([ J iC Y C o)lpun (I ~J

of tbe 11))01 fence (hile this Enojcct is not CliHcLeu at tlle rllJaJ pon~ r JiOJ~ evon tJw pOOll~L -orLillCj clLl-~ jt i~ )() lh~C-~~Iy fcc ~ppc(ll of ltl pl0jrCl tilli it be din~cly n)-(e1 to all IUD priori U i_)~~

One of the~ PJoposcc1 rl(~Ll~lnO of COilJ lchicvCllCnt poore[t 50~ of Ccntrol lliwrici1l1 ]lopullLi un middotill inCrCilsC thcir ~h~rC of i-he lCji Oll~ GJ()~~ i)OjlCGLlC jloluct (lbovc the C1UT(nt l~(~ levcl ilS con~ii(-lr-rC(l UJl)Cli_~tir

It ir lM)]~C L-jFll call ])( C)p-~ctrmiddotc1 rnAI toLe ill ~ ini-) thi p]ciec ilid even if jt OC(llJ~ J1C COll~- lcldL()n-lhip Celll be ~]I(iiIJ Tl1e 11ltd3l)~( 110 been CJtllIjCc1 to C(~nt1middotill IJtlC)iCitl1 oCjncll LlboJ -Ji11 huvc full lIwllber repr(~~icl1tatiul1 0)) t]l( n_ljiol1al 11i911 Level C0111nittce and ~) 11Cltional bOliics formulating intCqLttion J~-licy and ill pl1rticipiltc in c1(cisions affrctintJ minhnuTI T(tCJC~~ labor mgt11i] iLy SOC1llJ SCCIFUy bellerib 1l1l(1 ()thc~r

i~~sucr llffcclillJ oiHkcrs The IllC~(lnfi oi vcrificlltion will be AIFLDnUCld Pro9lCjS reports AIFLJ)IWCAP il1 rcp011 labor lIlCll1lcr~lip in ~~llcll orCjanizations semishyannually

AlthoUjh h1ZIjhillCjton is u high cost lOCution fOl univcrnity level iJaining ltInd the cost por participant in this progrltlll1 exceeds stundarc1 labor educc1 tion r this program is unique r PL1) ticuliu ly th( uppliec1 rcscurch proj Ccts and on-llle-job tltininq hieh couJd only be done in Washington 111 evaluation of 1lPD activities by The

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

v 00

0

I o 0

~ II

-3-

American Technical Assistance Corporation in 1970 reviewed the cost of the Inter-American Labor Economlcs program Their only critical comment was the excessive silze of AIFLD staff I which has since been corrected (There were 4 people assigned in 1970 Tmiddothere are now two ) NfAC concluded the program ~hould continue in Washington Considering the factor s -lhioh influence the cost of the program it is reasonable

Of 110 participants trained in the Inter-American Labor Economics program 87 (79) did apply their labor economics training for at lels t 1 year ith a labOl organization There are 27 graduates from Central America 25 of whom have applied their labor economics training lith a lebor organization for at leas 1 yeDr TlCnty- tYO are still active in the labor moveme nt Central nmerican labor organ ilations and others are utiliing labor economists trained in the past One graduate is an economist i th the Central American 1-10netarj Council and another with the liondurcls Centnl Dunk SOllle grClduates ha ve become h e tl s of their unio)l othcrs 10r) full-time and onl y de vote part-time to ullion activitics and of those 1110 are full middot- time employ ees o f l ebO) organization1 some are (1 tree l6rs of traird n9 m_lministratoLs of coop~ etc anti un ~lble to devote full time to r Csca rch fhin our sc distinct froln pa[it labol economi cs truinil19 lill provide interchange ann personal GonCact between 111hor particimiddotmiddot pants imel ltjoV G1mnent spcciali t engag ed i n the inte shygration process and ill devote one -fourth of classroom time to Centrnl lmericul1 intcqrat i() 1l i ssl1c~ There are not sufficient pr e viously trltl i nect lnbor economists avail shyable 1101 ith the spccialized tra ining to carry ou t t he objectives of this proj ec t

r h e Centll American J ~d)or Research Centcr tho ugh ba rely 9 hlontht old has prodlccc3 a number of hieJ11 qua lity pilpcr~ on cOJllpa rifions Clnd ilJW] yset of col l ectiv e a greeshyments and labor l aws in Central America ilS ell as anajy--e s of be nefits by sectol iJthough it is too carly to eVlluatc t heir u sefuln csD to la bo r orgllniations there i ol11e rv ic1(mce tha t the) havc been vell received by both l auor organizaUons and labor mini s tries Ihe nesearch Centcr has util ized a nd is utilizing cfHctively past Inbor economics graduatcs There vill in all likelihood continue to bn a need for regional Inbor 1escarch services in the f uture par ticularly as labor organif ations attempt to negotinte on national or cven regiomll basis within somc sectors

Labors represe ntation on policy milking bodies is no principally limited to the natlonal level and then rarely

---

i~

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion

-4-

~n the national agency dealing directly with iritegration policy It was agreed however that effective labor representation and participation in decision making is necessary to obtain popular support for social and economic integration

This program incorporates sugg~sions made by ROCAP and is consistent with ROCAP develppment assistance strategy

The progr~m was supported by all central American and P~nama llSAIDs except Honduras rlH JIol1durCls USAID position nlay be explained by the facl thct t the lctbor moveJncnt in HondvrC1S is stronger and has more influential replcsellld~ion on ltJovCrnnc~ntal economic polic 111ltl1il1g bodies thun in othrl Ccmtral Ame)~iccll countrics lh0 USAIDlIoncurJE as~jgned a 10Vl priority to Uw projfct llnc1 1lt1 isccl is fWf (cos tmiddot-JJUclS cd) 111 ich were add rCf ~3(d by Uw DAEC

It if po~_~~ib(~ th d intcgrltL110n ir[T of lOJlq-middottcll1

bcmiddotncfit to yodQ)~middot HlclY ~~Pl)Cltl1 to helve dcirillkilll effects pa j iCIluoly ill UJ(~ ihuc t- tClm to Olk(~)~ oJ Z Pildegticullr C(l~Uoy The I~nI tCcJllLiccd orric( LiIilZllL n1Lmiddoti S [ urc U Cln~u 1 v C~ tha t in~3 b-uc ton~ ~gtC loe ted f(lL- th CCJ1l [0

lOulc1 lttke a lon~l-ran~JC vic7 of cconolnic intcfjrQ ticgt)

lhu DiEC roocollunenaed app)~ovJl of the a ttClched PHOP loviEion