|
For five years, DevTech worked closely with USAID to assist the Salvadoran public and private sectors to design, discuss, and analyze economic policy reform proposals in three areas: modernization of the state, decentralization, and rural poverty reduction. Work orders were issued under the contract to perform economic studies, prepare and/or arranging for the preparation of seminars on economic topics, conduct in-country training, and providing related technical assistance to private- and public-sector entities. DevTech completed 31 work orders and delivered several technical publications across sectors:
Economics and Institutional Reform
Economic Reform: Institutional Reform & Strengthening
- Central Bank Reform. Fostered public debate on El Salvador’s efforts to make its Central Bank independent through the dissemination of international discussions of central bank roles and structures. DevTech worked with a local Salvadoran NGO to assist with public education efforts, and provided technical assistance to Central Bank officials in policy reform, including examining international best practices. Central Bank Reform and Banking Regulation in El Salvador: A New Zealand Perspective .
- Pension Reform. Facilitated the study of the Chilean pension reform program and its application to El Salvador by Salvadoran officials, media, and NGO representatives. This involved working with senior Salvadoran officials, administrators, and analysts of the pension reform, as well as with media representatives, to study not only the policy aspect of pension reform, but the public education aspect as well.
- Financial Sector Regulation. Provided technical assistance to the National Assembly on supervision and regulatory framework of the financial system and Central Bank independence.
Observational Visit: El Salvadoran Journalists and Pension Fund Administrators to the Chile Pension System
Fiscal Reform: Decentralization
-
Reviewed the overall public finances of El Salvador, including several issues related to financing of municipal transfers. DevTech assistance focused on how the transfer system (FODES – Fondo de Desarrollo Económico-Social) addresses horizontal inequality, its impact on local revenue effort, and the slow implementation/usage rate by local governments. Recommendations were made to improve the incentive aspects to encourage local revenue effort and to improve the programming of transfers to better meet implementation cycles. This included not only analytical work and setting an agenda for reform, but also making several presentations, including to the Budget and Municipal Affairs Committees of the Legislative Assembly. DevTech's presentation was aired on television and radio and made the front page of the country’s main newspaper.
A Review of El Salvador's Public Finances
Fiscal Reform: Municipal Strengthening
- Municipal Tax Reform: Provided technical assistance and advisory services to the Municipal Affairs Committee of the Legislative Assembly and worked closely with the Mayors’ organization, COMURES, and in holding a dialogue with the private sector. Sub-tasks included: preparation of a guideline to facilitate the Legislative Assembly’s review and qualification of municipal tax proposed legislation; development of analytical techniques for assessing the impact of local tax law changes on industry and municipal revenues, and its application; development of model legislation; development of a proposed agenda for municipal finance system reform; advising the new Government’s transition team on municipal finance system reform; and assisting the Legislative Assembly in the development of property tax and other municipal tax legislation.
- Municipal Finance. Assisted the municipalities of San Salvador and Sonsonate in the analysis of options for private sector participation in municipal infrastructure investment. This included economic, financial, and regulatory aspects of BOO BOT. DevTech also presented a seminar on private sector participation in municipal infrastructure investment.
- Municipal Finance (Asset Tax): Assisted the municipal government of San Salvador in the proposal and defense of an important reform of its asset tax. This included developing alternative scenarios and revenue projections, reclassifying municipal finance data into IMF Government Finance Statistics format, participating in discussions and debate with the private sector on the need for the reform, and supporting the municipal government in defending its position.
- Municipal Finance. Assisted the municipalities of San Salvador in analytical and legal issues related to its first bond issuance.
El Salvador: Guias para una Propuesta de Reforma Tributaria Municipal
Fiscal Reform: Open Budget Systems
- Examined El Salvador’s public-sector budget and made recommendations with regard to taxation, spending, subsidies, and transparency. This public sector review was presented in a seminar to the Budget Committee of the Legislative Assembly.
- Established the Office of Budget Analysis and Oversight at the Legislative Assembly and trained the staff.
Development of the Budget Analysis and Oversight Office of the Salvadoran Legislative Assembly
Fiscal Reform: Tax Administration
- Provide advisory assistance to the Ministry of Hacienda on tax administration. Report on use of computerized data systems, tax administration, tax personnel, tax code, and other non-policy aspects of the tax system.
Trade Capacity and Competition
- Trade Capacity Building. Strengthened the institutional capacity of the Ministry of Economy Office of Export Market Promotion to assist local El Salvador clients in expanding their sales into international markets. Technical advisory assistance included: a) assessments of how units of the Ministry could be better organized and coordinated in support of it's national competitive program; b) skills development in conducting research to collect international country, market and product intelligence; and c) team building to enhance the effectiveness of staff working in the three Ministry offices implementing the program.
- Competition (Micro, small and medium sized enterprises). In the aftermath of the earthquakes of early 2001, a DevTech team conducted an assessment of how to reactivate the economy, including examining the expansion of credit for housing, enterprises, and other financing instruments; evaluating priority actions to stimulate the growth of enterprises, particularly micro, small, and medium sized enterprises using non-credit instruments with particular emphasis on the use of private business associations, business development organizations, NGOs, and other intermediaries that can work with enterprises on a fee for service basis; and other possible policy interventions.
Program for Productive Reactivation of Micro, Small and Medium Businesses: Summary of Findings and Recommendations
Presentación del Mercado Chileno: Oportunidades y Retos
Perfil del Mercado y Producto: La Unión Europea para las Frutas Tropicales
Perfil del Mercado y Producto: Chile y Perú para Productos Farmacéuticos y Veterinarios
Perfil del Mercado y Producto: Estados Unidos para Alimentos
Asistencia Técnica en Investigación de Mercados y Promoción de Exportaciones
Education
- Completed an assessment of the organizational effectiveness of the El Salvadoran government's Early Childhood and Family Education (EDIFAM) initiative of the El Salvador government's office of the President. The assessment involved interviewing beneficiary mothers of the program and recommending ways that participating local NGO's could improve the impact of the funding received to operate their programs.
Proyecto de Educación Inicial de Niñas Menores de 7 Años a Través de Sus Familias-EDIFAM
Performance Monitoring & Evaluation
- Assisted the Mission’s efforts in clarifying performance indicators in education, microfinance, and policy. DevTech also helped the Mission refine its system for measuring and monitoring rural policy.
- Supported to the USAID Mission in El Salvador in crafting an updated agriculture and rural development assistance strategy for the country.
Guía para la Evaluación de Anteproyectos de Leyes Tributarias Municipales
Project Publications
English
Español
|
