MUNZSSInlD - usaid

9.5 SOCIAL S UNDhSS ANALYSIS
A Social Soundness Analysis of EXITOS is attached as Annex H. The
Project recognizes the diversity of Central American societies, and is
designed to take advantage of the region's best resource: plentiful, low cost
labor with a relatively strong work ethic.
Imnact on Urban Ponulations. One common denominator in CA--as in virtually
all countries of the world in the last 30 years--is a continuing influx of
labor from rural to urban areas. This has resulted in a shift from the
agricultural to the non-agricultural employment sector, and has and will
likely continue to result in unemployment and underemployment. Major impacts
of this trend include high urban crime rates, stagnating per capita income
levels, and increasing pressure on social and physical infrastructure in urban
areas. It is generally recognized as a matter of policy throughout CA that
urban employment must be improved, preferably in industries oriented toward
world markets and therefore less likely to encounter the stagnation and market
size limitations that characterized the industrial import substitution efforts
of the 1960s and 1970s.
Imoact on Rural Populations. EXITOS cannot, however, lose sight of its
potential impact on rural Central America. A growing body of information
drawn from the experience of national NTE programs in CA suggests that
increased commercialization of new crops in traditional smallholder
agricultural regions has been economically and socially positive. While the
volatile issues of urban employment and related quality of life issues are
clearly acknowledged, there is evidence that NTE promotion programs also have
significant positive spinoffs by enhancing well-being in rural environments.
In Guatemala, El Salvador and Costa Rica, for example, studies suggest that
the expansion of export crop production through various cooperative schemes
have had major social benefits: strengthening of farmer cooperation, greater
interaction between and among rural communities, and an emergence of local
trading and entrepreneurship because of new crop introductions.
Expanding the potential of RTE will depend on how well marketing channels
function with respect to inputs and outputs. Constant attention should be
paid to reducing the inherent risks of new crop programs, since most small
holder farmers have a great deal to lose by failure of what is perceived by
some of them as "experimentation." With proper social articulation in
expanding UTE programs, however, it is evident that producers can adequately
compete and be as efficient or nearly as efficient in some crop production as
large scale farm enterprises.
Imoact on Women. Recent studies also indicate that the overall assessment
of the impact of NTE on the income of women is positive. In two of the three
countries studied (Guatemala, and Honduras), women were more likely than men
to find permanent employment for the crops considered. In the third country,
Costa Rica, the percentage of men and women permanently employed in production
of the products considerod was remarkably high for both genders (66% for
women, 77% for men). Permanent employment in the high profile NTE sector is
therefore probably one of the best assurances of a steady income an
agriculturally employed person can have in these countries. This is
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