How a home-gown Honduran consulting firm made the international big-league

ESA Providing reliable information for Honduran investors

By SARAH DAVIES

TEGUCIGALPA — Fifteen years ago Ian Walker and Rafael Del Cid were teaching together on the Central American economics postgraduate program at the National University of Honduras working as volunteers. Now Ian is the director and Rafael the president of an internationally acclaimed development consulting company.

ESA Consultores, is one of the largest development t consultating companies in Central America, and has completed contracts worldwide in Latin America, Africa, Asia and the Middle East.

ESA, which stands for Economy, Society and Environment (in Spanish: Economia Sociedad y Ambiente), was founded in 1992 and its client list includes a variety of renowned public such as the Inter-American Bank of Development, the World Bank, USAID and the United Nations Development Program; as well as leading private companies such as CREDOMATIC, CELTEL and Procter and Gamble. Apart from Ian, all the company’s 80 full time staff are Hondurans. ESA projects include socioeconomic analysis, surveying, civil and environmental engineering, municipal development, the evaluation of social, environmental, and economic development projects, and academic research programs.

A recent example is the assessment done of the World Bank´s $12 million Copan Valley Development project, approved in April, which aims to reduce poverty through ecological and heritage based tourism. The project will finance development and implement management plans in the archeological parks of Copan, El Puente, Los Naranjos and Cerro Palenque, supporting natural resources management in the parks and surrounding areas. . The aim is to create a critical mass of archeological attractions in the area, triggering a major increase of tourism flows and spending.

The project will support the development of high-quality, low-impact alternative attractions and will promote indigenous and locally owned enterprises, so that part of the increased income from the tourist trade finds its way into the pockets of the region’s poor.

It will also provide environmental education to increase the sustainability of the tourist trade.

ESA evaluated the project´s financial feasibility and economic cost-benefit ratio. ESA´s study showed how the project will create employment, increase incomes and generate the private and public revenues needed to pay back the investment, rather than adding to the country´s debt problems. This is an example of how the objective assessment of project ideas can facilitate public and private investment in Honduras.

Ian sees ESA Consultores’ role as “making the country more attractive for investors through the provision of reliable information that reduces the uncertainty they face.” That’s critical for a country like Honduras, which has limited savings capacity and so depends heavily on foreign investment – both public and private - for its future economic growth.
ESA also works directly with Government agencies such as the education, health and public works ministries, FHIS and PRAF to strengthen economic and social polices. Recent studies have in assessed the country’s investment programs and for infrastructure services such as power, telecommunications, water, sanitation, roads and airports, evaluating alternatives for financing the needed investments through development bank loans and through private investments.

As well as facilitating Honduras’ development process, ESA is proud to be exporting the same services to other countries. In the epoch of globalization, ESA is a small Honduran export success story. But rather than exporting maquila products or tropical agricultures, ESA exports brainpower, making it part of the worldwide boom in the so-called “knowledge industries.”

Ian - who originally came to Honduras back in 1988 as a volunteer on a British technical assistance program - is proud of this. “ESA has succeeded through the knowledge and expertise of our Honduran consultants, whose services are in demand across the region and beyond. In the past, Honduran development experts who wanted to advance their careers would have had to emigrate. Now they can make a career here with us”.

In the years to come, ESA hopes to continue helping to shape Honduras’ development – and also to continue to help the balance of payments, by exporting to other countries the knowledge accumulated here about what works best to reduce poverty, to improve environmental management and to promote successful investments.
ESA Consultores´ website is www.esa.hn
 

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United States rejects textile quotas

The United States textile industry is refusing to include tax-free quotas on the importation of Central American clothing fabricated with Asian cloth in the Free Trade Agreement (FTA) under negotiation between the U.S. and Central America. The United States will only accept proposals of free trade of clothing produced with Central American and U.S. cloth.

Jesus Canahuati, the president of the Association of Maquiladores of Honduras, confirmed this week that the United States remains inflexible on this point. For this reason Central American producers are evaluating measures to be taken in the negotiations.

The sector is analyzing the amount of export tax-free quotas necessary to take full advantage of FTA benefits while Central American producers expand their cloth production capacity. Currently, 30 percent of the clothing exported to the United States is made with cloth from Asia, Brazil, India and Pakistan.

Canahuati explained that Central America is aspiring to increase clothing exports by 142 percent, more than Mexico achieved with NAFTA.

One of the main arguments they will use to convince the U.S. textile industry is the fact that neither Central America nor the United States possesses production capacity to increase the required supply by 2005.

The producers estimate that the United States Congress could approve the FTA in May 2004. Therefore, Central America has less than a year to gain market access before clothing from China enters the United States without restrictive quotas. The multifibre agreement of the World Trade Organization limiting export quotas of clothing fabricated with Asian material expires in January 2005.

“In less than a year it will not be possible to come to an agreement in textiles and fabrication, as the United States proposes, if the Central American producers are not assured that their interests are safeguarded,” said Canahuati.

Negotiation tactics will include seeking the support of cloth producers and United States importers who already have invested in Central America to pressure the U.S. Congress and the White House to increase the flexibility of the U.S. textile industry in upcoming negotiations. It will be pointed out that the United States should compare the US$0.57 they earn on every dollar of cloth they export to Central America or the US$0.20 on every dollar for cloth to China, and should take into consideration the fact that when the at the conclusion of the previous negotiations, Regina Vargo, U.S. negotiator said, when referring to the possibility of whether or not to accept export quotas, “we expect preferential access in the U.S. market for textiles and clothing produced in Central America.” – National Association of Industry (ANDI)

Honduras and Cuba to sign agreement

The Honduran government announced this week it will sign an agreement of maritime borders in the Caribbean with Cuba.

“Honduras is ready and only a few minor details remain to be clarified”, said the Minister of Foreign Affairs, Guillermo Perez. Cuba and Honduras reopened diplomatic relations in January 2002, after 41 years. Honduras broke relations with Havana in 1961 when Cuba was expelled from the Organization of American States.

However, in 1998 Cuba opened an office in Tegucigalpa, and Honduras did the same in November 2001 in Havana.

Honduras is negotiating similar agreements with seven other countries: Mexico, Nicaragua, Belize, El Salvador, Columbia, Jamaica, and Great Britain for its possession of Grand Cayman. – El Heraldo

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TPS - Another 18 months

BY EMMA BOYLE

TEGUCIGALPA - The United States approved on Wednesday an 18 month extension of the Temporal Status of Protection, commonly known as TPS, that was due to expire on Monday, May 5.
This is an agreement that, for the fourth time, has been extended to provide living and working rights in the United States for approximately 90, 000 Hondurans and 6,000 Nicaraguans who suffered badly from the destruction caused by Hurricane Mitch in October 1998.

The direct benefit of this extension are those Honduran families living in the United States, whilst the good indirect benefit is the Honduran economy that will receive more injections of foreign exchange.

The United States Service of Immigration and Citizenship announced that the Hondurans and Nicaraguans protected under TPS would be able to resubscribe to continue to live and work legally in the United States until January 5, 2005. They will have to do this within 60 days starting from yesterday, May 2.

Present for the discussions were President Ricardo Maduro of Honduras, the Honduran Minister of Foreign Affairs, Guillermo Perez Cadalso, and the United States Ambassador Larry Palmer.

Ricardo Maduro, who prolonged his stay in the United States in order to reach this agreement, gave his thanks to the U.S. authorities.
¨I want to express the profound gratitude of the Honduran people to the people and the government of the United States for this fourth, historic extension, ¨ he said.
This is very good news for Honduras, as familial remittances will continue to be sent home. Maduro estimated that, in 2003 it would represent estimated incomes of US$ 1,600 million. ¨This¨ he said, ¨is a sign of optimism for the Honduran economy. ¨

Within the discussions there was also talk of the future in looking to obtain permanent residency for those already living and working in the US, according to Perez Cadalso who was leading these discussions with Maduro.

Contrary to other nationalities, the Honduran migration is well received in the United States because, it is disciplined and obedient to the law, ¨ said the Minister, and so bodes well for the future.

For now and at least for the next 18 months, those Hondurans can continue to enjoy the security of legally living and working in the United States.

 

BUSINESS AND ECONOMIC OUTLOOK

EU donates US$ 975,000 for protection of Tawahka Asangni Biosphere Reserve

The European Union and the Institute of Cooperation and Self-Development (ICADE) sponsored in Catacamas, Olancho the conference “From Destruction to Protection and Conservation of Natural Resources,” this week. Over 500 participants including farmers, cattle ranchers and residents of Olancho emitted a public statement at the conference in which they agreed to develop and change attitudes towards protected areas and foment awareness in order to recuperate, conserve and make rational use of natural resources.

The document also included a petition to the Honduran government for a new forestry law and a 10-year ban on commercial logging. Of the international community it was asked that support be aimed a local participation and that strategies surge from local departmental and national definitions of needs.

The European Union will directly participate in the protection of the Tawahka Asangni Biosphere Reserve (mid-Patuca region) with a US$975,000 donation for its conservation. The Indigenous Tawahka Federation of Honduras (FITH) achieved legal status for the reserve in 1999, when it was officially recognized by Congress. Now the FITH seeks delineation of borders and protection of the area. “The project consists in the protection of the forest and the sustainable development of the population that resides in the biosphere’s buffer zones, “ said Leonidas Avila, ICADE director and participant in the 1999 project. – La Tribuna

Central American businessmen define lower duties for FTA

Central American businessmen will present to their government’s next week a proposal of lower tariffs to be presented in the fourth round of negotiations of the Free Trade Agreement with the United States that will be held from May 12 to May 16 in Guatemala City.

The Consejo Empresarial Centroamericano (CECO) or Central American Business Counsel will present proposals to official negotiators from El Salvador, Guatemala, Costa Rica, Nicaragua and Honduras.

So far, the Central American businesses have reached a consensus concerning lower tariffs for 4,801 products from the isthmus, however 1393 products still need to be agreed upon, mainly from the agricultural and textile sectors. — El Tiempo

Labor Day: Worker’s Unions condemn Maduro “packages”

In San Pedro Sula, a much larger turnout than previous years of more than 20,000 thousand people participated in the traditional Labor Day March on Thursday to protest tax exemptions for the rich, new tax measures, the high cost of living, state corruption, privatizations and the war against Iraq.

They also protested against the new agricultural finance law and the amount of the increase of the minimum wage. –La Tribuna
 

Free Listings for Bay Islands Businesses

“SMARTPAGES” to promote business and tourism

ROATAN — Businesses in the Bay Islands are invited to place a free listing in the SMARTpages, a new Business and Vacation Guide that will be widely distributed on Roatan, Guanaja and Utila. Bay Islands Marketing (BIM), publishers, said the new guide will fill a void in the community by providing a one-stop shopping source for goods and services. The SMARTpages has a website www.bayislandsmarketing.com with complete details.

“It’s been four years since the last telephone directory/guide was printed and the demographics have changed dramatically,” explains Marcia Quinn, the guide’s co-creator. “Many new businesses have opened, while others have closed or relocated. Also, right now there isn’t an up-to-date locator source for new people or tourists to find the goods and services they need.”

“Unlike other media, the SMARTpages will be there for potential customers 24 hours a day, 365 days a year,” adds Sandra Sampayo, BIM. “We have a comprehensive promotion and circulation plan to assure that the booklets get into the hands of customers who will use them over-and-over again.”

The SMARTpages will be mass distributed to all businesses, groceries, resorts, airlines, real estate companies, travel agents, banking and utility locations on the island. It will also go to the main wholesalers and travel agents who sell the Bay Islands as a destination and through the IHT offices in the US, Spain and elsewhere. In addition, new residents to the island will be given the guide upon arrival as a part of a future “Good Neighbor” program. Copies of the guide will also be available in the BIM office and other locations.

SMARTpages is giving all businesses a free one-line listing in one category that includes the business name, location and phone number. There are also other options from expanded line listings and coupon pages to ads ranging from a two-color partial page to a four-color full page. SMARTpages consultants are going door-to-door in the business communities to discuss the options available.

With over 40 years of combined marketing and communications expertise, Bay Islands Marketing helps businesses get the most out of their marketing & advertising efforts. The company has worked closely with the Honduras Institute of Tourism to promote the islands worldwide and their website, bayislandstourism.com is viewed by thousands of people every month. BIM recently planned and orchestrated the Bay Island’s first Olympic points triathlon, which brought international exposure to Roatan.

Businesses can call Bay Islands Marketing at 455-5841 or send an email to smartpages@roatanmail.com for more information.

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