Creating Economic Opportunities

Solicitation Number: SOL-520-17-000003

Contract Award Number: 72052018C000001

Project Title: Creating Economic Opportunities

Contract Description:

OBJECTIVE
Theory of Change
If municipalities in the targeted departments utilize the Sistema Nacional de Planificación (SNP) in coordination with the private sector to generate tailored solutions that address“economic opportunity” and thereby reduce poverty and improve living conditions, then youth and other potential migrant populations will choose to stay in Guatemala rather than assume the risks involved with migrating to another country and irregular migration will decrease.
CEO will reduce poverty and improve living conditions, closing gaps between Guatemala and migrant destination countries, to create a Guatemala in which “economic opportunity” exists and irregular migration is not necessary in order to find opportunities. CEO will work with municipalities and utilize the Sistema Nacional de Planificación (SNP) 4 in coordination with the private sector to promote trade and investment, mobilize financial services, upgrade productive infrastructure, 5 and improve private sector competitiveness.
Through a market-led approach CEO will grow and expand formal businesses and employment to create income generating opportunities for Guatemalans, primarily in non-agricultural sectors. 6 By focusing on select municipalities in five departments of Guatemala’s Western
Highlands, with particular attention given to intermediate and emerging intermediate cities, as well as the department of Guatemala (area with high levels of irregular migration), CEO will benefit poor and vulnerable populations, particularly youth (15 to 24-year-olds) and indigenous persons. CEO’s results framework is shown in the next exhibit.

CEO will work with the GOG, municipalities, and the private sector in five departments of Guatemala’s Western Highlands (Huehuetenango, Quetzaltenango, Quiché, San Marcos, and Totonicapán) to form ECs/SEZs in intermediate and emerging intermediate cities and pursue economic development in the department of Guatemala, to spur the changes necessary to stabilize the nation. Research indicates that a country’s political institutions only mature as its economy produces broad-based opportunities on a sustainable basis. Further, internal security and political stability are likely not prerequisites for, but rather the consequence of, broad-based social development driven by competition and supported by increasing levels of social trust. 12 Thus, CEO will carry out a wide variety of interventions, based on assessments and empirical data gathered throughout the life of the project.

Duration: 5 years