II Edition
2004
EN RESUMEN
LATIN AMERICAN CENTER FOR COMPETITIVENESS AND SUSTAINABLE DEVELOPMENT
STRONG SUSTAINABLE DEVELOPMENT IN THE
GALAPAGOS ISLANDS
S
INDEX
Strong Sustainable Development in
the Galapagos Islands ............ 1
Connectivity, a Strategic Branch of
the INCAE Digital Nations (IDN)
Program.................................. 8
Activities ............................. 12
By Arturo Condo, Rene Castro, and Gabriel Zang.
ince August 2003 INCAE has been working on developing a strong sustainable
development model on the Galapagos Islands. This
embodies a long-term vision to
1
preserve and enhance
the region’s natural and social capital . This model has been defined as a
2
theoretical concept ; it has not been implemented yet.
Ecologically-fragile places, like the Galapagos Islands, with a low population density, boast a
large number and variety of natural resources plus a rigid regulatory framework for preservation.
This combination allows for the implementation of a strong sustainable development model.
However, this is no easy task due to local
confrontations
between
environmental
organizations protecting natural resources
(conservationists) and local leaders
demanding
social
and
economic
development for the population (i.e.,
"developers".) A positive factor, however, is the
presence of influential leaders in the province.
Although they currently face confrontations,
they are promoting dialogue to keep
development and conservation hand-in-hand.
The INCAE-CLACDS Project’s major goal in
these Islands is precisely defining, together
with local leaders, a common vision for the
future to overcome the current impasse and
align the efforts from various sectors. The
strong sustainable development concept
Galapagos Islands
brings both goals together and, even though it
is hard to implement in sites such as the Galapagos Islands, there is no other alternative for
conservation and growth
STRONG SUSTAINABLE DEVELOPMENT
The goal of sustainable development is preserving and enhancing natural and social capital to
improve people’s current and future quality of life. This approach is built into and aligned with
1
This work began in connection with the Instituto Nacional Galápagos (INGALA) and has involved other
organizations such as the Galápagos National Park, the UNDP, local and international foundations, different
production sectors, and the civil society.
2
Neumayer, Eric. Weak versus Strong Sustainability. Cheltenham, UK: Edward Elgar, 1999, p.22.
2
decision-making and government issues; and it includes social,
environmental, and economic considerations, as well as recognizing
the interdependence that exists between global and domestic
3
activities .
The weak sustainability model asserts that natural capital (total natural
resources extant) can be replaced with man-made capital, provided
the latter is an appropriate substitute. For instance, under this model
progressive extraction from a mature forest can be replaced by a
newly-planted forest or an education program, as long as this
compensates the negative ecological impact resulting from the
reduction of the primary forest.
Under the strong sustainability model, the natural capital must be
preserved and even enhanced, as its functions and benefits cannot
be duplicated by man-made capital. Under no circumstance can total
felling of a primary forest be approved. However, forest exploitation is
allowed in such a way that benefits can be reaped without negatively
affecting natural capital. One acceptable alternative can be ecotourism.
For strong sustainable development to be socially and politically
viable in low-income areas such as Ecuador and the Galapagos
Islands, it must ensure significant income and quality-of-life
A habitant of the Galapagos Islands
improvements to the population there. Otherwise, unmet material
needs will put unmanageable pressure on the conservation of natural
capital. To attain economic growth under the standards of strong
sustainable development improved competitiveness and productivity
from business firms and their operating environment is required. This
implies new differentiation strategies to specifically exploit the value of
preserved natural capital through activities such as fishing, tourism,
and so on, as well as a high-productivity environment allowing their
implementation.
BACKGROUND INFORMATION ON THE
GALAPAGOS ISLANDS
The Galapagos Islands are located 576 miles from continental
Ecuador in the Pacific Ocean. Due to their flora and fauna, they
are considered a natural laboratory, useful in the study and
knowledge of evolutionary processes.
The archipelago comprises 19 islands, 47 keys, and at least 26
rocks or volcanic promontories. It covers 788,200 hectares,
96.7% of which are national parks. Isolation from the continent
led to the development of a natural refuge for endangered
species including whales, sharks, and green turtles. As a result
of the biodiversity in its marine reserve (the second largest in the
world), a high degree of endemic land flora and fauna, and the
presence of untouched evolutionary processes, the Galapagos
were declared a Natural World Heritage site in 1978.
3
Human Resources Development Canada, 2003
3
GALAPAGOS ISLANDS’ CONSERVATION
AND SUSTAINABLE DEVELOPMENT
ISSUES
The major hindrances to developing the Galapagos Islands under the
strong sustainability model can be summarized as follows:
1. A low-productivity environment: the Islands’ key activities yield
little wealth. When profits are made (from tourism activities, for
instance) this income often does not reach the local population.
Low productivity leads to overexploitation of resources and to
migration from the agricultural areas of the Galapagos.
2. Problems originating in continental Ecuador: the Galapagos
Islands depend on decisions made in continental Ecuador.
Among other things, this has led to significant institutional
complexity at the local level and bad investments in infrastructure.
Centralized decision-making has resulted in actions that are not
based on the Islands social or economic capabilities. Finally, the
socioeconomic status of continental Ecuador encourages
significant migration flows to the Islands.
3. The Galapagos Islands have made a living from international
donations and subsidies from the Ecuadorian government, both of
which are now declining.
GALAPAGOS’ LOW PRODUCTIVITY
Some determinants of the Galapagos Islands’ low productivity and
income resulting from economic activities on the Islands follow.
1. Fishing: outside sustainable management and wasting of
the Galapagos trademark
Traditionally focusing on codfish, lobster, crawfish, striped mullet and
canchalagua, fishing in the Galapagos Islands ranges between
subsistence and small-scale, which are the only types of fishing
allowed. Most of the catch is designated for the export market. Twothirds of the Islands’ fishermen have banded together in fishing
cooperatives. As a result of some new immigrants becoming
fishermen, the total number on the Islands doubled between 1997 and
2001. These new fishermen are not interested in preserving the
Islands’ resources for the future and exert significant pressure to open
new fisheries and higher quotas. Overexploitation and illegal fishing
have led to a decline in the relative abundance of lobsters and sea
cucumbers.
Generally speaking, the fishing sector has not taken advantage of the
Galapagos trademark to generate marginal income per unit caught.
They see the issue in a linear fashion, so they understand income will
Galapagos Islands
only increase to the extent that the number of caught units is enlarged.
For instance, in February 2004 representatives of the sector occupied
pacifically the Galapagos National Park, as well as the facilities of the
Charles Darwin Foundation, demanding a change in the small-scale
fishing regulations for rules with an industrial bias and larger
extraction quotas. It is estimated that the current number of fishermen
already reaches the upper limit of catch required to ensure
sustainable resource management and economic profitability for
those engaged in the activity.
2. Agricultural crisis: invading species introduced
Agriculture on the Islands is not highly profitable in relation to other
economic alternatives there. Among other factors, low productivity
results from poor organization among producers and institutions in
the sector, expensive inputs, low investment in technology, little
coverage of basic utilities, ignorance of appropriate exploitation
techniques, damage from pests and diseases, little access to credit,
and mistakes in the product marketing processes. As a result of this,
the rural areas on the Islands are becoming depopulated. Production
is unable to cover local demand for several months, resulting in
imports of vegetal and animal species from continental Ecuador,
which results in the dissemination of exogenous invasive species and
plagues that threaten local biodiversity.
The Islands still have competitive advantage as a result of being free
from a large number of diseases. This would give their goods access
to new international natural product markets. The province has
agricultural health regulations, plus a quarantine and inspection
system is currently being consolidated. This will be reinforced under
4
the Global Environmental Fund Invading Species Control project, as
well as under the quarantine and inspection subsystem.
3. Tourism: wasting of the eco-tourism niche
Over the last 30 years, Galapagos tourism grew
6.1% per year on average. The Islands currently
receive nearly 70,000 tourists per year, who
stay an average of four nights and occupy
50% of actual hotel capacity or 28% of
maximum hotel capacity.
According to 2002 estimates, every foreign
tourist visiting the Galapagos leaves an
average amount of US$ 555 on the Islands
and US$ 1,867 in the rest of the country. Local
Ecuadorian tourists leave an average US$ 342
on the Islands and US$ 545 in the rest of the
4
country . The average daily amounts left in
Galapagos by foreign and local tourists (US$ 139 and US$
86, respectively) are lower than the daily amounts spent
5
by an American eco-tourist (nearly US$ 200) .
Transportation is disorderly, with few
regulations, and it does not match
production and tourism requirements. This is
a factor which influences species control
vulnerabilities; the Islands are estimated to
have nearly 1,000 exotic species brought in
both accidentally and deliberately and which
have
prevented
adequate
ecosystem
6
adjustment.
Galapagos Islands
4. A shortage of service
There is a shortage of basic infrastructure and utilities on the Islands,
mainly in rural areas. Two variables, health care and education, are,
on average, above the Ecuadorian mean. However, a low rating is
given to local labor and the service quality culture in relation to the
Islands’ productivity requirements. Generally speaking, water shows a
certain pollution level and a high chlorine content.
Management Type
4
CONSEQUENCES OF THE INTERACTION WITH
CONTINENTAL ECUADOR
Since the Galapagos Islands are a province of Ecuador,
the relationship with the entire country’s society and institutions
unavoidably impacts the development potential of the Islands. Two
major effects of this interaction follow.
1. Institutional and Juridical Aspects
A significant number of organizations on the Islands are powerful
actors with conflicting interests ("developers" and conservationists).
The table below summarizes the Galapagos’ major players.
Major Organizations
Local
INGALA, Provincial Council, Municipalities, Church Boards
Reporting to the Central
Government
Ministry of the Environment, Galapagos National Park, Ministry of Agriculture, Governor’s Office, Ecuadorian Navy – Naval
Zone II, Ecuadorian Navy – DIGMER, National Police, Provincial Health Care and Education Bureaus, Provincial Election
Court, Civil Registry Office, Civil Defense Office, Organization of Firefighters
Private
Provincial Tourism Chamber (CAPTURGAL), District Agricultural Centers in Santa Cruz, Isabela, and San Cristobal,
ASOGAL (Major Tourism Operators,) San Cristobal Handicraft Chamber
NGOs
Charles Darwin Foundation - Charles Darwin Scientific Station, Natura Foundation
Social Organizations
Small-scale fishing cooperatives, Handicraft Societies, Women´s League, Parents Associations, Professional
Associations, San Cristobal Healthcare Committee
International Organizations
Araucaria, GEF, WWF, USAID, PL480, IDB
Willen & Stuart, summarized in the article "El Turismo en Galápagos" of the 2000-2001
Galapagos Report of Fundación Natura-WWF (in print.)
Data provided by Capturgal, op. cit.
6
Source: Technical-Economic Feasibility Study, Redireccionamiento del Sector Turístico en el
Archipiélago de Galápagos – Un Nuevo Modelo para el Desarrollo. Galápagos, Ecuador.
Coordinator: Prof. Sarah Cordero. Members: Sebastián González, Michael Gourzong,
Alexander Larios, Alberto Olrich, Steve Roe, and Ariel Wigoda. Alajuela, January 5, 2003.
5
The major energy sources on the Galapagos (electricity and
transportation) are diesel and gasoline mixed with oil, both of which
pollute the air and the water (as a result of spills.) Wind or
solar energy is promising on the Islands due to their
equatorial location and strong breezes at the high
points. Four-phase motors for boats and synthetic
diesel could replace two-phase motors and
traditional diesel.
5
The Ecuadorian Constitution states that the Galapagos Province will
have a Special Conservation and Sustainable Development System
and that the National Galapagos Institute (INGALA, with local
management) will be responsible for carrying out budget planning,
approval, and control for the organizations in the subordinate and
autonomous systems, as well as for regional conservation and
sustainable development policies. INGALA is made up of
representatives of the central government and the subordinate
government, the autonomous Galapagos administration, production
sectors of the Islands, and environmental organizations.
people, with an annual average growth of 5.8%, starting in 1998.
Between 1990 and 1998 that figure was 6.4% per year, with migration
from the continent as the main growth factor. The economically-active
part of the population engages chiefly in tourism and trade activities
(35%), public management and defense (12%), and fishing (11%).
The remainder (41%) engages in various activities including
transportation, warehousing, communication, teaching, and
conservation.
Monthly per capita income amounts to US$ 112. Fishing was the
activity with the highest per capita income (US$ 407), followed by
tourism and trade (US$ 309.) Wealth concentration is lower on the
Galapagos Islands than it is on the continent. Also, 12% of the
population on the Islands is ranked as poor, versus 38% on
continental Ecuador. Imbalance between continental Ecuador and the
Islands leads to migration to the Galapagos.
The Special Administration Act for the Islands reduced annual
migration flows to less than 1,000 people per year beginning in 1998.
Although local organizations must deal directly with migratory matters,
it can be assumed that migration will continue to grow as long as
social and economic changes do not take place in continental
Ecuador.
INCAE-CLACDS PROJECT IN THE GALAPAGOS
ISLANDS
National Galapagos Institute
The Islands are currently undergoing a governance crisis resulting
from jurisdiction and legitimacy problems among the institutional
players. Some aspects of the special Galapagos administration are
not operational, while others conflict with the jurisdiction of the central
government offices. In spite of these conflicts, the Galapagos has a
strong legal framework since 1998, helping preserve the environment,
plus a social awareness for consensus and participation that can
promote sustainable development. However, recent changes in
tourism legislation (January 2004) have given the control of tourism
activities in the Galapagos to the Tourism Ministry, thus cutting the
power of the Ministry of the Environment and the Galapagos National
Park. This change ignores participation channels from different
sectors on the Islands and leads to some fearing that the tourism
sector can, as a result of political or other types of pressure, attain
goals the rest of the sectors will not approve.
The INCAE-CLACDS’ work in the Islands has two major components:
developing an agenda shared by local leaders and defining higherproductivity strategies and competitiveness agendas for the sectors driving
the local economy.
a) Development of a shared agenda:
Since mid-2003, the Latin American Center for Competitiveness and
Sustainable Development (CLACDS), supported by the FUNDACIÓN
AVINA, has been working with different players on the Islands to
develop an agenda for the Galapagos. It has offered a series of
2. Accelerated migration resulting from hardship in
continental Ecuador
The total population in the Galapagos amounts to nearly 17,000
CLACDS Associate Dean, Arturo Condo, during a workshop on the Islands
6
workshops: one for the province, one on eco-tourism with local
businesspeople, and three others in Santa Cruz, Isabela, and San
Cristobal. Also, it has created a system of sustainable development
indicators to serve as an evaluation and decision-making tool on the
Islands. Representatives from the different sectors with decisionmaking power have been invited to visit the INCAE campus in Costa
Rica in order to develop the Galapagos Five-Year Plan. (By invitation
from INGALA, INCAE was invited to become a member of the
Technical Assistance Group responsible for developing this plan.)
of the strong sustainability model. Both were carried out by groups of
INCAE MBA students under the guidance of a number of INCAE
faculty members. In addition to INCAE’s own work, support from other
organizations is expected, as there is still much to be done in these
areas.
Development of a Fishing Facility on Isabela Island
7
This study analyzed the development of a collection center for fish
catch from the fishing cooperative on Isabela Island. This facility
would increase the economic value of that catch and that of
(sustainably extracted) lobster, eventually reducing the fishing
volumes for lobster and sea cucumber and increasing their profits.
Sustainable fish catch is a new market, based on the initiative of
international organizations such as the FAO, WWF, and different
NGOs. Europe and the United States are the markets with the highest
demand and acceptance for these products.
To support the project, the cooperative committed itself to improving
its management ability, as well as fishing, processing, and marketing
skills, plus quality and sustainability.
The project’s major social and environmental impacts include creating
employment alternatives in the local market, as well as transportation
of materials, marketing of fish, and orderly management of fishing
resources. Also, the collection center would serve to alleviate fishing
pressure on some declining species and to train the fishing sector.
INCAE Associate Professor, Rene Castro, giving a workshop on the
Galapagos Islands
The major players with whom INCAE has worked over the last few
months include INGALA, the Islands’ major offices, the Ministry of the
Environment, the Galapagos National Park, the Provincial Tourism
Chamber (CAPTURGAL), the Ecuadorian Ministry of Tourism, the
Charles Darwin Scientific Station and Foundation, the Natura
Foundation, FUNDAR, the Ascalia Foundation, small-scale fishing
cooperatives, the UNDP, and the IDB.
b) Competitiveness agendas in local economy drivers
INCAE carried out two studies to strengthen the Islands’ fishing and
tourism sectors (their major economic activities) within the framework
Refocusing the Tourism Sector on the Islands
8
The objective here was to refocus the Islands’ tourism positioning as
an eco-tourism destination. This type of tourism is not only moreprofitable on a per-tourist basis, but also it helps preserve the Islands
under a strong sustainability model.
Benefits from Eco-Tourism
Positioning the Islands as an eco-tourism destination means reaching
a different type of consumer. An American eco-tourist on vacation
stays an average of 12 nights, with a daily average expenditure of US$
9
238, not including transportation expenses . This tourist’s average
annual income amounts to US$79,600. In the United States alone,
seven million people are estimated to be willing to pay between
US$ 2,000 and US$ 3,000 per eco-tourism trip. In addition to this,
tourists are interested in local food and simple lodging. A tourism
certification would allow charging premium prices.
7
Source: Economic Feasibility Study: Instalación de Facilidad Pesquera en la Isla Isabela,
Provincia de Galápagos Ecuador, Alajuela, January ,5 2004. Carried out by Mauricio Aguilar,
Cecilia Caraccioli, Jorge Luis Chávez, Jane Posey, Oscar Ramírez, and Renato Riggione.
8
Source: Technical-Economic Feasibility Study, Redireccionamiento del Sector Turístico en el
Archipiélago de Galápagos – Un Nuevo Modelo para el Desarrollo. Galápagos, Ecuador.
Coordinator: Prof. Sarah Cordero. Members: Sebastián González, Michael Gourzong,
Alexander Larios, Alberto Olrich, Steve Roe, and Ariel Wigoda. Alajuela, January 5, 2003.
9
Williams, Lake Forest District Tourism Opportunities Study ARA/KPMG Consulting LP Final
Report – April 2001 Appendix F entitled "Profiles of North American and European Eco-Tourist,"
based on HLA/ARA studies carried out in 1994.
Some direct competitors in the eco-tourism market include Canada,
Costa Rica, Hawaii, Australia, and South Africa. These competitors
keep the market very up-to-date in terms of facilities to reach the
destinations. The table below details these destinations’ strengths and
weaknesses.
7
Galapagos Islands
Country
Strengths
Canada
Costa Rica
Hawaii
Australia
Thirty-nine national parks
and certified natural
reserves, (UNESCO).
Abundant flora and fauna.
Thirty-two national parks and
over 127 protected areas.
Six percent of the world’s
biodiversity
Belongs to the United States.
Significant eco-tourism
certifications. Diverse
landscapes and climates.
Diverse landscapes and
climates.
Well-organized supply.
Diversifies marketing efforts
Well-defined organization,
in a number of activities.
oriented toward innovation
and continuous improvement.
Full tourism packages, both High education level and
winter and summer.
customer service culture.
Weaknesses
South Africa
Diverse species and
significant scenic contrast.
Implements successful risk- Good arrangement of tours.
Positioning through the use
management plans in the
of the term "safari".
eco-tourism sector.
Guides specializing in
different areas. Wellorganized supply.
Frequent international flights Significant, world-renowned Supported by research and
Environmentally-friendly
from many places around the certifications.
conservation organizations.
hotels, eco-architecture,
Parks are semiautonomous.
highly valued by eco-tourists. world. Excellent roads.
Few endemic species.
Significant traffic jams.
Development under a weak Development under a weak
sustainability model.
sustainability model.
High lodging and internal
transportation costs.
Introduced species have
changed the ecosystem
Fauna constantly
endangered; species at the
brink of extinction.
Development under a weak
sustainability model with
massive arrival of tourists
disrupting the ecosystem.
The presence of massive
contagion diseases in some
species has altered the food
chain, endangering human
health.
General welfare and strong
sustainable development
model hindered by
socioeconomic differences.
Little safety and inflated
prices.
LOOKING AHEAD
INCAE-CLACDS is convinced of the possibility for sustainable
development in the Galapagos Islands. The goals of further economic
growth and improved quality of life for the population, as well as of
ensuring the protection of natural wealth, are not only fully compatible
but also complementary to each other, provided the right policies and
strategies are pursued and resources are used wisely. Two key
components for future action plans that will consolidate the region’s
competitiveness and sustainability are: the legal framework
developed and the consultation/participation processes that are
constructed.
8
CONNECTIVITY, A STRATEGIC
BRANCH OF THE INCAE DIGITAL
NATIONS (IDN) PROGRAM
By Arturo Condo and Wendy Rodriguez
O
ver the last few months, INCAE has engaged in
developing 21st-century connectivity models with local
leaders in two small communities in Costa Rica and El Salvador
in order to harness technology to promote a development
agenda. The first effects are beginning to be seen as
communities start to improve production processes, increase
internal and external communication flows, and experience
improved confidence in community members leading joint
work (among other benefits.) In all of this, technology has
served as a tool to enhance community development.
In February 2002, the Latin American Center for
Competitiveness and Sustainable Development (CLACDS)
signed a sponsorship agreement with the Digital Nations
1
Consortium of the MIT Media Laboratory . As a result of this
agreement, the INCAE Digital Nations (IDN) Program was
created in one of CLACDS strategic areas, namely,
Technology, Learning, and Development.
The IDN Program strives to improve the standard of living
for Central American communities through the use and
promotion of digital tools and innovative methodologies
encouraging creativity, entrepreneurship, and sustained
productivity enhancement. The IDN Program has
benefited from the vision and support of Central
American businesspeople, including Rafael Castellanos
from El Salvador and Luis Javier Castro Lachner from
Costa Rica, as well as regional leaders such as the AVINA
Foundation.
Why Connectivity?
Internet has revolutionized the world in many different ways.
Over the last decade it has experienced exponential growth
and it is highly likely that its ultimate impact on every human
field is still to be seen. So far, only 7% of humankind has
contact with this tool.
A few years ago we imagined people at some point in the 21st
century working and shopping from home. Many were
astonished at that possibility, worrying about a tool that would
isolate us from each other. Both our experience and the latest
empirical evidence show how wrong that forecast was. In fact,
most of the traffic over the Internet has to do with messages we
mail to people we used to frequently contact over the phone or
who we talk with as a result of our close relationship with them.
Actually, what has emerged is a new supplementary, powerful,
and low-cost means of communication allowing communities to
acquire, develop, and share knowledge. Above all, this tool
has become the technological infrastructure required to
support new ways of contact at new speeds, which results in
reinforced social networks and easier contact with other social
systems. This connectivity has a potential to foster community
development by linking community members at costs and
speeds conducive to new social interaction patterns. In other
words, the Internet is a key ingredient to catalyze the
development of social and human capital.
A family in the Los Santos zone
1
The MIT Media Laboratory was created in the 80s and so far it has focused on studying,
inventing, and creatively using digital technologies to improve the way people think, express
themselves, and communicate their ideas. In addition, it continues exploring new scientific
boundaries.
In order to profit from connectivity, a mere computer center at
a given location providing a link to the rest of the world is not
enough. Mechanisms and technologies allowing new ways to
cooperate and to spread information at that location are
required, too. INCAE has been leading two such projects in
Santa Maria (Costa Rica) and Santiago Texacuangos (El
Salvador.)
9
THE IDEA MARKET
– THE CASE OF DIGITAL SANTA MARIA –
The Idea Market is a new concept devised within the Human
Dynamics Research Group of the MIT Media Lab, led by Dr.
Alex (Sandy) Pentland. Professor Pentland, one of his students
–INCAE Faculty Member (under leave of absence) Juan Carlos
2
Barahona , and the INCAE-CLACDS IDN Research Team led
by Dr. Arturo Condo are working on this project. Metaphorically,
we think of ideas as a good to be developed, imported, and
shared by communities. Communities are seen as a series of
social networks facilitating the dispersal of idea flows, and the
Internet is seen as the suitable means to speed up and
improve this process.
and 3) the business weaver, with access to ideas and
resources in his own personal network, chiefly businesspeople
able to attract new business to the community. All of these can
be either inside or outside the community, professionals and
entrepreneurs, with connections outside the community. They
should be sufficiently credible in their communities, serving as
simultaneous catalyzers for change and associating with local
entrepreneurs.
SANTIAGO TEXACUANGOS,
COMMUNITY
THE
FIRST DIGITAL STEP
This initiative is an outgrowth of the experience with the Idea
Market in Santa Maria, Costa Rica, led by Wendy Rodriguez,
an INCAE specialist in education and technology. Although
both projects share the same base, due to the specific type of
supporters backing the Salvadoran undertaking, it has been
positioned within the Digital Step Program, as an element of the
telecommunications endeavor of the Plan Puebla-Panama.
Santiago Texacuangos is located some 700 meters above sea
level, 8.5 miles southeast of El Salvador’s capital city. It covers
12 square miles and is home to 23,000 people, with 79% rural
and 21% urban population. Its major economic activities are
leatherwork, shoemaking, coffee and agricultural production,
handicrafts, textiles and looms.
Habitants of the Los Santos zone
Evolution toward higher –value-added activities requires
innovation and adaptation. It is here that the need for improved
abilities and social communication tools becomes evident, to
foster learning, creativity, and cooperation.
The development project elements for an idea market include:
a) the community (once its social networks have been
identified); b) some sort of support to use and maintain
information and communication technologies, such as LINCOS
and InfoCenters, and c) an innovative role known as the
"network weaver." Three kinds of network weavers exist: 1) the
digital weaver, promoting different business models related to
the use and application of technological tools; 2) the social
weaver, engaged in improving idea flows, searching for the
best channels to accomplish its task and managing conflict;
2
Research Assistant, student of the MIT Media, Arts and Sciences Doctoral Program and INCAE
Fellow.
Digital Step is a research project aimed at reinforcing the
development of rural communities in the region covered by the
Plan Puebla-Panama (i.e., Costa Rica, El Salvador, Guatemala,
Honduras, Mexico, Nicaragua, and Panama). This is achieved
through participatory development methodologies and the
innovative use of digital technologies. INCAE/CLACDS
Researcher Cristian Cortes, who specializes in small and
medium enterprises (SMEs) and technology, has been in
charge of this initiative.
"Here I come, in a hurry and tired, but
willing to be a part of this project to get the
resources to go increasingly farther!",says
Mr. Morales, a participant in the
Salvadoran project.
10
The project aims to promote communities as
development models by using digital
technologies to improve community
issues (healthcare, education, and
local culture), enhance local SMEs’
abilities, and develop new ways to
work with the government. Both
the process and the results will
be duly documented in order to
develop tools and materials
intended to stay permanently in
the region and to support other
communities.
CO N C R E T E
RESULTS
DIRECTION
AND
CURRENT
The new DAKNET system was
launched in Santa Maria de
Dota, and it currently serves
fives different communities:
Santa Maria, Copey, La
Cima, El Empalme, and
Providencia. Through this
system information is
wirelessly conveyed from
a point directly linked to
the Internet, as is the case
for
Cooperativa
de
The program will directly benefit
Productores de Café de Dota
40 communities, five in each
R.L.
(Coopedota)
which
country (with some 20,000-40,000
transmits information to kiosks
people). By the end of the program,
located at a store in each
these people will be technologically
community.
The
courier
at
literate and able to generate their own
Coopedota is responsible for operating
development. In addition, some 15-20
the system. In his daily motorcycle
technicians and consultants will be trained,
Habitants of the Los Santos zone
j o u rn e y,
e-mail
messages
are
who will directly take part in the project in topautomatically
uploaded
and
level multidisciplinary and interdisciplinary groups. Also, some
downloaded as he visits each kiosk.
160 community leaders will be trained and will participate
directly in implementing the project. Other permanent benefits
The scientist and MIT Faculty Member Dr. Pentland is
will include a number of tools, guidelines, and papers to serve
the Associate Director of the Digital Nations
as reference materials for other projects and as criteria for the
Consortium. He developed this technology and is
use of digital technology for community development
responsible for implementing projects of this type in
purposes.
India and the United States. In addition, he has served
BASADO EN: PENTLAND, SANDY. A ROAD TO A UNIVERSAL BROADBAND CONNECTIVITY.
HTTP ://THINKCYCLE/MAIN/DEVELOPMENT_BY_ DESIGN_2002/PUBLICATION_UNIVERSAL_
BROADBAND_CONNECTIVITY /DARKNET_RURAL_ CONNECTIVITY_V7.6PDF
MIT's Alex (Sandy) Pentland in Santa Maria de Dota
11
as the leader for this initiative. He attended the
launching of the new system in Santa Maria, together
with Jose Maria Figueres (former Costa Rican
President), Roberto Sasso, and other community
leaders implementing this initiative.
The project is just starting in Santiago Texacuangos.
The community access center is being constructed, the
community has expressed its committment, and local
leaders have been identified. Also, those production
sectors where technology can add value to current
activities and bring new business to improve the
community’s standard of living have been identified.
The more advanced Santa Maria case and the recentlystarted case of Santiago Texacuangos clearly illustrate
how far-away communities with concrete needs can
become connected and thus improve their ability to
invent, search for, and adapt ways to cooperate and to
innovatively use tools and resources to take a
significant leap in their productivity and, thus, their
standard of living.
Los Santos
12
ACTIVIDADES 2004
JULY
• CLACDS Associate Dean, Arturo Condo, lectured in Venezuela on development trends for the Venezuelan region during
the CONINDUSTRIA event.
• Lawrence Pratt, Associate Director of CLACDS, Lawrence Pratt, offered a workshop on introducing sustainable
environmental studies in El Salvador and Belize.
• CLACDS researcher Connie Jones gave several workshops on diagnosing priorities and strengthening micro-finance
institutions and training in the micro-finance sector in Ecuador, Nicaragua, and Guatemala.
• CLACDS Associate Dean, Arturo Condo, and CLACDS researcher Luis Figueroa, participated in the official launching of
the Small and Medium Enterprise Competitiveness Fund Contest in the Dominican Republic. The contest is a regional
technical assistance program that is partially financed by the Interamerican Development Bank through its Multilateral
Investment Fund (MIF). Mr. Andres Van Der Horst, the National Competitiveness Council’s Executive Director, and Mr.
Moises Pineda, a representative of the Interamerican Development Bank (IDB), participated in this activity.
• The CLACDS, in conjunction with the CCAD Executive Secretary and with financial support from the Interamerican
Development Bank, held the Second Meeting of the PPP’s Technical Commission on the Environmental Component of the
Mesoamerican Initiative for Sustainable Development in El Salvador. CLACDS researcher Connie Jones participated in this
event.
• Galapagos, Ecuador, was the site of an important meeting attended by Dr. Arturo Condo, CLACDS Associate Dean, and
Engineer Aguilera de Plastigama, Chancellor Heins Meller, the Directorate of the Business Council for Sustainable
Development, and an important group of business people in the region as part of the Agenda Ecuador project.
• Roberto Artavia, Rector of INCAE, signed an agreement with the Honduran Soccer Federation to strengthen the soccer
industry in that country. The agreement consists of four components: a description of the soccer industry, marketing,
strengthening the community aspect, and strategic planning.
• CLACDS Researcher Connie Jones participated in several workshops and panels in El Salvador about developing the
micro-finance sector in Central America.
• Ana María Majano, the CLACDS Executive Director, attended a meeting in El Salvador with the Japan International
Cooperation Agency (JICA) representatives to seek support for CLACDS projects.
• The CLACDS Associate Dean, Arturo Condo, and Luis Figueroa, a researcher at the Center, participated in Panama in the
official launching of the Small and Medium Enterprise Competitiveness Fund Contest. This program seeks to improve small
and medium enterprise competitiveness in Central America and the Dominican Republic by stimulating associated
projects in market development and operating efficiency in the agri-business, tourism, textile, information technology, and
communications sectors. Mr. Joaquin Fabrega, the Micro, Small and Medium Enterprise Authority President, and Mr.
Jeremy Gould, an Interamerican Development Bank (IDB) representative, participated in the event.
• Luis Figueroa, a CLACDS Researcher, represented the Center in Nicaragua at the Third National Small and Medium
Enterprise Congress, Expopyme 2004, and MIF.
• Luciano Ciravegna, an intern in the MIF-INCAE program, participated in a talk about academic leadership at the
governmental ministry meeting in Guatemala.
• Arturo Condo, the CLACDS Associate Dean, lectured on "The Current Status of Costa Rican Competitiveness:
Opportunities and Obstacles for the Upcoming Years" during the "Competitiveness: A Guide to Strategic Planning" event.
13
• Julio Sergio Ramírez, an INCAE Full Professor, and Cristian Cortes, a CLACDS Researcher, participated in the
Tourism and Competitiveness Conference in Guatemala.
• Ana María Majano, the CLACDS Executive Director, attended a Mesoamerican Competitiveness Council of
Honduras meeting to determine steps to take in seeking competitiveness in that country.
• Arturo Condo, the CLACDS Associate Dean, lectured on "Business Management" at the Panamanian Association of
Business people for Development Management event in Panama.
• Roberto Artavia, the INCAE Rector, met with the ambassadors of Japan in El Salvador, Nicaragua, and Costa Rica,
along with representatives of JETRO, JICA, and CEFOF, to promote and exchange different knowledge and
technology that may benefit Japan and Central America.
• Lawrence Pratt, the CLACDS Associate Director, made a presentation on the "Latin American Task Force" during the
United Nations Environment Program’s (UNEP) Financial Initiative in Peru.
• Mr. John Bruton, the ex-Prime Minister of Ireland, participated in the seminar: "Ireland, the Celtic Tiger: The
Successful Competitive Development Experience of a Small European Nation," organized by the INCAE. Roberto
Artavia, the INCAE Rector, and Arturo Condo, the CLACDS Associate Dean, who lectured on "Current Challenges to
Competitive Development in the Region," participated in the activity. The activity was also attended by important
Central American businesspeople and representatives of the different sectors.
AUGUST
• Ana María Majano, the CLACDS Executive Director, met with the Salvadoran Minister of the Economy and
representatives of the Japanese International Cooperation Agency (JICA) to seek support for CLACDS projects.
• Arturo Condo, the CLACDS Associate Dean, gave two presentations on "Transition Economies and Organization and
Competitiveness" during the annual Academy of Management meeting in New Orleans.
• Luis Figueroa, a CLACDS Researcher, and Carlos Salas, a MIF Program Researcher, met with the representatives of
the MIF-INCAE Program for Guatemala and El Salvador to evaluate project implementation within the framework of
this agreement.
• Arturo Condo, the CLACDS Associate Dean, and Juan Carlos Barahona, INCAE Professor on Leave, in conjunction
with the Massachusetts Institute of Technology (MIT), gave a workshop on "Social Networks, Innovation, and
Sustainable Development." The activity was attended by important businesspeople from the Los Santos area to
encourage discussion about issues such as sustainable tourism, competitiveness, and innovation, and to introduce
attendees to the use of tools such as cluster analysis and social networks.
• Cristian Cortes, a CLACDS Researcher, presented the "Digital Step" project to major business people representing
the Secretary of Social Development and Telecom in Mexico City.
• In San Pedro Sula, Honduras, Ana María Majano, the CLACDS Executive Director, attended a meeting with the
Interamerican Development Bank (IDB) about the Mesoamerican Initiative on Sustainable Environmental
Development (IMDS in Spanish) and Rural Agricultural Development to inform the work group about project
progress.
• José María Figueres Olsen, the ex-President of the Republic, Alex "Sandy" Pentland, Lead Researcher from the
Massachusetts Institute of Technology (MIT), Roberto Artavia, the INCAE Rector, Arturo Condo, the CLACDS
Associate Dean, and Ana María Majano, the CLACDS Executive Director, participated in the Walter Kissing Gam
Professorship, organized by El Financiero and the INCAE. The event was attended by representatives of important
companies in our country.
14
• Lawrence Pratt, the Associate Director of the CLACDS, attended the "9th Business Forum 2004" in Germany, where he
lectured on "Regional Trade and Sustainable Development."
• The ex-President of the Republic, José María Figueres, and Dr. Alex "Sandy" Pentland of the Massachusetts Institute of
Technology, participated in the inauguration of the Idea Market Project in the Los Santos area. This event was organized
by the INCAE, the Massachusetts Institute of Technology, and COOPEDOTA. The project’s objective is to encourage social
abilities and technologies in people to enrich idea exchange. Roberto Sasso, an INCAE representative, Juan Carlos
Barahona, INCAE Professor on Leave, Wendy Rodríguez, a CLACDS Researcher, and important area businesspeople
participated in this event.
• Arturo Condo, the CLACDS Associate Dean, and Luis Reyes, a CLACDS Researcher, attended the Permanent Forum on
Productive and Competitive Development of the Production Foundation (FUNDAPRO in Spanish). During the event they
met with the FUNDAPRO technical team to identify elements contributing to Bolivian competitiveness.
• Lawrence Pratt, the CLACDS Associate Director, and Andrés Villalobos, Coordinator of the Coffee Business Unit at the
Sustainable Markets Intelligence Center (CIMS in Spanish), met with the Technical Mission Delegation to Costa Rica and
the State of Acre, which is made up of the presidents of regional governments in Peru, technical specialists, and authorities
from the BIODAMAZ project.
• During his visit to the INCAE, Mr. Jörg Asmussen, Assistant Sub-Secretary, and the person in charge of monetary policy
and national and international financial markets of the German Federal Finance Ministry, gave a talk on "The European
Union, the Euro, and G20." The Swiss Ambassador, Mrs. Gabriela Nützi, the German ambassador, Mr. Volker Fink, and
other important members of the German embassy, as well as Roberto Artavia, the INCAE Rector, Arturo Condo, the
CLACDS Associate Dean, Ana María Majano, the CLACDS Executive Director, René Castro, an INCAE Associate
Professor, and Lawrence Pratt, the CLACDS Associate Director, participated in the event.
SEPTEMBER
• CLACDS, in conjunction with the Central American Commission on the Environment and Development (CCAD in Spanish)
and the Interamerican Development Bank (IDB) organized the Second Technical Commission Meeting on the
Mesoamerican Initiative on Sustainable Environmental Development (IMDBS in Spanish) in Nicaragua with the official
liaisons and representatives of the Interinstitutional Technical Group (GTI in Spanish) to follow up on the agreements
reached in past meetings and to define priority projects, environmental safeguards, and the relationship with other
initiatives. Ana María Majano, the CLACDS Executive Director, Connie Jones, a CLACDS Researcher, and Jorge Vinicio
Murillo, a CLACDS Consultant, participated in the activity.
• In Washington, Lawrence Pratt, the CLACDS Associate Director, made a presentation on "Country Environmental Analysis:
The Case of Belize," during the IDB’s Environmental Week: "Designing a Road Map for Sustainability."
• Luis Rivera, a CLACDS Consultant, lectured on "Legal and Regulatory Matters" during the "CAFTA Action" investment and
trade forum organized in Honduras by Central American and Caribbean Action (with headquarters in the United States) in
collaboration with the Honduran Secretary of Industry and Commerce and the Central American Economic Integration
Bank (BCIE in Spanish). The President of the Republic of Honduras, Ricardo Maduro, inaugurated the event, which was
attended by more than 200 delegates from the region’s public and private sectors, civil society, and academia. The forum’s
objective is to promote alliances targeting ratifying the trade agreement, which is considered to be a crucial step in the
economic integration process and in attracting investment in the region’s sustainable development.
• Ana María Majano, the CLACDS Executive Director, spoke at the conference in Washington, DC, on "Assessing
Environmental Capacity Needs" during the IDB’s Environmental Week: "Designing a Road Map for Sustainability."
15
• The CLACDS, in conjunction with the Regional Council on Agricultural Cooperation (CORECA in Spanish) and the
Interamerican Development Bank (IDB) held the Second Regional Technical Consultation on the Mesoamerican
Initiative for Sustainable Rural Agricultural Development (IMDS in Spanish) with the official liaisons and
representatives of the Interinstitutional Technical Group (GTI in Spanish). Ana María Majano, the CLACDS Executive
Director, Ernesto Leal, the Puebla Panama Plan Commissioner, Connie Jones, a CLACDS Researcher, and Jorge
Vinicio Murillo, a CLACDS Consultant, participated in the activity.
• The Walter Kissling Gam Campus was the site of the symposium: "Business with the Poor." The speakers included
Lloyd Timberlake and Julio Moura of GrupoNueva, Philippe Pommez of Natura, Andreas Eggenberg of Amanco,
George Carpenter of Proctor & Gamble, Dawn Rittenhouse of Dupont, Jeffrey Hamaoui of Origo Social Enterprise
Partners, Barbara Dubach of Holcim, Torre Nelson of Habitat for Humanity, and Valeria Budinich of ASHOKA.
• The Symposium was attended by 150 participants from Latin America, the United States, and Europe. The activity
was supported by GrupoNueva, the World Business Council on Sustainable Development (WBCSD) the INCAE, and
the "SUSTAINABLE LIVELIHOODS" committee of the WBCSD.
OCTOBER
• The CLACDS organized the official launch of the Global Competitiveness 2004/2005 Report of the World Economic
Forum (WEF). The event was held simultaneously in the region’s countries and had the participation of Arturo Condo,
the CLACDS Associate Dean, and important businesspeople from each country.
Associate Dean: Arturo Condo
Executive Director: Ana María Majano
Associate Director: Lawrence Pratt
Administrative Director: Marlene de Estrella
Communications Coordinator: Arlette Chaves-Leer
Financial Coordinator: Adriana Umaña
Editor: Arlette Chaves-Leer
The Bulletin, In Summary, is published by the Latin American Center for Competitiveness and Sustainable
Development. If you would like to be included on the bulletin’s distribution list and in our database, as
well as receive our research, please write to Post Office Box 960-4050, Alajuela, Costa Rica, or send an
email with your personal information to [email protected] . You may also find previous editions on
our website http://www.incae.ac.cr/clacds, in addition to all of our publications and research.
The Latin American Center for Competitiveness and Sustainable
Development has been established to assist leaders in the public, civic and
private sectors in achieving changes towards sustainable development.
Sustainable development optimizes economic growth, social equity and
environmental balance, taking into account that each one can only be
achieved if human, natural and financial resources are developed to their
maximum potential value added.
The Center hopes to achieve its mission through the combination of
neutrality in applied research, facilitation of dialogue and executive
training, to create a unique model that promotes change in the region.
Contributing Partner
Latin American Center for Competitiveness and
Sustainable Development
www.incae.ac.cr/clacds
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