On September 29, 2023, Assistant Administrator for Latin America and the Caribbean, Marcela Escobari participated in the US-Mexico High Level Economic Dialogue. She led a discussion on Pillar II, entitled “Promoting Sustainable Economic and Social Development in southern Mexico and Central America.”
“USAID has advanced Pillar 2 in important ways this past year. We’ve bet big on Central America, we now have a highly integrated strategy with our partner, the Mexican Agency for International Development Cooperation (AMEXCID), and we have launched new efforts to drive prosperity in southern Mexico.
Our work in communities in Central America spans decades. What’s new is the Biden Administration’s historic commitment to the Root Causes Strategy, focused on economic opportunity, security and improved governance to mitigate the push factors that force people to leave their communities. In 2022, we invested $450 million dollars. Under the Central America Forward initiative, we are bringing others along with us - including multilateral development banks and private investors.
The new funding has allowed us to build on what works. Through the years we’ve helped build value chains in coffee and other high value crops that are successfully supplying markets locally and abroad. And now we’ve been able to include thousands more smallholder farmers into these value chains.
In just one year, the results have been impressive. We’ve created 90,000 new jobs and reached almost half a million young people with primary education and new skills. We know there are many complex factors that can drive individuals and families to make the decision to leave their homes. But we have evidence that shows effective interventions can move the needle. USAID found that participants in our rural economic development programs migrated at half the rate of surrounding communities.
Our positive momentum in Central America also reflects the unique partnership we’ve forged with AMEXCID. Last year, I highlighted how- USAID and AMEXCID would work together. This year, I can report what we’ve been able to achieve together in the field.
We are focused on two populations: Young people - who are not working nor studying- and are eager for opportunity, and small farmers - with 1 to 2 hectares of land, often living below the poverty line. We are working jointly with the same people, making sure we can see them through in reaching their potential. AMEXCID is providing scholarships to youth, and USAID helps them find full time jobs. AMEXCID provides equipment and stipends to small farmers, and USAID helps them link up with new markets. In fact, on September 28 AMEXCID and USAID farmers in El Salvador filled their first purchase order of vegetables from Walmart.
USAID is also joining AMEXCID in expanding the use of conditional cash transfers in our assistance. And this is just the beginning. We are excited to start our work with AMEXCID in Guatemala, and have worked together to bring Canada as another partner in Honduras.
Lastly, we have responded to Mexico’s call and joined in investing in southern Mexico’s development.
And we are now working with small communities in coffee, cacao, honey, eco-tourism, and sustainable forestry. So we have scaled quickly, from helping 7,000 people to 48,000. We have established partnerships with companies, like Pepsi. We’re helping the state Governments of Chiapas, Campeche, and Oaxaca, among others, to promote their sustainable industries. And we’re bringing a whole of government approach to supporting the region. USAID has helped deliver three new Development Finance Corporation loan guarantees, focused on southern Mexico. And our investments are just ramping up, so we expect even more significant results next year.”