When there is a decision to carry out a process of "institutional strategic planning", the decision is being made to have a moment of "break", a watershed of the past - present - future, where new "opportunities" for growth and growth are opened. improvement for the institution.
It is important that the actors consider the process of diagnosis and strategic planning, as a moment of analysis, to evaluate the work done and define new growth routes within the institution, as well as in the territorial area in which the Actions. A moment of break, a turning point, the opportunity to face new challenges, new goals, new objectives, without losing the platform and achievements to date. It is important that we consider that an Institutional Diagnosis process requires that the members of the technical and administrative team, as well as partners, be honest about the past, current and future situation of the institution.
The Diagnosis does not look for the culprits of situations or actions, but elements that make it difficult to maximize the capacities and potentials of the institution or organization, to achieve its goals and objectives. Relevant knowledge of the past and present situation of the "institution" is required, as well as future plans (objective, goals and actions).
Despite the fact that ADED - Valle went through a difficult time in its administrative, financial and logistical structure, it is evident in a quantitative and qualitative way, it has recovered significantly, in a nominal value in "Response Capacity" it is rated at 5.5 out of 10, with average value. One of the main “capitals” that ADED-Valle has strengthened in the last three (3) years is the high degree of CREDIBILITY AND TRUST on the part of different regional actors, but this “capital” does not translate into direct support in strengthening of capacities and financial resources for the institution.
ADED - Valle has established itself as a point of reference for the development of "Strategic Alliances at a regional level", many of these to favor third parties using the "good image" of ADED - Valle to achieve particular objectives, without contributing to the fulfillment of the Vision, Mission, Objectives and Strategic Axes of the organization. The organizational structure of ADED - Valle, represented by the "partners", have a medium level of cohesion, there is an adequate level of perception about the actions taken to date by management and technical and administrative personnel, in the same way they understand the situation economic precarious that ADED - Valle faces at this time. The partners, despite their willingness to support the management and operational structure of ADED - Valle,They have organizational and financial weaknesses that do not allow taking actions that transform the situation of ADED - Valle in the short term, at a financial level the partners with the highest degree of possibility of financial support would be the Municipalities. Despite the weight of local governments and the good perception they have of ADED - Valle, so far it has not been reflected in "agreements" that allow a mutual strengthening of technical, administrative, financial and operational capacities.So far, it has not been translated into "agreements" that allow mutual strengthening of technical, administrative, financial and operational capacities.So far, it has not been translated into "agreements" that allow mutual strengthening of technical, administrative, financial and operational capacities.
The main weakness of ADED - Valle is the dragging of a loan default that has decreased to 49%, there are no additional sources that allow to clean up the economic finances of ADED - Valle, to positively impact the region and in particular its partners.
The "central problem" of ADED - Valle, is reduced to the lack of financing to generate an adequate "loan portfolio" that allows creating the cycle of financial self-sustainability in the technical, financial and administrative areas, it is necessary to generate specific and precise actions to access "fresh" resources to streamline credit and technical advice processes. There is a series of "programs and projects" of International Cooperation, which are promoting or reorienting actions to carry out activities under the approach of "Territorial Economic Development" that can use the ADED - Valle platform as a strategic actor in the territory, which has been confirmed in different studies at the Regional level such as the Mapping of Key Actors, Comprehensive Multidimensional Diagnosis, Regional Development Plan with a focus on Territorial Planning, Strategic Plan for Territorial Development, among others.
- Define a strategic development model for ADED - Valle for the next five years (2014 - 2019) Strengthen the cohesion of current partners, expand membership to key stakeholders in the region Make ADED - Valle visible as a strategic partner for programs and government projects and international cooperation Provide ADED - Valle with administrative, financial and operational instruments that are clear, pragmatic and link a clear operating logic Consolidate the Agency as reference actors for the Region, through strengthening of strategic alliances and active participation in Local Economic Development actions Encourage an institutional development model that strengthens the link with the territory, with the purpose of encouraging Local Economic Development,the Productive Value and Competitive Chains Establish strategic alliances with partner Municipal Corporations and integrate to provide advice and strengthening in processes of Territorial Economic Development, aimed at the constitution and consolidation of the Local Economic Development Unit (UDEL). Strengthen Productive Chains cables for the development of the region, integrating partner actors to strengthen the associative approach of the links in the chain to maximize profits Join local, municipal, regional and national initiatives that promote economic growth and equitable territorial development, supportive and fair from the territory Promote knowledge management and capacity building of ADED - Valle membership,as of the key actors of the territory in the approach of Economic Development Territoriality of the Region.
2. Introduction
Strategic Planning is conceptualized as a management tool that allows to support the decision-making of organizations, around the current task and the path they must travel in the future to adapt to the changes and demands imposed by the environment and achieve greater efficiency, effectiveness and quality in the goods and services that are provided.
Strategic planning fundamentally serves to create a future from the present, that is, it aims to seek competitive strategies for a new era, from which it follows that the strategic plan allows decisions to be made today to base the success of the future. In strategic planning it is necessary to make predictions for the future that are really very difficult to obtain in such a changing environment.
Based on the foregoing, the Local Economic Development Agency of the
Valle Department, ADED-Valle, has considered formulating the ADEDValle Strategic Plan with the main objective of strengthening its institutional capacities and therefore improving its management in promoting Local Economic Development, specifying a strategic development model for ADED-Valle for the next five years (2014 - 2019).
The promotion of Local Economic Development, as a strategy, seeks to promote the comparative advantages and unique advantages of a locality, in order to strengthen the local economy for the generation of investment and employment. This clearly implies a rediscovery of the territory, its potential, its natural and human resources, its adaptation and innovation capacities and the consensual proposals that arise from the initiatives of the territorial actors.
Specifically, Local Economic Development concentrates, among other elements, on promoting dialogue and seeking synergies between local actors to boost the local economy; in the creation of employment strategies through micro-companies and business associations; in promoting and innovating tangible and intangible products based on culture and identity; in the strengthening of an environment conducive to entrepreneurship, which implies associativism, the formalization of entrepreneurs, access to financing and the development of value chains.
The purpose of this organization is to build, in a participatory manner, a common economic development strategy that promotes the region as a competitive space, an area of investment and employment, based on its potential. Prior to this achievement, it is necessary to travel through intermediate spaces such as open consultation on the advantages, disadvantages, obstacles of the territory among its actors. As well as building a common development perspective that specifies its strategic axes of development, mission, vision, objectives, programs and projects. This process must also go through the strengthening of ADED's management capacity.
For this, within this framework of institutional strengthening, three (3) sessions of situational analysis of the institutional framework of ADED - Valle are developed, in the technical, administrative and financial dimensions, in its relationship with the partners; the social perception of the institution and the identification of scenarios that allow the final integration of two (2) instruments for the institution: 1) The Participatory Institutional Diagnosis (DIP), and 2) The Institutional Strategic Strengthening Plan of ADED - Valle.
The base document of the Institutional Strategic Plan contains the following aspects: situational diagnosis, strategic components (vision, mission, general objectives, specific objectives, strategic purposes, strategic axes and an action plan outline).
Photograph 1: "General Framework of the Institutional Strengthening Process of the Valle Economic Development Agency (ADED - Valle)"
Source: Melgar, M. 2014
3. Background
3.1 Framework Development Situation of the Region
The economic development of Honduras in the last ten years shows mixed results: greater macroeconomic stability, rapid and successful diversification of exports, but no growth in GDP per capita. Furthermore, important structural problems persist, such as a chronic fiscal deficit, an exchange rate recession, a very low tax burden, once adjusted to real GDP and, above all, an inefficient allocation of spending. Despite the efforts made in the previous decade, Honduras is the third country with the lowest per capita income on the continent.
Despite the economic importance that foreign trade represents for the country, Honduras still lacks a solid institutional capacity to manage foreign trade. In recent years, and with the multiplication of international trade obligations, the urgency to restructure and reorganize the institutional aspects of the management of trade policy has become evident.
The relative position of Honduras in the competitiveness ranking of the World Economic Forum is the lowest in the region, despite being highly competitive in the light manufacturing sector and having significant untapped potential in the forestry, tourism and tourism sectors. the agro-industrial.
The forestry sector. The main problems in this sector seem to be associated with uncertainties related to land tenure for forestry purposes, unsustainable management of resources, low forest productivity, and incentives for illegal logging, limiting the adequate access to raw materials and the general functioning of the primary sector. In the agro-industrial part, there are important efforts to deepen value chains in subsectors such as aquaculture, but there remains an undeveloped potential in some subsectors such as dairy (for example, artisan cheeses), among others.
The tourism sector. Tourism is the third largest foreign exchange generating industry in Honduras, surpassed by the maquila and family remittances, and followed by traditional export items such as coffee and bananas, and other export items that have been stagnant in recent years, such as shrimp and lobster. For 2004, tourism represented 13% of the total foreign exchange generated in the country. For 2005, tourism generated $ 431 million in revenue. This figure has been growing at an average annual rate of 8% in the last 4 years
The agricultural sector. Honduras is a country with a population of 6.6 million inhabitants. Of the total population, 46% live in rural areas where the poverty rate is approximately 75%,while in the urban area it is 57%. In the last 30 years, the Honduran agricultural sector has had erratic and insufficient growth in the generation of income for those who dedicate themselves to this activity. While the total population of the country increased by 166%, that is, at an average annual rate of 3.3%, the agricultural GDP only did so by 97%, which is equivalent to an average annual rate of 2, 3%. The relative backwardness of the agri-food economy stands out to a greater extent when compared with the growth of non-agricultural activities in the national economy, which increased in the same period at an average annual rate of 4.0%. This is reflected in the lower per capita income produced by the sector,which implies loss of economic capacity of producers and workers related to the agri-food sector and rural areas of Honduras. In turn, the rural areas of the country register the highest rates of poverty and marginalization. In the rural sector, 73% live below the poverty line and the average per capita income of the population in this sector is less than a dollar a day.
The microenterprise sector. In Honduras there are around one million micro-enterprises, of which at least 600,000 are located in rural areas. On the other hand, there are some 970,000 self-employed workers (382,000 urban and 587,000 rural), which can be understood as an approximation to the number of informal micro-enterprises. According to another microfinance demand study, in Honduras, there is an approximate total of 870,000 micro and small businesses, of which 257,000 are non-agricultural. Of this total, less than 20% of these have some kind of access to financial services, essential for them to be able to carry out their operations efficiently and thus improve their competitiveness.
The country's productive base, which is mostly made up of micro and small entrepreneurs, is hampered by the limited response and management capacity of their companies, their scarce insertion in foreign markets, high transaction costs, the incipient Foreign Direct Investment, the lack of information, legal barriers and levels of legal uncertainty in the country, among others. Among the relevant factors that also affect the competitiveness of Honduran companies, the following stand out: the weakness of the financial sector that translates into high interest rates and limits access to financing sources; the low quality of infrastructure and basic services that contribute to raising production and transaction costs;vulnerability to natural disasters that introduces additional risks to investment; and above all the lack of a vehicle for coordination between the public sector and the productive sector that promotes: a national strategy, an action plan, and the development of clusters in potentially competitive sectors.
The microfinance offer.Currently, the offer of financial products for microenterprises in Honduras is made up of different types of entities: BANHCAFE, a commercial bank, which offers financial services to Honduran microentrepreneurs and serves some 2,700 urban microenterprises in 14 of its 46 branches with a portfolio of US $ 1.7 million. Financiera Solidaria (FINSOL), a financial company that operates in the microfinance sector, currently has some 15,400 active clients, serving through a network of 10 branches in urban areas; the savings and loan cooperative sector, which is made up of some 127 entities, with a portfolio of approximately US $ 195 million and 450,000 associates, of which around 50% have active loans. It is estimated that 90% of the partners are in urban areas; and finally, they exist,at present, 37 OPDs (Private Development Organizations), whose main activity is serving microcredit clients; betweenThese are the Valle ADED - Valle Economic Development Agency, which manages a portfolio of 5, 596,000 Lempiras in 497 microcredits, mainly in the areas of commerce and agriculture.
The 18 most important microfinance institutions (MFIs) in the country, which include OPDs, cooperatives and the two regulated financial entities, had a portfolio of US $ 33 million as of 2004 and served some 120,000 microenterprises. The most important entities are the Covelo Microfinance Foundation (US $ 9.1 million and 16,441 clients) and ODEF, the Women's Business Development Organization (US $ 7.3 million and 12,031 clients). It should be noted that less than 30% of the PDO portfolio is concentrated in rural areas and less than 3% specifically in agricultural credit.
Under the previous context, Honduras, due to its level of poverty, is an eligible country to invest resources for business development that seek to promote economic development and social equity for poor and marginalized groups; and that at the same time provide in a sustainable way financial social and / or community development services to this target population. The productive sectors of the Department of Valle:
It has a territorial extension of 1,665 km2, that is, 1.45% of the national territory (112,665). The population density is 91.2 inhabitants per km2. The department of Valle is made up of nine (9) municipalities: Nacaome, Alianza, Amapala, Aramecina. Caridad, Goascorán, Langue, San Francisco de Coray and San Lorenzo. It has 77 villages and 518 hamlets. The departmental head is Nacaome It has a distance of 96 km from the capital city of Honduras.
The department's population represents 2.32% of the national total, that is, 151,841 inhabitants, 74,575 are men and 77,266 are women (50.89%), with a slight increase in men only in Amapala. The intercensal population growth rate (1988-2001) is 1.5, registering an increase of just 27,269 inhabitants, in the last 13 years, due to the significant population expulsion, caused in large part by the permanent emergency that has characterized the department, Due to the drought that every year presents great losses in the production of basic grains, gradually causing the population to migrate to other regions of the country, mainly the northern zone where the banana companies and the free zones (maquilas) are located,also to the United States from where they send remittances to their relatives to improve their living conditions.
According to age group, most of the population is concentrated in ages 1 to 4 years, 18,351 children (13%); from 5 to 9 years old, 22,464 children (16%); followed by ages 10 to 14, 21,435 children (15%); from 15 to 19 years old, 18,355 young people (12%) and between 20 to 24 years old, 12,.395 young people (8%) and from 25 to 50 years old, 43, 552 people (29%). The Senior Adult group is made up of 10,789 people (7%).
The municipalities, through inter-municipal associations or associations, aim to strengthen the capacity to generate development policies, improve their strategic and operational planning, their administrative and financial management, the ability to provide services more efficiently to promote local development and sustainable use. of existing and management resources. With these purposes in the department of Valle, two mancomunidades and an association of mayors have been formed.
The soils are of low retention capacity due to deforestation, occasional hillside crops and generally inappropriate use. The result is an advanced process of degradation, little productive use and high environmental vulnerability. The possibility of implementing an irrigation system linked to the Nacaome dam makes it possible to project a possible agricultural production recovery in the medium term.
The slopes are characterized by the practice of silvoagro-livestock systems, despite the fact that, due to their topography and type of soil, these lands have a greater forest potential, they are important sources of water and food for the populations, despite the problems of erosion and contamination of waters.
The use of the land in the department is predominantly for basic grains (corn, beans and sorghum), large livestock (cattle) and small livestock (goats), and a small amount is destined to melon and watermelon crops.
The permanent crops have little significant areas, despite the potential of fruit trees that the area has, such as: tamarind, cashew, mango, nance, jocote, jícaro etc. Low yields in most crops, mainly basic grains, are below the national averages (45-50 qq per mz.); in the upper part of the Valley the yield is 10 to 12 qq. by mz. and in the upper part from 20 to 25 qq. by mz. The municipalities of San Lorenzo and Nacaome are holders of salt sources.
The main productive export activities are: shrimp farming and agribusiness (melon, watermelon and dairy packaging). They are important sources of employment and generation of foreign exchange in the department; However, the wealth that is generated in this way is not distributed equitably; 32% of the population (48,892) have an income of less than one dollar and there are few sources of employment. They also produce black Lenca pottery and hammocks on a small scale.
The main commercial center of the department is San Lorenzo, followed by Nacaome. The most important neighboring city is Choluteca, which is the commercial center of the South Zone, it is made up of Valle and Choluteca. Due to its geographic location with respect to the Pan-American Highway, the department is part of the north-south corridor with development potential.
Tourism is another important item, mainly Amapala and San Lorenzo, which have attractive natural places to attract national and international tourists, conducive to developing a service economy. There are 16 hotels, 21 restaurants and 37 guest houses in the three main cities (Amapala, San Lorenzo and Nacaome).
The industry that has developed the most in the region is the generation of electrical energy and the distribution of oil, which are important sources of employment and income for a small sector of the population. The wealth generated by the industrial sector is not equitably distributed in the region.
Currently most producers do not have access to financing since their properties are mortgaged with the banks. Technical assistance services have been privatized and are provided through rural development companies, which are contracted by state development programs. Limited access to technology and information and markets is also limiting.
Locally, the limitations of the productive sectors of Valle can be grouped into the following problems: a) lack of union organization, b) lack of productive modernization, c) high level of business advice, d) lack of support for business management and e) few opportunities financing
From the situation detailed above, the following specific problems emerge in the local agricultural sector:
Rural families in the Department of Valle do not have agricultural financing adequate to their needs. In general, the small agricultural producer in Valle seeks a diversification of his plot, which allows him to maintain various sources of income throughout the year. The main crops are cereals and fruit and vegetables. These products, although traditional, have no real availability of financing. The seed is generally owned, and the maintenance and harvest processes are subject to factors of access to financing, and not to technical production standards. On the other hand, some producers have begun to diversify their plots with agro-industrial or fruit crops such as watermelon for export, but,the financing problem has repercussions on a larger scale since they require more demanding technical inputs, intensive care and special irrigation systems. The financing that is obtained is often only sufficient for the purchase of seeds, however important activities such as fertilization, the harvesting process, and packaging are not carried out due to lack of adequate financing systems.
The institutions of the traditional financial system lack credit technologies that allow them to address the needs of producers who are in potential rural areas, but who are restricted in their development due to financial terms in terms of terms, amounts and forms of repayment. Nor is there a good knowledge of rural clients and their income and expenses, as well as the risks inherent in the agricultural sector.
Fractionated and unstable markets. Currently, local products are sold informally to intermediaries and suppliers from both the food industry and the agro-industry. There is no solid linkage that allows medium-term planning from one planting season to another. Furthermore, the fragmentation of the market and the lack of continuity in the intervention of intermediaries, does not allow to connect producers in a sustainable way with the growing demand and market opportunities.
Limited provision of technical inputs. Despite the fact that small producers are entering new products such as vegetables and fruits for export, they lack the technical support to achieve adequate yields. Irrigation systems require better fertilization practices; better use of products and by-products is required, which are generally prone to pests without adequate prevention. Although there are some technical advisory programs for production, they are not linked to permanent local financing or commercialization systems and therefore do not complement productive activity effectively.
A more detailed analysis of the problems of the agricultural sector determined from the producers' own vision highlights the following difficulties:
Lack of a large consolidated and independent organization
Lack of support from the central government
Market demand, FTA and new customs duties are unknown
Labor shortage
Lack of economic investment resources
Lack of training, technology and professional training
Crime and insecurity
Lack of irrigation in some sectors
In the same way, the problems identified in the local artisan sector are the following:
Lack of financing to the sector
Low skilled labor
Lack of promotion and brand registrations
There is no technical assistance
Lack of integration of artisans
3.2 Evolution of the Local Economic Development Agency of the Department of Valle (ADED-Valle)
Based on the three stages that the ADED Valle foundation has experienced in its 10 years of existence and its current situation; The management bodies and operating personnel have identified the need for a strengthening process which has been identified after a process of restructuring and consolidation of their governance structures; being necessary at least three work sessions to perform a current SWOT analysis of the ADED Valle.
This initiative has been reinforced by proposals generated in the existing Plans in the Region, such as: The Regional Development Plan of the Gulf Region, The Comprehensive Study and the Strategic Territorial Development Plan of the Goascorán River Basin, and conclusions generated in The bosom of the Regional Board of Local Economic Development which we share with actors related to the issue such as: OXFAM, CARE, FAO, Agrolibano, Swiss Contact, Fundación Vida, Producers Cooperatives among others, this space that we also preside.
In order to have a starting point in the process of strengthening the institution, it is required, in principle, to realize where we are? Where do we want to go? And how do we do it? This implies a look towards the situational state of the organization, as reflected in table No. 1 regarding the point of reflection for the achievement of a realistic situational diagnosis that will guide the formulation of the strategic plan. The reality of the other will depend on the approximation to the veracity of one.
It is important that we consider that an Institutional Diagnosis process requires that the members of the technical and administrative team, as well as partners, be honest about the past, current and future situation of the institution.
The Diagnostic does not look for those responsible for situations or actions, but rather elements that make it difficult to maximize the capacities and potential of the institution or organization, to achieve its goals and objectives.
When there is a decision to carry out a process of "institutional strategic planning", the decision is being made to have a moment of "break", a watershed of the past - present - future, where new "opportunities" for growth and improvement for the institution
Relevant knowledge of the past and present situation of the “institution”, as well as future plans (objective, goals and actions), implies having these scenarios clear. For example, regarding the institution's past, what were the obstacles to poor institutional development in the past; in addition, the knowledge of the institutions that did not favor the process and the reasons why they did not accompany the institutional development and whether or not they faced an insurmountable crisis. On the present of the institution, it would be opportune to know what the challenges will be in the face of the current situations, what its strategic allies could be, whether or not there is a favorable environment for development, whether or not there are clear cooperating allies and partners in the process.. Regarding the future scenario,it is opportune to know if the institution will have a clear growth attached to a permanent demand and an insured market.
It is important that the actors consider the process of diagnosis and strategic planning, as a moment of analysis, to evaluate the work carried out and define new growth routes within the institution, as well as in the territorial scope in which the activities are developed. Actions.
Photograph 2: "Participatory process of actors involved in the process of diagnosis and strategic planning".
Source: Melgar, M. 2014 3.3 Situation analysis of key factors
The ADED-Valle, and its process of institutional strengthening, resulting in an analysis of the main problems, the challenges to follow and the advantages it has in being able to face the obstacles, and the challenges that have been proposed to improve, to make it an ADEDValle, strengthened, trained and with their respective partners contributing for their improvement and social growth.
The key situational factors that condition and hinder the development of the ADED-Valle are highlighted below:
Scheme No. 1: Situational Analysis Results
Source: Melgar, 2014
The key factors stand out and the positive and negative ones stand out, in a starting point inherent to the situation that ADED-Valle is going through, in which there is no adequate management of programs and projects that come to strengthen, train and give Follow-up of the processes established for ADED-Valle, having difficulties in acquiring resources that are necessary for its growth and strengthening, are negative situations on which we should base ourselves to start building the positive of it. 3.4 Situational analysis of strengths, weaknesses, opportunities and threats (SWOT)
The analysis of strengths, opportunities, weaknesses, threats (SWOT) is one of the essential tools that provides the necessary inputs to the strategic planning process. This tool provides information for the implementation of corrective actions and measures and the generation of new projects or improvement projects.
In this sense, this tool considers two types of external and internal factors, the external ones are elements that externally affect the planning and institutional development process and the internal ones are factors inherent to the institution determining both its strengths and its weaknesses.
External and internal factors are opposite poles to planning, considering that the two come together and are exactly complementary, in order to obtain from them the qualitative and quantitative; that is, one adds and the other subtracts, or vice versa, in planning processes.
EXTERNAL FACTORS:
- THREATS: Unfavorable situation, current or future, that the environment presents, which must be faced with a view to avoiding or minimizing potential damage to its performance and survival. OPPORTUNITIES: It is a favorable situation, current or future, offered by the environment, whose proper use or opportunity would improve its competitive position.
INTERNAL FACTORS:
- STRENGTH: It is a favorable position that the organization has in relation to some of its elements (resources, processes, etc.) and that places it in a position to respond effectively to an opportunity or a threat. WEAKNESS: It is an unfavorable position that the organization has with respect to some of its elements and that places it in conditions of not being able to respond effectively to the opportunities and threats of the environment.
Diagram No. 2: Situational analysis of strength, opportunities, weaknesses, threats (SWOT)
Source: Melgar, 2014
The results of the application of the situational analysis of strengths, opportunities, weaknesses and threats are presented below:
Table No. 2: Analysis of Strengths and Opportunities
| STRENGTHS | OPPORTUNITIES |
| 1. Active partners
2. Legal status 3. Integrated by public organizations - private 4. Clear vision of Economic Development 5. High level of institutional credibility 6. With memberships to other national and international structures 7. Recognized as an institution strategic in the territory 8. Equipment and installed logistics 9. Transparency in the management of resources 10. Regional alliances established 11. It has a platform for partner institutions 12. Political will of municipal authorities |
1. The donors have prioritized the Economic Development approach
Local 2. New projects in formulation and execution in the Region 3. Declaration of Model Region 4. The creation of CDE - MIPYME 5. Constant staff training processes 6. Construction of the Dry Canal 7. Participation in platforms strategic 8. The processes of consolidation of public - private platforms 9. Successful ADELES in the country and border countries 10. Creation and strengthening of the Route of the sun 11. Trust in trust administration |
Source: self made
The Local Economic Development Agency of the Department of Valle ADED-Valle, is going through a process of strengthening both its weaknesses and strengths, putting as a starting point an analysis, which allowed it to highlight the most important, reflecting among the most important weaknesses the lack of planning which would allow the strengthening of capacities, proposing new expectations before the region. Among the strengths that stand out the most is that there are no national programs to strengthen Local Economic Development Agencies. Below is the status of the ADED - Valle's Threats and Weaknesses:
Table No. 3: Analysis of Weaknesses and Opportunities:
| WEAKNESSES | STRENGTHS | |
| 1. It does not have its own premises
2. Access to credit to increase the ADED portfolio 3. Lack of financial resources 4. Lack of partner commitment 5. Members do not pay annual contributions 6. There are no internal audits 7. Bylaws out of date a current reality 8. Old outdated technological equipment 9. Old programs (software) out of date 10. There is no communication plan, continuing education information 11. Organizationally weak partners 12. Limited financial management 13. Dysfunctional organization chart 14. Vision and Mission out of date and unreal 15. There is no true ownership by the partners 16. Personnel with training weaknesses 17. High delinquency in the portfolio of credits |
their
the yy of yy in |
1. High unemployment rates in the region.
2. General economic crisis 3. High rates of organized crime, weakening the business climate in the Region. 4. Environmental impact caused by climate change 5. Inefficient bureaucracy 6. Creation of new credit organizations in the Region. 7. Government corruption 8. Decrease in development cooperation 9. Rotation of Public Actors 10. Antagonism of the Mayor's Office of Nacaome 11. There are no national programs to strengthen Economic Development Agencies. |
Source: self made.
The SWOT analysis results, in general, reflect the following:
- Fundamental elements are highlighted in the issue of social cohesion reflected in the level of credibility in the institution by each important actor in the municipalities. There is a lot of belief in the technical team, which can certainly be strengthened. They have their own facilities and there is the contribution of each municipality and some type of project management before other institutions.Undoubtedly, from the point of view of opportunities, which represent viable external options, there is a strong social fabric made up of several organizations that believe in ADED-Valle, and that also bet on it within the framework of the existence of public policies coinciding with the current government. On the issue of weaknesses,the disarticulation between the needs of each municipality and the inconsistency in the guidelines that should guide both the planning and the outlining of projects by the technical teams of the ADED-Valle is evident. This is also due to the lack of specialized units in the management and handling of a portfolio of projects that corresponds to the development agenda of the municipality in coherence with the issues in which the cooperation aspires to invest. This also leads to the strengthening of a technical team that integrates capacities for formulation, diagnosis, management, implementation and monitoring of projects in coherence with the investment offer of the State and Cooperation. On the subject of threats,There is a clear mistake on the issue of decentralization when it is perceived as an element that can undermine the capacities of the municipalities. On the contrary, ADED-Valle and the municipalities face the challenge of creating and strengthening their management capacities in order to be able to assume new commitments in terms of municipal development. The Municipal Authority and its work team represent the first scenario that the citizen plays in order to meet their welfare needs. Rather, it is an opportunity to test cooperation skills and the level of project management and execution.The Municipal Authority and its work team represent the first scenario that the citizen plays in order to meet their welfare needs. Rather, it is an opportunity to test cooperation skills and the level of project management and execution.The Municipal Authority and its work team represent the first scenario that the citizen plays in order to meet their welfare needs. Rather, it is an opportunity to test cooperation skills and the level of project management and execution.
3.5 Identification of the main problem
Identification of the main problems of the Valley Local Economic Development Agency (ADED-Valle). In which the problems were placed according to the cause-effect relationships, trying to focus the analysis through the selection of a central problem.
Based on the theoretical presentation and derived from the application of the central problem, the results for the Valley Local Development Agency (ADED-Valle), as shown in the attached diagram.
Scheme No. 3: Identification of the main problem.
Source: Melgar, 2014
Clearly, this process shows that the main problem faced by this organization is the lack of financing for credit and operation of ADED-Valle. Which seeks an institutional strengthening strategy, to guarantee a successful operation.
The ADED-Valle has operational weakness, since the strategic partners do not respond to the demand of their purpose, they lack an inadequate perception of the Local Economic Development approach, the partners have an inadequate culture of existing credit payments, there is no innovation operational (support), they do not have their own facilities, this weakens the existing budget, there is a weak project management, which would come to benefit with both economic, technical and logistical support, the impact of climate change is part of the existing problems for the Agency, little interest of the projects to provide support.
4. Strategic components
It is evident that the ADED-Valle has an outdated Strategic Plan that corresponds to the poor performance of its management. Taking as a basis the functions of ADED-Valle and its situational analysis, it is considered necessary to formulate the Strategic Plan, which includes among its main components, the agreed vision and mission, values, strategic objectives, strategies and their respective plan of action.
The donors have prioritized the Local Economic Development approach, taking as a starting point the Institutional strengthening of the ADED-Valle, in which they focus on the formulation and execution of new projects in the Region. Betting on being a Model Region, where CDE-MIPYME are created, in which a training process for ADED-Valle personnel is carried out.
It is betting on the consolidation processes of a public-private platform, with successful ADELES in the region.
To guarantee that the Local Economic Development Agency of the Department of Valle ADED-Valle, is strengthened, with operational capacities, thus betting it, to be an Agency that incorporates the quality of life of the inhabitants of the Region.
The definition of strategic axes was proposed, consistent with the mission, vision and objectives, which will strengthen the ADED-Valle.
4.1 Mission of the Local Economic Development Agency 2014-2019
The Mission agreed by the partners, technical staff and key actors for ADED - Valle, for the next 5 years of work in the region, is:
The ADED-Valle is committed to fostering capacities for the generation of wealth in its territory, in a sustainable and equitable way, through the use of the capitals of the territory, the cohesion of actors, public-private alliances, and civil society actors., to achieve a better standard of living in the territory .
4.2 Vision of the Local Economic Development Agency of the Department of Valle 20142019
The promising future of the Local Economic Development Agency of the Department of Valle, for the next five years, product of a participatory process, where the visions of the partners, institutions and key actors, defined a critical path to be built from the approach which seeks to reduce the level of uncertainty in the future of the Agency.
To be a self-sustainable institution, a leader in the presentation of financial and social services for the public-private sector, promoting Territorial Economic Development through the active and responsible participation of partners, the integration of alliances for the effective management of its resources., with warmth, transparency, solidity and commitment
4.3 General Objective of the Local Economic Development Agency 2014-2019
Promote self-sustainable Economic Development of the territory, through information, training and consultation mechanisms, as key factors in improving the standard of living of the inhabitants of the area of influence.
4.4 Specific Objectives of the Local Economic Development Agency of the Department of Valle (ADED-Valle)
| Modernize and / or boost the economy of the Region by promoting | |||||||
| strategic lines and activities.
Territorial |
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| 4.2 Management Business database of the territory by basin and by territory | |||||||
| 4.3 Strengthening of capacities to achieve a Diagnosis of information and training needs in entrepreneurs | |||||||
| 5. Formulation and monitoring and co-execution of Development Projects | |||||||
| 5.1 Provide administrative and financial services to ADED-Valle Partners and MIPYME fabrics of the Territory |
Source: self made.
4.8 Bibliography
- CEPAL- Manual Series No. 69: Strategic planning and performance indicators of the public sector. June 2011 KLAUSEWITZ, Karl von. From War.MELGAR, Marvin. Institutional Strategic Plan of the Joint COLOSUCA, Gracias Lempira, 2012MELGAR, Marvin. Strategic Planning Model for Municipal Governments, EPOE, 2006.MELGAR, Marvin, Methodological Offer for the Preparation of the Institutional Strategic Plan of ADED - Valle, 2014.TZU, Sun. The Art of War. MINZTBERG, JB QUINN (1993); The Strategic Process; Editorial Prentice Hall Hispanoamericana, México.HAX, Y N. MAJLUF (1996); Business Management with a Strategic Vision; Editorial Dolmen, Chile.ANDER EGG (1995); Introduction to Planning; Editorial Lumen, Buenos Aires.ARISTÓTELES (1978); About the soul; Gredos, Madrid, DAVID (2003);Concepts of Strategic Management; Editorial Pearson-Prentice Hall, México.ARAMAYO (2005); Traditional Planning; Presentation for Diploma "Communications, Public Policies and Development Strategies" II version. ICEI; University of Chile. Photographic Annex
M, Melgar, 2014
CEPAL- Manual Series No. 69: Strategic planning and performance indicators of the public sector. June 2011.
Melgar, M., 2014. Result of Situational Analysis.
Melgar, M., 2014. SWOT situational analysis
Melgar, M,. 2014. Analysis of the main problem.
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