Derestricted
FTAA.sme/inf/82
August 12, 2003
Original: Spanish
Translation: FTAA Secretariat
FTAA – CONSULTATIVE GROUP ON SMALLER ECONOMIES
DOMINICAN REPUBLIC AND NICARAGUA
HEMISPHERE COOPERATION PROGRAM
PRESENTATION OF PROJECTS
Introduction
- Project title
Fund to support restructuring of businesses and redeployment of production
- Background
Countries such as the Dominican Republic and Nicaragua have a significant number
of small and medium-sized companies and producers, which account for a
substantial portion of their output and employment. Due to their lack of
financial, human, and technological resources, as well as their size and the
increased competition they face from imported products and/or services, these
companies are not individually able to prepare for the challenges posed by
globalization.
- Rationale
The Dominican Republic and Nicaragua are highly interested is ensuring that
their small and medium-sized enterprises and/or producers are able to take part
in and benefit from the trade opening in these countries, and, to this end, that
they receive all necessary support (financial, technical, technological).
- Objectives of the Project:
- General
To establish a fund to support the restructuring of small and medium-sized
companies and the redeployment of their production, so as to allow the sector to
take advantage of increased trade, and to ensure that trade opening does not
lead to increased poverty
- Specific
-
To make funds available for conducting feasibility studies
-
To create a hemispheric-trade information center for producers
-
To make funds available with which to provide these producers with technical and
production assistance (to raise their competitiveness, improve their production
processes and marketing, etc.)
-
To provide export training
-
To establish a fund to compensate producers for loss of markets and to provide
emergency economic aid
- Input: resources needed for the project
-
Financial resources (grants to allow the Dominican government to conduct this
project, which will last approximately ten years)
-
Specialized technical assistance (in areas to be determined)
- Expected results
-
Preparation of producers during the transition period, to strengthen their
capacity to compete and export,
-
and/or to redeploy their production,
-
and/or to create new enterprises to produce goods and/or provide services
-
Other relevant information
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