The Community Fund Program PRESENTATION Executive Summary Part One: Background and Justification Part Two: The IOM proposal Part Three: The Building of Milestones International Organization for Migrations--IOM. Guatemala, February, 2002

A country with two Economic Histories La Cochinilla

Second History COFFEE

YEAR 1875 PAST FUTURE LA COCHINILLACOFFEE

YEAR 2001 Past FUTURE ? COFFEE

CRISES SOLUTION: To Look for new export products IOM: besides new products, now there is a need to build another economic platform.

GuatemalaPyramidal Country Organization

83 percent live in poverty 60 percent have less than one dollar per day per capita. Extreme Poverty 23 percent have less than two dollars per day per capita. Poverty Guatemala year 2000: 11 Million inhabitants. Figures from the United Nations: Human Development Report, year 2,000. There is a line that divides and separates us all.

Why ? We need to explain why we have reached the XXI Century with more than 80 percent of the people living in poverty.

Throughout our history: The country has been organized in three different pyramids: in top and bottom structure. Municipal Markets Capital City Market International Export-Import Market

It may be drawn like this: Connecting the three markets, there is common platform that reunites the three markets into one economic system.

This economic platform divides the country into two separated groups: Those who have access and can move within the platform: which is a small group. And those who live in poverty and cannot reach the economic platform

According to the International Labor Office-- ILO--the country needs to generate 1.0 Million jobs to meet the employment requeriments of the year It is estimated than 1.0 Million Guatemalan workers have migrated to the USA.

The outcomes: Problems increase instead of diminishing within a national environment of violence.

Part II: The IOM Proposal END Part One: Background and Justification

Value of present offer Sales and Profits Investment Current Business We are going to use a very well known business model to explain the Guatemalan situation. This is our departing premise: a company has two parallel ways--or cycles-- to invest. ONE: is to improve its current business

The second cycle, is to invest on the development of future products and services that will come from their business environment. Value of present offer Sales and Profits Investment Current Business Business Ecosystem Improve Commercial Platform

Value of core offer Sales and Profits Investment Current Business Business Ecosystem Improve Commercial Platform Export System Financial System Business Communities Coffee System Improve Commercial System Jobs This is Guatemala

Value of core offer Sales and Profits Investment Current Business Business Ecosystem Improve Commercial Platform Export System Financial Sysstem NO development in the rural Communities Coffee System NO Improvement in the Commercial System Jobs NO investment in the development sector of the economy. More than 130 years investing only in one sector of the economy. Not enough Jobs: people migrating to USA

Value of core offer Sales and Profits Investment Current Business Business Ecosystem Improve Commercial Platform Export System Financial Sysstem NO development in the rural Communities Coffee System NO Improvement in the Commercial System Jobs Year 2001: The Coffee Crash. An 880,000 job problem. Not enough Jobs: people migrating to USA

Our Proposition

Value of core offer Sales and Profits Investment Current Business Business Ecosystem Improve Commercial Platform Work on a NEW Export System A FRESH Financial System Development in the rural Communities Work on a NEW ECONOMIC System Work on a NEW Commercial PLATFORM New Jobs The starting point: the creation of a new financial bridge. GO BACK to the rural communities where the richness of the country comes from