1. Local Business Initiatives A promising innovation to integrate Nicaraguan smallholders into global value chains in a sustainable manner Corstiaan van Aalsburg Pueblos en Acción Comunitaria, Nicaragua www.apac.org.ni

2. Content 1.Country description 2.Description of the organization 3.Organizational development PAC 4.Development Model: MADEL-PAC 5.Local Business Initiatives 6.Case study: Tomato 7.Challenges

3. 1. Country description Spanish colony Violent 20th century 2nd poorest country of western hemisphere Economy based on imports Free Trade Agreements Economic instability

4. 2. Description of PAC Member based organization for rural sustainable development Grew out of farmers interest during nineties Corporative vision and social responsibility Corporative mission: Create favorable environment for local economic development with participation of private actors in a transparent way Corporative vision: Constitute as a national organization that catalyze local economic development

5. 3. Organizational Development 1.Formation and institutional incubation Program co-execution Establishment of services 2.Strengthening of institutional capacities Separate technical and administrative team Development of strategic guidances 3.Operational self sustainability Self sustainable operations Design of MADEL-PAC 4.Development of development corporation

6. 4. Development Model Local Development ECAECA CSRCSR SOFRESOFRE Actors of the model: Farmer groups Business Groups Middle men Supplying enterprises Technology providers Trading Companies

7. 5. Local Business Initiative Production according demand Integration of value chains Participation of as much actors as possible Execution: –Definition of LBI –Business plan formulation –Monitoring and Evaluation of impact of LBI

8. 6. Case study CAFTA opportunity: Tomato export to El Salvador Idea discussed with actors BP with price negotiation M&E and redistribution among actors ActivityIncome Sales of technical assistance and seedlings 2,586.70 Trading services8,872.46 Input sales1,500.00 Total Income (US$)12,959.16

9. 7. Challenges 1.Scale planning: from LBI BP to OYP 2.Updating ERP to new institutional activities 3.Improve measurement of impact

10. Let’s begin rebuilding right away! Nehemiah 2:18