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TRANSFORMING MARKET SYSTEMS ACTIVITY
SEVENTH QUARTERLY PROGRESS REPORT Quarter 1 – FY 2020
October – December 2019
Transforming Market Systems Activity
Quarterly Report October – December 2019
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TRANSFORMING MARKET SYSTEMS ACTIVITY
SEVENTH QUARTERLY PROGRESS REPORT Quarter 1 – FY 2020
October – December 2019
This report covers activities under USAID IDIQ Contract No. 72052218D00001
Task order No. AID-522-TO-18-00001
SUBMITTED TO:
Activity Management Specialist
Office of Economic Growth
Contract Officer’s Representative
U.S. Agency for International Development
SUBMITTED BY:
Country Representative
Chief of Party
January 31, 2020
DISCLAIMER
This report is made possible by the support of the American people through the United
States Agency for International Development (USAID). The author’s views expressed in
this publication do not necessarily reflect the views of the United States Agency for
International Development or the United States Government.
Transforming Market Systems Activity
Quarterly Report October – December 2019
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CONTENTS
SECTION I: BACKGROUND ............................................................................................ 1 SECTION II: SUMMARY ................................................................................................... 1 SECTION III: PROGRESS BY ACTIVITY COMPONENT .......................................... 4 COMPONENT 1 ............................................................................................................................................. 4 VALUE-ADDED AGRICULTURE ................................................................................................................. 4
Alliances and current results: .......................................................................................................................... 4 COMPONENT 2: .............................................................................................................................. 10 TOURISM AND CREATIVE INDUSTRIES .............................................................................................. 10
Alliances and current results: ........................................................................................................................ 10 COMPONENT 3: ............................................................................................................................... 16 ENTREPRENEURSHIP ............................................................................................................................... 16
Alliances and current results: ........................................................................................................................ 16 ............................................................................................................................................................................ 20 COMPONENT 4: ............................................................................................................................................ 20 BUSINESS ENABLING ENVIRONMENT................................................................................................ 20 Social Inclusion, Environmental Compliance and Communications .......................................................... 24
SOCIAL INCLUSION .................................................................................................................................. 24 ENVIRONMENTAL COMPLIANCE ......................................................................................................... 26 COMMUNICATIONS .................................................................................................................................. 27
SECTION IV: MONITORING, EVALUATION AND LEARNING .......................... 30 MONITORING & EVALUATION SYSTEM .............................................................................................. 30 COLLABORATION, LEARNING, AND ADAPTING .............................................................................. 31 SECTION V: PROGRAM MANAGEMENT .................................................................. 32 CONTRACTUAL DELIVERABLES ............................................................................................................ 33 PARTNERSHIP AND INNOVATION FUND (P&IF) ............................................................................. 33 SECTION VI: LOOKING FORWARD ........................................................................... 34 SECTION VIII: FINANCIAL INFORMATION ........................................................... 35 ANNEX I – TMS IN NUMBERS ..................................................................................... 37
NUMBER OF PARTICIPANTS BENEFITTING FROM TMS ASSISTANCE .......................................... 37 PERCENTAGE OF DIRECT BENEFICIARY PARTICIPANTS FROM VULNERABLE GROUPS ....... 39 AMOUNT OF CAPITAL LEVERAGED (IN USD) AS A RESULT OF USG ASSISTANCE ................... 40 ....................................................................................................................................................................... 40
ANNEX II – COMMUNICATIONS ................................................................................ 41 ANNEX III – SENTINEL STUDY - WEB PRESENCE AND SOCIAL MEDIA
TRAINING ......................................................................................................................... 45 ANNEX IV – 2019 LEARNING REPORT ...................................................................... 48
Transforming Market Systems Activity
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ABBREVIATIONS
ALPROSA Almacenadora de la Producción
AGRTOTECH Congress on Technological Innovation for the Agricultural Sector
ANDE Aspen Network Developing Entrepreneurs
AMCHAM American-Honduran Chamber
AMHON Association of Municipalities of Honduras
BEE Business Enabling Environment
CANATURH Honduran National Chamber of Tourism
CCICH Chamber of Commerce and Industry of Choloma
CIES Center for Economic and Social Research
CLA Collaboration, Learning and Adapting
CNI National Investment Council
COHEP Consejo Hondureño de la Empresa Privada
COMSA Café Orgánico Marcala, S.A.
COR Contracting Officer Representative
COHONDUCAFE Fundación de la Compañía Hondureña de Café
DO Development Objective
EFISolutions Efficient Solutions
FNAMP Honduran anti-gang Task Force
GALI Global Accelerator Learning Initiative
IDB Interamerican Development Bank
IDIQ Indefinite Delivery, Indefinite Quantity
IFAD International Fund for Agricultural Development
IIES Institute for Social and Economic Research
IHT Honduran Institute of Tourism
INALMA Inversiones Amalgamadas S.A.
LGBTI Lesbian, Gay, Bisexual, Transgender, Intersex
ME&L Plan Monitoring, Evaluation, and Learning Plan
MESCLA M&E Support for Collaborative Learning and Adapting
MIPYME Micro, Pequeña y Mediana Empresa
MSME Micro, Small and Medium Enterprises
OPTURH Honduras Inbound Tour Operators Association
OGD Destination Management Organization
OIJ International Youth Organization for Ibero-America
P&IF Partnership and Innovation Fund
SME Small and Medium Enterprises
SNA Social Network Analysis
TMS Transforming Market Systems Activity
UNAH National Autonomous University of Honduras
UNDP United Nations Development Program
UNICEF United Nations Children’s Fund
USAID United States Agency for International Development
VAA Value-added Agriculture
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SECTION I: BACKGROUND
Through Indefinite Delivery, Indefinite Quantity (IDIQ) Contract No. 72052218D00001, dated
April 13, 2018, the United States Agency for International Development (USAID) awarded
ACDI/VOCA the Transforming Market Systems Activity (TMS, or, the Activity) with an ordering
period through April 12, 2023 and a performance period through April 12, 2025.
The purpose of the Transforming Market Systems IDIQ is to foster competitive, resilient, and
inclusive market systems that provide increased economic opportunities (jobs and income) that
incorporate poor, marginalized Hondurans and reduce incentives to migrate.
TMS prioritizes investments based on U.S. Government strategic interests, objectives, and ongoing
investments, as currently defined in the USAID/Honduras Country Development Cooperation
Strategy (CDCS) and as based on continuing learning being undertaken on U.S. Government efforts
to counter illicit migration to the United States.
Task Order No. 1 of the IDIQ (No. AID-522-TO-18-00001), dated April 16, 2018, covers the
development of the Activity’s Monitoring, Evaluation, and Learning Plan (ME&L Plan), the
execution of actions under this ME&L Plan, and implementation of all Collaboration, Learning and
Adapting (CLA) activities, including analyses, studies and pilots throughout the life of the IDIQ.
This Task Order also covers the implementation of an Inception Phase, comprised of a series of
formative consultations, assessments, and analyses with the purpose of developing Life of Activity
Action Plans for priority economic sectors and their corresponding strategic areas for intervention,
including improvements in the business enabling environment, with an emphasis on actions where
USAID can have a competitive advantage. Task Order No. 1 was amended on October 29, 2018 to
incrementally fund the contract.
This document presents the quarterly progress of TMS covering the fourth quarter of fiscal year
2019 (the sixth quarter of Activity implementation), encompassing activities from July 1st to
September 30th, 2019, and the overall annual progress of the TMS Activity in fiscal year 2019.
SECTION II: SUMMARY
"I’m excited about USAID’s and TMS’ full involvement in the (H2A
and H2B temporary workers) program. This will be something we can
all be very proud of."
Consul General, U.S. Embassy in Honduras
October 19, 2019
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The most significant developments and accomplishments resulting from TMS implementation
during the reporting period include the following:
❖ Services created by TMS and provided by ag-brokers have increased smallholder farmers’
ability to consistently access technical assistance and inputs while at the same time provide
quality products to larger processors like INALMA, who formally integrated to date 43 new
farmers into their supply chain, diversifying their production and decreasing their exposure
to risk.
❖ TMS supported COMSA in finalizing the first 10 youth ventures to be business launch-
ready, including a wide range of initiatives in coffee, tourism, food processing, dairy,
poultry, medical and transport services.
❖ An evaluation that TMS commissioned to the Rain Forest Alliance, and conducted this year
on already installed solar coffee dryers, confirmed that farmers receive an additional
income of 180 lempiras per 100-pound bag of dried coffee parchment which represents
approx. a 10 percent increase in price translating into an approx. $160 increase in net cash
income per hectare.
❖ TMS, in partnership with JJ Agro, has facilitated the start-up of a new strawberry project in
La Esperanza, Intibucá, creating 30 new jobs and mobilizing investment of over $200K in
the first two hydroponic greenhouse modules.
❖ With TMS's support, installation of a distillation unit and a state-of-the-art dryer managed
by Inversiones Morales, one of five satellite companies developed in partnership with EFI
Solutions in Lempira, has led to the establishment of two new contracts with international
buyers for lemongrass oil and certified cardamom for teas that will benefit more than 100
growers in the area.
❖ New financial products, co-created between EFI Solutions and TMS, exposed unknown
value chains to the banking system in the country. New sales for growers of cardamom,
ginger, lemongrass, and vetiver of $164,067.60 have been reported in addition to 65 new
hectares of these crops planted.
❖ CANATURH and TMS provided technical assistance to small tour operators in Joya de Los
Lagos District (Cabañas Pulhapanzak, Hotel Casa Lenca, Viajes Topaz), in connection with
the e-commerce strategy with SUBE LA, to increase the available offerings of local tours
and activities on the official tourism website: Honduras Travel.
❖ TMS shared the analysis of national crime statistics and their impact on the tourism
industry with the Ministry of Tourism and the U.S. Consular Section.
❖ To secure placement opportunities for Hondurans on Cruise Lines, a special law for
Honduran seafarers' training and job placement was enacted in Tegucigalpa, on October 8,
by President , which will enable thousands of Honduran seafarers
to obtain employment.
❖ TMS facilitated a trip of Practical Employee Solutions, a large-scale U.S. contractor, tointerview 58 potential H2B workers from Intibucá. The selected workers will receive their
job offers in early 2020 and will work in landscaping and carnival occupations from
February to November 2020, with a wage rate between $9-$19 per hour.
❖ 30 local specialists completed the first Honduran online Train-of-Trainer program and
certification on e-commerce and financial technologies from partner institutions CDE
Lempa, CDE Region Occidente, and the Chamber of Industry and Commerce from Puerto
Cortés and Omoa (CCIPO). This certification provided attendees with new tools on how tofacilitate the usage of a payment platform and e-commerce tools to local SMEs.
❖ TMS attended the Central American and the Caribbean Impact Investment Forum 2019
(FLII CAC 2019), which took place November 13 and 14 in Antigua, Guatemala. TMS
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facilitated 12 Choloma PYME owners and 3 technical staff from the Choloma Chamber of
Commerce to participate in the FLII CAC 2019.
❖ TMS partner COHEP, and the Economic and Social Research Institute (IIES) of the
National University of Honduras, led five days of focus groups with the Chambers of
Commerce of Tegucigalpa, La Ceiba, San Pedro Sula, Choloma and Santa Rosa de Copán
(September 21-26), focusing on in-depth discussions about a shared understanding of what
variables drive enterprise competitiveness, resilience and inclusion.
❖ TMS completed a proposed new tax regime reform for Honduras in alliance with COHEP
to promote economic activity as well as to attract national and foreign investment.
❖ TMS completed a diagnosis of the current state of eight associated centers of the National
Property Institute (IP) and a legal feasibility study to merge their services into the Chamber
of Commerce and Industry of Tegucigalpa (CCIT).
❖ TMS and AMHON conducted three events for the inception of a local economic development agenda in San Marcos de Ocotepeque and La Ceiba through a one-stop-shop
model for municipal services.
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SECTION III: PROGRESS BY ACTIVITY COMPONENT
COMPONENT 1 VALUE-ADDED AGRICULTURE
This quarter, through its strategic agricultural partnerships, TMS made significant
progress in improving existing business models in target supply chains, and in developing
entrepreneurship incubation services. The partnerships have facilitated youth engagement, the
adoption of innovative and successful changes to production and policy, and have led to
investments in Honduran agricultural sectors, improving the diversity and resilience of the
economy.
Alliances and current results:
Innovative Supply Chains - Industrias Amalgamadas S.A de C.V. (INALMA) TMS has advanced in its efforts to implement a new
supply chain model, incentivizing a fee-based
arrangement with local brokers (agribusinesses,
individual professionals, associations, input vendors, etc).
Last quarter, INALMA and TMS forged the first five (5)
fee-based contracts with local suppliers, which resulted in
the incorporation of 20 new small-size plantain and
cassava growers into INALMA's supply chain.
During the reporting period, one additional supplier was
selected, , an experienced agronomist from
Olancho. The difference in this case is that is not a
grower himself. inaugurates another
innovation in INALMA’s business model by becoming
the first external sourcing agent to complement
INALMA’s own team of six (6) sourcing technicians.
TMS and INALMA interviewed over 30 local actors
around the company’s operating areas and developed a list of qualified candidates. was
selected based on his commitment to supply INALMA’s sweet potato demands in addition to
plantain and cassava. In less than three months, he selected and organized 23 additional small
farmers, started imparting technical assistance and innovative practices, facilitated access to
agricultural inputs, and made available basic infrastructure for washing and peeling to add value in
closer proximity to the farms. This new total of 43 farmers work 36 hectares and will generate a
total of 10,620 agricultural wages over the next nine months, or 40 full-time equivalent jobs.
is not only helping INALMA reach its volume demands (which elevates the standard of
INALMA’s own internal sourcing team) but is enabling small farmers to be integrated into a supply
chain that otherwise they would not be able to penetrate alone.
TMS also worked with INALMA to develop an agreement with its Employee Cooperative to set up
a credit facility that will be used to finance the cost of inputs to smallholder farmers under contract.
The agreement was on signed on December 20th, 2019, and will ensure the timely application of
inputs to guarantee higher yields and increase farmer incomes.
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Youth Coffee Microenterprise Model - Café Orgánico Marcala, S.A. (Comsa) This quarter, TMS supported COMSA in finalizing the first 10 youth ventures to be business
launch-ready, including a wide range of initiatives in coffee, tourism, food processing, dairy,
poultry, medical and transport services. All these initiatives have access to personal coaching,
finance and one-on-one mentoring for incubation and will start operations in the first quarter of
2020. Through these ventures, TMS and COMSA aim to include youth in coffee and other
agriculture value chains, spurring a new generation of farmers and processors, and to ensure long
term business sustainability through the development of new supply chains and service providers.
These first 10 new market businesses will be provided capacity building, access to credit and
markets, and mentoring throughout the ongoing incubation period during 2020. These ventures will
support TMS's goals to promote an entrepreneurial mindset among youth and the economic
diversification of coffee farmers.
TMS sponsored three (3) training workshops for youth entrepreneurship in coffee in Márcala, La
Paz, on October 28-November 1, November 11-15, and November 25-29. Fifty-two people received
the trainings, constituted by 21 women and 31 men. A total of 44 (85%) are under the age of 30, 29
of which are between 16 and 22 years old, 11 are between 23 and 27 and only 4 are 28 and 29 years
old. Each workshop consisted of a five-day course to provide knowledge and tools to the
entrepreneurs to grow their small business initiatives or to start a new business. At the end of the
course they each received a work guide to assist in developing a new business plan.
This training is an important milestone for the activity with COMSA, as the participants have
overwhelmingly responded positively to the training in already informing their business decisions.
The entrepreneurs will now receive individual advisory services to create and execute their plans to
grow their businesses or start on new projects. Additionally, they may now apply for seed funding
through COMSA's rural bank, BanCOMSA, which offers better financing rates and personalized
attention than otherwise available to them.
First training workshop for entrepreneurship at Finca La Fortaleza.
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Investment and Export Promotion – JJ Agro This quarter, JJ Agro Industries (a partnership formed last quarter through an exploratory mission to
Guatemala with public and private actors), made great
strides in its diversification strategy. JJ Agro completed
the first phase of its new hydroponic blackberry project
in La Esperanza, Intibucá, through an investment of
over $200K in the first two greenhouse modules,
planting a batch of 54,000 strawberry mother plants,
and creating 30 new permanent jobs. The project
currently covers 2,000 m2 and is planned to reach across
15,000 m2 of greenhouses in 2020 to supply local and
regional supermarket chains. This milestone of
production is establishing a "before and after" of the
berry industry in Honduras.
TMS’s strategy to create new and better jobs in western
Honduras is not only based on economic diversification
through the introduction of new nontraditional market-
driven crops like strawberries; it also includes
technology innovation. This quarter, TMS was
instrumental in introducing AI systems to irrigate JJ
Agro’s greenhouses instead of open fields, and
changing JJ Agro's mindset towards diversification and
investment. JJ Agro has been the primary supplier of potatoes to principal supermarkets in
Honduras for years, however, due to soil quality decrease and lack of additional land, JJ Agro had
been precluded from continuing to grow and even start thinking about export markets. With TMS
assistance, the company is launching an aggressive expansion plan to double the number of local
farmers to source potatoes from, and further diversifying its production this year with the addition
of new crops like snow peas. JJ Agro represents the possibility for individual producers in the
region to diversify their products, improve their processes, and add hundreds of jobs to the
economy. TMS will replicate the success of JJ Agro with similarly sized firms and production
channels in 2020.
Nestlé Global Youth Initiative - Fundación CoHonducafé This quarter, TMS made progress on its goals to facilitate coffee farmers’ access to and adoption of
improved solar drying technology to improve the quality of their coffee through consistent drying.
To meet these goals, TMS first facilitated the evaluation and upgrade of the solar dryers’ model
being promoted by Fundación CoHonducafé. Consulting firm CREA Consultores, contracted last
quarter, completed an inspection of 36 working solar dryers in six different locations and setting up
a testing trial in 3 locations (Comayagua, Lempira, and Santa Barbara) to measure the solar dryer
performance. Proper instruments have been purchased and technical staff have been trained on data
collection to measure and establish coffee drying curves under different weather conditions that will
be used to improve the operational efficiencies of the first batch of 647 dryers that have been
already installed through the alliance. The evaluation will also be used to design a couple of new
and improved models in terms of key efficiencies and costs that will become available to farmers in
2020.
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A separate economic evaluation, commissioned to Rain Forest Alliance, confirmed that farmers
received an additional income of 180 lempiras per 100-pound bag of dried coffee parchment which
represents approx. a 10 percent increase in price translating into an approx. $160 increase in net
cash income/hectare.
TMS delivered a one-day workshop in La Libertad, Comayagua on November 1 for 19 of the pilot
group of 30 young participants of the Youth Initiative who are currently receiving the 5-module
training program. TMS designed and directly facilitated this training module using the Canvas
methodology, to give these youth the opportunity to evaluate and present their business ideas to a
panel composed of TMS and CoHonducafé representatives. An observer from La Libertad
Municipal Mayor´s Office also accompanied the event. This was the first group to benefit from the
first training center and they represent the pilot of a program that is planned to reach a total of
25,000 rural youth in the next four years.
Market Opportunities in Non-Traditional Crops - EFI Solutions
This quarter, TMS and EFI sought to diversify crop production through non-traditional market
driven crops and to add value and ensure sustainability through technology innovation, certification,
and empowerment of young entrepreneurs in rural areas.
Satellite companies MultiInversiones, in Peña Blanca, and Inversiones Morales, in Lempira, are two
of the five satellite companies developed by EFI Solutions. Both work with cardamom growers,
which have started the process of value addition though a unique drying method and the
implementation of a specific certification protocol to comply with international tea trade standards
in terms of sustainability, food safety, and quality. With TMS support, the installation of a
distillation unit and a state-of-the-art dryer, managed by Inversiones Morales, has led to the
establishment of two new contracts with international buyers for lemongrass oil and certified
cardamom for teas that will benefit more than 100 growers in the area.
This equipment, which has allowed certifiers to quickly test samples for quality, has been key in the
negotiation with buyers to secure short-term contracts for the future scaling up processes for these
two value chains. Both pieces of equipment have been manufactured in Honduras following a
sustainable design. The dryer uses liquified gas instead of wood with an estimated savings of 1.6
metric tons of wood for each metric ton of cardamom dried. The dryer has four trays allowing
growers to dry small quantities compared to traditional circular cardamom batch dryers which
require big volumes of product. The new design also allows for an easy loading/unloading of the
product preventing farmers from stepping on the product, ensuring human consumption safety. A
total of 77 growers in the municipalities of Peña Blanca, Belén, Piraera, Gualcince, Erandique and Candelaria will benefit from this technological improvement. Additionally, the availability of these
Solar dryers in construction in Lempira,
Intibucá Experts inspecting solar dryers
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Quarterly Report October – December 2019
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processing stages is motivating the local women's network to grow cardamom and lemon grass in
2020.
Certified organic cardamom traded from Guatemala is suffering a reputational risk, as prohibited
substances are often found in the finished product. EFI has identified this problem as a big market
opportunity for Honduras and it is allocating resources to try to make Honduras a recognized origin
for high quality, truly certified organic cardamom. To date, more than 30 cardamom growers living
in the buffer zone of the Texiguat Wildlife Reserve in Mezapita, Atlántida have obtained their
organic certification through Mayacert under the leadership of another satellite company, Allan
Reyes LLC. Mayacert is an organic certification body, which audits and certifies organic growers,
traders and processors in the region. Allan Reyes LLC secures the market through EFI and provides
technical assistance and financial services to grow cardamom under agroforestry systems following
organic regulations and ensuring zero deforestation.
With TMS and EFI support, ginger and vetiver growers have fine-tuned their crop and postharvest
practices by making use of their reject product in compliance with international standards, which
allows them to compete in international markets. As a result, samples of essential oils for both crops
have been tested and approved by EFI’s buyers. This is a key step in improving the competitiveness
of ginger growers since it will allow them to add value to product that is rejected in the fresh market
(up to 20 percent of their product) and doesn´t currently have commercial value. Further, they will
be able to incorporate the underserved Garifuna communities as they are hired to dry the vetiver on
their land which is otherwise considered of low value.
Socialization meeting with lemon grass producers in Lempira
Producers of cardamom, Peña
Blanca
Lemon grass oil
sample and
with
the new lemon grass oil
distiller in Gualcince,
Lempira.
farm and TMS team with cardamom dryer.
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Additionally, farmers of non-traditional crops like cardamom, ginger, vetiver, and lemongrass that
have been integrated into market systems through the different satellite companies, now have access
to credit through Banrural. These new loans, negotiated between EFI and TMS, exposes these
unknown value chains to the banking system in the country. New sales for growers of cardamom,
ginger, lemongrass, and vetiver of $164,067.60 have been reported in addition to 65 new hectares of
these crops planted. As a next step, between the end of November 2019 and January 2020, 3,000
quintals of ginger produced by 26 beneficiaries will be sold in Europe, with a value of
approximately of $ 84,934.
EFI Solutions and TMS held a Pause & Reflect session in December to evaluate interventions taken
to date, results achieved and future actions for the activity. The session reflected on progress made
with satellite companies, as alternatives to informal coyote intermediaries. An increasing emphasis on food safety and quality certifications was identified to continue to expand into export markets.
Implications were discussed about what scaling of this model would look like in the future.
Other Noteworthy Achievements
TMS explored opportunities to create synergy and to strengthen 15 growing SMEs. During the
quarter, TMS engaged the Center for the Promotion Imports (CBI), implementing entity of the EU-
funded “Connecting Central America” Program, to explore opportunities to create synergy and to
strengthen 15 Honduran Small and Medium sized Enterprises (SMEs) and cooperatives. CBI has
the mandate to help Honduran SMEs to become (more) competitive to penetrate the European
market through 2021. The 15 companies have been selected across three sectors: fish & seafood,
specialty coffee, and fresh fruits and vegetables. TMS believes several of these companies are
showing enough promise that they will be identified as the new anchor firms for the VAA scaling
up phase in 2020.
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This quarter, TMS worked to develop an integrated crisis management toolkit that
mitigates and shifts negative perceptions of Honduras as a travel destination. TMS also supported
the Honduran Tourism Strategy through IHT, CANATURH and OPTURH to develop and
implement a strategic communications management framework that helps foster an image of safety
and attractiveness to foreign visitors. Lastly, TMS fostered opportunities to address irregular
migration and generate economic opportunities for Hondurans through the temporary foreign work
program (Programa de Trabajo Temporal en el Extranjero - PTTE), a multi-stakeholder alliance
with the Consular Section of the U.S. Embassy, the Ministry of Labor, the Ministry of Tourism, the
National Institute for Professional Training (INFOP), and the Merchant Marine of Honduras.
Alliances and current results:
Advancing a National Tourism Approach – CANATURH This quarter, TMS and CANATURH completed the
national strategic framework of interventions for tourism
marketing, in close collaboration with the National
Tourism Council (CNT). The framework prioritizes
market segments and marketing actions that impact
Honduras’ largest outbound markets with the goal of
increasing tourist visits. Additionally, TMS developed a
crisis management framework that mitigates and shifts
negative perceptions of Honduras. Over the next six
months, TMS will support CANATURH and the CNT,
as well as other public and private sector entities, to
develop and implement the new strategic
communications and crisis management toolbox based
on the UNWTO guidelines that helps MSMEs to adapt
a d become resilient to the most common crises, e.g. riots related to political instability.
CANATURH and TMS provided technical assistance to small tour operators in the Joya de Los
Lagos District (Cabañas Pulhapanzak, Hotel Casa Lenca, Viajes Topaz), in connection with the e-
commerce strategy of TMS partner SUBE LA, to increase the available offerings of local tours and
activities on the official tourism website: Honduras Travel. Technical assistance provided from
November 20 to December 31, helped local businesses create 20 new tour packages and improve
the ease with which potential guests can learn more about available experiences and then to book
them directly online.
In order to consolidate the Meetings, Incentives, Conferences and Events (MICE) sub sector within
the tourism industry, a segment with great potential to affect systemic changes, particularly in
enhancing travelers’ experience and therefore expenditure pattern, TMS and CANATURH
supported the Honduras Conventions and Visitors Bureau to develop a professional certification
program for Conference Specialists & Meeting Planners. To date, 26 professionals have received a
certification from the Meetings & Events Institute of Mexico, and six (6) have been granted hosting
status of new events since their certification. TMS will provide technical and financial assistance to
help the Conventions Bureau increase their market share, target different market segments, and to
understand the impact of these events on the local economy.
n
COMPONENT 2:
TOURISM AND CREATIVE INDUSTRIES
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This quarter, TMS received the first set of tourism data from TripAdvisor, covering the time period
of September 2016 through June 2019. TMS developed a slide deck with the data for the Ministry
of Tourism which provides in-depth information about Honduras's overall views and clicks on the
TripAdvisor website, with sub data at the district level, and further provides information on the top
markets and geolocations. These data insights help TMS partners to understand the current tourism
demand, build plans for managing their online reputation, conduct effective marketing campaigns,
and strategically allocate their investments that collectively make a significant difference in the
major tourism destinations.
The information will be presented next quarter by Minister of Tourism, Nicole Marrder, to the
National Tourism Council, which includes OPTURH, IHT, and CANATUR, in addition to other
tourism operators such a airlines and car rental companies.
Improving Honduras’s Reputation Management - OPTURH This quarter TMS worked with OPTURH to improve the international perception and image of
Honduras to reduce the perceived risks for international travelers, supporting the economic recovery
of the tourism sector.
TMS completed an analysis of national crime statistics and their impact on the tourism industry and
shared the results with the Ministry of Tourism and the U.S. Consular Section. The parties will also
meet in January to discuss the analysis, and then it will be additionally shared with embassies and
consulates in Honduras. The study developed under the TMS partnership with OPTURH, sheds
light on the impact of travel warnings on tourists' travel intentions by demonstrating how travel
advisories have overemphasized existing dangers in Honduras, which have then been intensified in
the way the advisories are presented by the media, both locally and internationally. The study
highlights the misinformation and outdated facts on the internet which fuel the perception that
Honduras is a dangerous place to visit. Further, the study illuminates the countries’ positive efforts
to reduce the homicide rate and it emphasizes the fact that foreign travelers in Honduras are not
specific targets, as they account for less than 0.5 percent of total homicides in the country.
Further, TMS received the online reputation audit commissioned to international firm Net
Reputation, about targeted mainland Honduras destinations: La Ceiba, Copán Ruins, Tegucigalpa
and San Pedro Sula, was delivered in December. The main findings were:
• Organic search results of keywords yield several negative results throughout page one,
steering consumers away from Honduras altogether or towards its competitive destinations.
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• Google Autocomplete suggests the terms: murder, crime, travel, safety.
• Currently, positive reviews and feedback on travel sites are not being prioritized through
Google's rankings, leading to unfavorable purchasing patterns.
• A tremendous correlation was found between negative social media content and web-based
articles and decreasing travel to Honduras.
TMS concluded that the Reputation Management Strategy will have to address both online and
social media content, generating shifts in the ranking authority and prioritizing positive content
steering potential consumers towards choosing Honduran destinations. Net Reputation will focus
next quarter on a Reputation Management Strategy, which will include: domain purchases, web
development, press releases, Google Autocomplete alteration, a paid marketing strategy, marketing
via influencers, managing online reviews, and marketing via community forums.
Urban Revitalization and Creative Industries - National Identity Foundation (MIN) The partnership with the Interamerican Development Bank
(IDB), Raiz Capital, and Foundation MIN (implementing
partner of the alliance) launched this quarter four (4) activities
within the strategy to revitalize the historical district of
Tegucigalpa and Comayaguela:
• A research, design, and pilot of night-time economy
initiatives. This will include a complete mapping of existing
and potential night-time activities such as concerts, open
festivals, and other activities that occur in open spaces and
emphasize the relevance of a lively local night scene to
attract the ‘creative class’. Expanding night-time activity
not only stimulates tourism and economic growth, but also improves generalized perceptions of
safety after dark. (Hae, 2012).
• Implementation of the first pilot project prioritized among a portfolio of projects reviewed and
discussed as part of the Urban Lab Platform (ULab). The ULab works on experimental urban
planning processes for practical and collaborative solutions and methodologies that are relevant
for local stakeholders. This first pilot consists of the re-conditioning of pedestrian spaces at Los
Dolores neighborhood, accompanied by a communications campaign and workshops with local
beneficiaries.
OPTURH, TMS, IHT and the U.S. Consulate discussing the “Analysis of Crime Statistics in Honduras and the
Impact on the Tourism Industry”.
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• Design and implementation of a creative training curricula based on the current needs of
creative entrepreneurs and the inclusion of new available technologies. The curricula will be
implemented in pre-grad and post grad programs at Escuela de Bellas Artes and local
universities. The course program will integrate components of design, investigation, learning
and innovation for a specific target population.
• Launch of a feasibility and marketing study for PRODITE – (Programa de Diseño e Innovación Tecnológica para Emprendedores), a new entrepreneurship program within the National
University of Honduras (UNAH), to determine the scope and reach of the program and its
market potential within the creative entrepreneurial ecosystem.
Temporary Foreign Work Program (PTTE) The multi-stakeholder alliance forged by TMS with the Consular
Section of the U.S. Embassy, the Ministry of Labor, the Ministry
of Tourism, the National Institute for Professional Training, and
the Merchant Marine of Honduras evolved significantly this
quarter. In addition to the C-1/D program (temporary workers as
crew members for ships that will be transiting through the United
States or its waters), the alliance will now support two new
temporary foreign work opportunities: The H-2A temporary
agricultural program, which establishes a means for U.S.
agricultural employers who anticipate a shortage of domestic
workers to hire nonimmigrant foreign workers to perform
agricultural labor or services of a temporary or seasonal nature;
and the H-2B temporary work program for non-agricultural
services or labor based on the employers' temporary need. The
temporary need is established as one of the following, one-time
occurrence, seasonal need, peak-load need, or intermittent need.
TMS worked with the Ministry of Labor to assess its capacity to seek and secure these enhanced
foreign temporary work opportunities for Honduran citizens. The assessment lead to the creation of
a specific department to handle foreign temporary work opportunities, the newly created Temporary
Foreign Work Program (Programa de Trabajo Temporal en el Extranjero - PTTE). TMS will
support this unit through technical assistance, training, and equipment, as needed, to assist
interested and qualified candidates through the recruitment and hiring process, while at the same
time providing employers from the United States, Canada and other countries, a free, public and
transparent recruitment service.
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To secure placement opportunities for Hondurans
on Cruise Lines, a special law for Honduran
seafarers' training and job placement was enacted
in Tegucigalpa, on October 8, by President
, which will enable thousands
of Honduran seafarers to obtain employment.
TMS played a key role in this groundbreaking
legislation through the discussion of drafts with
stakeholders, and in the provision of content
input and support for job fairs in alliance with the
Ministries of Tourism, Labor, and Investment,
the National Workforce Training Institute, and
the Merchant Marine
On the C-1D program, or Gente de Mar initiative, TMS, the Merchant Marine Service, and INFOP
focused on implementation of the training phase. On one hand, 2,430 candidates signed up for basic
training at INFOP, while 3,336 began training in different seafarer specialties in the three training
centers of the Merchant Marine.
Additionally, the Merchant marine conducted a recruitment event for a specific demand of
seafarers. The Apollo Group, a full-service hospitality management company headquartered in
Miami, Florida, that has been a top employer and leader in supply chains and logistics in South
Florida for 50 years, visited Honduras and tested 78 candidates (19 women, 59 men).
On the H-2A and H-2B programs, TMS facilitated a series of key meetings with potential
employers in Dallas, Texas; Little Rock, Arkansas; Laguna Beach, California; and Seattle, for the
Ministry of Labor, the Vice Minister of Foreign Affairs, and the U.S. Consulate to Honduras.
More than 200 potential employers were identified
during the several encounters with large scale
contractors and local associations including: The
Arkansas Farm Bureau, the Texas Farm Bureau, the
Northwest Horticultural Council and the Washington
State Tree Fruit Association.
As a result of the trip, U.S. contractor Practical
Employee Solutions (PES), a Frisco, Texas-based
company that specializes in sourcing and placement of
temporary non-agriculture unskilled labor since 1996,
President enacts Seafarers’ Law
Successful selection of Honduran workers from La Esperanza, Intibucá.
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Meetings with more than 250 businessmen in 4 States to promote Honduran workforce
visited Tegucigalpa, in December, to begin the recruitment of the first workers from Intibucá. TMS
facilitated the interview process for 58 potential H2B workers and coordinated additional targeted
meetings with banks, airlines, and hotel associations to enable the hiring process. Companies
participating in the H2B program, such as PES, give high importance to overseeing all the different
logistics elements involved in the placement of Honduran workers such as transportation and other
services. PES has placed over 50,000 temporary workers to date in hospitality, landscaping, and
general construction jobs. The selected workers will receive their job offers in early 2020 and will
work in landscaping and carnival occupations from February to November 2020, with a wage rate
between $9-$19 per hour.
TMS will continue supporting the implementation of temporary work programs through technical
assistance for the screening and registration of candidates, the recruitment processes, and the
identification of potential contractors as well as the incubation of national employment agencies
authorized by the Ministry of Labor. This initiative offers a unique opportunity to address irregular
migration and generates needed economic opportunities for Hondurans.
Other Noteworthy Achievements
IHT This quarter, TMS and IHT worked towards developing a strategic framework for the development
and implementation of the tourism district strategy, with the goal of improving the local tourism
offerings and supporting local destinations' marketing efforts. TMS and IHT ran the first diagnostic
workshops in two tourism districts: Lenca Maya (December 10) and Joya de Los Lagos (December
17). The diagnostic is based on the Travel and Tourism Competitiveness Index (TTCI), produced by
the World Economic Forum (WEF). Its objective is to measure the factors and policies that make
destinations a viable place to invest within the travel and tourism sector.
The diagnostic will contribute to steering the tourism district strategy and helping stakeholders in
ascertaining which factors help them to gain advantages over rival destinations in order to attract a
greater number of visitors and, therefore boost revenue, thus contributing to overall economic
development and the well-being and prosperity of the local population.
Destination Management Organization (DMO) Atlántida
This quarter, TMS and DMO Atlántida successfully completed a strengthening and improvement
plan for their promotional website (https://visitatlantida.com/) to increase their capability to
manage and direct tourism development.
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COMPONENT 3:
ENTREPRENEURSHIP
This quarter, TMS leveraged its alliances and made significant progress towards
promoting the entrepreneurship ecosystem, the digitalization and scaling of ICT solutions,
strengthening business development service providers, and increasing access to seed, risk and
impact investment capital. Additionally, TMS attended and presented at FLIICAC 2019, enhancing
and connecting alliances to further TMS goals.
Alliances and current results:
E-Commerce for All – SUBE Latinoamérica The training module of the comprehensive e-commerce Learning Management Systems platform
(LMS) was completed by SUBE LA. The platform was successfully installed in the first three (3)
business development service providers, CDE Región Lempa, CDE Región Occidente, and the
Chamber of Industry and Commerce from Puerto Cortés and Omoa (CCIPO).
The first module is a seven-course train-of-trainer program where business advisors learn how to
facilitate the usage of a payment platform and e-commerce tools to local SMEs. To date, 30
technical advisors have been certified on the platform. The goal of the partnership is to certify 100
business advisors on target areas. This certification also provides advisors the technical skills to
generate a revenue as a FINTECH advisor. Moreover, this new service also represents a revenue
stream for business development institutions through a fee-based mechanism as SMEs sign up for e-
commerce services.
Additionally, six (6) new business development providers signed contracts to become part of the
program next quarter, including Real Ledge Honduras, CDE Sta Bárbara, Junior Achievement
Honduras, Fundación Nacional para el Desarrollo de Honduras (Funadeh), CRS Partners and the
Chamber of Industry and Commerce of Atlántida (CCIA) from USAID’s DO1 and DO2 zones.
The second course will prepare business service providers in topics like basic business concepts,
introduction to online sales and tools, digital strategies, and online payments, amongst various other
topics. These institutions will assist dozens of SMES in their regions to implement these new
financial technologies.
The course is available here: https://academia.sube.la/. User: [email protected]. Password:
test1234
An Enabling Business Environment for FINTECH – Central Bank of Honduras This quarter, TMS made progress as the technical secretariat of the Financial Innovation Table
(MIF), chaired by the Central Bank of Honduras (BCH), and including the National Bank and
Insurance Commission, the IADB, the Honduran Association of Banking Institutions (AHIBA),
three national banks (Ficohsa, Promerica, and Atlantida), and two private sector FinTech users
(Tigo Honduras and TENGO).
The MIF received the first part of a seven-month assessment of 22 national fintech services
commissioned by the IADB. The study provides a complete fintech ecosystem stakeholder map, the
business segments with most concentration of Honduran fintech companies, an analysis of the
current state and the evolution of Honduran fintech companies and the investment in the sector.
TMS facilitated two (2) workshops among MIF members to discuss recommendations provided by
the study about functions and roles of MIF members.
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TMS also hosted the second official meeting of the MIF
on December 3. During the meeting, members agreed on
the main objectives for the 2020 workplan, and working
groups were formed around topics such as: access to the
Credit Information Center managed by the National
Bank and Insurance Commission (CNBS); legalization
of the electronic signature for securities and
commercial-financial contracts; an incentive-based
system between banks that encourages the growth of
electronic transfers versus cash and check payments; and
expansion of electronic wallets in the country.
Additionally, during the meeting, TMS, BCH, and the CNBS agreed on the terms of reference for
two additional consultancies that will complement the IADB-funded assessment. These consultancies will focus on two major topics: the digitalization of traditional financial channels in
Honduras, and a revision and suggested adaptations of the national fintech regulatory framework.
MSME Incubation and Acceleration - Chamber of Commerce and Industries of
Choloma (CCICH) During the quarter, CCICH completed the baseline diagnostic of 30 anchor firms from the
municipality of Coloma. The study identified the demand for products and services these firms have
and can be satisfied by local SMEs. Some of the findings include: 62 percent of this demand is
currently outsourced from outside the area, which confirms the big opportunity that this partnership
is addressing; all firms confirmed a willingness to include local SMEs in their supply chains but
they have not done so in the past for lack of information; 63 percent of firms do not have a supplier
development mechanism (this represents an opportunity for CCICH as a service provider); and most
firms maintain a 10-year average relationship with their suppliers.
The results of the study will feed into the SME selection criteria for the Cultivation and Supply
Chain Development phase of the program, which is scheduled to begin in February as follows:
• TMS and CCICH recruit at least 170 SMEs in four cohorts
• CCICH provides incubation to these firms and selects the best 45
• TMS and CCICH provide specialized cultivation to the 45 selected SMEs and link them with
anchor firms
The cultivation phase guides anchor firms through a process of business-oriented mentality, product
differentiation, and better understanding of their business model. Key hands on activities like
development of negotiation abilities, personal development, enterprise introspection, cultivating
business relationships, and creating impact in the community, guide entrepreneurs through a path to
scale their businesses.
Additionally, CCICH completed its own institutional strengthening plan through a weeklong
(December 16-20) analysis session. The plan is comprised by a new theory of change,
organizational restructuring, and updated programs and services focused on the needs of their
affiliates. New tools for monitoring, evaluation, learning and innovation are being co-created with
TMS and CCICH will add a knowledge management component to all their programs in order to
create manuals and guides for all their technical staff and external consultants.
Presentation of the main objectives for the
2020 workplan
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Other Noteworthy Achievements
Central American and the Caribbean Impact Investment Forum 2019 -
FLIICAC 2019 This quarter, TMS attended FLIICAC 2019 and facilitated the participation of 12 Choloma SME
owners and three (3) CCICH technical staff, which took place November 13-14 in Antigua,
Guatemala.
FLIICAC is the largest regional impact investment space that brought together more than 700
leaders from over 35 countries to weave business routes towards sustainable development. During
this event, 60 investors from various regional and international funds gathered, representing more
than $2 billion in assets as well as participants from a variety of sectors: investors, entrepreneurs,
financial organizations, SMEs, corporate leaders, public sector, etc.
TMS, in collaboration with Alterna (the
forum organizer), created a special agenda
for Choloma participants to begin to deepen
their focus on inclusive supply chains.
Honduran participants had a personalized
workshop, one-on-one sessions with expert
consultants, and access to all forum
sessions.
TMS also presented at the FLIICAC 2019.
TMS was invited as speaker to share views
and experiences on public-private
partnerships, migration, job generation and
impact investment. Panels with TMS
representation included: “Impact investing, a solution to migration challenges”, focused on how,
beyond a humanitarian response, mitigating migration requires systemic solutions to boost
employment, economic opportunities, and self-sufficiency and how investing in migrants has the
potential to catalyze long-lasting and much-needed responses to the current crisis by leveraging
capital to address the root causes; and “Understanding and tackling the migration challenge from a
systemic perspective”, which addressed how
systemic collaborations can strengthen market
solutions that generate positive impact on a large
scale, mitigate migration, and create opportunities
for vulnerable groups.
TMS had a chance to share its approach and
experience with a regional audience and to bring
attention to what’s happening in Honduras and
the investment opportunities that exist in the
country. These activities feed into TMS´s
Entrepreneurship Component´s Systemic Change
Objective 1, which focuses on facilitating ecosystems in Honduras to learn, connect and interact
with ecosystems in other countries, to position Honduras at a regional level and to recognize local
talent.
The full Honduran delegation present at the FLIICAC 2019 included 31 representatives (more than
all the previous four years combined) from local institutions like Impact Hub Tegucigalpa, SICSA,
sharing the experience of bringing
investment opportunities to Honduras
Choloma SMEs owners focused on the workshop
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Naranja Republik, Fondo CACEIF of Banco Lafisse, the Choloma Chamber of Industry and
Commerce, Thinkers and Makers, and various other entrepreneurs.
Honduran Delegation in the 5th edition of the Latin American Impact Investment Forum
, CEO of Raíz Capital explaining
how to transform urban core into ecosystems of
opportunity
Senior IADB Lab specialist, do presenting the
Naranja Republik project to the regional entrepreneurial
ecosystem
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COMPONENT 4: BUSINESS ENABLING ENVIRONMENT
This quarter, TMS continued to make progress in San Marcos de Ocotepeque and La
Ceiba towards its goal to address key bottlenecks and streamline administrative processes. TMS
also supported the current public-private dialogue to debate legislation and reforming of existing
and laws to increase Honduran competitiveness.
Alliances and current results:
Facilitating a Private Sector-Driven Tax Reform – COHEP Specialist a fiscal policy expert consultant with 20 years of experience
designing and advising tax reforms in Latin America, completed the analysis commissioned last
quarter by TMS of the Honduran tax regime.
The study involved a technical investigation, based on a thorough review of the Honduran tax
system, particularly its configuration and performance, both at the level of the regulatory
framework and the tax administration. At the same time, the study analyzed draft tax reforms
prepared by COHEP in order to contrast them with the following objectives: a) achieving greater
economic growth, b) guaranteeing fiscal sustainability, and c) improving tax equity. A third element
of the study included an estimation of impacts of the reform in three areas, improvements to the
collection system, economic growth, and improved redistribution of taxes. Additionally, the tax
code analysis was benchmarked against similar countries in the region who score much higher on
the Ease of Doing Business index. The research included documentary analysis of existing laws,
regulations, working documents of public institutions, international organizations and research
centers. It also involved interviews with the main actors of the Honduran economy and public
finances.
The study specifically identified that reforms are needed within the Income Tax Law (ISR), Sales
Tax Law (ISV), and within municipal taxes, among other laws and regulations. The analysis was
submitted to COHEP for review the first week of December and final comments are expected in
January 2020.
The purpose of this effort between TMS and COHEP is to offer a new tax regime to promote the
economic activity of large, medium and small companies, as well as to attract national and foreign
investment, in addition to creating consistency with the country's promotion of policies in tax
matters. By improving the legal framework surrounding taxes, it will encourage investments and
create more and better jobs nationwide.
Promoting Inclusive Investment – National Investment Council (CNI) Expert consultant , an economic growth professional with 15 years of experience on
integrated and evidence-based approaches to regional competitiveness, legal and regulatory policy,
trade and investment promotion, completed drafting a new legal framework proposal for agro-
industrial parks in Honduras.
The study analyzed current legislation through interviews and secondary document review of the
benefits of an agro-industrial park for Honduras. Further, the document also provides a new bill
specifically to promote agro-industrial parks, which is now under review by CNI. An analysis of the
economic and social impact of the new Agribusiness Law, its limitations and its opportunities for
the country, was also completed. TMS is providing technical assistance to CNI so that it can review
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and present the analysis to the local key actors (both public and private) and engage in discussion
about the law. Once the law is finalized under CNI, it will be presented to the National Congress for
discussion.
As a result of steady population growth and increased migration, there is a growing need to promote
the reform of several laws and regulations to positively impact national competitiveness as well as
to negotiate the installation of agro-industrial parks in Honduras. Honduras has a highly competitive
textile maquila sector but has not been able to replicate similar success in the promotion of agro-
industrial parks. These parks have huge potential to generate jobs and investment in the region, and
TMS is supporting CNI in the analysis of a framework to make the parks a reality.
Streamlining Land and Property Registration-Chamber of Commerce and Industries of Tegucigalpa (CCIT) The TMS alliance with CCIT is working to make property registration more efficient and
transparent within the district of Francisco Morazán. Currently, eight (8) property registration
centers operate across the district, each with unique processes, fees, regulations, and resources. As
property registration is a necessary step to perform legal business operations, a reform to these
centers and processes will help current SMEs formalize their businesses and further attract outside
investment to the region. Specifically, CCIT will centralize and consolidate operations of the eight
centers, streamlining and making more efficient the registration processes and therefore the
business environment in the region.
This quarter, Business Law Partners (BLP) completed the feasibility study commissioned by TMS
last quarter. The study includes a diagnosis of the current state of the National Property Institute's
(IP) eight associated centers in Francisco Morazán, Comayagua, Siguatepeque, La Paz, Marcala,
Yuscarán, Danlí, and Juticalpa, and an evaluation of the gaps between the ideal standard of
operation and their current installed capacities (infrastructure and human resources). The analysis
included gathering detailed information on each step of the property registration process at each
center, identifying points of entry to improve and reduce the processes, the required information for
the execution of the consolidation in consideration of the new contracts that must be made, as well
as the stages for the transfer of the administration and the required legal reforms. The study was
accepted and approved by the CCIT and IP in December 2019.
A transition plan has been proposed which includes step by step actions CCIT needs to take to grow
and merge functions and people, and a target schedule to implement service changes. With this
information, CCIT will do a financial feasibility study that will complement the final decision on
when and how to merge the eight centers.
Simplification of Municipal Processes – Association of Honduran Municipalities
(AMHON) This quarter, the TMS alliance with AMHON made progress in three areas: the simplification of
municipal administrative processes, the creation of the municipal competitiveness strategic plan,
and the review of the municipal arbitration plan.
TMS and AMHON conducted three events for the inception of the local economic development
agenda (Nov 5-7, Nov 12-14, and Dec 2-5) which took place in La Ceiba, with a total of 72
participants from the technical and tourism unit, the environment management division, and
members of the Municipal Business Committee. In total, of the three events, there were 47 women,
25 men; 17 between the ages of 18-30, and 55 between 31-60. Two events took place in San Marcos
de Ocotepeque (Nov 6 and Dec 20) with a total of 26 participants representing municipal employees
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and authorities, technical teams, an accountant, a municipal auditor, a cadaster service, purchasing
and contracting members, the municipal secretary and members of the Municipal Corporation.
There were 26 participants, 9 women, 17 men; 9 between the ages of 18-30, and 17 between 31-60.
Another event was held in La Ceiba, Atlántida (Dec 17) with a total of 11 participants including
municipal employees; 5 women, 6 men; 2 between the ages 18-30 and 7 between 31-60.
Other Noteworthy Achievements
TMS provides support for the dialogue between COHEP and AMHON On November 26, the Honduran Council of Private Enterprises (COHEP) and the Association of
Municipalities of Honduras (AMHON) elevated their newly reinitiated dialogue to identify
strategies that will improve the overall business environment and promote competitiveness
nationally, by signing an agreement to materialize the operation of the MOU, established in Q3
2019. The two organizations will now meet on a monthly basis to formally negotiate how to
streamline and reduce municipal taxes. The dialogue is based on the research carried out by
AMHON and TMS in the municipalities of San Marcos de Ocotepeque and La Ceiba.
COHEP and IIES Continue 2019 Market Systems Diagnostic Roadshow COHEP, and the Economic and Social Research Institute (IIES) of the National University of
Honduras, led five days of focus groups with the Chambers of Commerce of Tegucigalpa, La Ceiba,
San Pedro Sula, Choloma and Santa Rosa de Copán (September 21-26), focusing on in-depth
discussions about a shared understanding of what variables drive enterprise competitiveness,
resilience and inclusion.
Socialization with municipal actors on the processes to redesign and simplify, in San Marcos, Ocotepeque.
Entrepreneurs in La Ceiba discussing competitiveness
issues with COHEP
President of the Chamber of Commerce
and Industry of Cortes, talking about the importance of the
Market Systems Diagnostic results
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The behind-the-scenes achievements of this phase of dissemination of the 2019 Market Systems
Diagnostic are threefold: A) COHEP’s Sustainable Enterprises team (one of the most important
technical teams within COHEP) joined the roadshow, thus opening the possibility to leverage
information they gather on an annual basis from other surveys in 2020. B) It was the first
opportunity for the research teams at UNAH and COHEP to utilize focus group methodologies,
which will equip them with valuable participatory and qualitative know-how. C) Through the focus
groups, multi-level windows of collaboration opportunities opened between UNAH, COHEP and
the chambers of commerce, as well as the Honduran Association of International Cargo Agencies
(AHACI), the Deputy Mayor of Choloma, and the Business Development Center in Santa Rosa de
Copán.
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SOCIAL INCLUSION, ENVIRONMENTAL COMPLIANCE AND COMMUNICATIONS
SOCIAL INCLUSION
During the period, TMS Component Leaders were trained on how to motivate self-recognition of
vulnerable populations in response to the need for improving the activity’s data collection. In
addition, a two-pager was developed to raise awareness among partners of the importance of
making vulnerable groups visible within their business practices, encouraging particular recognition
of diverse groups and minorities.
Measuring TMS impact in these groups is important to ensure that all individuals succeed in the
long term. Inclusion and diversity further bring diversity of thought, experiences, ways of doing
things, and ideas that enrich any business. Diversity leads to more creativity and innovation by
representing a broader spectrum of human perspectives to enhance understanding of specific
problems.
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Additionally, TMS celebrated the International Day for the Elimination of Violence against
Women, or, International Day of No Gender Violence, which is commemorated annually on
November 25 to denounce violence against women by men around the world and to encourage
countries for its eradication. TMS joined this campaign by sharing the accompanying infographic
that invited the TMS team, partners, stakeholders, and friends to prevent and combat any kind of
violence against women.
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ENVIRONMENTAL COMPLIANCE
During TMS monitored implementation of the environmental monitoring and mitigation plan
designed with EFI Solutions’, specifically in Belén, and Gualcinse. TMS was able to verify
compliance with organic production in Belen, application for MABA GROWN certification, and
correct installation and operation of the cardamom dryer.
In Gualcinse, TMS verified the installation and operation of the lemon grass oil distiller.
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Crisis Management Manual in
Tourism Sector
Statistical Analysis of Crime in Honduras and its Impact on the Tourism Industry
Diagnosis of Crisis Management and
Communication Management
Brochures Portfolio of Social Investment
Opportunities Honducafe promotional coffee
samples
COMMUNICATIONS
TMS supported partners during the quarter on the development of promotional materials and
organization of workshops.
TMS was also actively involved in the planning and design of the Merchant Marine Gente de Mar
Program launch, by creating informative and official banners, brochures and a video, which
highlighted the multi-stakeholder cooperation of the Ministries of Tourism, Labor, and Investment,
the National Workforce Training Institute, and the Merchant Marine. The materials have been
widely used by government officials in Honduras and abroad.
https://acdivoca.sharepoint.com/:v:/s/Intranet/projects/honduras/tms/EapkWNo7HbFFuExe
sczrRJkB8cXcmt17ieNcFvVQ_tLcug?e=AEycOv
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USAID Featured in Principal Panel of the 2019 Central America Donors Forum (CADF). Migration in Latin America is a symptom of deeply rooted problems such as
extreme inequality, poverty traps, and structural obstacles to long-term prosperity. These challenges
are compounded by the new uncertainties and complexities of the fourth industrial revolution. To
address these issues, USAID, through the TMS Activity, promotes public-private alliances to
accelerate job creation for youth in Honduras. Three of these alliances were presented in a panel
called “Tackling the Impossible: Creating Economic Opportunities That Incorporate New Methods
of Public-Private Partnerships” at the CADF in Tegucigalpa, October 23. The panelists were
USAID/Honduras Mission Director ; the Honduran Minister of Tourism,
; Interamerican Development Bank Representative for Honduras, ; Nestlé
General Manager for Honduras, ; and Co-Honducafe Executive Director,
The Central America Donors Forum is the premier networking and learning space to advance
philanthropy and development efforts in Central America. Each year, the Forum brings together
over 400 leaders from business, philanthropy, government, and civil society to discuss priority
issues and successful models of development, and to explore co-investment for social impact.
Mission
Director USAID/Honduras. USAID’s high-level panel
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CADF participants also had the opportunity of joining a guided tour of one of TMS’s job creation
projects in Tegucigalpa, the urban revitalization of the city’s historical center and promotion of
creative industries. They heard from TMS partners SUBE LA and National Identity Museum (MIN)
about how their public private partnership has improved their institutions and community and how
these partnerships are key to scaling the projects in their influence regions.
USAID/Washington Officials Visit TMS Urban Employment Project. On
December 11, , the new USAID Country Desk Officer for Honduras, and
, Deputy Director, LAC’s Strategy & Program Office visited Casa Quinchón Leon, a
remodeled building turned into a vibrant entrepreneurship community. and
experienced the synergy of two TMS technical
components implementing complementary activities:
Entrepreneurship and Tourism, and Creative Industries. At
Casa Quinchón Leon, activities such as creative urban
planning and new forms of eFinance and eCommerce
entrepreneurship take place amplifying opportunities for urban
employment to curb migration.
“This combination of art, entertainment and digital innovation
is exactly what a city like Tegucigalpa needs to develop
attractive economic opportunities for young people, foster
their roots and instill pride for their city.” -
iDE’s Senior Director of Impact & Analytics.
Chris Nicoletti
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Quarterly Report October – December
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SECTION IV: MONITORING, EVALUATION AND LEARNING
MONITORING & EVALUATION SYSTEM
In this quarter, the TMS ME&L team completed the coding and analysis of the contribution analysis
for the FY2019 Annual Report and Public Private Partnership Report. This was the first in a series
of internal evaluations to establish contribution by TMS to system-level changes. This first iteration
answered the evaluative question “Did TMS make a difference with our partners, through its co-creation processes, other than what would have happened in the absence of TMS support?” The
next iteration, to take place in Q4 of 2020, will establish contribution to changes identified in the
planned outcome harvest in Q3 of 2020.
In December, the TMS ME&L team completed a sentinel study of the tourism enterprise Web
presence and social media Training
outcomes as a result of the web presence and social media training conducted by TMS and
CANATURH from June to August of 2019. The study included sentinel indicators that serve as a
“canary in a coal mine” to assess whether interventions are on track towards achieving desired
results. The summary findings are presented in Annex III. The analysis is being shared with
CANATURH and the tourism component leader to inform learning and adaptation of future
interventions in online reputation management.
Seven partners collected and submitted participant
registration and participation data through TMS's
electronic data reporting system in this quarter. Six
partners manage data collection through KoBo Toolbox
accounts. One partner collects and reports data through
Excel-based forms. To manage timely and accurate
reporting among a diverse portfolio of partners requires
an electronic data management system. The TMS ME&L
team has provided training to nine partners in how to
collect and manage electronic data collection.
Together with COHEP and UNAH, TMS began coding
of focus group discussions for the Market Systems
Diagnostic. TMS and MESCLA supported training of these partners in qualitative analysis
techniques. The coding validated and provided context to existing variables identified, and further
resulted in the discovery of more than 20 new variables. Most of these variables emerged across
multiple regions and multiple discussion tables on competitiveness, inclusion and resilience. The
final report of findings will be completed in Q2 of 2020 and will inform the selection of indicators for the enterprise survey.
In Annex IV is included the learning report for the year 2019 which covers learning from the launch
of pilot activities under Task Order No. 1. The annex includes an annual learning agenda for 2020
which focuses on priority learning themes related to the scale-up of activities and mechanisms for
systemic change. For TMS, continuous learning is critical to implement intentional and systematic
approaches that are based on a nuanced understanding of the market system and the changes the
Activity should seek to catalyze.
Choloma Chamber of Commerce and
Industries Team, training in data collection
through KOBO/ODK.
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COLLABORATION, LEARNING, AND ADAPTING
• In collaboration with MesoPartners and the USAID MESCLA Activity, TMS held a
Systemic Change Workshop in November with the TMS technical team. This workshop
helped to strengthen the team's understanding of systemic change by introducing concepts
from institutional economics and systemic competitiveness.
• EFI Solutions and TMS held a Pause and Reflect in December to evaluate interventions
taken to date, results achieved and future actions for the activity. The session reflected on
progress made with satellite companies, as alternatives to informal coyote intermediaries.
An increasing emphasis on food safety and quality certifications was identified to continue
to expand into export markets. Implications were discussed about what scaling of this
model would look like in the future.
• TMS participated in a Market Systems Learning Exchange with USAID Kenya and their
portfolio of Feed the Future Activities. In this exchange, TMS facilitated two sessions on
feedback and causal loop diagrams and market systems ME&L.
• TMS Featured in Principal Market links Seminar: Realities of Co-Creating with the Private
Sector. Co-creation with the private sector is a challenge, but essential to success in market
systems development activities. To address these issues, TMS Activity, presented a
successful and effective co-creation process, collaborating, learning and adapting (CLA),
market systems facilitation, and private sector engagement that will accelerate job creation
in Honduras. On November 20th in Washington, DC, a webinar organized by USAID
discussed how some of its activities shifting mindsets around co-creating with the private
sector, tailoring operational mechanisms, and leveraging partnerships to create change for
vulnerable populations. The presenters were TMS COP, ; USAID’s Feed the
Future Mozambique Agricultural Innovations COP, ; and USAID's Feed the
Future Uganda Youth Leadership for Agriculture COP,
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SECTION V: PROGRAM MANAGEMENT
Security As ACDI/VOCA prioritizes security for its staff and partners, , Vice President of
Global Risk Management and Office Operations at ACDI/VOCA Headquarters visited Honduras
November 3-7, 2019 to conduct a security assessment and provided the operations team with action
items. The checklist covered: 1) ongoing security intelligence, 2) updated TMS’ Security Risk
Management Policy including current office security measures, in-country travel/road protocol,
“phone tree”/WhatsApp protocol, and the Security Focal Point roles and responsibilities, 3) provide
sample briefing on travel risk for external travelers, 4) recommendation to engage security
consultant to draft crisis management and contingency protocol, incorporating a TMS security
management team (SMT).
Staff Field Office Operations Director, presented her resignation, effective December
31, 2019 given the uncertainty of project funding. TMS has found a temporary replacement for
to ensure that all project activities and operations continue without disruption.
was in Honduras for 2 weeks in December working with on a transition plan
and is slated to return to Honduras to provide temporary support to TMS early 2020.
Partners The only remaining critical staff extended under subcontractor LINC is ,
Systems and Learning Analyst, who was retained to provide support the MEL team and is expected
to support the project until early 2020.
Program Management TMS team is organizing a scaling strategy workshop for the first week of January 2020. The session
will bring together component leads and operations team to identify initiatives or approaches that
are ready to be scaled in 2020 and develop strategies to take each initiative to scale and plan
different scenarios of systemic change.
This quarter, TMS fielded one (1) administrative short-term assignment as follows:
No. Staff Date Assignment
1
December 2-14,
2019
Provide administrative supervision and assistance to the TMS
team with annual project programming and budgeting, as well
as discussing further upcoming descaling actions.
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VAA TOUR EMP BEEAction
ReasearchTOTAL
COMPLETED 0
IN CO-CREATION 2 2 1 1 6
IMPLEMENTATION 5 7 3 5 2 22
PENDING USAID APPROVAL 1 1 1 3
8 10 5 5 3 31
PENDING USAID APPROVAL
IN COR REVIEW 0
IN EMMP REVIEW 0
IN DUE DILIGENCE REVIEW 1 1 1 3
VAA TOUR EMP BEE Action
Reasearch
2 2 11
5 73 5
2
1 11
DECEMBER 2019
COMP LETED IN CO-CREATION IMPLEMENTATION PENDING USAID APPROVAL
VAA TOUR EMP BEE Action
Reasearch
11
5 6
1
4 1
1 2
3
SEPTEMBER 2019
COMP LETED IN CO-CREATION IMPLEMENTATION PENDING USAID APPROVAL
VAA TOUR EMP BEE Action
Reasearch
1 1
5
2
1
2
62
4
1
JUNE 2019
COMP LETED IN CO-CREATION IMPLEMENTATION PENDING USAID APPROVAL
CONTRACTUAL DELIVERABLES
TMS submitted two contractual deliverables, the TMS 2019 Annual Report, and the Public Private
Partnership Report for Fiscal Year 2019. No approvals for contractual deliverables were received
from USAID during the quarter.
PARTNERSHIP AND INNOVATION FUND (P&IF)
Continuing with the co-creation process, TMS worked with partner organizations to develop
improved supply chain relationships, more effective tourism management, stronger
entrepreneurship and institutional ecosystems, and an improved business enabling environment,
aiming at maximum job creation. TMS closed the quarter with 31 in its portfolio, 22 of which are
under implementation as follows:
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SECTION VI: LOOKING FORWARD
The most salient activities planned for the following quarter are:
❖ Start documenting lessons learned and impact of TMS’s strategic agricultural partnerships and
new supply chain business model
❖ Organize the first fact-finding investment trip of 2020, with a specific focus on the agropark
model
❖ Initiate design of a transaction unit to facilitate DFC financing in Honduras
❖ Conduct a review of the training curricula of TMS partners’ Marina Mercante and Naranja
Republik (through creative schools)
❖ Initiate the job placement phase for temporary workers and seafarers selected by Apollo Group
and Practical Employee Solutions
❖ Initiate design of second-phase FAAs with COHEP, CNI, and AMHON
❖ Receive the final report of the analysis and recommendations to reform the national system of
food and animal safety
❖ UNAH students from five university campuses - Tegucigalpa, Comayagua, Santa Rosa de
Copan, San Perdo Sula and La Ceiba - will conduct the enterprise survey for the 2020 Market
Systems Diagnostic as part of their economic practice requirements for their degree
❖ The National Tourism Chamber will upgrade their national tourism registry database and data
management systems with the support of TMS, as a first step in strengthening Honduras
tourism monitoring system to generate needed data needed to measure impact
❖ Partners will be introduced to logic model training by TMS, including instruction on diverse
methods to help plan, evaluation and communicate their program interventions
❖ Conduct at least three environmental compliance reviews with TMS implementing partners
❖ Design a gender and social inclusion training course for TMS partners
❖ Conduct inclusion workshops with partners Co-Honducafe, CANATURH, Marina Mercante
and COMSA
❖ Ensure a smooth transition and coverage within the Operations team through
STTA in country
❖ Address action items and recommendations from the security check-list provided by
ACDI/VOCA's head of Risk Management
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SECTION VIII: FINANCIAL INFORMATION
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ANNEX I – TMS IN NUMBERS NUMBER OF PARTICIPANTS BENEFITTING FROM TMS ASSISTANCE
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PERCENTAGE OF DIRECT BENEFICIARY PARTICIPANTS FROM VULNERABLE GROUPS
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AMOUNT OF CAPITAL LEVERAGED (IN USD) AS A RESULT OF USG ASSISTANCE
ing Market Systems Activity
Report October – Decem
41
ANNEX II –
COMMUNICATIONS
CLOSING THE
GENERATIONAL
GAP Mezapita, Honduras – Two entrepreneurs’ partner to produce
cardamom, increase their income, and generate local employment.
describes himself as “a man of a thousand uses.” He began working with a
machete at a very early age in his native Santa Barbara, 140 miles northwest of the Honduran
Capital, Tegucigalpa. His repertoire of skills translated perfectly to farming, where he has witnessed
the possibilities and the uncertainties that come with agriculture in Honduras. In his formative
farming years tried to grow the spice, cardamom. Although not a very well-known crop, he
soon became passionate about it: “I don’t know if it was its' strong taste, the unique fragrance, or the baffling concept that something that I could grow in the soil could later become one of the most
expensive spices in the world, but the truth is, I was hooked to cardamom the moment I saw it.”
Unfortunately, after a difficult first attempt to grow and sell the crop, the market was not yet viable
to support cardamom sales and he had to table his passion so he could make a living; " I decided to
move to the city ... to San Pedro Sula, where I worked every possible job available" he says.
In 1998, resolved to give cardamom another chance. He acquired a small farm in Mezapita,
some 86 miles further northwest of San Pedro Sula. He worked relentlessly to make cardamom a
success, but after a few years, the market still proved unready and he had to once again delay his
dream, “I lost everything I had invested, I had no other choice, so I moved to the United States, there was no other way out.”
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began a long journey that took him to Houston, then to Miami, and later to New Orleans,
working in several different positions in the construction industry, but he couldn’t shake the idea
that he could make cardamom a success in Honduras. In 2011, he was determined to return home
and cultivate cardamom in Mezapita once again.
UNLIKELY PARTNERSHIPS is the only child of a family of farmers in Mezapita. At just 16 years old he
was gifted 6 acres of land with which he needed to make a living as his family could no longer
support him. While the odds were against him to succeed, and his family unable to provide much
help, his father was able to make a crucial connection for him. He introduced him to ,
trusting that his extensive experience and age would benefit , particularly in dealing with
seasoned workers at the farm.
as he calls him, put his love for cardamom to work, and he and entered the spice
business together. The first harvest was difficult, prices were very low, and it was hard to deal with
intermediaries, but hard work and knowledge began to pay dividends, "we were
together in the good and the bad…and together we begin to see profit from our work."
In 2019, and were invited to join a revolutionary new business model implemented by
EFI Solutions, a Honduran company dedicated to the export of raw materials for the cosmetics,
food and aromatherapy industries. Through an alliance with the USAID/Honduras Transforming
Market Systems Activity, EFI is strengthening satellite enterprises to make technical assistance,
financing, and post-harvest processing locally available in remote areas, which gives farmer groups
a better chance to be part of high-end export value chains.
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Through this new venture, and
have not only expanded their land
cultivated with cardamom but have
formed a microenterprise that is
facilitating the trade of 8 tons of
cardamom per harvest season (September
to February), for 58 local farmers, who
in-turn generate over 140 jobs. Saul
reports that cardamom is a better crop
than coffee because it requires less
maintenance and yields better and more
stable prices. With this new business
model, cardamom is a real and tangible
opportunity for people to build a new future in Mezapita.
EFI Solutions is the source manager of Nelixia-Firmenich, a company based in France that supplies
companies such as Loreal, Givadau, and Naturex.
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TMS IN THE NEWS
The following links correspond to news, articles, and social media featuring TMS during the
quarter:
• https://www.laprensa.hn/economia/1321729-410/empresas-m%C3%A1s-j%C3%B3venes-
fueron-las-m%C3%A1s-rentables
• https://www.devex.com/news/q-a-idb-takes-a-tech-focused-approach-in-honduras-95963
• https://presidencia.gob.hn/index.php/gob/el-presidente/6416-presidente-hernandez-
sanciona-ley-de-contratacion-de-hondurenos-en-cruceros
• https://www.latribuna.hn/2019/10/08/presidente-hernandez-sanciona-ley-de-contratacion-
de-hondurenos-en-cruceros/
• https://www.laprensa.hn/economia/1333642-410/uth-desarrollara-primer-festival-
economia-naranja-honduras
• https://www.laprensa.hn/premium/1331813-410/honduras-acuerdo-migratorio-estados-
unidos-20000-visas-seran-ocho-meses
• https://www.laprensa.hn/honduras/1333370-410/casa-presidencial-estados-unidos-visas-de-
trabajo-hondurenos
• https://www.laprensa.hn/honduras/1332419-410/preseleccionan-primeros-3100-
hondurenos-trabajar-estados-unidos
• https://www.laprensa.hn/honduras/1333882-410/200-empresas-eeuu-interesadas-contratar-
mano-obra-hondurena
• https://twitter.com/ArFB/status/1194284497044459522
• https://twitter.com/dana_deree/status/1195727479094288385
• https://twitter.com/StrabajoH/status/1195473620480462848
• https://twitter.com/usembassyhn/status/1195872091209371648
• https://www.latribuna.hn/2019/11/01/honduras-le-apuesta-al-turismo-de-congresos-con-
certificacion-opc/
• https://www.laprensa.hn/sanpedro/1330602-410/certificaran-25-empresas-turismo-honduras
• https://www.latribuna.hn/2019/10/31/canaturh-fortalece-turismo-de-reuniones/
• https://hondudiario.com/2019/10/30/potenciaran-25-empresas-de-turismo-con-certificacion-
internacional/
• https://www.marketlinks.org/event/marketlinks-seminar-realities-co-creating-private-sector
• https://www.laprensa.hn/economia/1336502-410/trabajadores-empresas-emigran-empleo-
honduras
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SENTINEL STUDY WEB PRESENCE AND SOCIAL MEDIA TRAINING
BEHAVIORS ADOPTED BY ENTERPRISES
NETWORKS AND ALLIANCES CREATED
SNAPSHOT OF SOCIAL MEDIA AND WEB USE
SAMPLE FRAME AND METHODOLOGY
SENTINEL INDICATOR RESULTS
191 Participants in Training
* 30 participated both modules
59 Sample Size
15% Non-response rate
50 Enterprises surveyed
……………………………………………Sample based on 90% Confidence Level and 10% Margin of Error
SAMPLE FRAME AND METHODOLOGY
Training Event Location Participants Sample
First
Module
Tela 22 6
San Pedro Sula 23 6
Tegucigalpa 1 23 6
Santa Rosa de Copán 15 4
La Esperanza 14 4
Second
Module
La Ceiba 20 5
San Pedro Sula 34 9
Tegucigalpa 2 24 6
Gracias 16 4
Total 191 50
Tour Operation
41 Trained
13 Surveyed
Lodging
71 Trained
24 Surveyed
Food Services
19 Trained
8 Surveyed
1
Support Functions
60 Trained
5 Surveyed
ANNEX III – SENTINEL STUDY - WEB PRESENCE AND SOCIAL
MEDIA TRAINING
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SENTINEL INDICATOR RESULTS
6
86%
PERCENTAGE OF TOURISM ENTERPRISES
THAT ADOPTED ONE OR MORE BEHAVIORS
86% of interviewed enterprises responded that they adopted one or more web presence and social media behaviors. 14% of
enterprises reported a significant increase in number of customers since adopting these behaviors. 42% reported a slight
increase while 38% reported no change at all. 6% of respondents did not answer the question.
14%
42%
38%
0%
6%
A significant
increase
A slight
increase
No change A decrease No response
PERCENTAGE CHANGE IN NUMBER OF CUSTOMERS SINCE
ADOPTION BEHAVIOR (IF DID NOT ADOPT = NO CHANGE)
SNAPSHOT OF SOCIAL MEDIA AND WEB USE
N = 60
PERCENTAGE OF TOURISM ENTERPRISES WITH
SOCIAL MEDIA ACCOUNT (AS OF NOV 30, 2019)
Facebook continues to be the primary social media site used by tourism enterprises in the sample. The adoption of non-Facebook
social media platforms has not occurred yet for late majority and laggard tourism enterprises. Only half of enterprises have
referenced their geolocation on-line. Nearly two-thirds posted new content to social media platforms in the last month.
97%
47%
49%
54%
44%
61%
52%
Faceboook Profile
Instagram Profile
TripAdvisor Profile
Google M y Business
Website
New content in last month
GeoreferencedInnovators Early Adopters Early Majority Late Majority Laggards
7
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ANNEX IV – 2019 LEARNING REPORT
USAID HONDURAS TRANSFORMING MARKET SYSTEMS LEARNING REPORT 2019 AND LEARNING PLAN 2020
For the USAID Honduras Transforming Market Systems (TMS) Activity, continuous learning is needed to implement intentional and systematic approaches based on a nuanced understanding the market system and the changes TMS should seek to catalyze. The year 2019 marked the end of the Inception Phase of the TMS Activity and the launch of pilot activities under Task Order No 1. The learning report in Section 1 provides a summary of three core learning products from 2019 that respond to priority issues from the year. The learning agenda in Section 2 includes priority learning themes for 2020.
SECTION 1: LEARNING REPORT 2019 This learning report documents key learning from 2019 with respect to -
• Enabling TMS to maintain a systemic view and be able to discover and track system-level variables that allow the Activity to respond to emerging system dynamics, systemic constraints, unexpected contextual shifts and learning opportunities that emerge;
• Enabling TMS to manage adaptively in its partnerships through rigorous collection of evidence of its partnership processes, learning how to adjust in response to new information and continuing to improve its partnership approach to promote sustainability through local actors;
• Enabling TMS to identify and explore external contextual factors and/or shocks/stressors that have significant effects on beneficiaries and testing internal TMS monitoring ‘triggers’ and systems to understand these factors that emerge and the responses by local market actors.
Learning theme Learning Questions
Diagnosing Honduran market systems
What drives job creation by enterprise in Honduras? What are the variables that make up the foundation for broad-based, long-term economic growth in Honduras?1 Are Honduran market systems changing to become more (or less) competitive, inclusive and/or resilient?
TMS contribution through co-creation to changes within partners
Did TMS make a difference in the patterns of behavior of our partners through its co-creation processes, other than what would have happened in the absence of TMS support? Did the activity intervene and deliver co-creation as planned? Is there evidence underlying the assumptions of the theory of change for co-creation? Do stakeholders agree with the story (causal links) of the contribution of TMS via co-creation? What are the weaknesses and alternative factors in the story?
Exploring enterprise resilience capabilities to extortion
How does the system of extortion work in Honduras? What differential affects does extortion have on the performance outcomes of business (sales, jobs)? What are the potential areas of intervention to improve enterprise resilience capabilities in response to extortion?
1. DIAGNOSING HONDURAN MARKET SYSTEMS
1 Note: The foundation for broad‐based, long‐term growth was interpreted as the patterns of behaviors and market structures that result in increased sales, job creation, strengthened recovery and the hiring of persons from vulnerable groups thus combining systemic thinking with competitive/inclusive/resilient (C/I/R) framework.
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Learning Question(s) What drives job creation by enterprise in Honduras? What are the variables that make up the foundation for broad-based, long-term economic growth in Honduras? Are Honduran market systems changing to become more (or less) competitive, inclusive and/or resilient? Why was the question prioritized? Markets are complex – the factors that drive economic growth in one country are not necessarily the same that drive economic growth in another. There was a request by the USAID Honduras for understanding what these factors are and a method to assess system-level change in Honduras. Existing methods to measure these changes relied on secondary data or expert evaluations. The challenge with these approaches is that even with these data sources, different experts or audiences interpreted the data differently and there is little consensus on which variables mattered, much less how to influence those variables. In this context, TMS formed a partnership with a local university – the National Autonomous University of Honduras – and the leading private sector chamber – the National Council of Private Enterprise of Honduras – to establish a solution that would meet the needs of USAID as well as key Honduran public and private policy stakeholders which became the MSD. How was the data collected? In the quantitative section, TMS surveyed a sample of 616 enterprises from a population of micro, small, medium, and large enterprises across 9 departments in Honduras within the value-added agricultural and tourism sectors (95 percent confidence and <5 percent margin of error). The sample frame was representative across the enterprise functions (1) agroindustry (2) distribution (3) lodging and (4) tourism services. The critical functions for the sample frame were selected based on whether changes in behaviors or structures by those respondents would signal broader changes in the market system. In the qualitative section, TMS co-hosted a series of focus groups in 5 municipalities for 20-25 individuals from different profiles of business and government from the municipality. Participants were distributed in tables of 4-7 individuals to answer open-ended questions related to C/I/R such as “What factors have enabled your company to… hire more youth … recover after a shock, etc.” Participants were encouraged to provide stories of actual experiences they have had to relate to responses. Facilitators probed from a list of pre-identified variables from the quantitative survey, to dig into specific responses. How was the analysis conducted? In the quantitative section, linear and logistic regression models were used to assess the significance and predictability of different independent variables on job creation in Honduras. The statistical process applied was to test first for the strength in relationship between each variable using Spearman’s rank correlation. Variables that were statistically correlated were added to the regression model. A stepwise selection process was followed to remove redundant variables and identify the regression model with the highest fit (R-squared for linear regression or pseudo R-squared for logistic regression). In the qualitative section, all focus groups discussions were transcribed, and a code book of variables developed. Responses for coded based on dependent variable (C/I/R), independent variable (e.g. business confidence, access to services, etc.) and their relationship (+/-/?) and level of agreement. Codes were added for enterprise type, geographical location and sex of respondent. Additionally, recurrent groupings of independent variables within responses were identified. Data analysis was done in Excel. In both sections, TMS, COHEP and UNAH conducted the analysis together. To support this, TMS supported capacity building to these institutions in regression analysis, qualitative coding, etc.
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What were the key learnings? The quantitative analysis was able to identify 17 distinct variables that were predictive of competitive, inclusive and resilient market system results. The qualitative analysis was able to validate these 17 variables and find qualitative evidence for another 6 variables that were tested in regressions but had not proven statistically significant of results. In addition, the qualitative analysis revealed another 21 variables that were not tested in qualitative analysis but appear to be predictive. The qualitative analysis further revealed groupings of variables that may form part of structural dynamics but would need to be tested with different modeling techniques. The online, interactive PowerBi dashboards and published reports for the quantitative analysis are available on-line at http://cohep.com/sistemasdemercado/. The qualitative analysis report is forthcoming in January of 2020 and will be available at the same website. MSD variables related to business strategies emerged as the most evidence predictors of performance and include ICT adoption, the level of investment, business confidence, capacity utilization and the percentage of sales from product or service innovations. Cooperation indicators were correlated, but, surprisingly, not predictive of market system performance in quantitative analysis. Cooperation variables such as supply chain alliances and illegal competition from competitors emerged in the qualitative analysis, and thus need to be formulated as indicators and tested. Diversity indicators including enterprise size, enterprise age, rate of sales growth, ownership by persons from vulnerable groups, and the degree of confidence in finding alternative buyers in the event of a shock proved predictive in the quantitative analysis. Only one new diversity variable emerged in qualitative analysis. Connectivity indicators include the number of service types accessed by enterprises, capacity utilization and the percentage of external finance from the quantitative analysis. New connectivity variables emerged in qualitative analysis related to transport, municipal services (water, sanitation, etc.) and to skilled/trained workforce. Power/rule of law indicators such as change in market price and the number of government institutions interacted with by enterprise proved predictive in quantitative analysis. The most, new variables that emerged in qualitative analysis were related to power/rule of law; including, private sector representation in policy process, pequeñismo, investment climate, time/cost of regulations, tax rates, cost of energy, the image of the country and a variety of informal social norms related to women, youth and other vulnerable groups. How were these key learnings shared? TMS held a virtual launch of the diagnostic which included a live press conference and social media campaign featuring dashboard and the whitepaper. News features about the diagnostic have been shared in La Prensa, La Tribuna, TN5 and digital platforms such as Twitter, Facebook and institution websites. UNAH featured two town hall meetings with economics students and professors in Tegucigalpa and La Ceiba. The qualitative workshops featured a presentation of quantitative results in 5 municipalities. The diagnostic has been presented in two international conferences including the 2019 SEEP Annual Conference and the 2019 Market Systems Symposium. How was the learning used? First, the learning process itself has been used to reactivate the cooperation accord between UNAH and COHEP, for UNAH to test a new structure and gain credibility in economic investigation, for COHEP to facilitate dialogue with regional chambers (and their members) and to gain experience in investigation. The results of the learning have been used for at least one research product to date by UNAH on pricing power and a forthcoming study on ICT solutions for enterprises. COHEP has published the learning to their own website and used it in media pieces on issues affecting enterprises e.g. extortion/crime, etc. Efforts are underway to align this study with the ILO/Sustainable Enterprise Program and gather broader set of data to influence the strategic vision and align goals with COHEP and other partners. For TMS, this learning is used to update its theory of systemic change and generate evidence to validate its intervention areas. It should be noted the diagnostic is an iterative and adaptive
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process, with each year expected to yield new learning that will continue to influence and facilitate adaptation by the project. 2. TMS CONTRIBUTION THROUGH CO-CREATION TO PARTER-LEVEL CHANGES Learning Question(s) Did TMS make a difference in the patterns of behavior of our partners through its co-creation processes, other than what would have happened in the absence of TMS support? Did the activity intervene and deliver co-creation as planned? Is there evidence underlying the assumptions of the theory of change for co-creation? Do stakeholders agree with the story (causal links) of the contribution of TMS via co-creation? What are the weaknesses and alternative factors in the story? Why was the question prioritized? In TMS’s theory of change, the ‘how’ is as important as the ‘what’ because only by intervening in a way that is consistent with TMS guiding principles, is it hypothesized that broader systemic change i.e. more competitive, resilient and inclusive market systems that sustainably increase economic opportunities, etc. can happen. TMS has designed a co-creation partnership process to encourage a set of reactions and behaviors among partners – influential stakeholders in the system - that will in turn lead to improved market system performance. The question was prioritized to evaluate TMS’s contribution to those behaviors by partners as a result of co-creation. This was intended to help TMS plausibly associate the outcomes at the level of our co-creation partners with TMS’s adherence to its implementation principles and to help TMS adapt its co-creation processes to better achieve its performance results. How was the data collected? TMS conducted in-depth interviews with 30 individuals from 19 organizations that are currently co-implementing 18 different initiatives with the TMS Activity. The interviews followed an open line of inquiry to try to get the real story about how working with TMS has influenced their organization, and the prospective for the intervention, however early-stage, to generate desired results. Respondents –
• Described in general terms the intervention from their perspective, noting any key objectives, activities or other relevant and basic information about the intervention,
• Established a timeline for when the organization first began thinking or planning the intervention to when it engaged with TMS and a timeline of significant milestones or changes over this period,
• Identified the specific actions taken with TMS as part of the initiative,
• Identified whatever changes (if any) that have been observed within the organization, with partners and among beneficiaries as a result of this intervention,
• Specified what external or alternative factors contributed to those changes
• Identified a level of agreement or disagreement that TMS’s support made a difference How was the analysis conducted? All interviews were recorded and transcribed in their entirety. The codebook was broken down in five categories each with a specific objective for the qualitative coding and analysis –
1. Identify which forms of assistance were received by the partner from TMS 2. Identify changes which occurred in the activity or initiative 3. Identify evidence to support additional assumptions in the logic model 4. Identify level of agreement by partner that TMS contribution made a difference 5. Identify alternative factors and explanations and strength relative to contribution case
What were the key learnings?
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The technical assistance most frequently referenced was related to the design of methodologies, monitoring and management systems or other forms of ‘technical accompaniment’ as opposed to one-time technical trainings or workshops. The outcomes most associated with this assistance related to learning and adaptation - or in other words the ‘realizations’ that partners had that had material impacts on the ways they thought about the initiatives and went about their work. This finding reinforced a key intuition of the technical teams of the importance of helping partners to experiment and discover solutions on their own, providing them with the support (and flexibility) to iterate and adapt over time. Another area of contribution that came across as impactful was at the level of alliances. The more significant contributions from TMS is that it came as a neutral party, communicator and convener that was able to exercise influence in bringing different, and sometimes at odds, parties together around a shared agenda. This finding reinforced an emerging theme in TMS’s understanding of co-creation modalities in which multi-stakeholder alliances were showing signs of more systemic or impactful change and the importance of emphasizing the process of bringing on multiple parties (private firms, donors, public institutions and industry bodies) together around a shared problem with shared actions. The importance of confidence building emerged as a key factor for success. More effective co-creation involved intensive communication between a TMS technical support team that had expertise and know-how to add-value to the activity. The resulting trust with TMS underlie many of the partnerships and reported willingness of partners to try something different and take risks. This is notably distinct from the idea that co-creation and partnerships are about simply funding. Instead co-creation is reframed as a strategy to create value through customizable support depending on the needs of the partner. Factors noted external to TMS referenced were largely contextual; including, crime and security, migration, political instability, a decelerating economy, government inefficiency, a broad sense of public apathy, negative image of the country, etc. In almost all cases though, the partner perceived their intervention as part of the solution to these external factors with nearly all partners expressing a sense of hope and commitment to be part of the solution with TMS and address these external issues. Specific issues noted by partners related to funding constraints, partner networks, sub-awards processes, scope of interventions, and regularity of contact with TMS. How were these key learnings shared? The learnings of the study were shared in the TMS annual report for FY2019 and the 2019 Partnerships Report. Internally, the findings were shared with the technical and management team. TMS presented on the learning on co-creation in the Marketlinks Seminar: Realities of Co-Creating with the Private Sector in sharing emerging lessons and evidence of ‘what works’ in USAID’s private sector engagement approach. How was the learning used? Based on the study, TMS proposed a set of remedial actions based on reported challenges and the broader contribution findings. One such action was the need to strengthen networks between TMS partners and better leverage its position as a ‘convener’ to align diverse stakeholders around a common agenda. The first meeting to facilitate such an initiative was held in December with TMS’s partner COHEP with the intent to bring in CNI, AMHON, CCIT and other Chambers into a discussion on a prioritized set of business enabling environment reforms. THEME 3. ENTERPRISE RESILIENCE CAPACITIES TO EXTORTION
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Learning Question(s) How does the system of extortion work in Honduras? What differential affects does extortion have on the performance outcomes of business (sales, jobs)? What are the potential areas of intervention to improve enterprise resilience capabilities in response to extortion? Why was the question prioritized? Through the Honduran market system diagnostic (MSD), TMS identified extortion as a stressor within the market system that was having a significant, yet underreported effect on enterprises. The MSD statistic identified that while extortion was the least frequently reported shock, enterprises that did report it had the lowest rates of recovery. As part of TMS’s post-shock monitoring system, TMS launched a study to better understand this stressor, the effects extortion was having on beneficiary enterprises. How was the data collected?
, a graduate student from University of California, Berkeley was brought on under a volunteer assignment to help us understand this issue. has researched extortion extensively in El Salvador, as well as in other Latin American countries. Given the sensitivity of this topic, the use of a confidential format of key informant interviews was selected for data collection. and the TMS Learning Specialist conducted in-depth interviews with members of law enforcement agencies, municipal representatives and diverse enterprise profiles most affected by extortion e.g. transport, etc. How was the analysis conducted? The data analysis was qualitative and exploratory. Given sensitivity of responses, it was not possible to record or transcribe responses. Instead, a summary report was developed by the volunteer and Learning Specialist, which was socialized in iterations with the TMS team and USAID. Several exercises were used to help the TMS think through the issue. This included a design thinking exercise (called Round Robin) to explore different aspects of the system of extortion and identify potential levers for intervention. What were the key learnings? There are geographic patterns to extortion. Within large cities, gang-controlled zones are specific to specific neighborhoods. Depending on which gangs controlled which zone, the systems of extortion also functioned differently and had differential impacts on different profiles of businesses. Larger enterprises tended to report more detailed information on these patterns of extortion in different zones and were able to proactively manage the risk of extortion, by either avoiding these zones or accounting for payments for war taxes’ as part of their product pricing (note: consumers tended to bear these costs). The law enforcement and judicial processes that are intended to prevent and stop extortion are reportedly not functioning as needed to effectively stop or slow extortion. That said, the perception about the capability of law enforcement capabilities appeared to be worse than reality. The difference in perception was identifiably larger for small and medium enterprises than larger enterprises. The National Anti-Gang Force (FNAMP) had reportedly good arrest rates of denuncias made by larger businesses with which it had a direct line. Smaller enterprises tended to not report gang-related crimes. The analysis pointed that incremental reporting, if done in secure manner, could yield a reasonable response by key law enforcement agencies, such as FNAMP. Mechanisms existed for secure reporting including a direct hotline with FNAMP for anonymous phone tips. Challenges relate to the perceptions by smaller enterprises of the risk and reward of reporting and the challenge of having a ‘direct trusted line’ with a larger set of smaller enterprises. This required a change in networks that would help improve communication patterns and increase flow of reliable, actionable information on extortion.
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The analysis pointed to the need to resolve more structural issues around enforcement and prosecution of extortion crimes. Significant reforms are likely required for more law enforcement resources in gang-controlled neighborhoods. There is a systematic lack of visibility/constituency/political response around anti-extortion activities given the very real threats of stepping out to make denuncias. Further, without a functioning economic system that can provide alternative pathways for employment in high crime zones, and that will shift incentives away from gang engagement - any such enforcement approach would fail. How were these key learnings shared? A report was developed, and the findings were shared with USAID Honduras and the Bureau of International Narcotics and Law Enforcement Affairs at the U.S. Embassy in Honduras. How was the learning used? Extortion is a complex and resilient system - it is hard to diagnose where and how to intervene, and it is a very hard system to break. Further, there are substantial risks of unintended consequences that warrant a cautionary, yet deliberate, intervention approach. TMS developed an initial pilot for the creation of a security network of small enterprises in Choloma. Several initial meetings have taken places with the network, including a training by FNAMP on strategies for the prevention and reporting of complaints around extortion. Based on lessons of this pilot from Choloma, TMS will consider what additional actions are warranted and consider the replication of these activities in other urban areas e.g. La Ceiba.
SECTION 2: LEARNING PLAN 2020 In 2019 per Task Order No. 1, TMS funded a set of pilot interventions to address different aspects of the Honduran market system with potential to create jobs and build a foundation for broad-based, long-term growth. The overall strategy for 2020 is to move from affecting part of the system to the whole system (i.e. systemic change) which requires a paradigm change in scale, scope and depth of intervention. To facilitate this transition, the TMS technical team has identified four (4) archetype pathways for how systemic change happens. These archetypes are the basis for how the activities piloted in 2019 may be scaled in 2020. The function of this learning plan is to generate the evidence on the validity of these pathways Systemic change is defined as a transformation in the structure or dynamics of the market system – the underlying causes of market system performance – that leads to more effective functioning of the market system to generate competitive, inclusive and resilient results. The variables that define these structures and dynamics are identified through the market system diagnostic – an iterative system-level study. These variables are grouped into the domains of diversity, connectivity, power/rules of the game and mindsets. The 2020 TMS learning plans aims to collect evidence around distinct pathways to affect these domains.
Learning Theme Learning Questions
Introducing something new or different to create diversity
Which new product, innovations, behaviors or ‘novel’ practices are scalable in the Honduran market system? How effective is the competitive environment in creating pressures that lead to copying/imitation? How do mindsets around risk-taking influence this change pathway?
Changing network patterns to facilitate connectivity
How can networks be transformed to result in more effective patterns of communication and resource flows in the system? Which central or periphery actors are critical nodes for improved network structures? How do mindsets around trust/collaboration influence this change pathway?
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Collaborating on tough reforms to change the rules of the game
Where is there common ground among conflicting stakeholders to take steps towards key reforms? How are stakeholders able to connect and unify despite disagreement and having differing opinions, values or stakes in a reform? How do entrenched political interests affect this pathway?
Supporting feedback and learning to transform mindsets
What are the mental models or ways of thinking that are enabling (or preventative) of desired change processes? What experiences, methods or types of feedback and learning are effective at shifting mindsets? What common filters or biases stand in the way of these change?
Note that each of these pathways has its own set of assumptions, challenges and opportunities. The overall objective of this learning agenda is to generate evidence on these change pathways to inform the overall scaling agenda of TMS in 2020. It should be noted that other systemic change pathways likely exist, and part of this learning agenda involves identify and document emergent pathways. #1 INTRODUCING SOMETHING NEW OR DIFFERENT TO CREATE DIVERSITY Which new product, innovations, behaviors or ‘novel’ practices are scalable in the Honduran market system? How effective is the competitive environment in creating pressures that lead to copying/imitation? How do mindsets around risk-taking influence this change pathway? Why is this learning question important? This learning question will gather evidence on the first of four systemic change pathways prioritized by TMS in 2020. In this pathway a new idea or innovation is introduced into the system; partners adopt the idea or innovation into their business model; competitive forces result in others imitating and adopting it; and mass adoption at scale results in broader market response and change. How will data be collected, analyzed and shared?
Action Timeline Responsible
Data collection
• Technology adoption by direct participants is regularly monitored in the TMS database
• Shadow participants or those neighbors or partners who observe direct participants are identified by direct participants who adopt the technology
• Sample of shadow participants are surveyed for subsequent adoption of technology using both quantitative and open-ended questions
Jan – June June – Aug Sept-Oct
Partners Survey firm Survey firm
Data analysis
• Statistical and network analysis applied for quantitative data and qualitative coding for open-ended questions to evaluate copying/crowding-in
Nov-Dec Learning Specialist
Knowledge sharing
• Stakeholder forum for partners in sub-sector around the technology to generate lesson on scaling
• Report included in FY2021 Q1 Report
December Learning Specialist
Usage Inform adaptation for activities which theorize a diversity or innovation diffusion pathway and generate broader evidence on the validity of this pathway. It is expected this study may uncover issues related to predictability or control bias, social pressures towards conformity and incentives of risk versus reward (e.g. loss aversion). Further, it may result in tactics or strategies to accelerate change along this pathway including effective demonstration and buy-down strategies and how best to amplify or increase market response via different communications tactics, awards, etc.
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#2 CHANGING NETWORK PATTERNS TO FACILITATE CONNECTIVITY How can networks be transformed to result in more effective patterns of communication and resource flows in the system? Which central or periphery actors are critical nodes for improved network structures? How do mindsets around trust/collaboration influence this change pathway? Why is this learning question important? This learning question will gather evidence on the second of four systemic change pathways prioritized by TMS in 2020. In this pathway new or strengthened connections are created in a network; new network patterns improve communication and access to resources; actors self-organize based on changed benefits into new network or equilibrium; and improved distribution of resources, goods and services result throughout the market system. How will data be collected, analyzed and shared?
Action Timeline Responsible
Data collection
• Network data on new or strengthened connections collected after TMS events in the database
• Direct participants are surveyed to determine resulting alliances from these connections and report new connections resulting through alliances
• Sample of actors within networks surveyed for subsequent flow of benefits and results using quantitative and open-ended questions
Ongoing Ongoing June-August
Learning Specialist Phone interviews Survey firm
Data analysis
• Network analysis including statistics including centrality, density, denseness and other metrics
September Learning Specialist
Knowledge sharing
• Stakeholder forum for partners in sub-sector to discuss network patterns and troubleshoot issues
• Finding included in FY2020 Annual Report
October Learning Specialist
Usage Inform adaptation for activities which theorize a connectivity or network pathway and generate broader evidence on the validity of this pathway. It is expected this study may uncover issues related to identity or small group loyalty, reciprocity (win-lose norms), signaling and trust in networks. Further, it may result in tactics or strategies to accelerate change along this pathway including which central or periphery actors are key influencers in networks, new network patterns that incorporate periphery actors and strategies to facilitate common goals or agendas within networks of actors.
#3 COLLABORATING ON TOUGH REFORMS TO CHANGE THE RULES OF THE GAME Where is there common ground among conflicting stakeholders to take steps towards key reforms? How are stakeholders able to connect and unify despite disagreement and having differing opinions, values or stakes in a reform? How do entrenched political interests affect this pathway? Why is this learning question important? This learning question will gather evidence on the third of four systemic change pathways prioritized by TMS in 2020. In this pathway dialogue is established between parties with interests and perspectives at odds; through this engagement actors experience conflict but also connect and unify; actors discover, one step at a time, what works and then takes another step forward; and new possibilities emerge through this creative process to change the status quo.
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How will data be collected, analyzed and shared? Action Timeline Responsible
Data collection
• Each of reforms as part of agenda is monitored according to stage of passage into law, resource commitments and frequency of participation in meetings is tracked in monitoring system
• Participants in reform process are interviewed iteratively on the basis on their attitudes and beliefs towards the reforms from the baseline
• Poll or survey collection to gauge broader opinions of key constituency to proposed reform(s)
Ongoing Ongoing June-August
ME Specialist ME Specialist Survey firm
Data analysis
• Basic descriptive analysis of results with potential for narrative analysis around beliefs and attitudes
Ongoing ME Specialist
Knowledge sharing
• It is expected that results will be immediately shared back in stakeholder forum as a method for rapid feedback into the process and where others sit
Ongoing ME Specialist
Usage Inform adaptation for activities which theorize a collaboration on tough reforms pathway and generate broader evidence on the validity of this pathway. It is expected this study may uncover issues related to enemification in stakeholder engagement, hierarchical and control biases, illusions of ‘only right answer’ expert bias and requirement for consensus/agreement to move forward. Further, it may result in tactics or strategies to accelerate change along this pathway including the need to reinforce respect on legitimacy and value of viewpoints, importance of scenario planning and letting stakeholders decide and to allow space for stakeholder to learn together.
#4 SUPPORTING FEEDBACK AND LEARNING TO TRANSFORM MINDSETS What are the mental models or ways of thinking that are enabling (or preventative) of desired change processes? What experiences, methods or types of feedback and learning are effective at shifting mindsets? What common filters or biases stand in the way of these change? Why is this learning question important? This learning question will gather evidence on the fourth of four systemic change pathways prioritized by TMS in 2020. In this pathway information or experiences generate new ways of thinking about reality; changed ways of thinking improves realizations and comprehension; personal assumptions are fixed and mental models updated to better sync with reality; social and institutional learning processes result in the transfer of these new mental models to peers, family and others. How will data be collected, analyzed and shared?
Action Timeline Responsible
Data collection
• Interviews with selected partner and beneficiary organizations to assess changes in ways of thinking and the events and realizations that led to it,
• Incorporate Likert questions gauging into annual surveys to gauge relevant mental models specific to intervention systemic change pathway
Ongoing June-August
ME Specialist ME Specialist
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Data analysis
• Inferential statistical and qualitative analysis of open-resources to code for beliefs and attitudes
Ongoing ME Specialist
Knowledge sharing
• Pause and reflect with implementing partners to understand affects of way of thinking on results
• Finding included in FY2020 Annual Report
Ongoing ME Specialist
Usage Inform adaptation for activities which theorize a shift in ways of thinking as a result of feedback and learning and generate broader evidence on the validity of this pathway. It is expected this study may uncover cognitive biases related to anchoring, (re) action bias, conforming/bandwagon mentality, confirmation bias, among others. Further, it may result in tactics or strategies to accelerate change along this pathway including the need to promote organizational cultures that foster innovation, experimental instructional methods and ‘learning by doing’ and framing issues from the inverse or opposite to prevent mental shortcuts.
U.S. Agency for International Development
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Washington, DC 20523
Tel: (202) 712-0000
Fax: (202) 216-3524
www.usaid.gov