RTI International to Implement Economic Development Program in El Salvador

RESEARCH TRIANGLE PARK, N.C. -- RTI International will help coordinate and run a pilot program to reduce corruption, reform tax systems and improve the expense management at the municipal level in El Salvador.

The U.S. Agency for International Development (USAID) recently launched the Program Domestic Finance for Development (DF4D).  In the case of El Salvador, it is $2-million initiative that will use incentives to encourage municipalities across El Salvador to mobilize their financial resources in an effort to improve economic development and security.

The project was designed by the U.S. government and will operate under the USAID Municipal Competitiveness Project, which is administered by RTI.

As part of the program, 53 municipalities will participate in a six-month-long competitive process titled “Competition for Support for Crime and Violence Prevention Initiatives.” The goal of the competition is to motivate participants to raise additional revenue, build their capacity to combat crime and create a more secure environment for economic development.

“Widespread criminal activity has had a negative impact on economic growth in the country,” said Aldo Miranda, RTI’s regional representative in El Salvador. “This program should encourage participants to invests in local development and find innovative ways to provide better services and reduce criminal activity.”

Following the competition, the municipalities will be evaluated on improvements in tax revenue generation and will present crime prevention projects designed in collaboration with non-governmental organizations. The 15 municipalities with the best results will be considered for a year of additional U.S. government funding to further their crime prevention activities.

The project supports several goals of the Partnership for Growth initiative between the governments of El Salvador and the United States, including the improvement of tax revenue collection, crime reduction and the creation of an improved investment climate.

The USAID Municipal Competitiveness Project has worked to improve local business environments in El Salvador since 2010.  RTI currently works with 50 municipalities and more than 500 business associations, financial institutions, non-governmental organizations and educational institutions to strengthen municipal administration services, form alliances among municipalities and between municipalities and the private sector and improve the business environment at the local level in El Salvador.