CA_EN-01-2015. Icefi (the Institute) recently presented an analysis which concluded that the Alliance for Prosperity can only be legitimate and effective if its formulation and execution observe democratic, transparent and inclusive processes. It is, therefore, regrettable that while the Guidelines of the Plan of the Alliance for Prosperity in the Northern Triangle recognizes the magnitude of the social and developmental challenges faced by Guatemala, El Salvador and Honduras, they were drafted during closed consultations between the governments and private business organizations and associations of the three countries.

Icefi considers that such an opaque and exclusionary process diminishes the legitimacy of progress made so far by the Alliance for Prosperity, while demonstrating a clear bias in favor of the agendas of the corporate private sector. If the policies presented in the Plan are implemented without modification, Icefi has warned of the likely detrimental impacts on the already fragile and weak fiscal systems in the Northern Triangle. The pro-business bias is notoriously evident in the Strategic Lines of Action contained in the guidelines for the Alliance Plan; of particularly concern is the prioritization of attracting private investment and promoting economic sectors such as textiles, food processing, light industry (including maquila), and tourism, through tax privileges and advantages as well as by reducing business costs, especially in the electricity sub-sector. Icefi regret that such bias was also evident during the first meeting for the Plan, held on February 26th, 2015, in the Honduran port city of Tela, in which participation was limited to international organizations, governments and businesses representatives, excluding organized civil society, academia, churches and, above all, migrant organizations. In contrast to the broad and extensive agenda developed around business interests, the Institute noted that the Plan’s guidelines do not propose measures which would enable countries in the Northern Triangle to meet standards to ensure access to decent work, fair income and social security coverage and benefits.

On the occasion of the visit to Central America of the Vice President of the United States of America, Joseph Biden, Icefi publicly called on the need to correct the course that the Alliance has so far taken. It is imperative that the Plan and its guidelines are subject to scrutiny and auditing from all sectors of society, recognizing the capacity to contribute on this effort of organized civil society, and within it, migrant groups, which understand better than anyone the causes driving migration from these countries. The international community and development cooperation bodies are urged to support processes of socialization, consultation, review and validation of the Plan and its guidelines, particularly with organized civil society. The governments of Guatemala, El Salvador and Honduras must adopt concrete measures on transparency and openness as part of the processes to validate, implement and evaluate the Plan.

Finally, Icefi declared that Guatemala, El Salvador and Honduras can and deserve to be prosperous and democratic countries. However, to transform the actual reality and change trends, it is imperative that these states agree on a common agenda for development and democratic consolidation; prioritizing efforts to foment sustainable economic growth, develop a more effective public sector and build more equal societies.

In it’s clear position paper on the Plan for the Alliance Prosperity, Icefi also puts forward a set of measures and recommendations, including the need for the financing of the Plan to adhere to the principles of tax justice and that its implementation is transparent and subject to evaluation, monitoring and accountability processes. According to the Institute’s criteria, only then will it be possible to channel the Plan for the Alliance for Prosperity in the Northern Triangle towards a legitimate and effective path.