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Welcome to Investment and Development today we will approach the topic:
"Fair Trade", Development and Opportunities for Guatemalan Producers.
To approach this subject we are accompanied by: Mrs. Ivette Aldana, she is Director of "La Casa de Cervantes"
and Lorenzo Muxtay, he is the sub coordinator of association of craftmen Aj Quen.
Thanks for joining us in Investment and Development.
Mrs. Ivette, how does "Cervantes House" promotes the program and support producers through "Fair Trade"?
We promote it through culture. "The House" began as a cultural house with events directed towards the Guatemalan population
for the promotion of culture. We began this union with "Fair Trade" and there we promote
culture of "Solidarity Economy". "Fair Trade" through a coffee, where you can consume coffee and
also buy by pound. A store was opened and now we are with 52 producers and the products are sold daily.
How does "Fair Trade" promotes the participation for women and also giving equal opportunities
so they can contribute to the economy of their families?
Yes, one of the criteria of "Fair Trade" of the Solidarity Economy" is to encourage women to have the same salary and the same training
in this path of the economy and promoting "Fair Trade". Promoting women's associations and their products
and at the same time empowering women with projects.
To what is dedicated the Association of Arts and Craft Aj Quen and where they are currently located, Lorenzo?
The Association of Craftmen Aj Quen is located in the kilometer 56 of the Inter-American Highway.
At the moment the association is dedicated to the production, marketing of the crafts
in Europe, U.S.A. and Canada. It's dedicated basically to the marketing
of textile crafts.
How many associates and how they are benefitted through "Fair Trade"?
Currently it consists of 28 organizations or small groups of women who are located in the area of Solola
Chimaltenango and Alta Verapaz. Now the way they are benefitted is the work that is provided
through "Fair Trade" markets.
How does this program seeks for the protection of the Natural Resources and also to have Sustainable Development
of the environment, Mrs. Ivette?
The "Solidarity Economy" looks for that union of human being with nature, that reconciliation with nature,
through protecting the resources of not using it as if it was a capital good, to get profit, but
that relationship that exist and then one of the objectives is: To promote recycling, protect the environment,
develop products that come directly from nature, but at the same time with projects that make these products emerge in the environment.
What products are currently marketed and are actually producing based on this program that you have
of the protection of nature?
For example we have a project of the fourth world, it's an association with the support of France, they develop a lot recycling
of paper, make baskets out of paper, magazines, cans, also Tikonel (association) that will be here today. They also
work with wood , there's much work to do. To recycle and to promote the sensabilización in using
recycled articles and not only consuming for consuming.
What products are you doing now and in what markets are you actually entering?
Well basically what is being produced are: scarves, bags, juggling balls, sorrow removing dolls
purses and laptop holder. These products are marketed in Switzerland, Germany, Italy,Belgium,
whats Europe also. Now, in the case of Canada we are working with the customer Ten Thousand
and then this same client is in the United States.
Which are the products that promote "Casa Cervantes" through the productors and where are you entering now?
We are promoting it there at "La Casa de Cervantes" and there are organizations that place orders for coffee, we take it to their office.
They are International Organizations most of them and coffee products by pound, we have honey,
products such as jams, plums in honey, textiles, crafts, wood, recycled materials of the baskets.
How does the elements of the chain production actually tie between farmers that you have in "Casa Cevantes"?
What they do is to come, we receive the products and then if anyone is interested, we make the link
but it's the only way we receive support but it needs development, more dynamism in that chain.
What support are you currently receiving from public institutions, Governors, Mayors and Development Councils
to promote the products that you do?
Regarding to what's government at some point have it has been implemented projects in what it's working capital
in this case we can speak of FODIGUA who provided Q120,000 which was distributed in 3 groups of women
of Solola area. With respect to what are the local authorities at some point what is coordinated with them are
fairs that are held where they give support to the organization, basically that's where local authorities are supporting
both in the area of Solola, as in the area of Alta Verapaz.
What would be your final message, you as a producer and now that you have entered into European markets
so they can see that there are big opportunities and it's not necessary to migrate to get jobs and also generate
economy for their families, but also see that in Guatemala we have all we need in order not to leave the country?
I think in first place, in this case it's needed a lot of consciousness and awareness
towards young people, because in some way actually it is focused a bit more
to older people. I think it is also necessary to have that vision of starting to instill
to young people because it's them who have an ambition of having money fast, without seeing
that here in Guatemala it's possible. Only that you have to be watching in what way to enter into small businesses
or producers in order to have money. I think that's something with the people with whom we work today
have done, where they have shown that through the production and marketing of crafts
they have achieved to raise their children. I think young people also see it this way, they'll succeed
just the way you said that in Guatemala there are opportunities also in what is the economic part.
What would be your final message and what has been the support given by MINECO through the program "Fair Trade"?
Well the great support that made MINECO was to join us to the commission and from there we can do much together, all of us that are working
in the "Fair Trade" and "Solidarity Economy". I think there is much to be done. I think the new government has a lot to do
and also we appreciate the opportunity given to us by the actual Minister, supporting us with the 2nd. National Fair
of "Fair Trade". It's small steps we are giving, but the "Solidarity Economy" is here to give more.
It's a good alternative for everyone.
Sure, in order to have a strengthen Rural Economic Development and the growth of MIPYMES in Guatemala.
Thank you very much for joining us in Investment and Development.
We are going to a break and then we will continue.
We continue with Investment and Development in this second segment we are accompanied by Mrs. Miriam Otzin.
She is founder of the organization "Maya Works" of Chimaltenango and Mr. Francisco Xanté
he's the manager of the association Productive Development and Services "Tikonel" of San Martín Jilotepéque, Chimaltenango.
Thanks for joining us in Investment and Development. Thanks to you.
In what constitutes the work that the foundation "Maya Works" does and how it was born in Guatemala?
"Maya Works" was founded in 1995 it was after the internal war, many women became widows
mainly in the area of Chimaltenango and it was for that reason that "Maya Works" was born , to give women an opportunity.
Since they were left alone, in order to work from their homes without leaving the children and so generate
alternative income. The crafts produced were taken by an American citizen to the U.S.A.
and that was how the organization was established and the idea grew to what it's today, thank God, we did
an average of 6 annual exports mainly to the United States. 88 00:11:17,793 --> 00:11:23,242 How many members are actually in "Maya Works" and from what places they are?
It's an average of 125 women. The focus of "Maya Works" are from directly the area of Chimaltenango
and the area of Solola.
Mr. Francisco, what activities are realized in "Tikonel"?
"Tikonel Association" emerged in 2,000 as such, given to the experience that we have been developing
basically we concentrate on 4 business units. The 1st. is a Forestry Chain
developed from the nurseries, generate the plantation with the same producers, we have a carpentry
and access to their products in the market, then of that unit we are also working
a unit of a textile project with a group of women. There we have 270 women involved.
Derived from that experience we are also providing our services to other micro, small and medium enterprises
in Guatemala around the management of forestry, agroforestry products generating entrepreneurial development services
and finally we are also developing a unit of Micro Finance within the organization to facilitate
small working capital for smallholders in San Martin Jilotepeque.
What progresses has "TIKONEL" accomplished through the "Fair Trade" program?
On the subject of "Fair Trade" it's an issue quite interesting for us, it's a challenge. However
we are now through our partnerships, as well as public and private sector. That's where we have been interested
in getting involved in the interinstitutional commission of "Fair Trade" in the Ministry of Economy.
Up to today we have been 3 years raising awareness on farmers in the issue of "Fair Trade".
we are still in the phase, not with great experience on the issue of "Fair Trade" but nevertheless
we are generating those capabilities from local towards the market.
Mrs. Mirian, how has "Fair Trade" provided and supported Rural Economic Development and through the work done with "Maya Works"?
For us, "Fair Trade" has been a basic tool for the commercialization of the products
directly from the craftsmen. Since the creation of "Maya Works" is formed partly from "Fair Trade"
towards the United States the so called "Free Trade". We are associated to this market and through this is that we began to
commercialize and when the movement here in Guatemala that's when we got involved
because we have been working since the beginning. Basically, it's to create transparency in mutual dialogue and respect
between craftsmen and that the product actually come from the house to the final consumer. What "Maya Works" does is
facilitate this means so that the product of the craftsmen reaches through this tool is that we can support
the groups of craftsmen with educational programs as it is the schoolarships, literacy for groups of women
and also the micro-credit support, which also provides alternative income for families.
Currently, how has the participation of women and youth in "Maya Works" been?
Well it's a vision and we believe that the difference, maybe that "Maya Works" have is that I have the opportunity
of being the Director and Administrator of this organization and at the same time also I come from this area.
I come from this place where we've seen children grow and one day I had the dream of saying "Well one day I want to be
in a place where I can support the community where I grew up!" and thank God this has been accomplished.
The difference that I lived in those places, I passed through financial limitations, but here we are.
I can tell the young women that it is possible to make it, even if we are in a place
in a community where maybe we might not have many opportunities, but with what we have, with what life is giving us
with what it is possible to recieve, we can do a lot and we can move forward, thank God I can tell that to women.
Yes we can do it. Yes we achieve it. With lots of struggles, but here we are.
How through "Fair Trade" be achieved productive chain of businesses in rural areas?
There's the important pillars from producers in the communities, what's not very clear many times
that producers don't make it out or take a step further, that's where the issue comes, whether an international aid
or the public sector that can invest with producers in rural areas, to provide such access
to their products in the market, to close that production cycle, providing not only
the issue of working capital, but mainly the formation and capacity of generation of the same farmers.
This will contribute to enhance and take the different opportunities both of market as of finance
that exists in the market.
We see that the element of Corporate Social Responsibility is critical that companies must implement,
you're actually in the association using it, how have you been developing it?
Definitely, with the fact as said by Miriam we are part of the base organizations
and this through social base we are committed, how to make it comply responsibility with the producers.
On the issue of how to get paid labor, provide competitive rates to products
and producers, so that all of us win and what we are looking for is rural development as such in the communities.
We see clearly that through the work of associations and other organisms such as the public sector can help altogether
to strengthen these micro, small and medium enterprises and be able to move towards the development of the department.
Thanks for joining us in Investment and Development.
We are going to a break.
We continue with Investment and Development in this third segment we are accompanied by
the Minister of Economy Luis Velasquez and Mr. Ivan Garcia, coordinator of "Fair Trade" of the Ministry of Economy.
Welcome to Investment and Development.
How does the Ministry of Economy supports the strengthening of the MIPYMES, the micro, small and medium enterprises in Guatemala?
The MIPYMES sector represents for Guatemala arount 85% of the generation of GDP,
also in job creation and by the social component these enterprises usually are located
in the interior, in the departments or municipalities. We give full support to MIPYMES. We have established policies
we already have MIPYMES for migrants, we have established MIPYMES development policy for the south, east,
north, west and center. We have been ensuring access to credit and training
of MIPYMES, for the transfer of technology for the search of new markets so they can place their products
at regional level, departmental, national and foreign. For the subject of production linkages and internationalization
participating in fairs in different countries. This can be seen as a multiplier effect of MIPYMES in Guatemala.
How does "Fair Trade" initiative benefits producers in the interior of the country?
I just want to highlight before the issue of MIPYMES, it has been priority for Guatemala, we are emphasizing a lot at this point
but it's also an international trend to come in the area of "Fair Trade" and "Solidary" they approached the Ministry of Economy.
Different producers asking for support, we have been giving it to them and of course also
ensuring the consumer get products of excellent quality, what these organizations pretend
is that there wouldn't intermediaries, to say that the benefits basically focus on producers
and the user or consumer.
They have the "Fair Trade" program, which is an initiative of the Ministry of Economy, but it has the element of "Fair Price".
Im what constitutes this element?
Well, the "Fair Price" element is just one important part within the "Fair Trade" movement.
Since the producer is given a guaranteed price.
How do you promote it so that they know how handle this part of the program?
When the producer is certified, say in the case of coffee, there is a guaranteed price
for this product. To say it's the one who will pay in this case the importer in addition to the guaranteed price.
An award exist and it's an additional cost that is given to the association of producers that is exporting the product
and that they should use it clearly only in social activities. To say if they want to build a school
or purchase equipment to improve their trade relations.
What products are currently promoting in "Fair Trade" program?
Guatemala is currently entering in coffee, honey, some vegetables, tea and crafts.
How does the "Fair Trade" initiative helps producers to enter into national and international market?
They have been organizing, meaning that the concept of associativity is very important because sharing scale economies
knowledge can be transferred from a producer to another and of course this benefits them because
they will have higher profits on products and services that they put to the disposition of the citizens.
Also it benefit them, because they will know in a better way their different consumers or target groups.
If there isn't no intermediaries, they will havethe ability to interact in a more direct way
with consumers in general. The issue of "Fair Trade" and "Solidary" is a trend that is growing globally.
Guatemala can't be a stranger to it and that's why we support producers, usually they are micro and small producers.
What support is provided through the program "Fair Trade" for strengthening MIPYMES?
This is being done in 2 ways. One is through agreements or cooperative agreements that we signed with
foreign institutions, to say we have the case of CECI which is the International Cooperation Center of Canada.
With them we are working all the technical advice and also we have just started a work program with a
Emaus Social Foundation of Spain, with whom we are now in the preparation phase of the program for the year 2,012
of how general public will be sensitized in this case in the issue of "Fair Trade".
How does the elements of productivity and competitiveness go into the "Fair Trade" program?
Competitiveness and therefore an integral productivity is and should be part of the entrepreneurship sector
in general. Particularly in the MYPIMES we need to increase productivity and competitiveness.
On the issue of "Fair Trade" we have been working with them to improve their productivity,
to improve their indicators performance, to improve their competitiveness in an integrated manner through training,
through better understanding of their markets through comparisons or benchmarks.
For them to compare with producers of other regions of the country or of other countries and have insisted in the issue of productivity and competitiveness
in any sector, not only in "Fair Trade", not only in MIPYMES it's important to be competitive because
today we have to visualize the entire world as the market to which we want to reach.
Why is International Cooperation essential to support this kind of programs?
For us it's fundamental because we have a specific budget for the subject, then
in this case through International Cooperation is how we develop all technical training
of advice, information and promotion activities we do.
How Governors, Mayors, Development Councils support the "Fair Trade" program?
They directly support it from their functions and from the local point of view where the activity is carried out, for example in some place
or in some cases we have direct contact with them and say through the training that we take to the different departments
they support us many times, in providing classrooms, basic infrastructure in order to
develop workshops conducted in the interior of the country.
What would be your final message to youth so that they can see that there are opportunities with these programs such as "Fair Trade",
the strengthening of the MIPYMES, so they have the opportunity to access to undertake a company in Guatemala?
Guatemala is a relatively young country, this's a great strength that we have
more than 70% of the population is under 30 years and Guatemala has many strengths in Natural Resources.
Our geographical position, exit to the 2 oceans, well we have many strengths, but one of those
perhaps the main is that our Human Resource is very entrepreneurial, it's one of the most entrepreneurial of the world.
We have one of the best telecommunications infrastructure in the world and in that sense we went to Mexico
recently we managed for Guatemala to be the headquarters of the 3rd. Latin American Congress of Young Entrepreneurs
and we are supporting this initiative as the Ministry of Economy, promoting that 2,012 be the year of the 3rd. Latin American Congress
of Young Entrepreneurs, combined with this subject is the cooperatives, that in 2,012 will be the year of cooperativism.
Well, we are supporting a number of initiatives from the Ministry of Economy, as well as supporting MIPYMES,
support migrants, young entrepreneurs support. We have established a policy
for the development of entrepreneur for women as well. With the concept of MIPYMES for the interior of the country.
We are very optimistic so that Guatemala can achieve a better economic development, that results into better social development
in terms of the accomplishment of the objectives of the Millennium, to achieve human development that all Guatemalans want
of heart.
Mr. Ivan, Mr. Minister of Economy of Guatemala, thanks for joining us in Investment and Development.