EL SALVADOR. Manos Unidas por. Changing the Lives of 45,000 Students P A N A M E R I C A N D E V E L O P M E N T F O U N D A T I O N

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1 Manos Unidas por EL SALVADOR Changing the Lives of 45,000 Students PAN AMERICAN DEVELOPMENT FOUNDATION 1889 F Street NW, 2nd Floor Washington, DC (202) P A N A M E R I C A N D E V E L O P M E N T F O U N D A T I O N

2 Executive Summary The Pan American Development Foundation is a non-profit organization that creates public-private partnerships that assist the least advantaged people in Latin America and the Caribbean. PADF engages community-based groups, governments and the private sector in sustainable d e v e l o p m e n t. PA D F i s a n affiliate of the Organization of American States (OAS). In the past year, PADF s programs impacted more than 5.6 million people in 18 countries F Street NW, 2nd Floor Washington, DC (202) Remittances play an important role in El Salvador s economy. More than 20 percent of Salvadoran families receive money from relatives living abroad, mainly those residing in the United States. In 2008, almost $3.8 billion in remittances were sent to El Salvador. In addition to providing important resources for families back home, this flow of money generates domestic economic activities, such as tourism and telecommunications. Interestingly, an estimated 5 percent of the remittance money is used for philanthropic and development projects in El Salvador. With that in mind, five years ago the Pan American Development Foundation developed an innovative remittances-for-development model that brought together the private sector, government agencies and civil society with the goal of improving educational opportunities. Called Manos Unidas por El Salvador (Joining Hands for El Salvador), PADF s flagship transnational program focused its efforts on education projects that included classroom construction, computer labs, libraries and more. PADF successfully engaged Salvadoran hometown associations in Los Angeles and Washington, D.C., as program partners. Banco Agrícola, the largest commercial bank in El Salvador, financed Manos Unidas por El Salvador as its primary corporate social responsibility (CSR ) program. Five years later, more than 45,000 students have benefited from 70 projects across El Salvador. Manos Unidas por El Salvador leveraged resources and participation from more than 50 Salvadoran groups in the United States, the private sector and the Salvadoran public sector. For the private sector partner, Manos Unidas por El Salvador increased corporate visibility by mobilizing media and public relations assets, and effectively increased a company s return on social investment and marketing dollars.

3 Partners Goals Each participating organization had the opportunity to pursue its goals within a partnership alliance. Banco Agrícola Prior to its work with PADF on the Manos Unidas program, Banco Agrícola supported a diverse spectrum of activities within its CSR portfolio. The ad-hoc decision-making process diluted the impact of the Bank s CSR dollars, both in terms of on-the-ground results, and the positive potential impact for Banco Agrícola s corporate image. The Bank s goals included: 1. Consolidate a portion of Banco Agrícola s corporate social investment into one flagship program. Provide one main partner organization with which to coordinate Coordinate a media campaign surrounding flagship program and linked to other corporate communications Support the education sector 2. Expand money transfer operation in the United States, becoming the bank of choice for those sending remittances and for those receiving them Create CSR program which would provide marketing opportunities to client groups Differentiate the Banco Agrícola brand from competitors offering similar services Pan American Development Foundation One of PADF s mandates is to provide opportunities for private sector partners to support development efforts in Latin America and the Caribbean. PADF develops those partnerships to target specific issues related to social or economic development in the region and creates mechanisms and programs specifically for corporate partners that also complement business interests. PADF s goals included: 1. Build capacities of US-based Salvadoran organizations and local committees in El Salvador to coordinate for successful project implementation 2. Improve access to and quality of education in El Salvador 3. Create a partnership with the private sector and Salvadoran Diaspora groups that could serve as a model for channeling effective participation of both for con crete impact on the ground.

4 Partners Goals Ministry of Education (MINED) The Ministry of Education in El Salvador laid out a long term national education strategy for the country called Plan 2021 that includes a variety of goals, such as increasing the management capacity of teachers and staff at local schools, implementing the teaching of English as a second language, and providing universal access to kindergarten. Plan 2021 received broad, multipartisan support in the legislature. MINED actively pursues partnerships with private sector and other donors through its Office of External Cooperation, in order to increase the amount of resources available to accomplish Plan Partnering with Banco Agrícola and PADF allowed MINED to address the following goals: 1. Increase resources available to local schools from private sector sources for the Plan Ensure good coordination of efforts and project results on the ground (with PADF technical assistance) 3. Incentivize giving by Salvadorans living abroad toward local schools in El Salvador Salvadoran groups in the USA Salvadorans in the United States often organize fundraising events for projects in their hometowns. Former schoolmates or groups of people from the same community organize committees to raise money through dances, soccer tournaments, barbeques, raffles, and other events. Funds raised are directed toward fulfilling needs in their communities back home. Partnering with PADF and Banco Agrícola allowed these groups to fulfill the following goals: 1. Enhance support for the projects they and the beneficiary community have prioritized 2. Accelerate fundraising processes 3. Gain experience writing fundraising proposals for consideration by institutions and managing money from that is received

5 Program Development Banco Agrícola is the largest commercial bank in El Salvador. In the United States, it has operated money transfer operations from California since 1985, catering to the Salvadoran communities in Los Angeles and San Francisco. As the number of Salvadorans living in the United States continued to grow, the amount of money they sent back to El Salvador every year also grew, increasing in the double digits during many years. As a result, Banco Agrícola began expanding to new cities, and increasing the number of branches offering services to clients. In 2003, when PADF and Banco Agrícola began negotiating a partnership, the Bank was in the process of expanding its money transfer operations in the United States. At the same time, the money transfer business was becoming increasingly competitive. In certain areas such as Washington D.C., BanComercio had the advantage of being the first to enter the local marketplace. The two Salvadoran banks were offering very similar products and services in similar areas. PADF proposed to Banco Agrícola a partnership that would allow the Bank to reach out to its target client group in the United States, and distinguish its brand among its competitors by demonstrating that the Bank also cared about the well being of families and communities back home. By enabling Banco Agrícola to integrate CSR activities in the United States with those it undertook in El Salvador, the program also positioned the Bank not just as the company of choice for Salvadorans to send money to family in El Salvador, but also as the bank of choice for local recipients requiring additional financial services.

6 How it works Banco Agrícola and PADF have an agreement wherein the Bank provides resources to PADF to administer the Manos Unidas program. PADF worked with Banco Agrícola to design a small-grants mechanism that would allow the program partners to achieve their goals with as little administrative burden as possible. The model PADF designed worked as follows: PADF issued a call for proposals outlined program objectives, the process for requesting funding, and the criteria by which projects would be selected. The call for proposals was distributed by PADF via regular mail and electronically via to US-based Salvadoran organizations in the target metropolitan areas of Los Angeles, and Washington D.C. (selected because they have the largest concentrations of Salvadoran populations in the United States). PADF also conducted outreach activities at Salvadoran consulate events, community meetings, and through media contacts, to publicize the initiative. The PADF model s competitive selection process included: 1. Project selection The U.S.-based Salvadoran group was instructed to coordinate with the beneficiary community to select an education project that fell within the program parameters and was identified as a priority by the community 2. Letter of interest The U.S.-based groups would submit a letter of interest including basic information about the groups requesting support (U.S. and El Salvador) and a brief description of the project, its goals, number of beneficiaries, total anticipated cost and amount requested from the program, and the anticipated timeline for implementation. 3. Evaluation for fulfillment of basic program requirements PADF evaluated the letters of interest and conducted field visits to verify the needs and conditions as outlined. If the project was not an appropriate fit, PADF provided technical assistance on how the project or groups might qualify for future funding opportunities. 4. Full project proposal Groups whose projects fit within the areas of interest identified by the Bank were invited to develop a full proposal. PADF assisted the soliciting organizations in producing viable proposals, providing training for the committees in El Salvador the U.S. about the grant process, proposal development, budgeting for projects, and working with their counterpart committee for successful project implementation and best results. 5. Evaluation by selection committee A selection committee, comprised of Banco Agrícola representatives, PADF staff, and an expert on transnational development, carefully evaluated the proposals against the selection criteria. The highest scoring proposals were selected to receive funding. 6. Project implementation PADF signed agreements with each participant organization, clarifying the roles and responsibilities of each, the importance of recognizing and involving Banco Agrícola, and the timelines for implementation. PADF also facilitated the transfer of counterpart funding from the US through Banco Agrícola s money transfer company, then provided technical assistance to the beneficiary communities and to the sponsoring Diaspora groups in the U.S. to ensure smooth implementation, good coordination with Ministry of Education representatives, optimization of project resources, and expected results on the ground.

7 Types of Projects Banco Agrícola identified education as the area it most wanted to support, because of its impact on lives of the children who benefit from better educational opportunities, and on the future of the country. The bank focused its support on building new classrooms and equipping new schools libraries, computer centers, and science labs, while also supporting complimentar y components such as school supply packets for needy students, didactic materials to enhance the quality of learning, and others. While the Bank identified those broad project areas for support, each project was communityselected and managed, and was designed to meet specific student needs. For example, new classrooms relieved overcrowding, and schools were able to offer additional sections or new grades, allowing students to attend schools closer to home, rather than traveling to the closest school with that available grade. Science labs and computer centers provided students access to technology and hands-on learning that many had never experienced, expanding their horizons, and improving their competitiveness for future careers. This focus on education allowed the Bank to easily explain its CSR program to its various target audiences, including employees, client groups, media, and government representatives. Manos Unidas por El Salvador supported 70 education projects at 65 schools from 2004 and 2008, including: 36 computer centers equipped 21 schools expanded or remodeled 19 libraries and student resource centers installed 5 science laboratories equipped 4 other initiatives

8 The Benefits Better educational services Manos Unidas por El Salvador was designed to achieve concrete, positive impact on the lives of children in El Salvador. The program produced impressive results on the ground through the education projects it financed. From , Banco Agrícola supported 70 projects that benefitted more than 45,000 students across the country, reaching 13 of the 14 Salvadoran provinces. Each of the projects funded had distinct impacts on the individual beneficiary community served. The following examples are illustrative of some of the broader impacts of the overall program seen throughout the country in various locations: Beneficiaries Additional grades or additional sections of existing grades offered Without program support, many schools, especially in rural areas, offer only a select number of grades, and many students reach only the number of grades offered within their communities, or are required to expend a greater portion of their families limited resources in order to attend school in another town. In Cantón Los Amates, a community of Chapeltique, San Miguel, Banco Agrícola and a Washington DC based group (Comité Pro-Mejoramiento de Chapeltique) supported the construction of a classroom that allowed the small, rural school to offer 8th and 9th grade within the school. While students previously had to walk several kilometers and cross a river that swells during the rainy season, they can now learn in their own town. In San Julián, Sonsonate, the construction of a classroom allowed the school to offer an additional 7th grade class, opening up spots for children who were not able to enroll at all the previous year, as the existing class was overcrowded and they did not have the resources to travel outside of San Julián to study. 2. Improved the school environment, providing a safe and secure place for students to learn In the Los Marines/Agua Zarca school in Acajutla, Sonsonate, lack of infrastructure meant that students learned inside a dark, dilapidated adobe building, with only a two-walled latrine to use as a bathroom. Banco Agrícola, and the Friends of Acajutla USA Committee (Comité Amigos de Acajutla en USA) in Los Angeles supported the construction of a classroom and two new, clean latrines in this village, helping to improve the learning environment and increasing the enrollment in the school.

9 3. Helped some schools achieve formal or permanent recognition by the Ministry of Education While all schools supported by Manos Unidas were public schools, or public-parochial ones also supported by the MINED, some schools were still in process of being formally recognized, and had infrastructure barriers in order to accomplish that. In Cantón Santa Marta, in Victoria, Cabañas, the school was required to have a science laboratory in order to receive permanent certification as a high school, but did not have the resources to build and equip the classroom. Each year, the school faced the threat of losing its certification and many of the students would not have the resources to continue their high school education elsewhere. After Manos Unidas supported the construction of the science lab, the school finally received its permanent certification. 4. Computer classes and hands-on science training provided and students visions for future career choices expanded Without program support, many schools in El Salvador do not have the ability to equip classrooms as computer centers, or they are unable update very old machines and equipment. Since few students have computers in their own homes, this lack of availability in school presents an obstacle in overcoming barriers to labor market entry, and contributes to a continued digital divide in El Salvador. With additional resources such as computer and science laboratories, many students gained needed confidence in science and information technology which helped them choose further study in those fields. Students at the Instituto Católico Karol Wojtyla in Ilobasco, Cabañas have shown a dramatically increased interest in pursuing degrees in pharmacy, clinician services, and other areas, which the school director attributes to the experience they gained in the Manos Unidas-supported science laboratory. Promotion & Media Coverage The program also aimed to provide Banco Agrícola with ample opportunities to reach out to its target client groups, as well as generate media coverage of the Bank s support, both in the U.S. and in El Salvador. PADF promoted Manos Unidas in the United States, both to interest new USbased Salvadoran groups in proposing projects for funding, andto raise awareness of Banco Agrícola s support to the Salvadoran community. The program allowed the Bank to demonstrate support both in the U.S., by collaborating with U.S.-based groups to fund projects they proposed, and also in El Salvador, providing expanded educational opportunities to children. Banco Agrícola received exposure in the U.S. at events sponsored by participating groups, through the offices of its money transfer company, at certain Salvadoran consulates, where a promotional video was included on the television feed shown to those waiting in line for consular services, and through the media. The Bank also developed promotional materials for the program that contained information about the location of its branches and developed communications 5. Increased capacity to manage resources in beneficiary schools As a result of the Manos Unidas application, implementation, and reporting process, local schools have gained capacity to identify needs, propose projects in a clear and cogent manner, administer local and outside resources, and report to donor organizations. This new capacity has impacts on the ability of schools and communities to attract new resources to improve learning.

10 that linked its core business message ( Banco Agrícola you can count on us ) to the program s CSR message ( El Salvador s education counts on us ). Manos Unidas three annual rounds of grant making provided many opportunities to gain media coverage for Banco Agrícola in both US and Salvadoran outlets. Each year, the signing of the agreement between the Bank and PADF, launching of the call for proposals, and the selection of each round of grant recipients generated interest in the Spanish language news media in Washington, D.C. and Los Angeles. PADF worked closely with Banco Agrícola representatives to ensure coordinated messaging, and led the effort to generate news coverage, which publicized the Bank s support and the location of its branches, and also strengthened the ability of collaborating groups in the US to raise funds by enhancing the credibility of their fundraising efforts for the particular project. When the Manos Unidas por El Salvador program became Banco Agrícola s key CSR program in 2006, the Bank also engaged in an integrated communications campaign in El Salvador, taking advantage of key events such as the agreement signing and project inaugurations to obtain extensive coverage in the local press, particularly print, but also through television and radio outlets. The Bank combined these earned media opportunities with print ads and inserts in newspapers featuring project results, and also purchasing billboard space and other paid advertising. From 2004 and 2008, Manos Unidas por El Salvador was featured in news articles, both in the United States and El Salvador, in addition to countless television and radio interviews.