However, changes for the coffee producers and partners of the footwear MSME appear to be temporary effects, with limited potential for sustainability once support to the project ends. In the case of Procalza, this evaluation found evidence that the company is unstable, and at risk of losing the assets provided by UNDP. As of October 2020, Procalza managed to complete the delivery of 70 percent of the contract with SEDIS. Of the 11 founding partners, only two remain. Interviews revealed several structural factors behind Procalza’s limited effectiveness and scope: i) the limited human capital of male and female entrepreneurs; ii) a lack of productive assets; iii) an environment that is not conducive to the market economy ecosystem, including access to financing or the institutional framework of the State;145 and iv) stigmatization of vulnerable populations as lacking entrepreneurial capacity or attitudes. It is important to note the emphasis of the UNDP strategy on developing entrepreneurial capacity of the poor population in Honduras as the main path for their inclusion, and the weak focus on fixing structural challenges. For example, this evaluation did not identify a specific focus of UNDP interventions to improve economic development opportunities for women and youth. Regarding work on structural factors, through the ‘+Competitiveness + Employment’ project in the Lempa region, a case has been developed to promote the certification of 39 rural savings banks as microfinance entities with the National Bank for Production and Housing of Honduras. However, this is still under consideration. Regarding institutional capacity, with the support of AMHON, UNDP strengthened the capacity of 16 municipalities to manage processes for the social and economic inclusion of MSMEs in their territories. As a result, five municipalities developed competitiveness and employment agendas.146 In addition, an Agricultural Production Unit was created and equipped in the Municipality of El Progreso in Yoro. Likewise, the Municipality of Omoa received support for the design of its brand to improve it tourism marketing.147 Projects related to the green economy provide opportunities to integrate a model of sustainable development and social inclusion. In the current programme these can be divided into two types, depending on the project approach: some are sustainable management projects that aim at global environmental benefits, while others aim at the social and economic inclusion of the most vulnerable. Environmental projects target food agro-industries that sell their raw materials in global markets and have the capacity to access climate finance through environmental certification. Social inclusion initiatives are aimed at small producers and groups living in poverty, including indigenous peoples, who are subject to social and environmental safeguards but lack opportunities to access green funds. According to several interviewees, this could increase inequality when the most vulnerable groups are excluded from the benefits of climate finance and green economy markets.
2.4 Cross-cutting issues Finding 16. UNDP added-value, neutrality and transparency allowed it to be involved in strategic and sensitive areas of development. While UNDP support to the Government is appreciated, the transfer of capacity has been limited, and this threatens the sustainability of institutional development. UNDP is considered a reliable and competent partner in areas such as democratic governance, citizen security and climate change. Evidence collected by the ICPE confirmed the appreciation of national and international stakeholders of the UNDP role as a neutral provider of technical assistance. This has allowed UNDP to engage in areas of high political sensitivity and strategic importance for the country, including 145 146 147
As land, working capital, equipment and infrastructure. Omoa, Cortés, Progress, Danlí and Paradise. UNDP. Annual Project Report + competitiveness + employment.
CHAPTER 2. FINDINGS
35
