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10/7/74 - Honduran Relief Fund Sponsorship
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1489340
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10/7/74 - Honduran Relief Fund Sponsorship
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Sheila R. Weidenfeld Files (Ford Administration)
Sheila Weidenfeld's Daily Events Files
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Honduras
President (1974-1977 : Ford). Office of the First Lady. 1974-1977
Hurricanes
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1974-10-31
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1974
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The original documents are located in Box 2, folder "10/7/74 - Honduran Relief Fund
Sponsorship" of the Sheila Weidenfeld Files at the Gerald R. Ford Presidential
Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 2 of the Sheila Weidenfeld Files at the Gerald R. Ford Presidential Library
For immediate release
Monday, Oct. 7, 1974
THE WHITE HOUSE
Office of the Press Secretary to Mrs. Ford
Mrs. Ford has become an unofficial sponsor of the Honduran
Reconstruction Fund (HRF), an organization to raise funds
for the reconstruction of houses and farms destroyed on the
Honduras by Hurricane Fifi, which struck Sept. 20.
Due to a requirement for limited activity following her surgery,
Mrs. Ford is unable to be an active sponsor of the project.
But because of her belief in the importance of the work of HRF,
she has asked that her support /of the project be known.
The Honduran Reconstruction Fund is a private sector organization.
It is working to rebuild houses and farms at low cost and to
deal directly with the small farmer to bring his farm back into
production.
The work of the foundation was brought to Mrs. Ford's attention
after students in the Washington, D.C., area last week raised
enough money in a 24-hour period to buy three houses for
displaced families.
HRF was created by the Pan American Development Foundation,
founded by the Organization of American States in 1962 to stimulate
and coordinate private sector activities in pursuit of Alliance for
Progress objectives.
#
#
#
#
Contact: Gregory Wolfe
381-8651
This Copy For
NEWS CONFERENCE
#45
AT THE WHITE HOUSE
WITH RON NESSEN
AT 12:15 P.M. EDT
OCTOBER 7, 1974
MONDAY
MR. NESSEN: I notice that some people told
the President yesterday that his new dog was friendlier
toward reporters than his Press Secretary is, so I am
practicing and I hope to learn to wag my tail and
probably come around and lick your faces every now
and then. (Laughter)
Seriously, you have seen the President's
schedule for yesterday and today. After attending
services at St. John's, the President spent most of
the rest of the day continuing to work on the speech
he will deliver to the Joint Session of Congress at
4:00 on Tuesday. The way I had hoped to be able to
do this was to go through the announcements and then come
back and tell you a little about the meeting yesterday,
if that is all right.
He met with a number of staff members who
were here yesterday including Rumseld, Hartmann,
Seidman, Simon, Buchen, Marsh, Kissinger, Skowcroft,
and I also talked to him myself.
Q
Is that the peeking order?
MR. NESSEN: No, no particular order. No,
that is not the peeking order.
I will give you a rundown on the meeting
yesterday when I get through all the rest of this.
This morning the President was in his office
at 7:30. He met with members of the staff this morning
too, and those are Seidman, Rumsfeld, Kissinger, Skowcroft,
Hartmann and myself.
The President this morning received a report
from the two senior AID officials whom he sent to
Honduras to survey the damage from Hurricane Fifi
and its aftermath.
MORE
#45
- 2 -
#45-10/7
The report concluded the catastrophe was
a major national disaster when you measure it both
in human and economic terms. The President thanked
the members of the team, who are Assistant AID
Administrator Herman Kleine and the Foreign Disaster
Relief Coordinator RussellMcClure.
The President praised the courage of the
Honduran people and the relief efforts conducted to date
and pledged that the United States would join others
in support of the Honduran's endeavors to rebuild
their nation's economy.
So far the United States' relief efforts have
totaled $1 million 600 thousand. The report which they
gave to the President is available to you, and I think
it will answer a lot of your questions about Honduran
relief.
At 12:15 the President is scheduled to meet
with George Romney. He is now Chairman of the
National Center for Voluntary Action. He has been
chairman of the organization since January, and Mr.
Romney asked for the meeting with the President to
discuss the future direction of his nongovernmental
and non-profit organization. Although the meeting
has not been held yet, the President intends to tell
Governor Romney that he strongly supports this concept
of voluntary action.
At 12:30 the President will meet with Congressman
Edward J. Derwinski. The President asked Congressman Derwinski
to come in so the President could ask him his views on the status
of J.S.-Polish relations. You may know the Congressman traveled
to Poland this summer and met at that time with First Secretary
Gierek, who will be meeting here with the President tomorrow.
President Ford and President Valery Giscard
D'estaing of France have agreed to meet on December 14,
15 and 16 in Martinique. The meeting will provide the
two leaders with an opportunity to review issues of
mutual interest.
Q
Why were you so far behind the French
in announcing this meeting?
MR. NESSEN: There was an agreement with the
French to announce the meeting jointly at noon Washington
time. The story leaked out in the French press. The
French government asked the United States Embassy in
Paris, since it had been leaked, whether it would be
all right to announce it ahead of time, and the American
Government said yes.
MORE
#45
- 3 -
#45-10/7
I believe we tried to do as best we could
here to catch this up before I came out here to talk
to you.
The President is holding a meeting with the
National Security Council at 2:45 this afternoon.
The normal practice is not to announce the subject
of NCS meetings.
The President and Archbishop Iakovos
will meet this afternoon at 4:15. Iakovos is the
Archbishop of the Greek Orthodox Church of North and
South America. This meeting will afford the President
and the Archbishop the opportunity to discuss matters
relating to the situation in Cyprus, including the
need for continued humanitarian efforts on Cyprus.
Q
A question applying to that. Has the
President met with Archbishop Makarios at all?
MR. NESSEN: I am certainly not aware of it.
I think "no" is the answer.
Q
Are you taking questions on these
various announcements as you go along? I thought you
wanted to save them until later, because I have a few
myself.
MR. NESSEN: I suppose we could.
Q
What is the topic of the National
Security Council?
MR. NESSEN: I said we do not announce the
topic of the National Security Council.
0
They have in the past, Ron.
MR. NESSEN: I don't believe they have, Pat.
Q
They have from time to time.
MR. NESSEN: We won't today.
Q
I have not seen the AID report yet, but
I will, and I want to know, is the President satisfied
that the American aid that was sent to Honduras went
from these officials -- is he satisfied the aid went
to Honduras or did it end up, as the Post reported this
weekend, in Honduran Army warehouses for eventual
disposition which, in any number of mysterious ways,
has happened in Managua in the earthquakes. That is my
number one question.
MORE
#45
Pan American Development Foundation
1725 K Street, Northwest Suite 1409 Washington, D. C. 20006
Cable FUPAD
Telephone (202)
381-8651
Galo Plaza
October 4, 1974
CHAIRMAN OF THE BOARD
T. Graydon Upton
PRESIDENT
A MESSAGE TO THE BOARD OF TRUSTEES AND TO
L. Ronald Scheman
MEMBERS OF OUR TOOLS FOR FREEDOM ADVISORY COUNCIL
VICE PRESIDENT
AND MEMBERS OF THE HEALTH SERVICES ADVISORY COMMITTEE
M. Rafael Urquia
VICE PRESIDENT
One of the PADF's functions, established in our charter, is
to assist OAS member countries in times of national emergency. On
Francisco V. Garcia-Amador
such occasions, we seek to raise funds which are then channelled
TREASURER
through the local National Development Foundation, for use in
Norman Goijberg
reconstruction projects, rather than emergency relief. The PADF
EXECUTIVE DIRECTOR
was successful in raising over $500 thousand for the Nicaraguan
Development Foundation after the earthquake, and is now engaged
BOARD OF TRUSTEES
in a parallel effort for Honduras.
Francisco Aguirre
Antonio Aycinena
You will find enclosed copy of an advertisement (for the
William H. Bolin
preparation of which Potomac Electric donated the services of its
Wallace Campbell
advertising counsel) which appeared on October 3rd in the Washington
Alberto Jose Carvajal
Post, with a more detailed description of the project on the reverse
Pedro Contreras Pulido
side. We also hope to arrange broadcasts of an appeal by Shirley
Miles Cortez
Roland del Mar
Temple Black, who narrated for the OAS the text of the film, "The
John F. Gallagher
World of the Primitive Painter" (Velasquez of Honduras), and are
William S Gaud
trying to arrange other fund raising activities over the next
James P. Grant
several months.
James R. Greene
Frederick Heldring
Felipe Herrera
For the next fortnight, this program is being coordinated in
Abraham Horwitz
the PADF by Greg Wolfe, who can answer any questions you may have
Jacob K. Javits
about it.
Ernst Keller
Edward M. Kennedy
Tom Lilley
I feel sure that many of you will want to make a personal
Sol M. Linowitz
contribution to this campaign, which we would deeply appreciate.
Alberto Lleras Camargo
We also hope that you will stimulate gifts through your associates,
Eugenio Mendoza
and would appreciate your giving us any names which we may call.
Jose A. Mora
F. Bradford Morse
Wayne Morse
Thank you - from the PADF, from the Honduran Development Fund,
Robert Nathan
and from Honduras.
Ray Pillman
Stuart Portner
Jay R. Reist
William Sanders
Teleptm
Carlos Sanz de Santamaria
T. Graydon Upton
Harvey Schwartz
President
Walter J. Sedwitz
Jose C. Serrato. Jr.
Otilia de Tejeira
TGU:sd
J. P. Van Praag
enclosure
ADVISOR TO THE BOARD
Sam Greene
Mrs. John C. McClintock
Co.chmn of (4657)
Gregory B. wolfe FORD
Dr. and Mrs. Ramon Alcerro C.
1263 Woodruff Avenue
Los Angeles, California 20024
Mr. Robert A. Benjamin
United Artists
729 7th Avenue
New York, New York 10019
The Honorable Shirley Temple Black
United States Ambassador to Ghana
Hay Adams Hotel
Washington, D.C. 20006
The Honorable and Mrs. Charles R. Burrows
Former U.S. Ambassador to Honduras
2511 Massachusetts Avenue, N.W.
Washington, D.C. 20008
César Agustus Cáceres, M.D.
2500 Virginia Avenue, N.W.
Washington, D.C. 20037
The Honorable and Mrs. Henry Catto
Chief of Protocal
Georgetown Pike
McLean, Virginia
Mrs. T. Jefferson Coolidge
Coolidge Point
Manchester, Mass. 01944
Kathryn D. Christophers
President
Overseas Education Fund of
the League of Women Voters
1730 M St., N.W.
Washington, D.C. 20036
The Honorable and Mrs. Paul C. Daniels
Former U.S. Ambassador to Honduras
Main Street
Lakeville, Connecticut
- 2 -
The Honorable and Mrs. John C. Dreier
Former U.S. Ambassador to the OAS
Southwest Harbor, Maine 04679
The Honorable and Mrs. Angier Biddle Duke
The Commissioner of Civic Affairs for the City of New York
River House
New York City
Elizabeth Espinosa
Secretary
The National Federation of
Business and Professional Women
13 Vassar Circle
Glen Echo, Maryland 20768
The Honorable Dante Fascell
U.S. House of Representatives
Chairman
Subcommittee, Inter-American Affairs
2160 Rayburn House Office Building
Washington, D.C. 20510
Louise Willauer Jackson
RFD 2, Box 105
Buckfield, Maine 04220
Rita Z. Johnston
U.S. Delegate to the
Inter-American Commission of Women
7722 Savannah Drive
Bethesda, Maryland 20034
Mildred Robbins Leet
Past President
National Council of Women
54 Riverside Drive
New York, New York 10024
- 3 -
The Honorable and Mrs. Sol M. Linowitz
Former U.S. Ambassador to the OAS
2325 Wyoming Avenue, N.W.
Washington, D.C. 20008
The Honorable and Mrs. Thomas Mann
Former Assistant Secretary of State
Inter-American Affairs
3606 Edgemont Drive
Austin, Texas 78731
Mr. and Mrs. MacKenzie Gordon
2905 Que Street, N.W.
Washington, D.C. 20007
Albert Maverick III, Esq.
Associate General Counsel
Brown and Root Company
Pine Valley Drive
Houston, Texas
Mr. Denning Miller
Edon Hill Road
Stowe, Vermont 05672
The Honorable Gale W. McGee
U.S. Senate
Chairman, Sub-Committee Foreign Relations
344 Old Senate Office Building
Washington, D.C. 20510
The Honorable and Mrs. William S. Mailliard
U.S. Ambassador to the OAS
3265 N St., N.W.
Washington, D.C. 20007
The Honorable and Mrs. Robert Newbegin
Former U.S. Ambassador to Honduras
Jaffrey
New Hampshire
- 4 -
Mr. and Mrs. Jeremiah O'Leary
Correspondent
Washington Star-News
405 Prince Street
Alexandria, Virginia 22314
The Honorable and Mrs. Covey Oliver
Former Assistant Secretary of State
Inter-American Affairs
4210 Spruce Street
Philadelphia, Penna.
W. Francis Pressly
Director, International Division
National 4H Foundation
7100 Connecticut Avenue, N.W.
Washington, D.C. 20015
The Honorable William L. Rogers
Assistant Secretary of State
Inter-American Affairs
Room 6263
Department of State
Washington, D.C. 20523
The Honorable Thomas P. Stone
Governor of Vermont
Montpelier, Vermont 05602
Lisa Sergio
1531 34th Street, N.W.
Washington, D.C. 20007
Mrs. Harper Sibley
400 East Street
Rochester, New York 14607
Mrs. George Cheever Shattuck
450 Warren Street
Brookline, Massachusetts
- 5 -
Mr. and Mrs. Roger T. Stone
P.O. Box 295
Maddisonville, Louisiana 70447
Giselle F. Theberge
Chairman, Tribute to the Arts of the Americas
Performing Arts Society
Director of Latin American Studies
Center for Strategic Studies
3027 Foxhall Road
Washington, D.C. 20016
Dr. Caroline Ware
National Consumers League
1600 Beulah Road
Vienna, Virginia
Whiting Willauer
4201 Cathedral Avenue, N.W.
Washington, D.C. 20016
Mr. and Mrs. Christopher Bird
3414 N Street, N.W.
Washington, D.C.
The response of our people to tragic emergencies like Hurricane
Fifi is always inspiring to see. The food, medicine, and clothing
that have pured into Honduras since the Hurricane struck the small
when
Central American Republic are surely a life-sustaining transfusion
for the Honduran people.
Beyond the emergency, however, is the long-term need to
replenish the lost capital, the homes, farms, schools and implements
of thousands whose communities will require rebuilding. The ten
year old private, Pan American Development Foundation is taking
action to enable this reconstruction to occur by reaching directly
to the families who need the capital with which to rebuild.
It is forming a national committee to encourage contributions
to a Reconstruction Fund.
It will channel the funds to its sister institution, the
Honduran Development Foundation, to rebuild houses and farms at low
cost and work directly with needy small farmers to bring their
farms back into production.
It is raising its funds with the help of a National Committee
of distinguished ccitizens: teachers, lawyers, workers, doctors,
former Ambassadors and others all acting in their private capacities.
It is associated with the special efforts 6£ being made by other
private organizations with a long-term commitment to Latin America:
the Partners of the Americas; the Council of the Americas; and the
U.S. Committee for UNICEF.
Its efforts so far, and they have just begun, have prompted
heartwarming response from individuals, and corporations through-
out the country. Among the most exciting contributions were those
of the students of a Washington area middle school whose/se/ raised
enough money in twenty four houss to buy three houses for displaced
families/ . Since the PADF is able to help build housing units
at $350 per unit this sort of fundraising effort by young people
can be multiplied many times over.
PAN AMERICAN DEVELOPMENT FOUNDATION
ANNUAL REPORT 1973
"Let us be candid.
What these men want are jobs for their survival, food for
their families, and a future for their children. They want the
simple satisfaction of working toward something better:
toward an end to misery, and a beginning of hope.
Robert S. McNamara
President, World Bank - 1972
CHAIRMAN'S STATEMENT
PAN AMERICAN DEVELOPMENT FOUNDATION
The Tenth Anniversary of the Pan American Develop-
ment Foundation finds its program operating under very
different circumstances, in both Latin America and in the
BOARD OF TRUSTEES
STAFF
United States, than existed at its initiation. At that time,
during the euphoric days of the Alliance for Progress, no
Galo Plaza
Ernst Keller
Sy Rotter
dream of development seemed impossible of achieve-
Chairman of the Board
Edward M. Kennedy
Executive Director
ment. With the goals of the Charter of Punta del Este as a
T. GraydonUpton
Tom Lilley
guide, there appeared to be generous funds that could be
Lewis P. Remick
President
Sol. M. Linowitz
made available from the United States for the purposes of
Financial Advisor
M. Rafael Urquia
Alberto Lleras Camargo
economic and social development in Latin America, and
Vice President
Eugenio Mendoza
we thought we knew what steps should be taken.
Norman Goijberg
Ten years later, and wiser, we survey the current scene
L. Ronald Scheman
F. Bradford Morse
gress enjoined the Agency for International Development
Program Coordinator
and accept the fact that not only have many of the correct
Vice President
Jose A. Mora
to encourage the mobilization of private sector resources
Francisco Garcia-Amador 2
Maria del Carmen Sarmiento
answers to development not been found, but it seems
Wayne Morse
and to commit itself to the objective of "maximum feasible
Secretary Treasurer
Robert Nathan
Director
possible that some of the major development programs
participation" of the people in development decisions. An-
have not even addressed themselves to the right ques-
other step was the amendment to the AID act which bears
Francisco Aguirre
Ray Pillman
Material Resources Program
tions. As political experts struggle to explain the current
Stuart Portner
the name of Congressman John Moss, and which author-
Luis Jose Alvarez³
Francisco Saenz
socio political state of affairs in Latin America, and as
ized the partial guarantee by the United States of loans
Antonio Aycinena
Jay R. Reist
Economic Advisor
economists retreat from the statistics of rising GNP's as
made by banks in Latin America to "marginados" - an
William H. Bolin
Patricio Rojas⁵
the essential measure of a country's progress, we are
effort to induce such lenders to move from their normal
Wallace Campbell
William Sanders
Steven Reid
finding not only in Latin America but in other developed
pattern of secured loans, to one of character loans to the
Alberto Jose Carvajal
Carlos Sanz de Santamaria
Director
countries of the world an increasing disenchantment with
little man - such as made by the national development
Pedro Contreras Pulido
Harvey Schwartz
Tools for Freedom
"traditional" foreign aid.
foundations. Unfortunately, both of these well motivated
Roland del Mar⁴
Walter J. Sedwitz
Cecilia Crispo
One lesson which the world is learning, as Robert
measures have been seriously hampered in execution by
Miles Cortez
Jose C. Serrato Jr.
Administrative Assistant
McNamara has spelled out so well in his last report to the
technical and operational limitations.
John F. Gallagher
Carl B. Spaeth³
Otilia de Tejeira⁴
Material Resources Program
Governors of the World Bank, is that to a very substantial
So much for the problem. What steps can be taken to-
William S. Gaud
degree the economic and social benefits derived from
wards its solution? First, our efforts will be directed to fo-
James P. Grant
J.P. Van Praag⁴
Lucia F. McDonough
large scale development efforts have not been shared by
cusing the attention of the major development agencies on
James R. Greene
Louis I. de Winter⁷
Administrative Assistant
the poorest 40% of the population of the developing world.
the National Development Foundation program as an ef-
Jorge Grieve³
Operacion Ninos Program
The issue at hand is to relate our development institu-
fective means for motivating social and economic develop-
Frederick Heldring
tions to the need for "social equity". It is an issue not only
ment at the community level.
Felipe Herrera
Lynette Gaubert
of restoring the faith of the people, and of the U.S. Congress
Second, we will encourage greater U.S. and Canadian
Abraham Horwitz
Material Resources Progam
in foreign aid, but of keeping faith with our underlying prin-
business community support for this effort. There is no
Jacob K. Javits
Mary Louise Roe
ciples of human decency. We must redirect the attention
better way for business organizations operating in Latin
Secretary
of foreign development assistance towards those great
America to ally themselves with the social aspirations of
masses of people, both in rural areas and in city slums,
their host countries than to participate in the program of the
Linda Friedman
whose continuing poverty and hopelessness negate any
National Development Foundations, either through the
1. Resigned as Secretary-Treasurer on June 11, 1973
Intern
country's progress in infrastructure, industry, and trade.
PADF, or in direct support of local foundations.
2. Elected Secretary-Treasurer on June 11, 1973
"Social Equity" has been the philosophical force behind
Third, we will intensify our efforts to strengthen the re-
3. Resigned on June 11, 1973
Consultants
the PADF programs during the past ten years, and the
cently formed "Council of American Development Founda-
4. Elected on June 11, 1973
highlights of this report will bear witness that development
tions", and encourage it to take a greater responsibility for
5. Resigned from OAS-Ex-officio status
Sam Greene
is not a factor of economics alone, but rather of the rela-
increasing technical and financial resources to the in-
6. Appointed to OAS-Ex-officio status
Arnoldo Ramirez-Eva
tionship between new opportunities and people. Respond-
dividual Latin American National Development Foundations
7. Deceased
William M. Blaisdell
ing to a poor man's motivation to improve his standard of
which forms its membership.
living through his own determination to modernize his
The Pan American Development Foundation represents
community and to participate in the decision-making which
a
non-political development ideology, dedicated to helping
The PADF is a non-profit corporation affiliated with the Organization of American States. It was chartered in
affects his own life and that of his family these, indeed,
the little man move up through access to otherwise un-
Washington, D C. in 1962 and since then has been encouraging private sector leaders in Latin American and Carib-
are the basic building blocks of development. Without
available credit. With a small staff, with a dedicated Board
bean countries to participate in their national development process by organizing and financing autonomous, private
them, "GNP growth" is an illusion - and without them a
of Trustees and with a singular commitment to its objec-
sector, National Development Foundations (NDFs). These NDFs finance, through loans, self-help development projects
society cannot truly move forward.
tives, the PADF has demonstrated in the National Develop-
established by community groups at the village level which these groups regard as essential to their own social and
The PADF, through its National Foundation movement, is
ment Foundation a successfully innovative approach to
economic improvement. The PADF has made or facilitated loans and grants to these foundations in excess of $5 million.
successfully establishing just such building blocks, but
help achieve the development objective of "social equity".
It also manages a material resource program through which over $9 million value in donated tools and equipment, hospi-
they must be put in place on a far wider scale.
Our success in the future will in large part be measured by
tal items and pharmaceuticals have been sent to Latin American educational and health institutions.
This problem of reaching the poorest segments of a
the degree to which institutions other than ours, accept
country with development aid has been of deep interest to
and adapt their own programs to this basic concept.
The PADF has been classified by the Internal Revenue Service as a Sec.501-C3 tax-exempt organization for
the U.S. Congress, which in past years has taken several
Federal income tax purposes, and is registered as a Voluntary Agency with the Advisory Committee on Voluntary
steps to show its concern. The first was the adoption of
Galo Plaza
Foreign Aid of the Agency for International Development.
"Title IX" to the Foreign Assistance Act, in which the Con-
Chairman, Board of Trustees
The foundation's policies are established by a Board of Trustees whose members are drawn from public and private
life in Latin America, Europe, Canada and the United States.
1
The project itself is not the only program benefit. The
4) Tools for Freedom Program. Under this program
process through which the community group identifies a
donations of tools of all types are received by the PADF
common need, and then acts to resolve it, also provides an
and channeled to the NDFs for distribution to technical
experience in decision making and financial discipline.
schools. This calendar year some $259,726 value of such
While philanthropical in broad purpose, the NDF
tools were received and distributed.
program is not a charity operation. It is rather a
commitment of enlightened self interest on the part of the
government which grants legal personality, and sometimes
5) Hospital Equipment. $404,764 value of contributed
tax benefits to the local foundations; the local business-
hospital and dental equipment was distributed through the
men whose contributions to the foundation assure its con-
NDFs to rural health centers, hospitals, and dental clinics
tinuing financial integrity; and the poor whose demands for
in NDF countries during 1972.
a greater opportunity to share in the progress of their
society have heretofore been frustrated.
In Latin America, business and government to an ever
6) Operación Niños. $9,646 was contributed, most
increasing extent are recognizing the importance of bring-
by U. S. school children, to this program. These funds
ing marginal consumers into the cash economy. The reali-
were distributed largely for the purchase of simple educa-
ties of ownership and incentive are not lost on people who
tional materials for rural schools in the poorer Latin
are otherwise forced to continue a marginal status as
American countries.
PRESIDENT'S STATEMENT
share croppers, tenant farmers, or unemployed urban
workers. As such individuals enter their local cash
economy, the consumer and producer base is expanded
On the occasion of the Tenth Anniversary of the Pan
to the benefit of all.
7) PADF Financial. The PADF operated in FY 1972 on
American Development Foundation, it is a pleasure for me
I am convinced that this approach, which the PADF has
a total budget of $268,454 of which $75,000 was re-
to make my first report as President of this institution.
been instrumental in establishing in Latin America, can be
ceived from the Organization of American States and the
During the past decade, the PADF has provided en-
successfully initiated in other developing areas of the
balance from various private contributions as well as a
couragement, guidance, and loan funds, to Latin American
world where private sector leaders are not content to
small amount from NDF interest payments. Normal pro-
private sector leaders who converted these and their own
leave all development efforts to their government. It is a
gram expenses for the year were exceded by substantial
resources into credit and technical assistance, so that
extra outlays for the cost of specialized Seminars in the
New houses under construction in Managua financed by the
community groups could plan and finance their own self
program which is adaptable to a country's laws and cus-
toms, and in the organization and specific objectives of
Dominican Republic and Guatemala as well as the imple-
Nicaraguan Development Foundation.
help projects. This has been accomplished through private
of each autonomous foundation it reflects the social,
mentation of a $300,000 AID grant and OPIC Program
sector, National Development Foundations, through which
political and economic realities of the country.
supervision. Although ending FY 1972 with a small deficit
small direct loans and/or guaranteed bank loans are made
we will close the current fiscal year with a modest cash
without traditional collateral or guarantees, and at normal
balance.
9) The Nicaraguan Development Foundation and
commercial bank rates. Under these unusual conditions,
Earthquake Relief. A special section of this report details
the default rate on over $5 million dollars loaned has been
Progress was made in establishing the "Century Club",
cooperative efforts in this regard. Briefly, the PADF, in con-
less than three percent. Farmers who would not otherwise
HIGHLIGHTS OF YEAR 1972
comprised of U.S. corporations which are making contribu-
siderable part through the generosity of "The Rolling
have had access to credit are now able to purchase seed,
tions of $1,000 to the PADF on an annual basis.
Stones", has collected some $500,000 which is now in
fertilizer and small farm machinery which they must have to
process of being channeled to the Nicaraguan Foundation,
produce more than they consume. Title to their own land,
Highlights of the PADF's operations in the fiscal year
FUNDE, for the purpose of constructing low cost housing,
clean drinking water, a truck to transport produce to
1972/3 are mentioned briefly below. Further details are
8) Commercial Bank Participation. One of the basic
training carpenters, electricians, masons, etc. and making
market, low cost housing, a fishing boat, daily credit to
found in the body of this report.
objectives of the PADF is to encourage private banks to
small business loans to aid in the countrys' rehabilitation
market vendors, sewing machines, all of these are ex-
get involved in this program. We are pleased to report in
efforts.
amples of community and individual needs met through
1) Formation of the Council of American Develop-
this regard the following examples of cooperation:
NDF direct loans, or through commercial bank loans guar-
ment Foundations "Consejo" In October of 1972, fifteen
anteed by the NDFs.
National Development Foundation representatives agreed
The Bank of America loaned $50,000 to the
The excellent repayment record is based upon two fac-
to federate and establish a common Secretariat. Alejandro
Venezuelan Foundation; The Chase Manhattan Na-
Relationship with the Organization of American States. We
tors: first, poor people know very well the difference in
Grullon of the Dominican Republic was elected President
tional Bank in the Dominican Republic, extended
continue deeply appreciative of the budgetary and vital
cost between normal bank interest which they can only re-
of the "Consejo" with headquarters to be located for the
some $200,000 in loans to 37 agricultural coopera-
administrative and financial support services provided by
ceive through the NDF program and that of funds received
current time in the Dominican Republic. A working agree-
tives, many of whom became credit-worthy through
the O.A.S. To encourage a closer working relationship, the
from the local money lender. Second, there is the unique na-
ment detailing the relationship between the Consejo, the
receiving and repaying prior loans made by the Do-
special advisory group of O.A.S Council and Secretariat
ture of repayment procedure. For example, a community of
NDFs and PADF has been drafted and is being reviewed
minican Development Foundation; The Philadelphia
members under the Chairmanship of Honduras Ambassa-
National Bank is making a loan to the Nicaraguan
dor to the O.A.S. Tiburcio Carias Castillo, met on various
100 families can borrow $1,300 to install a clean drinking
by the NDFs and the PADF.
water system and at the rate of two cents per day, per
2) Development Loan Program. Figures currently avail-
Foundation under an Export Import Bank guarantee;
occasions with the PADF Executive Committee to col-
able, indicate the cumulative number and value of NDF
and ADELA loaned $100,000 to the Dominican Foun-
laborate on general policy guidance.
family, can repay the loan in less than two years, including
an interest rate as high as 10%. Any economist will see
loans through December 31, 1972 amounted to some
dation. A number of local banks in NDF countries are
this process of "grass roots" capital formation, as reflec-
6,171 loans totalling $5,194,702 dollars, benefitting ap-
also making loans to marginal groups stimulated by
ting a highly satisfactory cost/benefit ratio. We know of no
proximately 443,720 people.
the NDF.
other community based system in any developing country
3) New Foundations. During the past 12 months, foun-
as efficient or as appropriate as this. It directly answers the
dations were established in Cali, Colombia, in Costa Rica,
credit needs of low income groups, for the projects are
TScepton
T. Graydon Upton
Jamaica, and in Trinidad and Tobago. In some cases these
President
within the limits both of their understanding and economic
are the result of PADF consultative efforts going back over
capacity.
a period of years.
3
2
Annual Report 1973
ISSUES
What differences have the National Devel-
CONTENTS
opment Foundations made?
Report of Chairman of the Board
Is a small loan program anything new? Certainly not. Our
1
Presidents Statement
experience so far indicates that almost everyone, even
2,3
Issues
the poorest farmer in the furthest rural area, is receiving
5,6,7
Nicaragua - Special Report
credit, but generally on terms that make us uncomfortable:
10
crops mortgaged before they are planted; borrowing at
Geographic Distribution of PADF Programs
12,13
25% interest rate a day by the women of the food markets;
Material Resources Program
small consumer loans at 15% a month.
Tools for Freedom
14
To gain a better understanding of the extent of the "un-
Health Services, Operación Ninos and Audio Visual Programs
16, 17, 18
official money market", the Central Bank of Honduras re-
Major Contributors to PADF
cently required all private lenders to register with it and re-
19
cord their loans. In the first two months over 360 lenders
Financial Statement
20,21
registered. Their combined portfolios represented $16
Century Club
22
million dollars, or about 10% of the country's banking sys-
Listing of National Development Foundations
23,24
tem and twice as much as the resources of the entire co-
operative credit system with some 60,000 members.
Userers are, however, fulfilling a need, in that they are
providing a credit service which is reaching people,
at the time and place it is needed, albeit at a very high cost.
While some banks, government and private, have made
loans to poor people, they have frequently experienced re-
payment difficulties, for they have ignored the reality that
N.D.F. loans contribute to upgrading production capability of small
the banking system is designed for a different type of
farm holdings.
Guatemala
lending operation and clientele.
Credit unions and cooperatives in general are more suc-
which she has her own passbook. No one else can touch
cessful because they are adapting their organizational
her money, and she will have built up a sufficient saving re-
needs to the circumstances of the poor, however, they are
serve in one year, so as to be entirely independent of any
generally limited in their loans to the deposit capacity of
lender in the future.
their members.
Another example: On April 12, 1973, the Chase Man-
The NDF approach is closer to the needs and circum-
hattan Bank in the Dominican Republic, extended a total of
stances of poor people, for it operates with the flexibility of
$201,758 in loans to 37 small agricultural associations.
the usurer but at commercial interest rates, and serves as
These loans to 714 poor "campesino" families repre-
an effective spring board into the normal credit system.
sented their first direct financial assistance from any bank,
An example: It is not uncommon for a market woman in
private or governmental. It reflected as well, their success
Managua to borrow from money lenders at a rate of 25% a
in repayment of earlier loans to the Dominican Develop-
day; to borrow $4 in the morning and pay back $5 in the
ment Foundation. With cooperation from the Inter-
afternoon. Since she has no other working capital re-
American Foundation in the form of matching grants, the
source, paying such interest is necessary; however,
DDF is now able to extend an additional $201,758* to
it does represent an annual rate of 9,000%! To change
new groups of campesinos to bring them up the credit
this situation, the NDF in Nicaragua is now working
ladder as well.
with a cooperative of 185 market women who had been
The loan status tables which follow provide one mea-
receiving loans from usurers at 40% a month. The NDF
sure in the analysis of the "difference" which the NDF
has replaced the usurer and lends at exactly the same
program is making, in that the totals represent credit which
BELGIC
40% charge. However, all but 1% of this monthly charge is
would not otherwise have been available at normal com-
deposited in each woman's personal savings account, for
mercial interest rates and terms to these people.
representatives and guests.
PADF Board of Trustees meeting, June 11, 1973, Council Room of the Organization of American States. Also present are N.D.F.
The full value of the IAF matching grant to the DDF is $425,000
4
5
Another measure of the "difference" which the pro-
gram is making, is seen in an independent field evaluation
of NDFs conducted in 1972 by the Auditor General's Of-
STATUS OF NATIONAL DEVELOPMENT FOUNDATIONS
fice of the Agency for International Development in which
the following analysis appears:
REVOLVING LOAN FUND PROGRAM
"During our visits, we saw ample evidence of the ca-
pacity of the NDF program to assist marginal groups in
Cumulative totals as of December 31, 1972
improving the economic and social conditions of their
communities and their families.
Number of
Value of
People
In the Dominican Republic for example, two groups of
NDF
Loans
Loans US$
Benefitted
campesinos (farmers) formed themselves into small
Chile
26
97,087
9,002
cooperative agricultural associations under the
Colombia (Bogota)
42
250,000
15,000
guidance of the Foundation. These campesinos and
Colombia (Cali)
160
70,000
2,100
their families had been living at a minimum consump-
Dominican Republic
3,612
2,264,193
247,877
tion level growing vegetables (corn, tomatoes, onions
Ecuador (Quito)
106
79,738
14,000
and peppers) which they harvested once a year. None
Ecuador (Guayaquil)
1,320
320,000
4,320
of the individuals in these groups had received credit
El Salvador
67
55,373
561
before, since they had no assets of sufficient value to
Guatemala
317
617,586
48,184
serve as bank collateral. With loans from the Founda-
Honduras
231
399,844
79,286
tion, they were able to purchase and install water
Mexico
92
708,006
14,000
pumps to irrigate their land, and as a result they are
Nicaragua
132
104,568
5,480
now harvesting as many as three crops a year and their
Peru
1
70,000
400
families are living under much improved conditions.
Venezuela
65
158,307
3,510
Equally important the loans were paid off in a timely
manner. Further, we learned that any loans the
TOTALS
6,171
$5,194,702
443,720
associations may require in the future will be obtained
from commercial sources, because they now have an
acceptable credit performance, and additional col-
lateral.
Cooperative self-help efforts and NDF loans contribute to im-
proved housing and community living.
Salvador
Increasing agricultural production is one goal. Improving marketing
conditions however is a vital corollary. NDF loans allow such mar-
REVOLVING LOAN FUND PROGRAM GROWTH
ket women to escape usurers and to maintain a competitive posi-
Another group of rice farmers in the Dominican Re-
tion in the market.
Nicaragua
public had been working sporadically in the rice fields
as laborers for daily wages. Under the Foundation's
counsel and financial assistance, they joined together
and purchased land in which they are planting and
harvesting rice collectively.
An Indian community of 37 corn farmers in Guatemala
formed an agricultural association after contacting a
Total Cumulative Amounts
field representative of the Penny Foundation (Guate-
mala Development Foundation). Prior to this, the mem-
bers had attempted without success to obtain bank
Year
Number
Number
Value
loans for the purchase of fertilizer. The Penny Foun-
as of
of
of
of loans
dation granted this group a loan for the fertilizer which
(December 31)
NDFs
loans
US$
resulted in a substantial increase in their crop yields.
1967
1
100
200,000
In the Juticalpa region in Honduras, a community
1968
5
402
674,679
group of 53 campesinos applied to the Honduran De-
1969
7
1,497
1,374,126
velopment Foundation for a loan to purchase approxi-
1970
11
2,807
2,307,927
mately 150 hectares of land. The Foundation granted
1971
12
3,932
3,868,710
the loan and after the first crops were harvested, they
1972
13
6,171
5,194,702
paid off the loan. They have now obtained credit from
a commercial bank for the purchase of two tractors.
They used to pay 1/3 of the crop as rent for their
land, with a loan from the HDF they are paying 1/8 to
own it, and have increased their cash income by 16
times.
6
7
Another group of 26 farmers in the same region re-
Which Agencies have made loans, grants or
Export-Import Bank-U.S. Government
Inter-American Development Bank (IDB)
ceived a loan from the Honduran Foundation to pur-
guarantees to the PADF-NDF program?
chase seeds and tools to enable them to plant corn
Technical assistance grants have been extended by
and beans. They consistently made small monthly
A $125,000 loan was approved for the PADF to fi-
the IDB to the PADF for the provision of financial manage-
payments and paid off the loan in full.
nance purchase of U.S. manufactured equipment which
ment consultation to NDFs and to finance a special study
While NDF focus on rural areas is the predominant
Agency for International Development - U. Govern-
will be sold through the Nicaraguan Development Founda-
of credit institutions in 5 countries working with poor peo-
ment
theme of the program, there are some exceptions in
tion's revolving loan program. This equipment, mostly
ple. The Bank has also made a $100,000 technical assis-
which loans are extended to encourage the initiation
sewing machines for commercial and home use, as well as
tance grant to the Venezuelan Development Foundation
of small business ventures and artisan activities. In
small industrial machines will help to meet the needs of the
and is considering a major sub-loan agreement with the
addition, in our field visits, we witnessed some of the
Loans and grants totaling in excess of $1,75 million
"small shopkeeper" to reestablish himself in "post-earth-
Government of the Dominican Republic which will provide
benefits of the program in terms of functional applica-
dollars have been made by AID through the PADF to the
quake" Nicaragua.
loan funds for the Dominican Development Foundation.
tions, i.e. knowledge of improved seed, fertilizer and
NDFs to help them initiate their programs by matching lo-
materials which in turn improved family living circum-
cal contributions to their revolving loan funds. Through
stances.
these loans, the PADF has also established its own net
Philadelphia National Bank
ADELA Development Corporation
The NDFs have included in their program loans for
worth of approximately $550,000.
housing construction and improvement. The Founda-
Individual AID Missions in Latin America have also
tion in El Salvador is primarily engaged in construction
provided NDFs with operational grants. The AID Missions
of new housing, and during the past two years has
in Guatemala and Ecuador in addition, are now well ad-
A $125,000 loan to the PADF under an Export-
This private international financing company, based in
Import Bank guarantee was approved as a complement to
Lima, Peru, extended a 3 year, PADF guaranteed,
succeeded in completing 131 houses at an individual
vanced in considering loans of $500,000 and $250,000
the above mentioned loan. The PNB is also considering a
$100,000 loan to the Dominican Development Founda-
cost of less than $1,000. Mortgaging these houses at
respectively to NDFs in those countries.
$50,000 loan for a housing project sponsored by the Hon-
tion. The loan, at current Eurodollar interest rate, has pro-
a cost of less than $10 per month has resulted in spe-
AID has also provided freight subsidies in excess of
duran Development Foundation and a $10,000 loan to the
vided the DDF with additional loan capital.
cific government interest and support for expanding
$250,000 to the PADF through which more than $8.9
Cali Foundation in Colombia for purchase of new voca-
this effort to include other areas of El Salvador. Pre-
million value in hospital and vocational training equipment
tional training equipment.
sent plans call for the Foundation's participation in a
has been sent to NDFs to help institutions serving poor
Canadian Agencies
government financed project which will lead to the
people.
construction of 14,000 new housing units under a
five year program.
Grants in excess of $65,000 have been made to the
The Foundation in Tegucigalpa, Honduras, is also in-
Bank of America
NDF in the Dominican Republic by the Canadian Interna-
volved in the financing and construction of new
Overseas Private Investment Corporation
tional Development Agency and the Canadian Hunger
housing units. This Foundation has also financed the
Foundation. Smaller grants from the Canadian Save the
operation of a prefabrication plant which is capable of
A $50,000 PADF guaranteed, 3 year loan has been
Children Foundation have facilitated shipments of agricul-
producing housing panels for assembly at the rate of
made to the Venezuelan Development Foundation to ex-
tural and medical supplies and a mobile health unit toNDFs
3 housing units per day.
Serving as a contractor to OPIC for the implementation
pand its credit capability for loans to small businessmen.
in Caribbean countries including Trinidad and Tobago, Bar-
The Foundation in the Dominican Republic has fo-
of the Community Credit Guarantee Program, the PADF
Additional Bank of America loans and lines of credit have
bados, and Jamaica.
cused its housing efforts on rehabilitation and with
was asked in July 1972 to supervise the program in
been extended to NDFs in Nicaragua, the Dominican Re-
While PADF membership in the Canadian Association
funds made available to it from the National Housing
Panama and Colombia in addition to its original 1971 con-
of Latin American Studies has stimulated graduate student
public, Guatemala and Honduras.
Bank has been financing the purchase of cement,
tract which covered Honduras and Guatemala. This
and faculty interest in research opportunities in the NDF
lumber and roofing materials to encourage housing
program has so far generated over $550,000 in loans by
programs, PADF attendance at, various meetings of the
improvement efforts in rural areas."
private banks, NDFs and other institutional lenders backed
Canadian Association for Latin Almerica has also helped to
by the CCGP-U.S. Government guarantees. It is expected
encourage Canadian business and commercial interest in
that the benefits of this program which requires no outlay
International Bank for Reconstruction and Development
the PADF and NDF programs.
of U.S. funds will soon be extended by the U.S. Congress
(World Bank)
Is the NDF experience self-serving, is it an
and OPIC to other countries in Latin America as well as to
other areas of the developing world.
The HIVOS Foundation
end in itself, or does it represent a methodo-
logy which can be greatly expanded?
The IBRD is currently studying a loan project for El
Salvador in which the Salvadorean Development Founda-
Representing the PADF/NDF programs as its Euro-
tion would have a major responsibility. This is a project for
pean Secretariat, the HIVOS Foundation has been instru-
Inter-American Foundation-U.S. Government
the preparation of 8,000 housing lots on which low cost
mental in encouraging European non-goverment agency
Having seen the NDF program emerge as a "model",
housing would be constructed on a self-help basis under
interest in, and grants to NDFs, and has as well made its
the guidance of the Salvadorean Foundation.
own direct grant to the Mexican Foundation.
it must be understood that it was never intended to serve
simply as a "poor man's bank". It is rather a means through
Working closely with the PADF program, the IAF has
which private sector leaders can begin to respond to the
approved grants in excess of $3 million to 7 of the NDFs.
legitimate needs of poor people, to make changes in the
This represents a significant portion of the total IAF grant
"systems" which keep people poor. The two basic sys-
program to date and is a clear endorsement of the NDF
tems which are the NDF targets are the banks and techni-
concept and methodology. The IAF has also financed NDF
cal assistance programs of government and voluntary
seminars in a continuing effort to help strengthen mana-
agencies.
gerial and organizational aspects of the program.
9
8
NICARAGUA - A Special Report
"With Nicaragua facing the most serious challenge in its
$250,000 loan and guarantee from the Export-Import
history as a consequence of the December 23, 1972
Bank of the United States Government. The largest single
earthquake, the private sector is demonstrating through
contribution, $352,000 from the rock musical group, The
the Nicaraguan Development Foundation (FUNDE) its
Rolling Stones, was presented to PADF Trustees, Senator
commitment to participate in the national objective of re-
Jacob Javits and Galo Plaza, Secretary General of the
building the city and society and directly benefitting the
OAS and Chairman of the PADF Board of Trustees, by Mr.
less favored groups."
Mick Jagger and his wife Bianca Perez Jagger. The next
With current and projected resources of approximately
largest contribution, $150,000 was raised through a
$850,000 dollars generated through the direct efforts of
special art auction in New York City, organized by Mrs.
the PADF for its rehabilitation program, FUNDE has
Catalina Kitty Meyer, under the sponsorship of PADF
emerged from the earthquake as the strongest non-
Trustee Bradford Morse, Under Secretary General for
government development institution in the country.
Political & General Assembly Affairs of the United Nations.
Two days after the earthquake, which took the lives of
The Bank of America distinguished itself as well, in co-
three FUNDE staff members and destroyed the office and
most of its records, the PADF's Executive Director was in
ordinating a fund raising campaign in California under the
guidance of Bank of America Vice President, William Bolin,
Managua assisting FUNDE to re-establish its program.
also a PADF Trustee. Over $35,000 was collected
Within a week with assistance of the PADF's architect, a
through this effort.
prototype wood, pre-fabricated house had been construc-
ted, and local carpenters were receiving instruction to en-
All grants and loan funds are being directed to the
able them to produce two room houses on an assembly-
FUNDE revolving loan fund program, which is focused in
line basis at a unit cost of $200.
three major areas; re-establishment of small business,
During the same time, PADF Trustees and staff initiated
financing the construction of inexpensive pre-fabricated
PADF Trustees, Senator Jacob Javits and Mr. Galo Plaza accepting $352,000 contribution from Mick Jagger on behalf of the Rolling
a fund raising campaign in the United States which pro-
housing, and providing consultation and loan funds to
Stones, to finance Nicaraguan Development Foundation rehabilitation efforts in Managua.
duced a total of approximately $600,000 in grants and a
marketing cooperatives.
*Statement from Nicaraguan Development Foundation
NICARAGUAN DEVELOPMENT FOUNDATION
Newsletter April 1973.
Post Earthquake Loans made from January through June, 1973
Partial view of a 38 family project of 2, 3 and 4 room houses financed by the Nicaraguan Develop-
Activity
Number of loans
Amount
ment Foundation for homeless earthquake victims.
Small Industry
31
US $36,233
Infrastructure (potable water)
3
8,523
Housing Settlements
1
12,430
Marketing
4
6,457
Prefab housing program 2
18
8,867
TOTAL
57
US $72,510
Total number of loans made
57
Total Amount loaned
US $72,510
Number of families benefitted
1,523
Average loan
US $ 1,272
Average term
16 months
Average Number of Families per loan
28
Average loan per Family
$
45
1. The housing settlement program includes 1 project with 38 families, already completed; another with 50, under
construction, was not included as a loan made.
2.A total of 350 prefab housing modules have been produced by carpentry shops financed by FUNDE, totalling US
$84,350. The purchase of 18 of these was financed by FUNDE and the balance was either paid for in cash or
financed by a bank.
10
11
GEOGRAPHIC DISTRIBUTION AND MONETARY VALUE
OF NDF/PADF PROGRAM
Grants by
Operating
Loans/Grants
Inter-American
Loans/Other
Tools for
Health
Operación
Total NDF
NDFs
PADF
Foundation
Agencies
Freedom
Services
Niños
Program
México
1
90,968
507,000⁴
-
-
172,459
31,439
801,865
Honduras
2
153,127
529,113°
25,000ᵈ
128,404
181,770
10,650
1,028,064
MEXICO
Nicaragua
1
53,000
512,500h
250,000°
26,669
102,931
1,185
946,285
Jamaica
1
-
-
-
-
-
-
-
RICO
Haití
-
-
-
-
-
37,529
250
37,779
JAMAICA
LESSER
HON
Dominican Republic
1
Caribbean Sea
858,065
471,000
100,000ᵇ
408,322
496,040
23,349
2,357,776
ANTILLES
NICARAGUA
BAD
Barbados
-
-
—
-
1,625
63
-
1,688
COSTA RICA
VENEZUELA
Trinidad & Tobago
1
-
47,676
-
17,875
1,166
-
66,717
COLOMBIA
Venezuela
1
-
-
50,000ᶜ
415,369
191,950
951
658,270
CUADOR
RRA711
Colombia
2
41,782
300,000
10,000ᵈ
1,145,970
873,733
55,486
2,426,971
PERU
Ecuador
2
83,148
-
-
102,039
370,528
9,386
565,101
SOUTH
Perú
1
45,000
-
-
492,348
298,974
15,002
851,324
Panama
a
-
-
-
2,526
32,517
3,341
38,384
BOLIVIA
Costa Rica
1
-
I
-
2,671
30,831
13,036
46,538
AMERICA
El Salvador
1
92,500
625,800
-
270
30,288
3,390
742,248
PARA-
CHILI
GUAY
Guatemala
1
129,804
10,000
-
151,480
229,801
68,907
589,992
ARGENTINA
Bolivia
1
-
-
-
33,896
304,782
2,588
341,266
Paraguay
1
-
-
-
-
32,693
1,750
34,443
URU-
GUAY
Brazil
-
-
-
-
I
170,944
24,721
195,665
Uruguay
a
-
I
-
-
61,843
1,496
63,339
Chile
1
65,671
-
-
404,245
1,406,239
19,703
1,895,858
Argentina
1
-
-
I
202,066
379,862
12,526
594,454
Special OAS Multinational
561,360'
Total Programs
20
$1,603,065
$3,003,089
$435,000
$3,535,775
$5,406,943
861,516
$14,284,020
December 31, 1972
ᵃNDF Organizing Committee
$ 7,000 granted in 1973
PADELA (loan)
9$ 6,000 granted in 1973
ᶜBank of America (loan)
h$10,000 granted in 1973
°Philadelphia National Bank (line of credit)
Foundation grants to Inter-American Agricultural Sciences
Export-Import Bank (line of credit)
Cali
12
13
TOOLS FOR FREEDOM ADVISORY COUNCIL MEMBERS
Mr. LLOYD N. ADAMS, JR.
Mr. CLYDE A. PAISLEY
Financial Service Corporation
Atlanta, Georgia
Atlanta, Georgia
Mr. LAWRENCE H. RUSSELL
Mr. BERT W. ANGER
Buck Tool Company
Nicholson File International
Kalamazoo, Michigan
Providence, Rhode Island
Mr. G.C. TURNER
Mr. ANDERSON ASHBURN
Westinghouse Electric Corp.
American Machinist
Pittsburgh, Pennsylvania
New York, New York
Mr. RICHARD A. WHITNEY
Mr. JAMES H. BANKEY
Beaufort, South Carolina
Questor Corporation
Toledo, Ohio
Chairman
Mr. ROBERT B. BRAVO*
Hobart Brothers Company
Troy, Ohio
Mr. THOMAS A. HUMANN
Allis-Chalmers
LATIN AMERICAN MEMBERS
Milwaukee, Wisconsin
Mr. JAMES C. KELLEY
Sr. ALBERTO JOSE CARVAJAL
American Machine Tool Distributors Association
Carvajal and Cía.
Washington, D.C.
Cali, Colombia
Mr. E. J. KRABACHER
Sr. EDUARDO DIBOS
Cincinnati Milacron
Sociedad Químico Industrial Lima, Ltda.
Cincinnati, Ohio
Lima, Peru
MATERIAL RESOURCES PROGRAM
Mr. BASILIO LIACURIS
Ing. MIGUEL A. GUERRA
Porter International
Fundación Dominicana de Desarollo
Washington, D.C.
Santo Domingo, Republica Dominicana
Mr. ROBERT MORROW
Sr. HUGO MANZANILLA
Frank Morrow Company
Dividendo Voluntario para la Comunidad
The PADF's Material Resources Program is comprised
TOOLS FOR FREEDOM
Providence, Rhode Island
Caracas, Venezuela
of Tools for Freedom, Health Services, Operación Ninos
and the OAS/Audio Visual Program which was added to
its responsibilities early in 1972.
PROGRAM
This program represents an important element of the
PADF effort, for it provides a continuing program contact
with all NDFs including those which have been unable to
The TFF Program, active in 13 Latin American and
begin their revolving loan fund. The program responds to
Caribbean countries, provided vocational and technical
needs identified from within the countries, and insists on
training opportunities to students in 200 schools last year.
U.S. based TFF Committees, private businesses, in-
Among its many accomplishments for 1972, the Tools
an equal participation and responsibilities in terms of over-
TFF channeled more than $300,000 worth of new surplus
dustry and concerned individuals, assist in locating suit-
for Freedom Program:
all administrative costs and management decisions.
tools and machinery during 1972, notwithstanding the
able equipment donations. Host country committees of the
1. Shipped power drills, saws, hammers and axes to
The Audio Visual contract provides the OAS with a
economic recession in the United States, new restrictions
NDF's are responsible for the customs clearance, distribu-
assist in Nicaraguan earthquake rehabiliation efforts;
service through which its impressive array of slides and
in tax deductability procedures, and TFF's continued em-
tion and maintenance of the equipment, and also for coun-
movies on Latin American art and culture are being
terpart contributions of funds and equipment from their
2. Assisted other agencies including the Partners of the
phasis on equipment quality and suitability.
brought to the attention of schools and universities in the
Americas & Sister Cities Programs in transporting
own local industry.
U.S., Canada, and Europe.
equipment donations to their program affiliates in
Tools for Freedom was conceived as a practical way to
Latin America.
The total value of the Material Resources program for
Ocean freight subsidies are provided by the U.S.
calendar year 1972 was $884,648. This includes the
help Latin American countries help themselves by offering
Agency for International Development for shipments to
3. Participated in the International Machine Tool Show
Special OAS Multinational Program through which contri-
tools and industrial equipment to young people in these
Bolivia, Colombia, the Dominican Republic, Ecuador,
in Chicago, Illinois;
butions made to the OAS are channeled to its specialized
countries who could be trained in various technical occu-
Honduras and Peru. Shipments to other countries were
4. Received recognition from the Colombian Govern-
programs in Latin America, such as the Kellogg Founda-
pations vital to their country's development. "Manpower"
made possible by Catholic Relief Services, Standard
ment for its "exceptional contribution to the develop-
tion's support of the Inter-American Institute of Agricultural
development is indeed one key of expanding and diversi-
Fruit Steamship Co. and U.S. and Latin American shipping
ment of Colombia and the technical education of its
Sciences in Costa Rica.
fying the economies of these countries.
lines.
people."
14
15
HEALTH SERVICES
OPERACIÓN NIÑOS
PROGRAM
Locating and sending appropriate equipment is the
primary activity of the Health Services' Program. During
Operación Ninos ("Ninos" are children), provides
the past year, contributions valued at $400,000 in surplus
educational and health materials to rural communities and
and new hospital equipment and supplies were obtained
urban slums in Latin America. Aimed at supplementing
and shipped to seven Latin American countries.
such services as are available for primary and secondary
As good health is a critical factor in "people develop-
school-age children, "Operación Ninos" has channeled
ment", and consequently national development, the
contributions from U.S. school children and friends of chil-
Health Services Program has provided health care equip-
dren to small community level, self-help projects which
ment and materials to hundreds of rural hospitals since the
would not otherwise get such help.
Program's inception in 1970.
Special cooperation has been received from the Ameri-
can Hospital Association, American Dental Trade Associa-
Operación Ninos grants have been used to build and re-
tion, the American Dental Association, the Pharmaceutical
pair clinics and schools, to provide teaching aids and edu-
Manufacturers Association, Pan American Health Organi-
cational materials; and to purchase school furniture and
zation, Catholic Relief Services, Direct Relief Foundation
even clothing for indigent children. Self-help is a part of
and the Partners of the Americas.
every Operación Ninos project, whether in the form of
Committees of physicians, dentists and public health
labor, materials or volunteer services.
officials cooperating with the NDFs evaluate local needs
and assist in the distribution of pharmaceutical, hospi-
tal and dental equipment.
A complete intensive care unit now in operation in La Paz. Bolivia
The NDFs pay for the costs of crating, warehousing and
contributed through the American Hospital Association.
in-land transportation of all contributions.
HEALTH SERVICES ADVISORY COMMITTEE
Chairman:
Vice Chairman:
DR. JOSE GONZALES
MR. JOHN TEETER
American Hospital Association
Pfizer International
Washington, D.C.
New York, New York
MR. JOHN BRYANT, JR.
MR. J. SPENCER HOWELL
MR. ALAN RUBIN
American Dental Trade Association
Wyeth International
National Association of the Partners
Washington, D.C.
Philadelphia, Pennsylvania
of the Americas
MR. JOSEPH CALITRI
MR. DENNIS KARZAG
Washington, D.C.
Lederle Laboratories
Direct Relief Foundation
MR. JOSE SERRANO
Wayne, New Jersey
Santa Barbara, California
Parke Davis & Company
MR. ALBERTO LAGOMARCINO
Detroit, Michigan
MR. GERALD DANIEL
Merck, Sharp, & Dohme International
DR. J. C. SERRATO, JR.
UAW/STEP Program
Washington, D.C.
Rahway, New Jersey
Inter-American Council for Medical
Assistance, Education & Research
MR. EDWARD LANDRETH
MR. M. E. DANIELS
Columbus, Georgia
Sterling Drug
Dow Chemical
New York, New York
MR. FRANK SPRINGER
Indianapolis, Indiana
Eli Lilly
MR. CHARLES LORD
DR. CARR DONALD
Indianapolis, Indiana
E.R. Squibb & Sons, Inc.
Organization of American States
MR. HARRY TOMLINSON
New York, New York
Washington, D.C.
The Upjohn Company
MR. W.R. MILLER
Kalamazoo, Michigan
MISS MARIAN DRISCOLL
Bristol Myers
MR. ALEX TOWNSEND
American Dental Association
New York, New York
Education becomes a reality to these children in Guayaquil, Ecuador as a result of an Operación Nínos grant which financed the construc-
American Foundation for Overseas Blind
tion of this school.
Chicago, Illinois
MR. PETER NOBLE
New York, New York
DR. NORMAN HOOVER
Pharmaceutical Manufacturers
DR. CHARLES WILLIAMS
American Medical Association
Association
Pan American Health Organization
Chicago, Illinois
Washington, D.C.
Washington, D.C.
16
17
MAJOR CONTRIBUTORS
AUDIO VISUAL PROGRAM
TO THE PAN AMERICAN DEVELOPMENT
PADF makes available through its Audio Visual Program
FOUNDATION 1972-73
a collection of slides and films produced by the AUDIO
VISUAL unit of the Organization of American States. These
materials portray various social, cultural and economic
In Addition To Members of the Century Club*
characteristics of Latin American and Caribbean countries.
During 1972 the Program realized sales of over $20,000
to universities, colleges, libraries, TV educational
channels, teachers and individuals throughout the
Alcoa Foundation
Inter-American Development Bank
Americas, Europe and Canada. These materials are
particularly useful in school and cultural organization, edu-
Allis-Chalmers, Inc.
International Crating and Container Corporation
cational programs.
American Dental Association
The Irwin Auger Bit Company
Recognition for the quality of these educational materi-
als is evident by the awards received for the film, "The
American Freedom from Hunger Foundation
Kiwanis Club
World of the Primitive Painter." These include special hon-
The American Fletcher National Bank
LIAT Airways
orary mention as an art documentary at the Bratislava,
Czechoslovakia film festival, and the Golden Eagle award
Atalanta Corporation
Mathias Klein and Sons, Inc.
from the Council on International Nontheatrical Events
Baldwin & Whitney, Inc.
Frank Morrow Company
(CINE).
Bemis Company
The National Bank of Washington
Black and Decker Manufacturing Company
Nicholson File International
Braniff International Airways
Pan American Liaison Committee
British West Indian Airways
People-to-People Program
Canadian Hunger Foundation
Galo Plaza
Canadian Save the Children Fund
Public Welfare Foundation, Inc.
Castle & Cooke, Inc.
Riggs National Bank
Catholic Relief Services
Rockefeller Brothers Fund
Champion Spark Plug Company
Rockwell Manufacturing Company
The Citizens & Southern National Bank
Rumford Supply and Machinery Company
Crocker National Bank
Sealand Services, Inc.
Judith Chiara Foundation
Sellstrom Manufacturing Company
Cincinnati Milacron, Inc.
Standard Fruit Company
Council of the Americas
Standard Oil of California
Elias Morris Curiel Foundation
Technical Equipment Sales Company
Dana International Corporation
Tinker Foundation
Charles Del Mar Foundation
True Temper
Direct Relief Foundation
Unibraze Corporation
William H. Donner Foundation
Union Bank of California
Flomerca Lines
United Auto Workers/Step Program
Friends of the U.S. and Latin America
United California Bank
General Mills Foundation
Victor Equipment Company
W.R. Grace and Company
Vollmer Foundation
Hobart Brothers Company
Richard A. Whitney
The C. C. Hobart Foundation
Wyman-Gordon Foundation
I.B.M. World Trade Corporation
Mrs. Shirley Temple Black, narrator of the film "The World of the Primitive Painter," with the artist Jose Antonio Velas-
*Contributors to PADFs Century Club appear on page 22.
quez, and H.E. Tiburcio Carias-Castillo, Ambassador of Honduras to the OAS.
19
18
PAN AMERICAN DEVELOPMENT FOUNDATION, INC.
STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES
AS OF JUNE 30, 1972
EXPRESSED IN UNITED STATES DOLLARS
PAN AMERICAN DEVELOPMENT FOUNDATION, INC.
ASSETS
STATEMENT OF CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 1972
EXPRESSED IN UNITED STATES DOLLARS
Current Assets
Cash
$ 9,545
Tools for
Hospital
Accounts receivable
24,546
Other
Restricted
Freedom Program
Medical Program
Miscellaneous receivables, principally due from employees
2,119
Operation
Special
Revolving
In-Kind
In-Kind
Accrued interest receivable
20,303
General
Ninos
Programs
Loan Funds
Other
Other
Total
Total current assets
56,513
INCREASE:
Contributions received
$135,308
$38,268
$215,195
$165,000
$240,331
$19,017
$353,953
$21,855
$1,188,927
Non-Current Assets
Administrative fees
4,270
6,829
6,074
17,173
Loans to National Development Foundations
869,293
Interest on NDF loans
28,946
28,946
Total assets
$925,806
Interest from OAS treasury fund
2,772
2,772
Grants:
OPIC contract
33,828
33,828
AID grant for seminars
39,230
39,230
IADB grant for administration
30,000
30,000
274,354
38,268
215,195
165,000
240,331
25,846
353,953
27,929
1,340,876
LIABILITIES AND FUND BALANCES
DECREASE:
Contributions granted in-kind
261,675
392,584
654,259
Current Liabilities
General operating expenses, net
Accounts payable
$ 28,012
of reimbursements from AID
Interest payable
2,103
for shipping of $58,200
253,454
31,662
201,239
12,283
32,452
531,090
Total current liabilities
30,1115
Administrative grants
15,000
15,000
268,454
31,662
201,239
261,675
12,283
392,584
32,452
1,200,349
Non-Current Liabilities
Loan payable
325,000
Net increase (decrease) in fund
355,115
balances during year
5,900
6,606
13,956
165,000
(21,344)
13,563
(38,631)
(4,523)
140,527
Total liabilities
Fund balances (deficit) at
beginning of year
2,970
4,758
386,452
21,344
(25,111)
38,631
1,120
430,164
Fund Balances
Fund balances (deficits) at
Restricted special purpose funds (deficit)
Tools for Freedom Program
(11,548)
end of year
$ 8,870
$11,364
$ 13,956
$551,452
-
$(11,548)
-
$(3,403)
$ 570,691
Hospital Medical Program
(3,403)
Operation Ninos
11,364
Note: The financial statements have been examined by the PADF's independent accountants, whose report thereon is available from the PADF upon request.
Other Special Programs
13,956
10,369
Restricted Revolving Loan Funds
551,452
General Fund
8,870
Operating equity
560,322
Total fund balances
570,691
Total liabilities and fund balances
$925,806
20
21
CENTURY CLUB
MEMBERS AS OF
NATIONAL DEVELOPMENT FOUNDATIONS
JULY 1973
Avon Products
ARGENTINA
CABLES: SALULLOA
Bank of America
TEL: 23-5735
Fundación Argentina de Desarrollo
Becton DicKinson & Co.
Maipú 535 Piso 9
President: Mr. Eduardo Salgado
Eastman Kodak Company
Ford Motor Company
Buenos Aires, ARGENTINA
Executive Director: Mr. Berlington A. Barnet
Much is being said and written about the responsibility
Gerber Products Company
CABLES: INSTITUTO
of the business community in general with respect to its
IBM World Trade Corporation
TEL: 392-1372
participation in economic development efforts, both in in-
International Basic Economy Corporation
President: Mr. Luis María Ygartúa
ITT Corporation
DOMINICAN REPUBLIC
dustrialized and in developing countries. The purpose of
Executive Director: Mr. Rafael Montenegro
the PADF's Century Club is to offer to U.S. and Canadian
Loeb, Rhoades & Company
Fundación Dominicana de Desarrollo
companies with business interests in Latin America, an
Manufacturers Hanover Trust Company
opportunity to demonstrate their appreciation of that re-
Marine Midland Bank
BOLIVIA
Calle Mercedes #4
sponsibility in the region, by helping to support the PADF
Philadelphia National Bank
Apartado Postal 857
Fundación Boliviana de Desarrollo
program. As of July 1973, twenty-one companies have
Schering Corporation
Santo Domingo, REPUBLICA DOMINICANA
Casilla #221
joined the Century Club, with contributions averaging
Sears, Roebuck and Company
CABLES: FUNDADOM
$1,000 per annum bringing the Club to over 20% of its
St. Joe Minerals
La Paz, BOLIVIA
TEL: 688-8102/3
goal of 100 members.
Standard Oil Company of N.J.
TEL: 22-271
TELEX: FUNDADO, (346)-0283
The Celanese Corporation
President: Mrs. Aída Aguirre de Méndez
President: Mr. Marino Auffant
The Chase Manhattan Bank
Executive Director: Mr. Bolivar Báez Ortiz
The Starr Foundation
COLOMBIA
Union Oil Company of California
Fundación Colombiana de Desarrollo
Calle 13 # 7-80 Oficina 229
Apartado Aéreo 29853
ECUADOR
Bogotá, D.E., COLOMBIA
Fundación Ecuatoriana de Desarrollo (NORTH ZONE)
CABLES: FUNCOLDE
Colón 1120 y J León Mera
TEL: 42-1588
Apartado Postal 2529
TELEX: 044602, ROMANOS
Quito, ECUADOR
President: Mr. Luis Robledo
CABLES: FEDED
Executive Director: Mr. Enrique A. Dávila de Heredía
TEL: 23-7945
President: Mr. Carlos Ponce
Fundación Nacional para el Desarrollo Social (FUNDES)
Executive Director: Mr. Marco Mejía Gross
Apartado Postal 5407
Cali, COLOMBIA
Fundación Ecuatoriana de Desarrollo (SOUTH ZONE)
TEL: 82-1093, 70-1775
M.J. Rendon 121 y Pichincha
President: Mr. Alberto José Carvajal
P.O. Box 1155
Executive Director: Ing. Claudio Fernández
Guayaquil, ECUADOR
CABLES: FEDED
CHILE
TEL: 30-5290/1
President: Mr. Clemente Yerovi Indaburo
Fundación para el Progreso Económico y Social
Executive Director: Mr. Daniel Muñoz
Ahumada 11 Oficina 614
Casilla 13139
Santiago de Chile, CHILE
CABLES: FUPRES
EL SALVADOR
TEL: 71-1415
Fundación Salvadoreña de Desarrollo y Vivienda Mínima
President: Mr. Gregorio Amunátegui
18 Avenida Norte 633
Apartado Postal 421
COSTA RICA
TEL: 22-1747/1741
Fundación Costarricense de Desarrollo
21-7207
Edificio Mayo
President: Arq. Dagoberto Gavidia
Av. Central, Calles la y 3a
Executive Director: R.P. Antonio Fernández Ibañez, S.J.
Sam Greene, friend of the people, advisor to the Board of Trustees of the PADF, and stimulus to the National Development Foundations.
San José, COSTA RICA
General Manager: Arq. Alberto Harth Deneke
22
23
GUATEMALA
NICARAGUA
Fundación del Centavo
Fundación Nicaraguense de Desarrollo
PAN AMERICAN DEVELOPMENT FOUNDATION
6a Avenida 7-19 Zona 9
Apartado Postal 2598
Guatemala City, GUATEMALA
Managua, NICARAGUA
MILESTONES
CABLES: FUNDACEN
CABLES: FUNDE
TEL: 6-2404
TEL:
President: Inq. Adolfo Ríos
President: Mr. Leonel Arguello
1963
Foundation operations initiated under auspices of Organization of American States
Executive Director: Ing. Rodolfo Martínez
Executive Director: Lic. William Báez Sacaza
1964
Operación Ninos launches at ceremony with Mrs. Jose A. Mora, Mrs. Dean Rusk, and Mrs. Thomas Mann
1965
Medical program initiated with cooperation and technical assistance from the Pan American Health Organization
PARAGUAY
HONDURAS
1966
Merger with Tools for Freedom Foundation
Fundación Paraguaya de Desarrollo
Fundación Hondureña de Desarrollo
First national development foundation inaugurated in the Dominican Republic
Ayolas 1453
Apartado 989
Asunción, PARAGUAY
1967
Inter-American Volunteers for Development launched in cooperation with Dominican Development Foundation
Av. Paz Barahona
CABLES: CASAL-ASUNCION
American Hospital Association begins sponsorship of member hospital surplus equipment transfer through PADF to Latin American health facilities
(Altos del Almacén La Urbana)
TEL: 4-8711
Tegucigalpa, HONDURAS
Second national development foundation launched in Colombia
President: Prof. Dr. Mario López Escobar
CABLES: FUNHDESA
Executive Director: Mr. Anibal Raul Casal
1968
Third national development foundation launched, in Ecuador with offices in Quito and Guayaquil
TEL: 22-0579
Agency for International Development approves $650,000 loan and grant to PADF to expand program
President: Lic. Mr. César Batres
PERU
Executive Director: Lic. Fernando Montes
Fourth national development foundation contract signed in Guatemala
Asociación Peruana de Desarrollo
First Seminar on National Development Foundations held in Washington, D.C.
Fundación Hondureña de Desarrollo
c/o Instituto Peruano de Fomento Educativo
Apartado 14
Avenida Arenales 371 Piso 5
Fifth national development foundation launched in Chile
San Pedro Sula, HONDURAS
Lima, PERU
PADF Directory of Philanthropic Foundations in Latin America published by Russell Sage Foundation
CABLES: CAMARA
CABLES: MARMINCO
1969
Sixth national development foundation established, in Nicaragua
TEL: 52-0761
TEL: 25-6082
President: Mr. Marco Tulio Ruíz
President: Mr. Alfonso Bryce
Participated in OAS emergency relief program in Honduras and El Salvador
Executive Director: Lic. José Antonio Castellanos
Seventh national development foundation started, in Argentina
TRINIDAD & TOBAGO
Eighth national development foundation chartered, in Mexico
The Trinidad and Tobago Community
Second Seminar on National Development Foundations held at Wingspread, Racine, Wisconsin and Washington, D.C.
JAMAICA
Development Foundation
Ninth national development foundation launched, in Honduras with branches in Tegucigalpa and San Pedro Sula
Jamaican Development Foundation
17 Chacon Street
c/o Social Action Center
"Credit for Marginal Groups"-a 5 country study financed by the Inter-American Development Bank completed
Port-of-Spain
2 Oliver Road
Trinidad, West Indies
Tenth national development foundation capitalized, in Venezuela
Kingston 8, Jamaica West Indies, JAMAICA
TEL: 623-8100/2856
1970
Contract with Overseas Private Investment Corporation to supervise Community Credit Guaranty Program in Guatemala and Honduras
CABLES: SOCACT, KINGSTONJA
President: Senator Canute E. Spencer
TEL: 924-2035/4582
Third Seminar on National Development Foundations held in Washington, D.C., Israel, and Rome, Italy
Executive Diector: Rev. Gerard Pantin, C.S.S.P.
President: Mr. Ralph Taylor
Technical Assistance agreement signed with Division of International Cooperation, Ministry of Foreign Affairs, Israel
Executive Director: Rev. Arthur W. Kane, S.J.
VENEZUELA
Eleventh and twelfth national development foundations established in El Salvador and Bolivia
1971
Fundación Venezolana para el Desarrollo de Actividades
Thirteenth and fourteenth national development foundations established in Peru and Paraguay
MEXICO
Socioeconómicas (FUNDASE)
Agency for International Development approves $300,000 grant for PADF to lend to five National Development Foundations
Edificio IESA, Av. Occidente
Fundación Mexicana de Desarrollo
Fourth Annual Seminar on National Development Foundations held in the Dominican Republic
Apartado Postal 12500
Ejército Nacional 533 Oficina 602
San Bernardino
1972
Council of American Development Foundations organized at Guatemala Seminar and based in the Dominican Republic
México 5, D.F., MEXICO
Caracas, VENEZUELA
Fifteenth, sixteenth and seventeenth national development foundations established in Cali, Colombia, Trinidad and Tobago, and Costa Rica
TEL: 531-8518 & 545-2965
CABLES:
Participated in Nicaraguan post earthquake rehabilitation efforts and raised over $850,000 in contributions and loans for Nicaraguan
TELEX: 1772437, BALTEAUDOM
TEL: 52-1308/1831
Development Foundation
President: Mr. Lorenzo Servitje
President: Mr. Marcel Curiel
Executive Director: Lic. Arturo Espinosa
Program Director: Mr. Eduardo Machado
24
PAN AMERICAN DEVELOPMENT FOUNDATION
1725 K STREET N.W. WASHINGTON, D.C. 20006
Vol. IX No. 1
April, 1974
PERSONNEL. - Miles Cortez, IBM World Trade
Corporation's Manager of Corporate Programs;
PADF trustee and active participant in in-
ter-American economic and social affairs,
announced at the last PADF Executive Commit-
tee Meeting that he has received approval
from IBM for a leave of absence, and that he
will be joining the PADF staff in Washington
D.C. as of July 30, 1974. He will be avail-
able as a consultant beginning April 1, 1974.
Mr. Graydon Upton, President of the PADF,
speaking for himself and on behalf of his
colleagues of the Board of Trustees, extend-
ed the warmest greetings to Mr. Cortez and
acknowledged the generosity of IBM in exten-
Miles Cortez, Executive Consultant to
ding this leave of absence. Mr. Cortez
the PADF Board of Trustees.
will serve as liaison with the PADF's newly
organized counterpart, the Council of Amer-
ican Development Foundations. In this he
will assist the Council in identifying for
the PADF Executive Committee at its Janu-
the National Development Foundations new
ary 27th, 1974 meeting and by the Execu-
sources of technical and financial cooper-
tive Committee of the Council on February
ation.
9th, 1974 in Guatemala.
Rejoining the PADF and his many friends
Mr. Alejandro Grullon, President of the
and associates related to the Tools for
Council, and President of the Banco Popu-
Freedom program is Basilio Liacuris. Mr.
lar in the Dominican Republic, along with
Liacuris takes up his former position as
Jorge Landivar, Secretary General of the
Director of the Tools for Freedom program,
Council, and formerly Executive Director
and promises a vigorous campaign through
of the Ecuadorean Development Foundation
the TFF Advisory Committee to accelerate
based in Quito, Ecuador, assured the Trus-
the flow of contributed tools and machin-
tees of the PADF and the National Develop-
ery. Such equipment is shipped to voca-
ment Foundation representatives of their
tional training schools serving under-
commitment and dedication to the leader-
privileged youngsters in many Latin Amer-
ship responsibilities they have accepted
ican countries.
for the next two years. The headquarters
will be in the Dominican Republic. Also
COUNCIL OF AMERICAN FOUNDATIONS. - Contin-
serving on the Executive Committee of the
uing its efforts to strengthen the newly
Council are: Adolfo Ríos - Guatemala; Lo-
established Council, the PADF and Council
renzo Servitje - Mexico; César Durán Ballén
approved a basic working agreement which
- Ecuador; Alberto José Carvajal - Colom-
establishes as its target the transfer to
bia; all Presidents or former Presidents of
the Council of PADF responsibilities for
their respective National Development Foun-
assisting the National Development Founda-
dations.
tions in obtaining technical and financial
assistance. The agreement was ratified by
RECENT GRANTS. The recently established
of school-room hearing aid laboratories con-
Operation Niños grants averaging $300
National Development Foundation in Trini-
tributed through the Alexander Graham Bell
each have been sent to help finance some
dad and Tobago has just announced approv-
Association for the Deaf of Washington, D.C.
15 different community educational, social
al from the Inter-American Foundation of
and health projects for which no other
a grant of $190,000. This grant, the 7th
Official recognition and appreciation to
funding had been available.
made by the IAF to a National Development
the United States Agency for International
Foundation raises the total amount of ap-
Development (AID) has been extended by the
Among the principal beneficiaries of
proved IAF grants to NDF's to approximately
PADF for its "freight subsidy" program which
Operation Niños' grants during 1973 were
$3.5 million dollars. It will be used as a
has facilitated shipments of both TFF and
the Villa Jones Program in Mexico, the
matching seed-capital grant to attract lo-
Health Services contributions. The total
Berhorst Clinic in Guatemala, a School
cal contributions for the expansion of the
value of these subsidies provided to the PADF
Desk contruction program in Honduras and
Foundation's loan guarantee fund. Under
during the past 6 years has been more than
a variety of rural educational and health
the capable guidance of its President, Sen-
$250,000.
programs in Colombia and Bolivia.
ator Canute Spencer and its Executive Di-
rector, Father Gerald Pantin, the Trinidad
Reporting on 1973 shipments, Ms. Cecilia
and Tobago Foundation also announced ap-
Crispo, Administrative Assistant, observed
proval of a grant from the Barclays Bank
that exactly $66,393.57 in such subsidies
of $12,000 as well as a $25,000 loan from
New vocational training opportunities
was utilized by the PADF during the year.
the Bank for an agricultural development
through Tools for Freedom.
program serving unemployed youths.
A $250,000 grant from the Kellog Founda-
America. While expressing satisfaction
tion for the continued expansion and ser-
in the accomplishments of the program
vices of the Inter-American Institute of
during the past year, Mr. Bravo and his
Agricultural Sciences program in Costa Rica
colleagues agreed with newly appointed
Presentation of 30 school benches con-
was also announced. This grant, one of a
TFF Director Mr. Basilio Liacuris that a
structed through the Operation Niños
series made by Kellogg to IICA will be spe-
greater volume of contributions could and
Program, La Paz, Bolivia.
cifically directed toward the expansion and
would be assured for shipment during 1974.
diversification of its agricultural science
Among the most recent contributions in
library and research facility.
1974 are: three tool grinders, a radial
saw and a hand straightening press from
OAS/PADF ADVISORY COMMITTEE. -At the re-
The Public Welfare Foundation's latest
Cincinnati Milacron as well as welding
cent joint Executive and OAS/PADF Advi-
contribution to the PADF program, a $20,000
equipment from Omark Industries.
sory Committee Meeting, Ambassador Mi-
grant focused on technical and financial as-
guel Solano López of Paraguay was elected
sistance for the National Development Founda-
Reporting on her recent field trip to
Chairman of the Advisory Committee. Also
tions in Jamaica and Trinidad and Tobago was
Ecuador and Central America, María del
announced were the re-election of the Am-
received in January 1974. This grant, subse-
Carmen Sarmiento, Assistant to the Direc-
bassadors to the OAS from the Dominican
quently turned over to the Council of Amer-
tor, reported to the Executive Committee
Republic, the U.S. and Paraguay who with
ican Development Foundations for its admin-
the need to strengthen the Material Re-
Dr Stuart L. Fischman, professor of oral
their colleagues from Honduras and Vene-
istration, will allow each of the two new
sources Program. Particular emphasis should
medicine at the State University of New
zuela constitute the five Ambassadorial
Caribbean Foundations to strengthen its ad-
be placed on tools and machinery for voca-
York at Buffalo, shows one of the 50 units
representatives on the Committee. Five
ministrative capabilities, and to offer con-
tional schools.
donated by the University for use in rural
OAS Secretariat representatives complete
tinuing incentives to private sector leaders
dental clinics in Ecuador and Colombia.
the Committee's membership.
for their active financial participation in
Health Services Program.-Dr. José González
their programs.
Chairman of the PADF Helath Services Advi-
Operation Niños. In her report to the Ex-
AUDIT AVAILABLE. -The Fiscal Year 1973
sory Committee, and Director of the Amer-
ecutive Committee, Mrs. Lucy F. McDonough,
MATERIAL RESOURCE PROGRAM HIGHLIGHTS
ican Hospital Association International
audit of the PADF has been completed by
Coordinator of the Program, indicated a
Price Waterhouse and is available for
Program, reported a total value of equip-
total of $25,551 in contributions during
Tools for Freedom Program.-A the February
ment contributions during 1973 of $579,277.48
review. Also completed are preparations
1973. Specific recognition was given to
13th, 1974 meeting of the TFF Advisory Com-
These supplies were shipped to eight Latin
for the second year of the PADF's Century
the Pan American Liaison Committee, whose
mitee, Mr. Robert Bravo, Chairman of that
American and Caribbean countries.
Club promotional program which has to
special fund-raising events included a
Committee announced that the Program had re-
date enlisted 32 multinational corpora-
most successful Ball in June 1973 which
tions, in support of the PADF.
ceived contributions of equipment and ma-
Of particular importance during 1973 were
raised some $5,000 for this effort.
chinery valued at $176.448.67 during the
contributions from the Buffalo University
year 1973, all of which had been shipped
Dental School of fifty dental operatories
by the PADF to National Development Founda-
valued at $30,000. Among the newest con-
tion programs in six countries in Latin
tributions in 1974 are three complete sets
PADF/U.N. RELATIONSHIPS
As a reflection of its policy decision
to encourage organizations in other parts
of the developing world to learn about the
National Development Foundation experience,
the PADF has initiated a series of U.S. re-
lated activities. Among these have been
its request for "consultative status" with
Adobe blocks contitute the principle
the United Nations Economic and Social Coun-
building material for rural housing and
cil, and a recent consulting assignment for
schools in much of Latin America.
its Executive Director with the Economic
Commission for Africa. The ECOSOC consul-
tant status was approved by the UN-NGO
CAPITAL MARKET STUDY. -Completing a spe-
Division on February 8th, 1974 for ratifica-
cial study for the Organization of Ameri-
tion by the ECOSOC itself at its June 1974
can States, Norman Goijberg and William
meeting.
Blaisdell submitted their analysis of how
capital market systems in Honduras and the
Sy Rotter, Executive Director of the PADF
Dominican Republic respond to the needs of
participated in the U.N. ECA Conference on
poor people in those countries. Mr. Goij-
Non-Government Organization Involvement in
berg, Program Director for the PADF, vis-
Development Programs, in Khartoum, Sudan,
ited banking and credit institutions in
in late November and early December 1973.
both countries as well as government offi-
Following this meeting he visited U.N.,
cials responsible for establishment of
voluntary agency and government officials
banking legislation. The major conclusion
in Kenya, Tanzania, Nigeria and Ghana in
of the study indicates a basic reliance
relation to credit and technical assistance
among poor people on informal money len-
experiences of non-government organizations
ders, since neither government nor pri-
in financing community level, self-help
vate banking institutions are organized to
programs. Follow up responsibility to these
enter into the life style and credit needs
visits has been accepted by PACT (Private
of these primarily rural people. The ma-
Agencies Collaborating Together), a consor-
jor exceptions are National Development
tium of eight non-government organizations,
Foundations, and Credit Cooperatives.
from which a report on this series of visits
Copies of this report will be available
can be obtained.
through the OAS.
NON PROFIT ORG.
U.S. POSTAGE
PAID
PAN AMERICAN DEVELOPMENT FOUNDATION
WASHINGTON, D.C.
PERMIT NO. 42351
1725 K STREET N.W. WASHINGTON, D.C. 20006
Galo Plaza, Chairman of the Board
T. Graydon Upton, President
Sy Rotter, Executive Director
HEALTH
SERVICES
a program of the
PAN AMERICAN
DEVEL OPMENT
FOUN DATION
First Shipment...
Epidemics
"American HospitulAsciati
HOW DOES THE PROGRAM WORK?
Equipment and supplies are donated to the Health
Malnutrition
Chilean
Embassy
Services Program of the PADF by individuals, physi-
FOR
THE
Chilean
National
Health
Service
cians, dentists, hospitals and medical supply and drug
Inadequate health facilities
manufacturing companies in the United States.
Associations such as the American Hospital Associa-
Unforseen emergencies caused
tion, American Dental Association, American Dental
Trade Association, American Medical Association and
by natural catastrophies
The first PADF shipment of hospital equipment to Chile
the Pharmaceutical Manufacturers Association have
valued at one million dollars.
encouraged member participation.
These are some of the problems that affect rural Latin
Philadelphia, December, 1966
The Pan American Health Organization assures the
America, where assistance is often too late; hospitals are
suitability of the equipment.
frequently without basics such as incubators, X-ray
The NDFs pay the cost of crating and inland
transportation in the United States.
units, O.R. tables and beds; and where clinics may have
U.S. Agency for International Development ocean
doctors and nurses but lack supporting instruments and
freight subsidies and contributed space by national
supplies. The need to find supplemental health resources
steamship lines enable shipment of the equipment at
has never been greater.
no further cost.
National Development Foundations, locally-funded pri-
Among U.S. Voluntary Agencies cooperating in the
vate sector institutions affiliated with the PADF are
identification and shipment of donated equipment
are Catholic Relief Services, Direct Relief Founda-
actively working to accomplish this objective. Commit-
tion, National Association of the Partners of the
tees of physicians, dentists and public health officials
Americas and Sisters Cities Program.
cooperating with the NDFs are evaluating local needs
The Inter-American Relief Committee of the Organi-
and distributing pharmaceuticals and hospital and dental
zation of American States and other organizations
equipment, donated through the PADF.
and agencies participate in the coordination of
emergency relief operations.
Dr. Misael Pastrana Borrero, President of Colombia
praising the Colombian Development Foundation for its
significant contribution to improving health services.
Bogotá, September 17, 1970
HEALTH SERVICES
ADVISORY COMMITTEE
Galo Plaza, Chairman of the Board of Trustees of the
Pan American Development Foundation
Honorary Chairman of Health Services Advisory
Committee
Jose Gonzalez, M.D., Chairman
American Hospital Association
John Teeter, Vice Chairman
Pfizer International
John Bryant, Jr., American Dental Trade Association
Joseph Calitri, Lederle Laboratories
Gerald Daniel, UAW/STEP Program
M.E. Daniels, Dow Chemical
Carr Donald, Organization of American States
Marian Driscoll, American Dental Association
Norman Hoover, M.D., American Medical Association
J. Spencer Howell, Wyeth International
Dennis Karzag, Direct Relief Foundation
Alberto Lagomarcino, Merck, Sharp & Dohme Inter-
national
Edward Landreth, Sterling Drug
Charles Lord, E.R. Squibb & Sons Inc.
W.R. Miller, Bristol Myers
Peter Noble, Pharmaceutical Manufacturers Association
Alan Rubin, National Association of the Partners of the
Over 40% of the population in Latin America is under
Americas
Jose Serrano, Parke, Davis & Company
15 years of age. Good health is a critical factor in the
J.C. Serrato, Jr., M.D., Inter-American Council for
contribution they will make to national development.
Medical Assistance, Education and Research
Frank Springer, Eli Lilly
Harry Tomlinson, The UpJohn Company
Alex Townsend, American Foundation for Overseas
All contributions to the Program are tax deductible
Blind
under section 501 (c) (3) paragraphs i to vi of section
Charles Williams, M.D. Pan American Health Organization
170 (b) (1) (A) of the Internal Revenue Code.
PAN AMERICAN DEVELOPMENT FOUNDATION
19th & CONSTITUTION AVENUE, N.W.
WASHINGTON, D.C. 20006
Opention
PAN AMERICAN DEVELOPMENT FOUNDATION
A PROBLEM
HOW IT WORKS
AN OPERATION NIÑOS PROJECT IS
There are almost 95 million primary and
Operation Niños channels funds from
-an almost forgotten orphanage in a remote
secondary school-age children in Latin America
private sector resources in the United States to
mountainous region of Argentina which
today. 45 per cent of them do not go to school.
small community level self-help projects which
requires funds to repair its roof and heating
Others attend such poorly equipped and staffed
do not fit into the scope of government or
system.
schools that the education they receive is hardly
other program efforts. It works with local
worth the time and effort spent. Many children
private sector organizations throughout Latin
--a clinic in Guatemala which helps prevent as
live in areas where drinking water is not clean,
America which locate worthwhile projects and
well as cure disease by training people in
sanitation facilities do not exist, diseases of all
provide continuing encouragement for self-help
nutrition and sanitation, in addition to caring
kinds are rampant, and clinics and hospitals are
efforts.
for the sick and injured
inaccessible.
--an educational rehabilitation program for
victims of the devastating earthquake in Peru or
floods in Nicaragua
-a vocational training school which teaches
useful skills to young boys who have to learn to
earn a living
-the rebuilding of a school destroyed by a
hurricane on the southern coast of the
Dominican Republic
--adding more rooms to an overcrowded school
in a Colombian city slum
AN OPPORTUNITY
Operation Niños ("niños" are "children")
brings the opportunity of education and health
services to rural communities and urban slums
in Latin America. It makes it possible for the
children and parents faced with this grim reality
to do something positive about their situation.
And Operation Niños is an opportunity for you
to help them.
HOW YOU CAN PARTICIPATE
--contact the Pan American Development
Foundation for more information about
projects and for assistance in fund-raising
--no formal arrangements are necessary
-indicate if you are interested in a particular
country or project and if you would like to
correspond with the recipient of your donation
-send your contribution to the Operation Niños
program of the Pan American Development
Foundation
Contributions are U.S. Income Tax Deductible
A program of the:
Pan American Development Foundation
19th and Constitution Ave., N.W.
Washington, D.C. 20006
FRONT
LINES
Agency for International Development
Washington, D. C.
the 'front lines' of the long twilight
Vol. 11, No. 1
struggle for freedom
John F. Kennedy
November 9, 1972
Thoughts for a Penny
Lift Hopes, Incomes
Of Latin Nations' Poor
By Karen J. Leventhal
Samuel Greene's faith in a poor man's willingness to
pay pennies a day to help himself has assisted more than
50,000 victims of poverty in Guatemala, in addition to
thousands of other less fortunate peoples throughout
Central and South America.
Mr. Greene, now 80, retired 12 years ago to live in
Guatemala after working 50 years in Montclair, N.J.,
assisting small businesses that were in financial trouble.
"After I moved to Guatemala, I spent a year going up
and down the country by jeep, on horseback, muleback
and by foot. I found Indians in the highlands living a life
of quiet desperation, without hope. I remembered an old
Hindu saying: 'He who offers hope and does not fulfill,
he is the worse sinner.' I felt as an American I had to do
something about it."
Mr. Greene, a graduate of New York University and
Fordham Law School, had never been involved in social
work. He felt he had to draw up some guidelines if he
was to be of any real help to the Indians.
"I made up rules for myself," he said. "One, I would not
Photo by Clyde McNair
SAMUEL GREENE
go out looking for projects. The
could get a Penny Foundation loan
ganization for two years, until
people had to create a hope
of approximately $1,800 to pipe
Mr. Greene received a grant of
among themselves that they could
potable water from a place locat-
$26,000 from the Inter-American
improve themselves. Two, I would
ed nearly two miles up in the
Development Bank to institution-
give them what they wanted, not
mountains.
alize and set up an office.
what I thought they should have.
The loan was granted by the
Another grant was received
If they wanted electricity and I
foundation and the pipeline was
from the Council of the Ameri-
thought they should have water,
built. Each family of the commu-
cas for the first several years for
they got electricity. Who was I to
nity pays less than a penny a day,
a helper to assist Mr. Greene in his
change it? Three, they had to pay
25 cents a month, for drinking
development efforts for the Indians
for everything they got-repay-
water. This is less than what it
in the highlands of Guatemala.
ment on the loan, the cost of ad-
would have cost them for doctors
ministration, interest on the
and medicine to save the children.
"El Hawaii"
money. Four, the Guatemalan
Speech Prompts Action
Another example of the type
private sector should put up the
of community effort Mr. Greene
original capital.
Projects like this came about as
fostered is "El Hawaii", a deep-
"There were only two criteria
a result of a speech Mr. Greene
sea fishing cooperative on the
for success: Did they want these
made at the Rotary Club in Gua-
southern coast of Guatemela. Liv-
things? Would they pay
temala City in 1961. It was then he
ing hand-to-mouth with no mea-
Out of these guidelines evolved
announced the formation of the
surable income in conventional
his "penny" plan for self-help and
Fundación del Centavo (the Penny
terms, this community of 60 fami-
the Penny Foundation. Basically, it
Foundation). Following that, it
lies - 350 people - had been
is the idea of community effort,
took about a year of hard work,
with individuals contributing their
door to door, to raise enough com-
labor and a few cents a day.
mitments to get started.
(Continued on page 2)
"The Penny Foundation started
45 Children Die
when I had $10,000 from private
Mr. Greene cites as an example
individuals and businesses in
an Indian village near Pujujil in
commitments and cash. I think
Sololá, Guatemala, where, because
I got some contributions because
of the absence of drinking water
they wanted to get this crazy old
during 12 months in 1969 and
gringo off their back!" said Mr.
1970, 45 children died of typhoid
Greene.
fever. The community constructed
In June, 1963, the foundation
A young Ecuadoran villager
a cemetery to bury the dead chil-
was legally established. The Gua-
carries brick for a school.
dren and decided this must not
temalan press began writing
Funds were provided through
happen again. They sent the only
about it. Word of it was passed
the National Development
on by priests, nuns, Peace Corps
Foundation of Ecuador.
three persons able to speak Span-
ish to the National Indian Insti-
workers, missionaries and others.
tute in Guatemala to see if they
The foundation was a one-man or-
Page 2
FRONT LINES
November 9, 1972
SAM GREENE'S 'PENNY' PLAN
Firm Foundation for Self-Help
catching shrimp and small fish
AID Involvement
save expenses on medicines and
The Penny Foundation, the best
in a natural canal, but the waters
When Mr. Greene went to the
doctors that come from bad water.
known non-governmental credit
were polluted because of the use
Dominican Republic as a consult-
"If they pay three or four cents
agency in Guatemala, is incorpo-
of insecticide sprayed by air-
ant for PADF in 1966, a chain
a day for light bulbs and electrici-
rated as a non-political, secular,
planes over a nearby cotton farm
of events was set in motion that
ty, this is less than they pay for
non-profit institution for philan-
and the fishing was getting worse
eventually involved AID. The
candles, which is the most expen-
thropic purposes. It is involved in
every day.
PADF agreed to encourage pri-
sive form of illumination.
vate sector leaders to follow the
all community improvements -
The community had been given
"If they finance a consumer
model of the Penny Foundation,
water, latrines, elinics, schools,
a plywood boat by the Guatema-
cooperative they pay back capital
lan Ministry of Agriculture and an
giving local sector leaders respon-
from savings and buying cheaper."
secondary roads, housing, trac-
outboard motor was lent to them
sibility to help development pro-
tors, trucks - everything for a
grams. PADF incentive was its
Piglet Project
by the Peace Corps. They were only
rural population.
able to use the small boat for a
ability to match local private sec-
Here is how one group was as-
Two Philosophies
month during the summer of 1971,
tor contributions on a one to one
sisted:
and were not able to use it after
basis.
In the Dominican Republic, de-
Two ideas comprise the philos-
that time because of heavy winds
This brought AID in. Loans and
mand for pork is strong and pigs
ophy of the Penny Foundation.
and because it was seriously dam-
grants totaling $1.75 million have
are relatively easy and inexpen-
One is that people will work for
aged by a shark. The boat was
been made to PADF since 1967.
sive to breed and develop. Loans
and pay for what they get.
also inappropriate for fishing in
Ninety-two percent of this amount
between $100 and $200 from the
The second is extending credit
open waters.
has been channeled by PADF to
Dominican Republic National De-
for groups outside the cash econ-
El Hawaii, staking its future
the National Development Founda-
velopment Foundation were made
omy on moral repayment obli-
on the establishment of a deep-sea
tion (NDF) on the matching
formula basis. Eight percent of
to a destitute community living
gation-no collateral.
fishing cooperative, requested a
near San Francisco de Macoris, to
the total AID commitment has fi-
Mr. Greene is presently work-
$40,000 loan from the Penny Foun-
purchase piglets which cost about
nanced a series of inter-American
ing on a plan to use the Penny
dation, to be repaid in four years
$15 apiece. The piglets are sold
seminars on National Develop-
Foundation philosophy among
by the community through an im-
about three-quarters grown in ap-
proved income from a more prof-
ment Foundation programs, held
North American Indians and per-
proximately six to eight months
in Latin America and the United
haps country laborers who work
itable fishing operation. Each
time.
family repays $2.50 a week on the
States, encouraging the profes-
as sharecroppers in the Southern
sionalization of the NDF program
The estimated cost during the
United States.
loan.
and to introduce the NDFs to
fattening process is about $5 per
Fishing Boat
other agencies in the United
animal. The selling price of the
Founder Honored
States, Europe and Canada for ad-
fattened pigs is $60 each. Minus
In recognition of his efforts in
The community sought to buy
ditional technical assistance and
the $20 cost for purchase and feed,
developing the Penny Foundation
a 31-foot boat for shark fishing,
financing opportunities.
the $40 profit per pig enabled the
concept, Mr. Greene was decorat-
a small boat for regular fishing
The Guatemala Mission also has
cooperative members to achieve a
ed by the Government of Guate-
and shrimp, a processing and
freezing plant plus all the fishing
made direct grants and loans to
relative financial independence
mala in 1967, with the Orden del
equipment, and a truck to deliver
the Penny Foundation. Since 1970,
hitherto unknown. Each family
Quetzal and just recently, he re-
$125,000 in grant funds has been
unit pays 25 cents a week to repay
ceived the Orden del Christophe de
their products into Guatemala
allotted to the foundation to help
the loan.
Columbo from the Dominican Re-
A Colombian villager welds
City.
in providing development assist-
public for his assistance to that
a mattock to help build a com-
With assistance from the Penny
Multiplier Effect
ance to the Guatemalan Indians.
country's successful foundation.
munity center. The National
Foundation, in addition to a $1,000
The foundation also has re-
A considerable multiplier effect
He has also received the Lane
Development Foundation of
loan for a consumer cooperative,
ceived indirect funding through a
occurs even after the loan is paid
Bryant International Volunteer
Colombia assisted.
the community of El Hawaii be-
subloan of $200,000 from the
off because capital is accumulat-
Award, the first one for an
lieves this fishing project has ad-
National Agriculture Development
ed in the way of not only money
U.S. citizen doing volunteer work
vanced them 50 years.
but sows which continue to pro-
outside the United States.
Bank in Guatemala under the cur-
In March, 1966, Mr. Greene was
rent AID rural development loan
duce future income for these poor
In commenting on Sam Greene's
invited by the Dominican Republic
of $23 million appropriated to
people in the way of pigs for
work in the development field, Sy
to help establish a development
the Government of Guatemala in
market. These borrowers, as a re-
Rotter, PADF Executive Director,
foundation with a similar philoso-
July, 1970.
sult of having more sows and
said:
phy of the Fundación del Centavo.
pigs than before to produce a
AID Task Force
"The beauty of the whole thing
In this way, the idea continued to
greater number of market animals
is this unsophisticated man who
spread and there are now 19 na-
In addition, AID/Washington
were not obliged to request fur-
looked at a problem and defined
tional development foundations in
has recently established a task
ther help from the NDF.
a solution in an equally unso-
17 countries of Central and South
force at the request of PADF to
"The judgment why we are suc-
phisticated manner that appeals to
America and the Caribbean, all
study ways of making addition-
cessful in repayment is the mys-
people and easily understood by
outgrowths of Mr. Greene's idea.
al loan funds for the general
tique that builds up of a collective
layman and professional men alike.
Mr. Greene bowed out of his
NDF program.
force that makes one man press
"He took a problem that other
managing responsibilities with the
More than $4 million in loans
on the other to live up to his
men see with such complexity they
Fundación del Centavo in Guate-
has been made to community
obligation, for the people of the
mala in 1968.
groups by 12 of the 19 founda-
can't move. Without any degrees
group are born, live and die in
in economics or political science
"I brought the foundation and
tions involved in financial pro-
the same community," said Mr.
its work so far, but I felt no North
grams. Most of these follow Mr.
which seem to be the calling
Greene. He noted that there is
cards of most development profes-
American should be managing it. I
Greene's belief that community
moral assurance within a cohesive
sionals, he simply established the
am now on the Board of Directors
development problems are basi-
group. If one family neglects to
of the foundation." Mr. Greene is
cally unsophisticated and demand
fact that if you are going to
pay, other people in the unit put
work with poor people and help
also presently an advisor to the
unsophisticated solutions.
pressure on and can exclude the
them develop within their own
Board of Trustees of the Pan
Mr. Greene noted:
family from the benefits of de-
capacity and desires, what you of-
American Development Founda-
"One must always bear in mind
velopment assistance in their
fer them should be simple."
tion.
that taking the low economic level
community. The total unit will
The Pan American Development
at which these people are at, in
cover a family's payment if there
Mr. Greene loves aphorisms,
Foundation (PADF), established
most cases the amount they pay
is a valid reason for their not
he calls them the "poetry of
in 1963, originally functioned as
in loans as a capital investment
being able to pay. For example,
prose". He has one that sums up
a resource for small gifts that
merely replaces an existing ex-
if a husband dies and his wife
his work in Guatemala with no
were being made to further ef-
pense."
and children cannot pay, the com-
further explanation necessary:
forts of the Alliance for Progress.
munity absorbs the difference as
you don't have faith in man-
In 1965, the activities of the Pen-
To illustrate:
part of their solidarity and com-
kind, you don't belong in the de-
ny Foundation became known to
"If they have good water for
velopment business."
PADF.
which they paid for the pipe, they
munity spirit.