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    "label": "10/7/74 - Honduran Relief Fund Sponsorship",
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    "title": "10/7/74 - Honduran Relief Fund Sponsorship",
    "citationUrl": "https://catalog.archives.gov/id/1489340",
    "collections": [
        "Sheila R. Weidenfeld Files (Ford Administration)",
        "Sheila Weidenfeld's Daily Events Files"
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    "subjects": [
        "Honduras",
        "President (1974-1977 : Ford). Office of the First Lady. 1974-1977",
        "Hurricanes"
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    "ocrText": "The original documents are located in Box 2, folder \"10/7/74 - Honduran Relief Fund\nSponsorship\" of the Sheila Weidenfeld Files at the Gerald R. Ford Presidential\nLibrary.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 2 of the Sheila Weidenfeld Files at the Gerald R. Ford Presidential Library\nFor immediate release\nMonday, Oct. 7, 1974\nTHE WHITE HOUSE\nOffice of the Press Secretary to Mrs. Ford\nMrs. Ford has become an unofficial sponsor of the Honduran\nReconstruction Fund (HRF), an organization to raise funds\nfor the reconstruction of houses and farms destroyed on the\nHonduras by Hurricane Fifi, which struck Sept. 20.\nDue to a requirement for limited activity following her surgery,\nMrs. Ford is unable to be an active sponsor of the project.\nBut because of her belief in the importance of the work of HRF,\nshe has asked that her support /of the project be known.\nThe Honduran Reconstruction Fund is a private sector organization.\nIt is working to rebuild houses and farms at low cost and to\ndeal directly with the small farmer to bring his farm back into\nproduction.\nThe work of the foundation was brought to Mrs. Ford's attention\nafter students in the Washington, D.C., area last week raised\nenough money in a 24-hour period to buy three houses for\ndisplaced families.\nHRF was created by the Pan American Development Foundation,\nfounded by the Organization of American States in 1962 to stimulate\nand coordinate private sector activities in pursuit of Alliance for\nProgress objectives.\n#\n#\n#\n#\nContact: Gregory Wolfe\n381-8651\nThis Copy For\nNEWS CONFERENCE\n#45\nAT THE WHITE HOUSE\nWITH RON NESSEN\nAT 12:15 P.M. EDT\nOCTOBER 7, 1974\nMONDAY\nMR. NESSEN: I notice that some people told\nthe President yesterday that his new dog was friendlier\ntoward reporters than his Press Secretary is, so I am\npracticing and I hope to learn to wag my tail and\nprobably come around and lick your faces every now\nand then. (Laughter)\nSeriously, you have seen the President's\nschedule for yesterday and today. After attending\nservices at St. John's, the President spent most of\nthe rest of the day continuing to work on the speech\nhe will deliver to the Joint Session of Congress at\n4:00 on Tuesday. The way I had hoped to be able to\ndo this was to go through the announcements and then come\nback and tell you a little about the meeting yesterday,\nif that is all right.\nHe met with a number of staff members who\nwere here yesterday including Rumseld, Hartmann,\nSeidman, Simon, Buchen, Marsh, Kissinger, Skowcroft,\nand I also talked to him myself.\nQ\nIs that the peeking order?\nMR. NESSEN: No, no particular order. No,\nthat is not the peeking order.\nI will give you a rundown on the meeting\nyesterday when I get through all the rest of this.\nThis morning the President was in his office\nat 7:30. He met with members of the staff this morning\ntoo, and those are Seidman, Rumsfeld, Kissinger, Skowcroft,\nHartmann and myself.\nThe President this morning received a report\nfrom the two senior AID officials whom he sent to\nHonduras to survey the damage from Hurricane Fifi\nand its aftermath.\nMORE\n#45\n- 2 -\n#45-10/7\nThe report concluded the catastrophe was\na major national disaster when you measure it both\nin human and economic terms. The President thanked\nthe members of the team, who are Assistant AID\nAdministrator Herman Kleine and the Foreign Disaster\nRelief Coordinator RussellMcClure.\nThe President praised the courage of the\nHonduran people and the relief efforts conducted to date\nand pledged that the United States would join others\nin support of the Honduran's endeavors to rebuild\ntheir nation's economy.\nSo far the United States' relief efforts have\ntotaled $1 million 600 thousand. The report which they\ngave to the President is available to you, and I think\nit will answer a lot of your questions about Honduran\nrelief.\nAt 12:15 the President is scheduled to meet\nwith George Romney. He is now Chairman of the\nNational Center for Voluntary Action. He has been\nchairman of the organization since January, and Mr.\nRomney asked for the meeting with the President to\ndiscuss the future direction of his nongovernmental\nand non-profit organization. Although the meeting\nhas not been held yet, the President intends to tell\nGovernor Romney that he strongly supports this concept\nof voluntary action.\nAt 12:30 the President will meet with Congressman\nEdward J. Derwinski. The President asked Congressman Derwinski\nto come in so the President could ask him his views on the status\nof J.S.-Polish relations. You may know the Congressman traveled\nto Poland this summer and met at that time with First Secretary\nGierek, who will be meeting here with the President tomorrow.\nPresident Ford and President Valery Giscard\nD'estaing of France have agreed to meet on December 14,\n15 and 16 in Martinique. The meeting will provide the\ntwo leaders with an opportunity to review issues of\nmutual interest.\nQ\nWhy were you so far behind the French\nin announcing this meeting?\nMR. NESSEN: There was an agreement with the\nFrench to announce the meeting jointly at noon Washington\ntime. The story leaked out in the French press. The\nFrench government asked the United States Embassy in\nParis, since it had been leaked, whether it would be\nall right to announce it ahead of time, and the American\nGovernment said yes.\nMORE\n#45\n- 3 -\n#45-10/7\nI believe we tried to do as best we could\nhere to catch this up before I came out here to talk\nto you.\nThe President is holding a meeting with the\nNational Security Council at 2:45 this afternoon.\nThe normal practice is not to announce the subject\nof NCS meetings.\nThe President and Archbishop Iakovos\nwill meet this afternoon at 4:15. Iakovos is the\nArchbishop of the Greek Orthodox Church of North and\nSouth America. This meeting will afford the President\nand the Archbishop the opportunity to discuss matters\nrelating to the situation in Cyprus, including the\nneed for continued humanitarian efforts on Cyprus.\nQ\nA question applying to that. Has the\nPresident met with Archbishop Makarios at all?\nMR. NESSEN: I am certainly not aware of it.\nI think \"no\" is the answer.\nQ\nAre you taking questions on these\nvarious announcements as you go along? I thought you\nwanted to save them until later, because I have a few\nmyself.\nMR. NESSEN: I suppose we could.\nQ\nWhat is the topic of the National\nSecurity Council?\nMR. NESSEN: I said we do not announce the\ntopic of the National Security Council.\n0\nThey have in the past, Ron.\nMR. NESSEN: I don't believe they have, Pat.\nQ\nThey have from time to time.\nMR. NESSEN: We won't today.\nQ\nI have not seen the AID report yet, but\nI will, and I want to know, is the President satisfied\nthat the American aid that was sent to Honduras went\nfrom these officials -- is he satisfied the aid went\nto Honduras or did it end up, as the Post reported this\nweekend, in Honduran Army warehouses for eventual\ndisposition which, in any number of mysterious ways,\nhas happened in Managua in the earthquakes. That is my\nnumber one question.\nMORE\n#45\nPan American Development Foundation\n1725 K Street, Northwest Suite 1409 Washington, D. C. 20006\nCable FUPAD\nTelephone (202)\n381-8651\nGalo Plaza\nOctober 4, 1974\nCHAIRMAN OF THE BOARD\nT. Graydon Upton\nPRESIDENT\nA MESSAGE TO THE BOARD OF TRUSTEES AND TO\nL. Ronald Scheman\nMEMBERS OF OUR TOOLS FOR FREEDOM ADVISORY COUNCIL\nVICE PRESIDENT\nAND MEMBERS OF THE HEALTH SERVICES ADVISORY COMMITTEE\nM. Rafael Urquia\nVICE PRESIDENT\nOne of the PADF's functions, established in our charter, is\nto assist OAS member countries in times of national emergency. On\nFrancisco V. Garcia-Amador\nsuch occasions, we seek to raise funds which are then channelled\nTREASURER\nthrough the local National Development Foundation, for use in\nNorman Goijberg\nreconstruction projects, rather than emergency relief. The PADF\nEXECUTIVE DIRECTOR\nwas successful in raising over $500 thousand for the Nicaraguan\nDevelopment Foundation after the earthquake, and is now engaged\nBOARD OF TRUSTEES\nin a parallel effort for Honduras.\nFrancisco Aguirre\nAntonio Aycinena\nYou will find enclosed copy of an advertisement (for the\nWilliam H. Bolin\npreparation of which Potomac Electric donated the services of its\nWallace Campbell\nadvertising counsel) which appeared on October 3rd in the Washington\nAlberto Jose Carvajal\nPost, with a more detailed description of the project on the reverse\nPedro Contreras Pulido\nside. We also hope to arrange broadcasts of an appeal by Shirley\nMiles Cortez\nRoland del Mar\nTemple Black, who narrated for the OAS the text of the film, \"The\nJohn F. Gallagher\nWorld of the Primitive Painter\" (Velasquez of Honduras), and are\nWilliam S Gaud\ntrying to arrange other fund raising activities over the next\nJames P. Grant\nseveral months.\nJames R. Greene\nFrederick Heldring\nFelipe Herrera\nFor the next fortnight, this program is being coordinated in\nAbraham Horwitz\nthe PADF by Greg Wolfe, who can answer any questions you may have\nJacob K. Javits\nabout it.\nErnst Keller\nEdward M. Kennedy\nTom Lilley\nI feel sure that many of you will want to make a personal\nSol M. Linowitz\ncontribution to this campaign, which we would deeply appreciate.\nAlberto Lleras Camargo\nWe also hope that you will stimulate gifts through your associates,\nEugenio Mendoza\nand would appreciate your giving us any names which we may call.\nJose A. Mora\nF. Bradford Morse\nWayne Morse\nThank you - from the PADF, from the Honduran Development Fund,\nRobert Nathan\nand from Honduras.\nRay Pillman\nStuart Portner\nJay R. Reist\nWilliam Sanders\nTeleptm\nCarlos Sanz de Santamaria\nT. Graydon Upton\nHarvey Schwartz\nPresident\nWalter J. Sedwitz\nJose C. Serrato. Jr.\nOtilia de Tejeira\nTGU:sd\nJ. P. Van Praag\nenclosure\nADVISOR TO THE BOARD\nSam Greene\nMrs. John C. McClintock\nCo.chmn of (4657)\nGregory B. wolfe FORD\nDr. and Mrs. Ramon Alcerro C.\n1263 Woodruff Avenue\nLos Angeles, California 20024\nMr. Robert A. Benjamin\nUnited Artists\n729 7th Avenue\nNew York, New York 10019\nThe Honorable Shirley Temple Black\nUnited States Ambassador to Ghana\nHay Adams Hotel\nWashington, D.C. 20006\nThe Honorable and Mrs. Charles R. Burrows\nFormer U.S. Ambassador to Honduras\n2511 Massachusetts Avenue, N.W.\nWashington, D.C. 20008\nCésar Agustus Cáceres, M.D.\n2500 Virginia Avenue, N.W.\nWashington, D.C. 20037\nThe Honorable and Mrs. Henry Catto\nChief of Protocal\nGeorgetown Pike\nMcLean, Virginia\nMrs. T. Jefferson Coolidge\nCoolidge Point\nManchester, Mass. 01944\nKathryn D. Christophers\nPresident\nOverseas Education Fund of\nthe League of Women Voters\n1730 M St., N.W.\nWashington, D.C. 20036\nThe Honorable and Mrs. Paul C. Daniels\nFormer U.S. Ambassador to Honduras\nMain Street\nLakeville, Connecticut\n- 2 -\nThe Honorable and Mrs. John C. Dreier\nFormer U.S. Ambassador to the OAS\nSouthwest Harbor, Maine 04679\nThe Honorable and Mrs. Angier Biddle Duke\nThe Commissioner of Civic Affairs for the City of New York\nRiver House\nNew York City\nElizabeth Espinosa\nSecretary\nThe National Federation of\nBusiness and Professional Women\n13 Vassar Circle\nGlen Echo, Maryland 20768\nThe Honorable Dante Fascell\nU.S. House of Representatives\nChairman\nSubcommittee, Inter-American Affairs\n2160 Rayburn House Office Building\nWashington, D.C. 20510\nLouise Willauer Jackson\nRFD 2, Box 105\nBuckfield, Maine 04220\nRita Z. Johnston\nU.S. Delegate to the\nInter-American Commission of Women\n7722 Savannah Drive\nBethesda, Maryland 20034\nMildred Robbins Leet\nPast President\nNational Council of Women\n54 Riverside Drive\nNew York, New York 10024\n- 3 -\nThe Honorable and Mrs. Sol M. Linowitz\nFormer U.S. Ambassador to the OAS\n2325 Wyoming Avenue, N.W.\nWashington, D.C. 20008\nThe Honorable and Mrs. Thomas Mann\nFormer Assistant Secretary of State\nInter-American Affairs\n3606 Edgemont Drive\nAustin, Texas 78731\nMr. and Mrs. MacKenzie Gordon\n2905 Que Street, N.W.\nWashington, D.C. 20007\nAlbert Maverick III, Esq.\nAssociate General Counsel\nBrown and Root Company\nPine Valley Drive\nHouston, Texas\nMr. Denning Miller\nEdon Hill Road\nStowe, Vermont 05672\nThe Honorable Gale W. McGee\nU.S. Senate\nChairman, Sub-Committee Foreign Relations\n344 Old Senate Office Building\nWashington, D.C. 20510\nThe Honorable and Mrs. William S. Mailliard\nU.S. Ambassador to the OAS\n3265 N St., N.W.\nWashington, D.C. 20007\nThe Honorable and Mrs. Robert Newbegin\nFormer U.S. Ambassador to Honduras\nJaffrey\nNew Hampshire\n- 4 -\nMr. and Mrs. Jeremiah O'Leary\nCorrespondent\nWashington Star-News\n405 Prince Street\nAlexandria, Virginia 22314\nThe Honorable and Mrs. Covey Oliver\nFormer Assistant Secretary of State\nInter-American Affairs\n4210 Spruce Street\nPhiladelphia, Penna.\nW. Francis Pressly\nDirector, International Division\nNational 4H Foundation\n7100 Connecticut Avenue, N.W.\nWashington, D.C. 20015\nThe Honorable William L. Rogers\nAssistant Secretary of State\nInter-American Affairs\nRoom 6263\nDepartment of State\nWashington, D.C. 20523\nThe Honorable Thomas P. Stone\nGovernor of Vermont\nMontpelier, Vermont 05602\nLisa Sergio\n1531 34th Street, N.W.\nWashington, D.C. 20007\nMrs. Harper Sibley\n400 East Street\nRochester, New York 14607\nMrs. George Cheever Shattuck\n450 Warren Street\nBrookline, Massachusetts\n- 5 -\nMr. and Mrs. Roger T. Stone\nP.O. Box 295\nMaddisonville, Louisiana 70447\nGiselle F. Theberge\nChairman, Tribute to the Arts of the Americas\nPerforming Arts Society\nDirector of Latin American Studies\nCenter for Strategic Studies\n3027 Foxhall Road\nWashington, D.C. 20016\nDr. Caroline Ware\nNational Consumers League\n1600 Beulah Road\nVienna, Virginia\nWhiting Willauer\n4201 Cathedral Avenue, N.W.\nWashington, D.C. 20016\nMr. and Mrs. Christopher Bird\n3414 N Street, N.W.\nWashington, D.C.\nThe response of our people to tragic emergencies like Hurricane\nFifi is always inspiring to see. The food, medicine, and clothing\nthat have pured into Honduras since the Hurricane struck the small\nwhen\nCentral American Republic are surely a life-sustaining transfusion\nfor the Honduran people.\nBeyond the emergency, however, is the long-term need to\nreplenish the lost capital, the homes, farms, schools and implements\nof thousands whose communities will require rebuilding. The ten\nyear old private, Pan American Development Foundation is taking\naction to enable this reconstruction to occur by reaching directly\nto the families who need the capital with which to rebuild.\nIt is forming a national committee to encourage contributions\nto a Reconstruction Fund.\nIt will channel the funds to its sister institution, the\nHonduran Development Foundation, to rebuild houses and farms at low\ncost and work directly with needy small farmers to bring their\nfarms back into production.\nIt is raising its funds with the help of a National Committee\nof distinguished ccitizens: teachers, lawyers, workers, doctors,\nformer Ambassadors and others all acting in their private capacities.\nIt is associated with the special efforts 6£ being made by other\nprivate organizations with a long-term commitment to Latin America:\nthe Partners of the Americas; the Council of the Americas; and the\nU.S. Committee for UNICEF.\nIts efforts so far, and they have just begun, have prompted\nheartwarming response from individuals, and corporations through-\nout the country. Among the most exciting contributions were those\nof the students of a Washington area middle school whose/se/ raised\nenough money in twenty four houss to buy three houses for displaced\nfamilies/ . Since the PADF is able to help build housing units\nat $350 per unit this sort of fundraising effort by young people\ncan be multiplied many times over.\nPAN AMERICAN DEVELOPMENT FOUNDATION\nANNUAL REPORT 1973\n\"Let us be candid.\nWhat these men want are jobs for their survival, food for\ntheir families, and a future for their children. They want the\nsimple satisfaction of working toward something better:\ntoward an end to misery, and a beginning of hope.\nRobert S. McNamara\nPresident, World Bank - 1972\nCHAIRMAN'S STATEMENT\nPAN AMERICAN DEVELOPMENT FOUNDATION\nThe Tenth Anniversary of the Pan American Develop-\nment Foundation finds its program operating under very\ndifferent circumstances, in both Latin America and in the\nBOARD OF TRUSTEES\nSTAFF\nUnited States, than existed at its initiation. At that time,\nduring the euphoric days of the Alliance for Progress, no\nGalo Plaza\nErnst Keller\nSy Rotter\ndream of development seemed impossible of achieve-\nChairman of the Board\nEdward M. Kennedy\nExecutive Director\nment. With the goals of the Charter of Punta del Este as a\nT. GraydonUpton\nTom Lilley\nguide, there appeared to be generous funds that could be\nLewis P. Remick\nPresident\nSol. M. Linowitz\nmade available from the United States for the purposes of\nFinancial Advisor\nM. Rafael Urquia\nAlberto Lleras Camargo\neconomic and social development in Latin America, and\nVice President\nEugenio Mendoza\nwe thought we knew what steps should be taken.\nNorman Goijberg\nTen years later, and wiser, we survey the current scene\nL. Ronald Scheman\nF. Bradford Morse\ngress enjoined the Agency for International Development\nProgram Coordinator\nand accept the fact that not only have many of the correct\nVice President\nJose A. Mora\nto encourage the mobilization of private sector resources\nFrancisco Garcia-Amador 2\nMaria del Carmen Sarmiento\nanswers to development not been found, but it seems\nWayne Morse\nand to commit itself to the objective of \"maximum feasible\nSecretary Treasurer\nRobert Nathan\nDirector\npossible that some of the major development programs\nparticipation\" of the people in development decisions. An-\nhave not even addressed themselves to the right ques-\nother step was the amendment to the AID act which bears\nFrancisco Aguirre\nRay Pillman\nMaterial Resources Program\ntions. As political experts struggle to explain the current\nStuart Portner\nthe name of Congressman John Moss, and which author-\nLuis Jose Alvarez³\nFrancisco Saenz\nsocio political state of affairs in Latin America, and as\nized the partial guarantee by the United States of loans\nAntonio Aycinena\nJay R. Reist\nEconomic Advisor\neconomists retreat from the statistics of rising GNP's as\nmade by banks in Latin America to \"marginados\" - an\nWilliam H. Bolin\nPatricio Rojas⁵\nthe essential measure of a country's progress, we are\neffort to induce such lenders to move from their normal\nWallace Campbell\nWilliam Sanders\nSteven Reid\nfinding not only in Latin America but in other developed\npattern of secured loans, to one of character loans to the\nAlberto Jose Carvajal\nCarlos Sanz de Santamaria\nDirector\ncountries of the world an increasing disenchantment with\nlittle man - such as made by the national development\nPedro Contreras Pulido\nHarvey Schwartz\nTools for Freedom\n\"traditional\" foreign aid.\nfoundations. Unfortunately, both of these well motivated\nRoland del Mar⁴\nWalter J. Sedwitz\nCecilia Crispo\nOne lesson which the world is learning, as Robert\nmeasures have been seriously hampered in execution by\nMiles Cortez\nJose C. Serrato Jr.\nAdministrative Assistant\nMcNamara has spelled out so well in his last report to the\ntechnical and operational limitations.\nJohn F. Gallagher\nCarl B. Spaeth³\nOtilia de Tejeira⁴\nMaterial Resources Program\nGovernors of the World Bank, is that to a very substantial\nSo much for the problem. What steps can be taken to-\nWilliam S. Gaud\ndegree the economic and social benefits derived from\nwards its solution? First, our efforts will be directed to fo-\nJames P. Grant\nJ.P. Van Praag⁴\nLucia F. McDonough\nlarge scale development efforts have not been shared by\ncusing the attention of the major development agencies on\nJames R. Greene\nLouis I. de Winter⁷\nAdministrative Assistant\nthe poorest 40% of the population of the developing world.\nthe National Development Foundation program as an ef-\nJorge Grieve³\nOperacion Ninos Program\nThe issue at hand is to relate our development institu-\nfective means for motivating social and economic develop-\nFrederick Heldring\ntions to the need for \"social equity\". It is an issue not only\nment at the community level.\nFelipe Herrera\nLynette Gaubert\nof restoring the faith of the people, and of the U.S. Congress\nSecond, we will encourage greater U.S. and Canadian\nAbraham Horwitz\nMaterial Resources Progam\nin foreign aid, but of keeping faith with our underlying prin-\nbusiness community support for this effort. There is no\nJacob K. Javits\nMary Louise Roe\nciples of human decency. We must redirect the attention\nbetter way for business organizations operating in Latin\nSecretary\nof foreign development assistance towards those great\nAmerica to ally themselves with the social aspirations of\nmasses of people, both in rural areas and in city slums,\ntheir host countries than to participate in the program of the\nLinda Friedman\nwhose continuing poverty and hopelessness negate any\nNational Development Foundations, either through the\n1. Resigned as Secretary-Treasurer on June 11, 1973\nIntern\ncountry's progress in infrastructure, industry, and trade.\nPADF, or in direct support of local foundations.\n2. Elected Secretary-Treasurer on June 11, 1973\n\"Social Equity\" has been the philosophical force behind\nThird, we will intensify our efforts to strengthen the re-\n3. Resigned on June 11, 1973\nConsultants\nthe PADF programs during the past ten years, and the\ncently formed \"Council of American Development Founda-\n4. Elected on June 11, 1973\nhighlights of this report will bear witness that development\ntions\", and encourage it to take a greater responsibility for\n5. Resigned from OAS-Ex-officio status\nSam Greene\nis not a factor of economics alone, but rather of the rela-\nincreasing technical and financial resources to the in-\n6. Appointed to OAS-Ex-officio status\nArnoldo Ramirez-Eva\ntionship between new opportunities and people. Respond-\ndividual Latin American National Development Foundations\n7. Deceased\nWilliam M. Blaisdell\ning to a poor man's motivation to improve his standard of\nwhich forms its membership.\nliving through his own determination to modernize his\nThe Pan American Development Foundation represents\ncommunity and to participate in the decision-making which\na\nnon-political development ideology, dedicated to helping\nThe PADF is a non-profit corporation affiliated with the Organization of American States. It was chartered in\naffects his own life and that of his family these, indeed,\nthe little man move up through access to otherwise un-\nWashington, D C. in 1962 and since then has been encouraging private sector leaders in Latin American and Carib-\nare the basic building blocks of development. Without\navailable credit. With a small staff, with a dedicated Board\nbean countries to participate in their national development process by organizing and financing autonomous, private\nthem, \"GNP growth\" is an illusion - and without them a\nof Trustees and with a singular commitment to its objec-\nsector, National Development Foundations (NDFs). These NDFs finance, through loans, self-help development projects\nsociety cannot truly move forward.\ntives, the PADF has demonstrated in the National Develop-\nestablished by community groups at the village level which these groups regard as essential to their own social and\nThe PADF, through its National Foundation movement, is\nment Foundation a successfully innovative approach to\neconomic improvement. The PADF has made or facilitated loans and grants to these foundations in excess of $5 million.\nsuccessfully establishing just such building blocks, but\nhelp achieve the development objective of \"social equity\".\nIt also manages a material resource program through which over $9 million value in donated tools and equipment, hospi-\nthey must be put in place on a far wider scale.\nOur success in the future will in large part be measured by\ntal items and pharmaceuticals have been sent to Latin American educational and health institutions.\nThis problem of reaching the poorest segments of a\nthe degree to which institutions other than ours, accept\ncountry with development aid has been of deep interest to\nand adapt their own programs to this basic concept.\nThe PADF has been classified by the Internal Revenue Service as a Sec.501-C3 tax-exempt organization for\nthe U.S. Congress, which in past years has taken several\nFederal income tax purposes, and is registered as a Voluntary Agency with the Advisory Committee on Voluntary\nsteps to show its concern. The first was the adoption of\nGalo Plaza\nForeign Aid of the Agency for International Development.\n\"Title IX\" to the Foreign Assistance Act, in which the Con-\nChairman, Board of Trustees\nThe foundation's policies are established by a Board of Trustees whose members are drawn from public and private\nlife in Latin America, Europe, Canada and the United States.\n1\nThe project itself is not the only program benefit. The\n4) Tools for Freedom Program. Under this program\nprocess through which the community group identifies a\ndonations of tools of all types are received by the PADF\ncommon need, and then acts to resolve it, also provides an\nand channeled to the NDFs for distribution to technical\nexperience in decision making and financial discipline.\nschools. This calendar year some $259,726 value of such\nWhile philanthropical in broad purpose, the NDF\ntools were received and distributed.\nprogram is not a charity operation. It is rather a\ncommitment of enlightened self interest on the part of the\ngovernment which grants legal personality, and sometimes\n5) Hospital Equipment. $404,764 value of contributed\ntax benefits to the local foundations; the local business-\nhospital and dental equipment was distributed through the\nmen whose contributions to the foundation assure its con-\nNDFs to rural health centers, hospitals, and dental clinics\ntinuing financial integrity; and the poor whose demands for\nin NDF countries during 1972.\na greater opportunity to share in the progress of their\nsociety have heretofore been frustrated.\nIn Latin America, business and government to an ever\n6) Operación Niños. $9,646 was contributed, most\nincreasing extent are recognizing the importance of bring-\nby U. S. school children, to this program. These funds\ning marginal consumers into the cash economy. The reali-\nwere distributed largely for the purchase of simple educa-\nties of ownership and incentive are not lost on people who\ntional materials for rural schools in the poorer Latin\nare otherwise forced to continue a marginal status as\nAmerican countries.\nPRESIDENT'S STATEMENT\nshare croppers, tenant farmers, or unemployed urban\nworkers. As such individuals enter their local cash\neconomy, the consumer and producer base is expanded\nOn the occasion of the Tenth Anniversary of the Pan\nto the benefit of all.\n7) PADF Financial. The PADF operated in FY 1972 on\nAmerican Development Foundation, it is a pleasure for me\nI am convinced that this approach, which the PADF has\na total budget of $268,454 of which $75,000 was re-\nto make my first report as President of this institution.\nbeen instrumental in establishing in Latin America, can be\nceived from the Organization of American States and the\nDuring the past decade, the PADF has provided en-\nsuccessfully initiated in other developing areas of the\nbalance from various private contributions as well as a\ncouragement, guidance, and loan funds, to Latin American\nworld where private sector leaders are not content to\nsmall amount from NDF interest payments. Normal pro-\nprivate sector leaders who converted these and their own\nleave all development efforts to their government. It is a\ngram expenses for the year were exceded by substantial\nresources into credit and technical assistance, so that\nextra outlays for the cost of specialized Seminars in the\nNew houses under construction in Managua financed by the\ncommunity groups could plan and finance their own self\nprogram which is adaptable to a country's laws and cus-\ntoms, and in the organization and specific objectives of\nDominican Republic and Guatemala as well as the imple-\nNicaraguan Development Foundation.\nhelp projects. This has been accomplished through private\nof each autonomous foundation it reflects the social,\nmentation of a $300,000 AID grant and OPIC Program\nsector, National Development Foundations, through which\npolitical and economic realities of the country.\nsupervision. Although ending FY 1972 with a small deficit\nsmall direct loans and/or guaranteed bank loans are made\nwe will close the current fiscal year with a modest cash\nwithout traditional collateral or guarantees, and at normal\nbalance.\n9) The Nicaraguan Development Foundation and\ncommercial bank rates. Under these unusual conditions,\nEarthquake Relief. A special section of this report details\nthe default rate on over $5 million dollars loaned has been\nProgress was made in establishing the \"Century Club\",\ncooperative efforts in this regard. Briefly, the PADF, in con-\nless than three percent. Farmers who would not otherwise\nHIGHLIGHTS OF YEAR 1972\ncomprised of U.S. corporations which are making contribu-\nsiderable part through the generosity of \"The Rolling\nhave had access to credit are now able to purchase seed,\ntions of $1,000 to the PADF on an annual basis.\nStones\", has collected some $500,000 which is now in\nfertilizer and small farm machinery which they must have to\nprocess of being channeled to the Nicaraguan Foundation,\nproduce more than they consume. Title to their own land,\nHighlights of the PADF's operations in the fiscal year\nFUNDE, for the purpose of constructing low cost housing,\nclean drinking water, a truck to transport produce to\n1972/3 are mentioned briefly below. Further details are\n8) Commercial Bank Participation. One of the basic\ntraining carpenters, electricians, masons, etc. and making\nmarket, low cost housing, a fishing boat, daily credit to\nfound in the body of this report.\nobjectives of the PADF is to encourage private banks to\nsmall business loans to aid in the countrys' rehabilitation\nmarket vendors, sewing machines, all of these are ex-\nget involved in this program. We are pleased to report in\nefforts.\namples of community and individual needs met through\n1) Formation of the Council of American Develop-\nthis regard the following examples of cooperation:\nNDF direct loans, or through commercial bank loans guar-\nment Foundations \"Consejo\" In October of 1972, fifteen\nanteed by the NDFs.\nNational Development Foundation representatives agreed\nThe Bank of America loaned $50,000 to the\nThe excellent repayment record is based upon two fac-\nto federate and establish a common Secretariat. Alejandro\nVenezuelan Foundation; The Chase Manhattan Na-\nRelationship with the Organization of American States. We\ntors: first, poor people know very well the difference in\nGrullon of the Dominican Republic was elected President\ntional Bank in the Dominican Republic, extended\ncontinue deeply appreciative of the budgetary and vital\ncost between normal bank interest which they can only re-\nof the \"Consejo\" with headquarters to be located for the\nsome $200,000 in loans to 37 agricultural coopera-\nadministrative and financial support services provided by\nceive through the NDF program and that of funds received\ncurrent time in the Dominican Republic. A working agree-\ntives, many of whom became credit-worthy through\nthe O.A.S. To encourage a closer working relationship, the\nfrom the local money lender. Second, there is the unique na-\nment detailing the relationship between the Consejo, the\nreceiving and repaying prior loans made by the Do-\nspecial advisory group of O.A.S Council and Secretariat\nture of repayment procedure. For example, a community of\nNDFs and PADF has been drafted and is being reviewed\nminican Development Foundation; The Philadelphia\nmembers under the Chairmanship of Honduras Ambassa-\nNational Bank is making a loan to the Nicaraguan\ndor to the O.A.S. Tiburcio Carias Castillo, met on various\n100 families can borrow $1,300 to install a clean drinking\nby the NDFs and the PADF.\nwater system and at the rate of two cents per day, per\n2) Development Loan Program. Figures currently avail-\nFoundation under an Export Import Bank guarantee;\noccasions with the PADF Executive Committee to col-\nable, indicate the cumulative number and value of NDF\nand ADELA loaned $100,000 to the Dominican Foun-\nlaborate on general policy guidance.\nfamily, can repay the loan in less than two years, including\nan interest rate as high as 10%. Any economist will see\nloans through December 31, 1972 amounted to some\ndation. A number of local banks in NDF countries are\nthis process of \"grass roots\" capital formation, as reflec-\n6,171 loans totalling $5,194,702 dollars, benefitting ap-\nalso making loans to marginal groups stimulated by\nting a highly satisfactory cost/benefit ratio. We know of no\nproximately 443,720 people.\nthe NDF.\nother community based system in any developing country\n3) New Foundations. During the past 12 months, foun-\nas efficient or as appropriate as this. It directly answers the\ndations were established in Cali, Colombia, in Costa Rica,\ncredit needs of low income groups, for the projects are\nTScepton\nT. Graydon Upton\nJamaica, and in Trinidad and Tobago. In some cases these\nPresident\nwithin the limits both of their understanding and economic\nare the result of PADF consultative efforts going back over\ncapacity.\na period of years.\n3\n2\nAnnual Report 1973\nISSUES\nWhat differences have the National Devel-\nCONTENTS\nopment Foundations made?\nReport of Chairman of the Board\nIs a small loan program anything new? Certainly not. Our\n1\nPresidents Statement\nexperience so far indicates that almost everyone, even\n2,3\nIssues\nthe poorest farmer in the furthest rural area, is receiving\n5,6,7\nNicaragua - Special Report\ncredit, but generally on terms that make us uncomfortable:\n10\ncrops mortgaged before they are planted; borrowing at\nGeographic Distribution of PADF Programs\n12,13\n25% interest rate a day by the women of the food markets;\nMaterial Resources Program\nsmall consumer loans at 15% a month.\nTools for Freedom\n14\nTo gain a better understanding of the extent of the \"un-\nHealth Services, Operación Ninos and Audio Visual Programs\n16, 17, 18\nofficial money market\", the Central Bank of Honduras re-\nMajor Contributors to PADF\ncently required all private lenders to register with it and re-\n19\ncord their loans. In the first two months over 360 lenders\nFinancial Statement\n20,21\nregistered. Their combined portfolios represented $16\nCentury Club\n22\nmillion dollars, or about 10% of the country's banking sys-\nListing of National Development Foundations\n23,24\ntem and twice as much as the resources of the entire co-\noperative credit system with some 60,000 members.\nUserers are, however, fulfilling a need, in that they are\nproviding a credit service which is reaching people,\nat the time and place it is needed, albeit at a very high cost.\nWhile some banks, government and private, have made\nloans to poor people, they have frequently experienced re-\npayment difficulties, for they have ignored the reality that\nN.D.F. loans contribute to upgrading production capability of small\nthe banking system is designed for a different type of\nfarm holdings.\nGuatemala\nlending operation and clientele.\nCredit unions and cooperatives in general are more suc-\nwhich she has her own passbook. No one else can touch\ncessful because they are adapting their organizational\nher money, and she will have built up a sufficient saving re-\nneeds to the circumstances of the poor, however, they are\nserve in one year, so as to be entirely independent of any\ngenerally limited in their loans to the deposit capacity of\nlender in the future.\ntheir members.\nAnother example: On April 12, 1973, the Chase Man-\nThe NDF approach is closer to the needs and circum-\nhattan Bank in the Dominican Republic, extended a total of\nstances of poor people, for it operates with the flexibility of\n$201,758 in loans to 37 small agricultural associations.\nthe usurer but at commercial interest rates, and serves as\nThese loans to 714 poor \"campesino\" families repre-\nan effective spring board into the normal credit system.\nsented their first direct financial assistance from any bank,\nAn example: It is not uncommon for a market woman in\nprivate or governmental. It reflected as well, their success\nManagua to borrow from money lenders at a rate of 25% a\nin repayment of earlier loans to the Dominican Develop-\nday; to borrow $4 in the morning and pay back $5 in the\nment Foundation. With cooperation from the Inter-\nafternoon. Since she has no other working capital re-\nAmerican Foundation in the form of matching grants, the\nsource, paying such interest is necessary; however,\nDDF is now able to extend an additional $201,758* to\nit does represent an annual rate of 9,000%! To change\nnew groups of campesinos to bring them up the credit\nthis situation, the NDF in Nicaragua is now working\nladder as well.\nwith a cooperative of 185 market women who had been\nThe loan status tables which follow provide one mea-\nreceiving loans from usurers at 40% a month. The NDF\nsure in the analysis of the \"difference\" which the NDF\nhas replaced the usurer and lends at exactly the same\nprogram is making, in that the totals represent credit which\nBELGIC\n40% charge. However, all but 1% of this monthly charge is\nwould not otherwise have been available at normal com-\ndeposited in each woman's personal savings account, for\nmercial interest rates and terms to these people.\nrepresentatives and guests.\nPADF Board of Trustees meeting, June 11, 1973, Council Room of the Organization of American States. Also present are N.D.F.\nThe full value of the IAF matching grant to the DDF is $425,000\n4\n5\nAnother measure of the \"difference\" which the pro-\ngram is making, is seen in an independent field evaluation\nof NDFs conducted in 1972 by the Auditor General's Of-\nSTATUS OF NATIONAL DEVELOPMENT FOUNDATIONS\nfice of the Agency for International Development in which\nthe following analysis appears:\nREVOLVING LOAN FUND PROGRAM\n\"During our visits, we saw ample evidence of the ca-\npacity of the NDF program to assist marginal groups in\nCumulative totals as of December 31, 1972\nimproving the economic and social conditions of their\ncommunities and their families.\nNumber of\nValue of\nPeople\nIn the Dominican Republic for example, two groups of\nNDF\nLoans\nLoans US$\nBenefitted\ncampesinos (farmers) formed themselves into small\nChile\n26\n97,087\n9,002\ncooperative agricultural associations under the\nColombia (Bogota)\n42\n250,000\n15,000\nguidance of the Foundation. These campesinos and\nColombia (Cali)\n160\n70,000\n2,100\ntheir families had been living at a minimum consump-\nDominican Republic\n3,612\n2,264,193\n247,877\ntion level growing vegetables (corn, tomatoes, onions\nEcuador (Quito)\n106\n79,738\n14,000\nand peppers) which they harvested once a year. None\nEcuador (Guayaquil)\n1,320\n320,000\n4,320\nof the individuals in these groups had received credit\nEl Salvador\n67\n55,373\n561\nbefore, since they had no assets of sufficient value to\nGuatemala\n317\n617,586\n48,184\nserve as bank collateral. With loans from the Founda-\nHonduras\n231\n399,844\n79,286\ntion, they were able to purchase and install water\nMexico\n92\n708,006\n14,000\npumps to irrigate their land, and as a result they are\nNicaragua\n132\n104,568\n5,480\nnow harvesting as many as three crops a year and their\nPeru\n1\n70,000\n400\nfamilies are living under much improved conditions.\nVenezuela\n65\n158,307\n3,510\nEqually important the loans were paid off in a timely\nmanner. Further, we learned that any loans the\nTOTALS\n6,171\n$5,194,702\n443,720\nassociations may require in the future will be obtained\nfrom commercial sources, because they now have an\nacceptable credit performance, and additional col-\nlateral.\nCooperative self-help efforts and NDF loans contribute to im-\nproved housing and community living.\nSalvador\nIncreasing agricultural production is one goal. Improving marketing\nconditions however is a vital corollary. NDF loans allow such mar-\nREVOLVING LOAN FUND PROGRAM GROWTH\nket women to escape usurers and to maintain a competitive posi-\nAnother group of rice farmers in the Dominican Re-\ntion in the market.\nNicaragua\npublic had been working sporadically in the rice fields\nas laborers for daily wages. Under the Foundation's\ncounsel and financial assistance, they joined together\nand purchased land in which they are planting and\nharvesting rice collectively.\nAn Indian community of 37 corn farmers in Guatemala\nformed an agricultural association after contacting a\nTotal Cumulative Amounts\nfield representative of the Penny Foundation (Guate-\nmala Development Foundation). Prior to this, the mem-\nbers had attempted without success to obtain bank\nYear\nNumber\nNumber\nValue\nloans for the purchase of fertilizer. The Penny Foun-\nas of\nof\nof\nof loans\ndation granted this group a loan for the fertilizer which\n(December 31)\nNDFs\nloans\nUS$\nresulted in a substantial increase in their crop yields.\n1967\n1\n100\n200,000\nIn the Juticalpa region in Honduras, a community\n1968\n5\n402\n674,679\ngroup of 53 campesinos applied to the Honduran De-\n1969\n7\n1,497\n1,374,126\nvelopment Foundation for a loan to purchase approxi-\n1970\n11\n2,807\n2,307,927\nmately 150 hectares of land. The Foundation granted\n1971\n12\n3,932\n3,868,710\nthe loan and after the first crops were harvested, they\n1972\n13\n6,171\n5,194,702\npaid off the loan. They have now obtained credit from\na commercial bank for the purchase of two tractors.\nThey used to pay 1/3 of the crop as rent for their\nland, with a loan from the HDF they are paying 1/8 to\nown it, and have increased their cash income by 16\ntimes.\n6\n7\nAnother group of 26 farmers in the same region re-\nWhich Agencies have made loans, grants or\nExport-Import Bank-U.S. Government\nInter-American Development Bank (IDB)\nceived a loan from the Honduran Foundation to pur-\nguarantees to the PADF-NDF program?\nchase seeds and tools to enable them to plant corn\nTechnical assistance grants have been extended by\nand beans. They consistently made small monthly\nA $125,000 loan was approved for the PADF to fi-\nthe IDB to the PADF for the provision of financial manage-\npayments and paid off the loan in full.\nnance purchase of U.S. manufactured equipment which\nment consultation to NDFs and to finance a special study\nWhile NDF focus on rural areas is the predominant\nAgency for International Development - U. Govern-\nwill be sold through the Nicaraguan Development Founda-\nof credit institutions in 5 countries working with poor peo-\nment\ntheme of the program, there are some exceptions in\ntion's revolving loan program. This equipment, mostly\nple. The Bank has also made a $100,000 technical assis-\nwhich loans are extended to encourage the initiation\nsewing machines for commercial and home use, as well as\ntance grant to the Venezuelan Development Foundation\nof small business ventures and artisan activities. In\nsmall industrial machines will help to meet the needs of the\nand is considering a major sub-loan agreement with the\naddition, in our field visits, we witnessed some of the\nLoans and grants totaling in excess of $1,75 million\n\"small shopkeeper\" to reestablish himself in \"post-earth-\nGovernment of the Dominican Republic which will provide\nbenefits of the program in terms of functional applica-\ndollars have been made by AID through the PADF to the\nquake\" Nicaragua.\nloan funds for the Dominican Development Foundation.\ntions, i.e. knowledge of improved seed, fertilizer and\nNDFs to help them initiate their programs by matching lo-\nmaterials which in turn improved family living circum-\ncal contributions to their revolving loan funds. Through\nstances.\nthese loans, the PADF has also established its own net\nPhiladelphia National Bank\nADELA Development Corporation\nThe NDFs have included in their program loans for\nworth of approximately $550,000.\nhousing construction and improvement. The Founda-\nIndividual AID Missions in Latin America have also\ntion in El Salvador is primarily engaged in construction\nprovided NDFs with operational grants. The AID Missions\nof new housing, and during the past two years has\nin Guatemala and Ecuador in addition, are now well ad-\nA $125,000 loan to the PADF under an Export-\nThis private international financing company, based in\nImport Bank guarantee was approved as a complement to\nLima, Peru, extended a 3 year, PADF guaranteed,\nsucceeded in completing 131 houses at an individual\nvanced in considering loans of $500,000 and $250,000\nthe above mentioned loan. The PNB is also considering a\n$100,000 loan to the Dominican Development Founda-\ncost of less than $1,000. Mortgaging these houses at\nrespectively to NDFs in those countries.\n$50,000 loan for a housing project sponsored by the Hon-\ntion. The loan, at current Eurodollar interest rate, has pro-\na cost of less than $10 per month has resulted in spe-\nAID has also provided freight subsidies in excess of\nduran Development Foundation and a $10,000 loan to the\nvided the DDF with additional loan capital.\ncific government interest and support for expanding\n$250,000 to the PADF through which more than $8.9\nCali Foundation in Colombia for purchase of new voca-\nthis effort to include other areas of El Salvador. Pre-\nmillion value in hospital and vocational training equipment\ntional training equipment.\nsent plans call for the Foundation's participation in a\nhas been sent to NDFs to help institutions serving poor\nCanadian Agencies\ngovernment financed project which will lead to the\npeople.\nconstruction of 14,000 new housing units under a\nfive year program.\nGrants in excess of $65,000 have been made to the\nThe Foundation in Tegucigalpa, Honduras, is also in-\nBank of America\nNDF in the Dominican Republic by the Canadian Interna-\nvolved in the financing and construction of new\nOverseas Private Investment Corporation\ntional Development Agency and the Canadian Hunger\nhousing units. This Foundation has also financed the\nFoundation. Smaller grants from the Canadian Save the\noperation of a prefabrication plant which is capable of\nA $50,000 PADF guaranteed, 3 year loan has been\nChildren Foundation have facilitated shipments of agricul-\nproducing housing panels for assembly at the rate of\nmade to the Venezuelan Development Foundation to ex-\ntural and medical supplies and a mobile health unit toNDFs\n3 housing units per day.\nServing as a contractor to OPIC for the implementation\npand its credit capability for loans to small businessmen.\nin Caribbean countries including Trinidad and Tobago, Bar-\nThe Foundation in the Dominican Republic has fo-\nof the Community Credit Guarantee Program, the PADF\nAdditional Bank of America loans and lines of credit have\nbados, and Jamaica.\ncused its housing efforts on rehabilitation and with\nwas asked in July 1972 to supervise the program in\nbeen extended to NDFs in Nicaragua, the Dominican Re-\nWhile PADF membership in the Canadian Association\nfunds made available to it from the National Housing\nPanama and Colombia in addition to its original 1971 con-\nof Latin American Studies has stimulated graduate student\npublic, Guatemala and Honduras.\nBank has been financing the purchase of cement,\ntract which covered Honduras and Guatemala. This\nand faculty interest in research opportunities in the NDF\nlumber and roofing materials to encourage housing\nprogram has so far generated over $550,000 in loans by\nprograms, PADF attendance at, various meetings of the\nimprovement efforts in rural areas.\"\nprivate banks, NDFs and other institutional lenders backed\nCanadian Association for Latin Almerica has also helped to\nby the CCGP-U.S. Government guarantees. It is expected\nencourage Canadian business and commercial interest in\nthat the benefits of this program which requires no outlay\nInternational Bank for Reconstruction and Development\nthe PADF and NDF programs.\nof U.S. funds will soon be extended by the U.S. Congress\n(World Bank)\nIs the NDF experience self-serving, is it an\nand OPIC to other countries in Latin America as well as to\nother areas of the developing world.\nThe HIVOS Foundation\nend in itself, or does it represent a methodo-\nlogy which can be greatly expanded?\nThe IBRD is currently studying a loan project for El\nSalvador in which the Salvadorean Development Founda-\nRepresenting the PADF/NDF programs as its Euro-\ntion would have a major responsibility. This is a project for\npean Secretariat, the HIVOS Foundation has been instru-\nInter-American Foundation-U.S. Government\nthe preparation of 8,000 housing lots on which low cost\nmental in encouraging European non-goverment agency\nHaving seen the NDF program emerge as a \"model\",\nhousing would be constructed on a self-help basis under\ninterest in, and grants to NDFs, and has as well made its\nthe guidance of the Salvadorean Foundation.\nown direct grant to the Mexican Foundation.\nit must be understood that it was never intended to serve\nsimply as a \"poor man's bank\". It is rather a means through\nWorking closely with the PADF program, the IAF has\nwhich private sector leaders can begin to respond to the\napproved grants in excess of $3 million to 7 of the NDFs.\nlegitimate needs of poor people, to make changes in the\nThis represents a significant portion of the total IAF grant\n\"systems\" which keep people poor. The two basic sys-\nprogram to date and is a clear endorsement of the NDF\ntems which are the NDF targets are the banks and techni-\nconcept and methodology. The IAF has also financed NDF\ncal assistance programs of government and voluntary\nseminars in a continuing effort to help strengthen mana-\nagencies.\ngerial and organizational aspects of the program.\n9\n8\nNICARAGUA - A Special Report\n\"With Nicaragua facing the most serious challenge in its\n$250,000 loan and guarantee from the Export-Import\nhistory as a consequence of the December 23, 1972\nBank of the United States Government. The largest single\nearthquake, the private sector is demonstrating through\ncontribution, $352,000 from the rock musical group, The\nthe Nicaraguan Development Foundation (FUNDE) its\nRolling Stones, was presented to PADF Trustees, Senator\ncommitment to participate in the national objective of re-\nJacob Javits and Galo Plaza, Secretary General of the\nbuilding the city and society and directly benefitting the\nOAS and Chairman of the PADF Board of Trustees, by Mr.\nless favored groups.\"\nMick Jagger and his wife Bianca Perez Jagger. The next\nWith current and projected resources of approximately\nlargest contribution, $150,000 was raised through a\n$850,000 dollars generated through the direct efforts of\nspecial art auction in New York City, organized by Mrs.\nthe PADF for its rehabilitation program, FUNDE has\nCatalina Kitty Meyer, under the sponsorship of PADF\nemerged from the earthquake as the strongest non-\nTrustee Bradford Morse, Under Secretary General for\ngovernment development institution in the country.\nPolitical & General Assembly Affairs of the United Nations.\nTwo days after the earthquake, which took the lives of\nThe Bank of America distinguished itself as well, in co-\nthree FUNDE staff members and destroyed the office and\nmost of its records, the PADF's Executive Director was in\nordinating a fund raising campaign in California under the\nguidance of Bank of America Vice President, William Bolin,\nManagua assisting FUNDE to re-establish its program.\nalso a PADF Trustee. Over $35,000 was collected\nWithin a week with assistance of the PADF's architect, a\nthrough this effort.\nprototype wood, pre-fabricated house had been construc-\nted, and local carpenters were receiving instruction to en-\nAll grants and loan funds are being directed to the\nable them to produce two room houses on an assembly-\nFUNDE revolving loan fund program, which is focused in\nline basis at a unit cost of $200.\nthree major areas; re-establishment of small business,\nDuring the same time, PADF Trustees and staff initiated\nfinancing the construction of inexpensive pre-fabricated\nPADF Trustees, Senator Jacob Javits and Mr. Galo Plaza accepting $352,000 contribution from Mick Jagger on behalf of the Rolling\na fund raising campaign in the United States which pro-\nhousing, and providing consultation and loan funds to\nStones, to finance Nicaraguan Development Foundation rehabilitation efforts in Managua.\nduced a total of approximately $600,000 in grants and a\nmarketing cooperatives.\n*Statement from Nicaraguan Development Foundation\nNICARAGUAN DEVELOPMENT FOUNDATION\nNewsletter April 1973.\nPost Earthquake Loans made from January through June, 1973\nPartial view of a 38 family project of 2, 3 and 4 room houses financed by the Nicaraguan Develop-\nActivity\nNumber of loans\nAmount\nment Foundation for homeless earthquake victims.\nSmall Industry\n31\nUS $36,233\nInfrastructure (potable water)\n3\n8,523\nHousing Settlements\n1\n12,430\nMarketing\n4\n6,457\nPrefab housing program 2\n18\n8,867\nTOTAL\n57\nUS $72,510\nTotal number of loans made\n57\nTotal Amount loaned\nUS $72,510\nNumber of families benefitted\n1,523\nAverage loan\nUS $ 1,272\nAverage term\n16 months\nAverage Number of Families per loan\n28\nAverage loan per Family\n$\n45\n1. The housing settlement program includes 1 project with 38 families, already completed; another with 50, under\nconstruction, was not included as a loan made.\n2.A total of 350 prefab housing modules have been produced by carpentry shops financed by FUNDE, totalling US\n$84,350. The purchase of 18 of these was financed by FUNDE and the balance was either paid for in cash or\nfinanced by a bank.\n10\n11\nGEOGRAPHIC DISTRIBUTION AND MONETARY VALUE\nOF NDF/PADF PROGRAM\nGrants by\nOperating\nLoans/Grants\nInter-American\nLoans/Other\nTools for\nHealth\nOperación\nTotal NDF\nNDFs\nPADF\nFoundation\nAgencies\nFreedom\nServices\nNiños\nProgram\nMéxico\n1\n90,968\n507,000⁴\n-\n-\n172,459\n31,439\n801,865\nHonduras\n2\n153,127\n529,113°\n25,000ᵈ\n128,404\n181,770\n10,650\n1,028,064\nMEXICO\nNicaragua\n1\n53,000\n512,500h\n250,000°\n26,669\n102,931\n1,185\n946,285\nJamaica\n1\n-\n-\n-\n-\n-\n-\n-\nRICO\nHaití\n-\n-\n-\n-\n-\n37,529\n250\n37,779\nJAMAICA\nLESSER\nHON\nDominican Republic\n1\nCaribbean Sea\n858,065\n471,000\n100,000ᵇ\n408,322\n496,040\n23,349\n2,357,776\nANTILLES\nNICARAGUA\nBAD\nBarbados\n-\n-\n—\n-\n1,625\n63\n-\n1,688\nCOSTA RICA\nVENEZUELA\nTrinidad & Tobago\n1\n-\n47,676\n-\n17,875\n1,166\n-\n66,717\nCOLOMBIA\nVenezuela\n1\n-\n-\n50,000ᶜ\n415,369\n191,950\n951\n658,270\nCUADOR\nRRA711\nColombia\n2\n41,782\n300,000\n10,000ᵈ\n1,145,970\n873,733\n55,486\n2,426,971\nPERU\nEcuador\n2\n83,148\n-\n-\n102,039\n370,528\n9,386\n565,101\nSOUTH\nPerú\n1\n45,000\n-\n-\n492,348\n298,974\n15,002\n851,324\nPanama\na\n-\n-\n-\n2,526\n32,517\n3,341\n38,384\nBOLIVIA\nCosta Rica\n1\n-\nI\n-\n2,671\n30,831\n13,036\n46,538\nAMERICA\nEl Salvador\n1\n92,500\n625,800\n-\n270\n30,288\n3,390\n742,248\nPARA-\nCHILI\nGUAY\nGuatemala\n1\n129,804\n10,000\n-\n151,480\n229,801\n68,907\n589,992\nARGENTINA\nBolivia\n1\n-\n-\n-\n33,896\n304,782\n2,588\n341,266\nParaguay\n1\n-\n-\n-\n-\n32,693\n1,750\n34,443\nURU-\nGUAY\nBrazil\n-\n-\n-\n-\nI\n170,944\n24,721\n195,665\nUruguay\na\n-\nI\n-\n-\n61,843\n1,496\n63,339\nChile\n1\n65,671\n-\n-\n404,245\n1,406,239\n19,703\n1,895,858\nArgentina\n1\n-\n-\nI\n202,066\n379,862\n12,526\n594,454\nSpecial OAS Multinational\n561,360'\nTotal Programs\n20\n$1,603,065\n$3,003,089\n$435,000\n$3,535,775\n$5,406,943\n861,516\n$14,284,020\nDecember 31, 1972\nᵃNDF Organizing Committee\n$ 7,000 granted in 1973\nPADELA (loan)\n9$ 6,000 granted in 1973\nᶜBank of America (loan)\nh$10,000 granted in 1973\n°Philadelphia National Bank (line of credit)\nFoundation grants to Inter-American Agricultural Sciences\nExport-Import Bank (line of credit)\nCali\n12\n13\nTOOLS FOR FREEDOM ADVISORY COUNCIL MEMBERS\nMr. LLOYD N. ADAMS, JR.\nMr. CLYDE A. PAISLEY\nFinancial Service Corporation\nAtlanta, Georgia\nAtlanta, Georgia\nMr. LAWRENCE H. RUSSELL\nMr. BERT W. ANGER\nBuck Tool Company\nNicholson File International\nKalamazoo, Michigan\nProvidence, Rhode Island\nMr. G.C. TURNER\nMr. ANDERSON ASHBURN\nWestinghouse Electric Corp.\nAmerican Machinist\nPittsburgh, Pennsylvania\nNew York, New York\nMr. RICHARD A. WHITNEY\nMr. JAMES H. BANKEY\nBeaufort, South Carolina\nQuestor Corporation\nToledo, Ohio\nChairman\nMr. ROBERT B. BRAVO*\nHobart Brothers Company\nTroy, Ohio\nMr. THOMAS A. HUMANN\nAllis-Chalmers\nLATIN AMERICAN MEMBERS\nMilwaukee, Wisconsin\nMr. JAMES C. KELLEY\nSr. ALBERTO JOSE CARVAJAL\nAmerican Machine Tool Distributors Association\nCarvajal and Cía.\nWashington, D.C.\nCali, Colombia\nMr. E. J. KRABACHER\nSr. EDUARDO DIBOS\nCincinnati Milacron\nSociedad Químico Industrial Lima, Ltda.\nCincinnati, Ohio\nLima, Peru\nMATERIAL RESOURCES PROGRAM\nMr. BASILIO LIACURIS\nIng. MIGUEL A. GUERRA\nPorter International\nFundación Dominicana de Desarollo\nWashington, D.C.\nSanto Domingo, Republica Dominicana\nMr. ROBERT MORROW\nSr. HUGO MANZANILLA\nFrank Morrow Company\nDividendo Voluntario para la Comunidad\nThe PADF's Material Resources Program is comprised\nTOOLS FOR FREEDOM\nProvidence, Rhode Island\nCaracas, Venezuela\nof Tools for Freedom, Health Services, Operación Ninos\nand the OAS/Audio Visual Program which was added to\nits responsibilities early in 1972.\nPROGRAM\nThis program represents an important element of the\nPADF effort, for it provides a continuing program contact\nwith all NDFs including those which have been unable to\nThe TFF Program, active in 13 Latin American and\nbegin their revolving loan fund. The program responds to\nCaribbean countries, provided vocational and technical\nneeds identified from within the countries, and insists on\ntraining opportunities to students in 200 schools last year.\nU.S. based TFF Committees, private businesses, in-\nAmong its many accomplishments for 1972, the Tools\nan equal participation and responsibilities in terms of over-\nTFF channeled more than $300,000 worth of new surplus\ndustry and concerned individuals, assist in locating suit-\nfor Freedom Program:\nall administrative costs and management decisions.\ntools and machinery during 1972, notwithstanding the\nable equipment donations. Host country committees of the\n1. Shipped power drills, saws, hammers and axes to\nThe Audio Visual contract provides the OAS with a\neconomic recession in the United States, new restrictions\nNDF's are responsible for the customs clearance, distribu-\nassist in Nicaraguan earthquake rehabiliation efforts;\nservice through which its impressive array of slides and\nin tax deductability procedures, and TFF's continued em-\ntion and maintenance of the equipment, and also for coun-\nmovies on Latin American art and culture are being\nterpart contributions of funds and equipment from their\n2. Assisted other agencies including the Partners of the\nphasis on equipment quality and suitability.\nbrought to the attention of schools and universities in the\nAmericas & Sister Cities Programs in transporting\nown local industry.\nU.S., Canada, and Europe.\nequipment donations to their program affiliates in\nTools for Freedom was conceived as a practical way to\nLatin America.\nThe total value of the Material Resources program for\nOcean freight subsidies are provided by the U.S.\ncalendar year 1972 was $884,648. This includes the\nhelp Latin American countries help themselves by offering\nAgency for International Development for shipments to\n3. Participated in the International Machine Tool Show\nSpecial OAS Multinational Program through which contri-\ntools and industrial equipment to young people in these\nBolivia, Colombia, the Dominican Republic, Ecuador,\nin Chicago, Illinois;\nbutions made to the OAS are channeled to its specialized\ncountries who could be trained in various technical occu-\nHonduras and Peru. Shipments to other countries were\n4. Received recognition from the Colombian Govern-\nprograms in Latin America, such as the Kellogg Founda-\npations vital to their country's development. \"Manpower\"\nmade possible by Catholic Relief Services, Standard\nment for its \"exceptional contribution to the develop-\ntion's support of the Inter-American Institute of Agricultural\ndevelopment is indeed one key of expanding and diversi-\nFruit Steamship Co. and U.S. and Latin American shipping\nment of Colombia and the technical education of its\nSciences in Costa Rica.\nfying the economies of these countries.\nlines.\npeople.\"\n14\n15\nHEALTH SERVICES\nOPERACIÓN NIÑOS\nPROGRAM\nLocating and sending appropriate equipment is the\nprimary activity of the Health Services' Program. During\nOperación Ninos (\"Ninos\" are children), provides\nthe past year, contributions valued at $400,000 in surplus\neducational and health materials to rural communities and\nand new hospital equipment and supplies were obtained\nurban slums in Latin America. Aimed at supplementing\nand shipped to seven Latin American countries.\nsuch services as are available for primary and secondary\nAs good health is a critical factor in \"people develop-\nschool-age children, \"Operación Ninos\" has channeled\nment\", and consequently national development, the\ncontributions from U.S. school children and friends of chil-\nHealth Services Program has provided health care equip-\ndren to small community level, self-help projects which\nment and materials to hundreds of rural hospitals since the\nwould not otherwise get such help.\nProgram's inception in 1970.\nSpecial cooperation has been received from the Ameri-\ncan Hospital Association, American Dental Trade Associa-\nOperación Ninos grants have been used to build and re-\ntion, the American Dental Association, the Pharmaceutical\npair clinics and schools, to provide teaching aids and edu-\nManufacturers Association, Pan American Health Organi-\ncational materials; and to purchase school furniture and\nzation, Catholic Relief Services, Direct Relief Foundation\neven clothing for indigent children. Self-help is a part of\nand the Partners of the Americas.\nevery Operación Ninos project, whether in the form of\nCommittees of physicians, dentists and public health\nlabor, materials or volunteer services.\nofficials cooperating with the NDFs evaluate local needs\nand assist in the distribution of pharmaceutical, hospi-\ntal and dental equipment.\nA complete intensive care unit now in operation in La Paz. Bolivia\nThe NDFs pay for the costs of crating, warehousing and\ncontributed through the American Hospital Association.\nin-land transportation of all contributions.\nHEALTH SERVICES ADVISORY COMMITTEE\nChairman:\nVice Chairman:\nDR. JOSE GONZALES\nMR. JOHN TEETER\nAmerican Hospital Association\nPfizer International\nWashington, D.C.\nNew York, New York\nMR. JOHN BRYANT, JR.\nMR. J. SPENCER HOWELL\nMR. ALAN RUBIN\nAmerican Dental Trade Association\nWyeth International\nNational Association of the Partners\nWashington, D.C.\nPhiladelphia, Pennsylvania\nof the Americas\nMR. JOSEPH CALITRI\nMR. DENNIS KARZAG\nWashington, D.C.\nLederle Laboratories\nDirect Relief Foundation\nMR. JOSE SERRANO\nWayne, New Jersey\nSanta Barbara, California\nParke Davis & Company\nMR. ALBERTO LAGOMARCINO\nDetroit, Michigan\nMR. GERALD DANIEL\nMerck, Sharp, & Dohme International\nDR. J. C. SERRATO, JR.\nUAW/STEP Program\nWashington, D.C.\nRahway, New Jersey\nInter-American Council for Medical\nAssistance, Education & Research\nMR. EDWARD LANDRETH\nMR. M. E. DANIELS\nColumbus, Georgia\nSterling Drug\nDow Chemical\nNew York, New York\nMR. FRANK SPRINGER\nIndianapolis, Indiana\nEli Lilly\nMR. CHARLES LORD\nDR. CARR DONALD\nIndianapolis, Indiana\nE.R. Squibb & Sons, Inc.\nOrganization of American States\nMR. HARRY TOMLINSON\nNew York, New York\nWashington, D.C.\nThe Upjohn Company\nMR. W.R. MILLER\nKalamazoo, Michigan\nMISS MARIAN DRISCOLL\nBristol Myers\nMR. ALEX TOWNSEND\nAmerican Dental Association\nNew York, New York\nEducation becomes a reality to these children in Guayaquil, Ecuador as a result of an Operación Nínos grant which financed the construc-\nAmerican Foundation for Overseas Blind\ntion of this school.\nChicago, Illinois\nMR. PETER NOBLE\nNew York, New York\nDR. NORMAN HOOVER\nPharmaceutical Manufacturers\nDR. CHARLES WILLIAMS\nAmerican Medical Association\nAssociation\nPan American Health Organization\nChicago, Illinois\nWashington, D.C.\nWashington, D.C.\n16\n17\nMAJOR CONTRIBUTORS\nAUDIO VISUAL PROGRAM\nTO THE PAN AMERICAN DEVELOPMENT\nPADF makes available through its Audio Visual Program\nFOUNDATION 1972-73\na collection of slides and films produced by the AUDIO\nVISUAL unit of the Organization of American States. These\nmaterials portray various social, cultural and economic\nIn Addition To Members of the Century Club*\ncharacteristics of Latin American and Caribbean countries.\nDuring 1972 the Program realized sales of over $20,000\nto universities, colleges, libraries, TV educational\nchannels, teachers and individuals throughout the\nAlcoa Foundation\nInter-American Development Bank\nAmericas, Europe and Canada. These materials are\nparticularly useful in school and cultural organization, edu-\nAllis-Chalmers, Inc.\nInternational Crating and Container Corporation\ncational programs.\nAmerican Dental Association\nThe Irwin Auger Bit Company\nRecognition for the quality of these educational materi-\nals is evident by the awards received for the film, \"The\nAmerican Freedom from Hunger Foundation\nKiwanis Club\nWorld of the Primitive Painter.\" These include special hon-\nThe American Fletcher National Bank\nLIAT Airways\norary mention as an art documentary at the Bratislava,\nCzechoslovakia film festival, and the Golden Eagle award\nAtalanta Corporation\nMathias Klein and Sons, Inc.\nfrom the Council on International Nontheatrical Events\nBaldwin & Whitney, Inc.\nFrank Morrow Company\n(CINE).\nBemis Company\nThe National Bank of Washington\nBlack and Decker Manufacturing Company\nNicholson File International\nBraniff International Airways\nPan American Liaison Committee\nBritish West Indian Airways\nPeople-to-People Program\nCanadian Hunger Foundation\nGalo Plaza\nCanadian Save the Children Fund\nPublic Welfare Foundation, Inc.\nCastle & Cooke, Inc.\nRiggs National Bank\nCatholic Relief Services\nRockefeller Brothers Fund\nChampion Spark Plug Company\nRockwell Manufacturing Company\nThe Citizens & Southern National Bank\nRumford Supply and Machinery Company\nCrocker National Bank\nSealand Services, Inc.\nJudith Chiara Foundation\nSellstrom Manufacturing Company\nCincinnati Milacron, Inc.\nStandard Fruit Company\nCouncil of the Americas\nStandard Oil of California\nElias Morris Curiel Foundation\nTechnical Equipment Sales Company\nDana International Corporation\nTinker Foundation\nCharles Del Mar Foundation\nTrue Temper\nDirect Relief Foundation\nUnibraze Corporation\nWilliam H. Donner Foundation\nUnion Bank of California\nFlomerca Lines\nUnited Auto Workers/Step Program\nFriends of the U.S. and Latin America\nUnited California Bank\nGeneral Mills Foundation\nVictor Equipment Company\nW.R. Grace and Company\nVollmer Foundation\nHobart Brothers Company\nRichard A. Whitney\nThe C. C. Hobart Foundation\nWyman-Gordon Foundation\nI.B.M. World Trade Corporation\nMrs. Shirley Temple Black, narrator of the film \"The World of the Primitive Painter,\" with the artist Jose Antonio Velas-\n*Contributors to PADFs Century Club appear on page 22.\nquez, and H.E. Tiburcio Carias-Castillo, Ambassador of Honduras to the OAS.\n19\n18\nPAN AMERICAN DEVELOPMENT FOUNDATION, INC.\nSTATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES\nAS OF JUNE 30, 1972\nEXPRESSED IN UNITED STATES DOLLARS\nPAN AMERICAN DEVELOPMENT FOUNDATION, INC.\nASSETS\nSTATEMENT OF CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 1972\nEXPRESSED IN UNITED STATES DOLLARS\nCurrent Assets\nCash\n$ 9,545\nTools for\nHospital\nAccounts receivable\n24,546\nOther\nRestricted\nFreedom Program\nMedical Program\nMiscellaneous receivables, principally due from employees\n2,119\nOperation\nSpecial\nRevolving\nIn-Kind\nIn-Kind\nAccrued interest receivable\n20,303\nGeneral\nNinos\nPrograms\nLoan Funds\nOther\nOther\nTotal\nTotal current assets\n56,513\nINCREASE:\nContributions received\n$135,308\n$38,268\n$215,195\n$165,000\n$240,331\n$19,017\n$353,953\n$21,855\n$1,188,927\nNon-Current Assets\nAdministrative fees\n4,270\n6,829\n6,074\n17,173\nLoans to National Development Foundations\n869,293\nInterest on NDF loans\n28,946\n28,946\nTotal assets\n$925,806\nInterest from OAS treasury fund\n2,772\n2,772\nGrants:\nOPIC contract\n33,828\n33,828\nAID grant for seminars\n39,230\n39,230\nIADB grant for administration\n30,000\n30,000\n274,354\n38,268\n215,195\n165,000\n240,331\n25,846\n353,953\n27,929\n1,340,876\nLIABILITIES AND FUND BALANCES\nDECREASE:\nContributions granted in-kind\n261,675\n392,584\n654,259\nCurrent Liabilities\nGeneral operating expenses, net\nAccounts payable\n$ 28,012\nof reimbursements from AID\nInterest payable\n2,103\nfor shipping of $58,200\n253,454\n31,662\n201,239\n12,283\n32,452\n531,090\nTotal current liabilities\n30,1115\nAdministrative grants\n15,000\n15,000\n268,454\n31,662\n201,239\n261,675\n12,283\n392,584\n32,452\n1,200,349\nNon-Current Liabilities\nLoan payable\n325,000\nNet increase (decrease) in fund\n355,115\nbalances during year\n5,900\n6,606\n13,956\n165,000\n(21,344)\n13,563\n(38,631)\n(4,523)\n140,527\nTotal liabilities\nFund balances (deficit) at\nbeginning of year\n2,970\n4,758\n386,452\n21,344\n(25,111)\n38,631\n1,120\n430,164\nFund Balances\nFund balances (deficits) at\nRestricted special purpose funds (deficit)\nTools for Freedom Program\n(11,548)\nend of year\n$ 8,870\n$11,364\n$ 13,956\n$551,452\n-\n$(11,548)\n-\n$(3,403)\n$ 570,691\nHospital Medical Program\n(3,403)\nOperation Ninos\n11,364\nNote: The financial statements have been examined by the PADF's independent accountants, whose report thereon is available from the PADF upon request.\nOther Special Programs\n13,956\n10,369\nRestricted Revolving Loan Funds\n551,452\nGeneral Fund\n8,870\nOperating equity\n560,322\nTotal fund balances\n570,691\nTotal liabilities and fund balances\n$925,806\n20\n21\nCENTURY CLUB\nMEMBERS AS OF\nNATIONAL DEVELOPMENT FOUNDATIONS\nJULY 1973\nAvon Products\nARGENTINA\nCABLES: SALULLOA\nBank of America\nTEL: 23-5735\nFundación Argentina de Desarrollo\nBecton DicKinson & Co.\nMaipú 535 Piso 9\nPresident: Mr. Eduardo Salgado\nEastman Kodak Company\nFord Motor Company\nBuenos Aires, ARGENTINA\nExecutive Director: Mr. Berlington A. Barnet\nMuch is being said and written about the responsibility\nGerber Products Company\nCABLES: INSTITUTO\nof the business community in general with respect to its\nIBM World Trade Corporation\nTEL: 392-1372\nparticipation in economic development efforts, both in in-\nInternational Basic Economy Corporation\nPresident: Mr. Luis María Ygartúa\nITT Corporation\nDOMINICAN REPUBLIC\ndustrialized and in developing countries. The purpose of\nExecutive Director: Mr. Rafael Montenegro\nthe PADF's Century Club is to offer to U.S. and Canadian\nLoeb, Rhoades & Company\nFundación Dominicana de Desarrollo\ncompanies with business interests in Latin America, an\nManufacturers Hanover Trust Company\nopportunity to demonstrate their appreciation of that re-\nMarine Midland Bank\nBOLIVIA\nCalle Mercedes #4\nsponsibility in the region, by helping to support the PADF\nPhiladelphia National Bank\nApartado Postal 857\nFundación Boliviana de Desarrollo\nprogram. As of July 1973, twenty-one companies have\nSchering Corporation\nSanto Domingo, REPUBLICA DOMINICANA\nCasilla #221\njoined the Century Club, with contributions averaging\nSears, Roebuck and Company\nCABLES: FUNDADOM\n$1,000 per annum bringing the Club to over 20% of its\nSt. Joe Minerals\nLa Paz, BOLIVIA\nTEL: 688-8102/3\ngoal of 100 members.\nStandard Oil Company of N.J.\nTEL: 22-271\nTELEX: FUNDADO, (346)-0283\nThe Celanese Corporation\nPresident: Mrs. Aída Aguirre de Méndez\nPresident: Mr. Marino Auffant\nThe Chase Manhattan Bank\nExecutive Director: Mr. Bolivar Báez Ortiz\nThe Starr Foundation\nCOLOMBIA\nUnion Oil Company of California\nFundación Colombiana de Desarrollo\nCalle 13 # 7-80 Oficina 229\nApartado Aéreo 29853\nECUADOR\nBogotá, D.E., COLOMBIA\nFundación Ecuatoriana de Desarrollo (NORTH ZONE)\nCABLES: FUNCOLDE\nColón 1120 y J León Mera\nTEL: 42-1588\nApartado Postal 2529\nTELEX: 044602, ROMANOS\nQuito, ECUADOR\nPresident: Mr. Luis Robledo\nCABLES: FEDED\nExecutive Director: Mr. Enrique A. Dávila de Heredía\nTEL: 23-7945\nPresident: Mr. Carlos Ponce\nFundación Nacional para el Desarrollo Social (FUNDES)\nExecutive Director: Mr. Marco Mejía Gross\nApartado Postal 5407\nCali, COLOMBIA\nFundación Ecuatoriana de Desarrollo (SOUTH ZONE)\nTEL: 82-1093, 70-1775\nM.J. Rendon 121 y Pichincha\nPresident: Mr. Alberto José Carvajal\nP.O. Box 1155\nExecutive Director: Ing. Claudio Fernández\nGuayaquil, ECUADOR\nCABLES: FEDED\nCHILE\nTEL: 30-5290/1\nPresident: Mr. Clemente Yerovi Indaburo\nFundación para el Progreso Económico y Social\nExecutive Director: Mr. Daniel Muñoz\nAhumada 11 Oficina 614\nCasilla 13139\nSantiago de Chile, CHILE\nCABLES: FUPRES\nEL SALVADOR\nTEL: 71-1415\nFundación Salvadoreña de Desarrollo y Vivienda Mínima\nPresident: Mr. Gregorio Amunátegui\n18 Avenida Norte 633\nApartado Postal 421\nCOSTA RICA\nTEL: 22-1747/1741\nFundación Costarricense de Desarrollo\n21-7207\nEdificio Mayo\nPresident: Arq. Dagoberto Gavidia\nAv. Central, Calles la y 3a\nExecutive Director: R.P. Antonio Fernández Ibañez, S.J.\nSam Greene, friend of the people, advisor to the Board of Trustees of the PADF, and stimulus to the National Development Foundations.\nSan José, COSTA RICA\nGeneral Manager: Arq. Alberto Harth Deneke\n22\n23\nGUATEMALA\nNICARAGUA\nFundación del Centavo\nFundación Nicaraguense de Desarrollo\nPAN AMERICAN DEVELOPMENT FOUNDATION\n6a Avenida 7-19 Zona 9\nApartado Postal 2598\nGuatemala City, GUATEMALA\nManagua, NICARAGUA\nMILESTONES\nCABLES: FUNDACEN\nCABLES: FUNDE\nTEL: 6-2404\nTEL:\nPresident: Inq. Adolfo Ríos\nPresident: Mr. Leonel Arguello\n1963\nFoundation operations initiated under auspices of Organization of American States\nExecutive Director: Ing. Rodolfo Martínez\nExecutive Director: Lic. William Báez Sacaza\n1964\nOperación Ninos launches at ceremony with Mrs. Jose A. Mora, Mrs. Dean Rusk, and Mrs. Thomas Mann\n1965\nMedical program initiated with cooperation and technical assistance from the Pan American Health Organization\nPARAGUAY\nHONDURAS\n1966\nMerger with Tools for Freedom Foundation\nFundación Paraguaya de Desarrollo\nFundación Hondureña de Desarrollo\nFirst national development foundation inaugurated in the Dominican Republic\nAyolas 1453\nApartado 989\nAsunción, PARAGUAY\n1967\nInter-American Volunteers for Development launched in cooperation with Dominican Development Foundation\nAv. Paz Barahona\nCABLES: CASAL-ASUNCION\nAmerican Hospital Association begins sponsorship of member hospital surplus equipment transfer through PADF to Latin American health facilities\n(Altos del Almacén La Urbana)\nTEL: 4-8711\nTegucigalpa, HONDURAS\nSecond national development foundation launched in Colombia\nPresident: Prof. Dr. Mario López Escobar\nCABLES: FUNHDESA\nExecutive Director: Mr. Anibal Raul Casal\n1968\nThird national development foundation launched, in Ecuador with offices in Quito and Guayaquil\nTEL: 22-0579\nAgency for International Development approves $650,000 loan and grant to PADF to expand program\nPresident: Lic. Mr. César Batres\nPERU\nExecutive Director: Lic. Fernando Montes\nFourth national development foundation contract signed in Guatemala\nAsociación Peruana de Desarrollo\nFirst Seminar on National Development Foundations held in Washington, D.C.\nFundación Hondureña de Desarrollo\nc/o Instituto Peruano de Fomento Educativo\nApartado 14\nAvenida Arenales 371 Piso 5\nFifth national development foundation launched in Chile\nSan Pedro Sula, HONDURAS\nLima, PERU\nPADF Directory of Philanthropic Foundations in Latin America published by Russell Sage Foundation\nCABLES: CAMARA\nCABLES: MARMINCO\n1969\nSixth national development foundation established, in Nicaragua\nTEL: 52-0761\nTEL: 25-6082\nPresident: Mr. Marco Tulio Ruíz\nPresident: Mr. Alfonso Bryce\nParticipated in OAS emergency relief program in Honduras and El Salvador\nExecutive Director: Lic. José Antonio Castellanos\nSeventh national development foundation started, in Argentina\nTRINIDAD & TOBAGO\nEighth national development foundation chartered, in Mexico\nThe Trinidad and Tobago Community\nSecond Seminar on National Development Foundations held at Wingspread, Racine, Wisconsin and Washington, D.C.\nJAMAICA\nDevelopment Foundation\nNinth national development foundation launched, in Honduras with branches in Tegucigalpa and San Pedro Sula\nJamaican Development Foundation\n17 Chacon Street\nc/o Social Action Center\n\"Credit for Marginal Groups\"-a 5 country study financed by the Inter-American Development Bank completed\nPort-of-Spain\n2 Oliver Road\nTrinidad, West Indies\nTenth national development foundation capitalized, in Venezuela\nKingston 8, Jamaica West Indies, JAMAICA\nTEL: 623-8100/2856\n1970\nContract with Overseas Private Investment Corporation to supervise Community Credit Guaranty Program in Guatemala and Honduras\nCABLES: SOCACT, KINGSTONJA\nPresident: Senator Canute E. Spencer\nTEL: 924-2035/4582\nThird Seminar on National Development Foundations held in Washington, D.C., Israel, and Rome, Italy\nExecutive Diector: Rev. Gerard Pantin, C.S.S.P.\nPresident: Mr. Ralph Taylor\nTechnical Assistance agreement signed with Division of International Cooperation, Ministry of Foreign Affairs, Israel\nExecutive Director: Rev. Arthur W. Kane, S.J.\nVENEZUELA\nEleventh and twelfth national development foundations established in El Salvador and Bolivia\n1971\nFundación Venezolana para el Desarrollo de Actividades\nThirteenth and fourteenth national development foundations established in Peru and Paraguay\nMEXICO\nSocioeconómicas (FUNDASE)\nAgency for International Development approves $300,000 grant for PADF to lend to five National Development Foundations\nEdificio IESA, Av. Occidente\nFundación Mexicana de Desarrollo\nFourth Annual Seminar on National Development Foundations held in the Dominican Republic\nApartado Postal 12500\nEjército Nacional 533 Oficina 602\nSan Bernardino\n1972\nCouncil of American Development Foundations organized at Guatemala Seminar and based in the Dominican Republic\nMéxico 5, D.F., MEXICO\nCaracas, VENEZUELA\nFifteenth, sixteenth and seventeenth national development foundations established in Cali, Colombia, Trinidad and Tobago, and Costa Rica\nTEL: 531-8518 & 545-2965\nCABLES:\nParticipated in Nicaraguan post earthquake rehabilitation efforts and raised over $850,000 in contributions and loans for Nicaraguan\nTELEX: 1772437, BALTEAUDOM\nTEL: 52-1308/1831\nDevelopment Foundation\nPresident: Mr. Lorenzo Servitje\nPresident: Mr. Marcel Curiel\nExecutive Director: Lic. Arturo Espinosa\nProgram Director: Mr. Eduardo Machado\n24\nPAN AMERICAN DEVELOPMENT FOUNDATION\n1725 K STREET N.W. WASHINGTON, D.C. 20006\nVol. IX No. 1\nApril, 1974\nPERSONNEL. - Miles Cortez, IBM World Trade\nCorporation's Manager of Corporate Programs;\nPADF trustee and active participant in in-\nter-American economic and social affairs,\nannounced at the last PADF Executive Commit-\ntee Meeting that he has received approval\nfrom IBM for a leave of absence, and that he\nwill be joining the PADF staff in Washington\nD.C. as of July 30, 1974. He will be avail-\nable as a consultant beginning April 1, 1974.\nMr. Graydon Upton, President of the PADF,\nspeaking for himself and on behalf of his\ncolleagues of the Board of Trustees, extend-\ned the warmest greetings to Mr. Cortez and\nacknowledged the generosity of IBM in exten-\nMiles Cortez, Executive Consultant to\nding this leave of absence. Mr. Cortez\nthe PADF Board of Trustees.\nwill serve as liaison with the PADF's newly\norganized counterpart, the Council of Amer-\nican Development Foundations. In this he\nwill assist the Council in identifying for\nthe PADF Executive Committee at its Janu-\nthe National Development Foundations new\nary 27th, 1974 meeting and by the Execu-\nsources of technical and financial cooper-\ntive Committee of the Council on February\nation.\n9th, 1974 in Guatemala.\nRejoining the PADF and his many friends\nMr. Alejandro Grullon, President of the\nand associates related to the Tools for\nCouncil, and President of the Banco Popu-\nFreedom program is Basilio Liacuris. Mr.\nlar in the Dominican Republic, along with\nLiacuris takes up his former position as\nJorge Landivar, Secretary General of the\nDirector of the Tools for Freedom program,\nCouncil, and formerly Executive Director\nand promises a vigorous campaign through\nof the Ecuadorean Development Foundation\nthe TFF Advisory Committee to accelerate\nbased in Quito, Ecuador, assured the Trus-\nthe flow of contributed tools and machin-\ntees of the PADF and the National Develop-\nery. Such equipment is shipped to voca-\nment Foundation representatives of their\ntional training schools serving under-\ncommitment and dedication to the leader-\nprivileged youngsters in many Latin Amer-\nship responsibilities they have accepted\nican countries.\nfor the next two years. The headquarters\nwill be in the Dominican Republic. Also\nCOUNCIL OF AMERICAN FOUNDATIONS. - Contin-\nserving on the Executive Committee of the\nuing its efforts to strengthen the newly\nCouncil are: Adolfo Ríos - Guatemala; Lo-\nestablished Council, the PADF and Council\nrenzo Servitje - Mexico; César Durán Ballén\napproved a basic working agreement which\n- Ecuador; Alberto José Carvajal - Colom-\nestablishes as its target the transfer to\nbia; all Presidents or former Presidents of\nthe Council of PADF responsibilities for\ntheir respective National Development Foun-\nassisting the National Development Founda-\ndations.\ntions in obtaining technical and financial\nassistance. The agreement was ratified by\nRECENT GRANTS. The recently established\nof school-room hearing aid laboratories con-\nOperation Niños grants averaging $300\nNational Development Foundation in Trini-\ntributed through the Alexander Graham Bell\neach have been sent to help finance some\ndad and Tobago has just announced approv-\nAssociation for the Deaf of Washington, D.C.\n15 different community educational, social\nal from the Inter-American Foundation of\nand health projects for which no other\na grant of $190,000. This grant, the 7th\nOfficial recognition and appreciation to\nfunding had been available.\nmade by the IAF to a National Development\nthe United States Agency for International\nFoundation raises the total amount of ap-\nDevelopment (AID) has been extended by the\nAmong the principal beneficiaries of\nproved IAF grants to NDF's to approximately\nPADF for its \"freight subsidy\" program which\nOperation Niños' grants during 1973 were\n$3.5 million dollars. It will be used as a\nhas facilitated shipments of both TFF and\nthe Villa Jones Program in Mexico, the\nmatching seed-capital grant to attract lo-\nHealth Services contributions. The total\nBerhorst Clinic in Guatemala, a School\ncal contributions for the expansion of the\nvalue of these subsidies provided to the PADF\nDesk contruction program in Honduras and\nFoundation's loan guarantee fund. Under\nduring the past 6 years has been more than\na variety of rural educational and health\nthe capable guidance of its President, Sen-\n$250,000.\nprograms in Colombia and Bolivia.\nator Canute Spencer and its Executive Di-\nrector, Father Gerald Pantin, the Trinidad\nReporting on 1973 shipments, Ms. Cecilia\nand Tobago Foundation also announced ap-\nCrispo, Administrative Assistant, observed\nproval of a grant from the Barclays Bank\nthat exactly $66,393.57 in such subsidies\nof $12,000 as well as a $25,000 loan from\nNew vocational training opportunities\nwas utilized by the PADF during the year.\nthe Bank for an agricultural development\nthrough Tools for Freedom.\nprogram serving unemployed youths.\nA $250,000 grant from the Kellog Founda-\nAmerica. While expressing satisfaction\ntion for the continued expansion and ser-\nin the accomplishments of the program\nvices of the Inter-American Institute of\nduring the past year, Mr. Bravo and his\nAgricultural Sciences program in Costa Rica\ncolleagues agreed with newly appointed\nPresentation of 30 school benches con-\nwas also announced. This grant, one of a\nTFF Director Mr. Basilio Liacuris that a\nstructed through the Operation Niños\nseries made by Kellogg to IICA will be spe-\ngreater volume of contributions could and\nProgram, La Paz, Bolivia.\ncifically directed toward the expansion and\nwould be assured for shipment during 1974.\ndiversification of its agricultural science\nAmong the most recent contributions in\nlibrary and research facility.\n1974 are: three tool grinders, a radial\nsaw and a hand straightening press from\nOAS/PADF ADVISORY COMMITTEE. -At the re-\nThe Public Welfare Foundation's latest\nCincinnati Milacron as well as welding\ncent joint Executive and OAS/PADF Advi-\ncontribution to the PADF program, a $20,000\nequipment from Omark Industries.\nsory Committee Meeting, Ambassador Mi-\ngrant focused on technical and financial as-\nguel Solano López of Paraguay was elected\nsistance for the National Development Founda-\nReporting on her recent field trip to\nChairman of the Advisory Committee. Also\ntions in Jamaica and Trinidad and Tobago was\nEcuador and Central America, María del\nannounced were the re-election of the Am-\nreceived in January 1974. This grant, subse-\nCarmen Sarmiento, Assistant to the Direc-\nbassadors to the OAS from the Dominican\nquently turned over to the Council of Amer-\ntor, reported to the Executive Committee\nRepublic, the U.S. and Paraguay who with\nican Development Foundations for its admin-\nthe need to strengthen the Material Re-\nDr Stuart L. Fischman, professor of oral\ntheir colleagues from Honduras and Vene-\nistration, will allow each of the two new\nsources Program. Particular emphasis should\nmedicine at the State University of New\nzuela constitute the five Ambassadorial\nCaribbean Foundations to strengthen its ad-\nbe placed on tools and machinery for voca-\nYork at Buffalo, shows one of the 50 units\nrepresentatives on the Committee. Five\nministrative capabilities, and to offer con-\ntional schools.\ndonated by the University for use in rural\nOAS Secretariat representatives complete\ntinuing incentives to private sector leaders\ndental clinics in Ecuador and Colombia.\nthe Committee's membership.\nfor their active financial participation in\nHealth Services Program.-Dr. José González\ntheir programs.\nChairman of the PADF Helath Services Advi-\nOperation Niños. In her report to the Ex-\nAUDIT AVAILABLE. -The Fiscal Year 1973\nsory Committee, and Director of the Amer-\necutive Committee, Mrs. Lucy F. McDonough,\nMATERIAL RESOURCE PROGRAM HIGHLIGHTS\nican Hospital Association International\naudit of the PADF has been completed by\nCoordinator of the Program, indicated a\nPrice Waterhouse and is available for\nProgram, reported a total value of equip-\ntotal of $25,551 in contributions during\nTools for Freedom Program.-A the February\nment contributions during 1973 of $579,277.48\nreview. Also completed are preparations\n1973. Specific recognition was given to\n13th, 1974 meeting of the TFF Advisory Com-\nThese supplies were shipped to eight Latin\nfor the second year of the PADF's Century\nthe Pan American Liaison Committee, whose\nmitee, Mr. Robert Bravo, Chairman of that\nAmerican and Caribbean countries.\nClub promotional program which has to\nspecial fund-raising events included a\nCommittee announced that the Program had re-\ndate enlisted 32 multinational corpora-\nmost successful Ball in June 1973 which\ntions, in support of the PADF.\nceived contributions of equipment and ma-\nOf particular importance during 1973 were\nraised some $5,000 for this effort.\nchinery valued at $176.448.67 during the\ncontributions from the Buffalo University\nyear 1973, all of which had been shipped\nDental School of fifty dental operatories\nby the PADF to National Development Founda-\nvalued at $30,000. Among the newest con-\ntion programs in six countries in Latin\ntributions in 1974 are three complete sets\nPADF/U.N. RELATIONSHIPS\nAs a reflection of its policy decision\nto encourage organizations in other parts\nof the developing world to learn about the\nNational Development Foundation experience,\nthe PADF has initiated a series of U.S. re-\nlated activities. Among these have been\nits request for \"consultative status\" with\nAdobe blocks contitute the principle\nthe United Nations Economic and Social Coun-\nbuilding material for rural housing and\ncil, and a recent consulting assignment for\nschools in much of Latin America.\nits Executive Director with the Economic\nCommission for Africa. The ECOSOC consul-\ntant status was approved by the UN-NGO\nCAPITAL MARKET STUDY. -Completing a spe-\nDivision on February 8th, 1974 for ratifica-\ncial study for the Organization of Ameri-\ntion by the ECOSOC itself at its June 1974\ncan States, Norman Goijberg and William\nmeeting.\nBlaisdell submitted their analysis of how\ncapital market systems in Honduras and the\nSy Rotter, Executive Director of the PADF\nDominican Republic respond to the needs of\nparticipated in the U.N. ECA Conference on\npoor people in those countries. Mr. Goij-\nNon-Government Organization Involvement in\nberg, Program Director for the PADF, vis-\nDevelopment Programs, in Khartoum, Sudan,\nited banking and credit institutions in\nin late November and early December 1973.\nboth countries as well as government offi-\nFollowing this meeting he visited U.N.,\ncials responsible for establishment of\nvoluntary agency and government officials\nbanking legislation. The major conclusion\nin Kenya, Tanzania, Nigeria and Ghana in\nof the study indicates a basic reliance\nrelation to credit and technical assistance\namong poor people on informal money len-\nexperiences of non-government organizations\nders, since neither government nor pri-\nin financing community level, self-help\nvate banking institutions are organized to\nprograms. Follow up responsibility to these\nenter into the life style and credit needs\nvisits has been accepted by PACT (Private\nof these primarily rural people. The ma-\nAgencies Collaborating Together), a consor-\njor exceptions are National Development\ntium of eight non-government organizations,\nFoundations, and Credit Cooperatives.\nfrom which a report on this series of visits\nCopies of this report will be available\ncan be obtained.\nthrough the OAS.\nNON PROFIT ORG.\nU.S. POSTAGE\nPAID\nPAN AMERICAN DEVELOPMENT FOUNDATION\nWASHINGTON, D.C.\nPERMIT NO. 42351\n1725 K STREET N.W. WASHINGTON, D.C. 20006\nGalo Plaza, Chairman of the Board\nT. Graydon Upton, President\nSy Rotter, Executive Director\nHEALTH\nSERVICES\na program of the\nPAN AMERICAN\nDEVEL OPMENT\nFOUN DATION\nFirst Shipment...\nEpidemics\n\"American HospitulAsciati\nHOW DOES THE PROGRAM WORK?\nEquipment and supplies are donated to the Health\nMalnutrition\nChilean\nEmbassy\nServices Program of the PADF by individuals, physi-\nFOR\nTHE\nChilean\nNational\nHealth\nService\ncians, dentists, hospitals and medical supply and drug\nInadequate health facilities\nmanufacturing companies in the United States.\nAssociations such as the American Hospital Associa-\nUnforseen emergencies caused\ntion, American Dental Association, American Dental\nTrade Association, American Medical Association and\nby natural catastrophies\nThe first PADF shipment of hospital equipment to Chile\nthe Pharmaceutical Manufacturers Association have\nvalued at one million dollars.\nencouraged member participation.\nThese are some of the problems that affect rural Latin\nPhiladelphia, December, 1966\nThe Pan American Health Organization assures the\nAmerica, where assistance is often too late; hospitals are\nsuitability of the equipment.\nfrequently without basics such as incubators, X-ray\nThe NDFs pay the cost of crating and inland\ntransportation in the United States.\nunits, O.R. tables and beds; and where clinics may have\nU.S. Agency for International Development ocean\ndoctors and nurses but lack supporting instruments and\nfreight subsidies and contributed space by national\nsupplies. The need to find supplemental health resources\nsteamship lines enable shipment of the equipment at\nhas never been greater.\nno further cost.\nNational Development Foundations, locally-funded pri-\nAmong U.S. Voluntary Agencies cooperating in the\nvate sector institutions affiliated with the PADF are\nidentification and shipment of donated equipment\nare Catholic Relief Services, Direct Relief Founda-\nactively working to accomplish this objective. Commit-\ntion, National Association of the Partners of the\ntees of physicians, dentists and public health officials\nAmericas and Sisters Cities Program.\ncooperating with the NDFs are evaluating local needs\nThe Inter-American Relief Committee of the Organi-\nand distributing pharmaceuticals and hospital and dental\nzation of American States and other organizations\nequipment, donated through the PADF.\nand agencies participate in the coordination of\nemergency relief operations.\nDr. Misael Pastrana Borrero, President of Colombia\npraising the Colombian Development Foundation for its\nsignificant contribution to improving health services.\nBogotá, September 17, 1970\nHEALTH SERVICES\nADVISORY COMMITTEE\nGalo Plaza, Chairman of the Board of Trustees of the\nPan American Development Foundation\nHonorary Chairman of Health Services Advisory\nCommittee\nJose Gonzalez, M.D., Chairman\nAmerican Hospital Association\nJohn Teeter, Vice Chairman\nPfizer International\nJohn Bryant, Jr., American Dental Trade Association\nJoseph Calitri, Lederle Laboratories\nGerald Daniel, UAW/STEP Program\nM.E. Daniels, Dow Chemical\nCarr Donald, Organization of American States\nMarian Driscoll, American Dental Association\nNorman Hoover, M.D., American Medical Association\nJ. Spencer Howell, Wyeth International\nDennis Karzag, Direct Relief Foundation\nAlberto Lagomarcino, Merck, Sharp & Dohme Inter-\nnational\nEdward Landreth, Sterling Drug\nCharles Lord, E.R. Squibb & Sons Inc.\nW.R. Miller, Bristol Myers\nPeter Noble, Pharmaceutical Manufacturers Association\nAlan Rubin, National Association of the Partners of the\nOver 40% of the population in Latin America is under\nAmericas\nJose Serrano, Parke, Davis & Company\n15 years of age. Good health is a critical factor in the\nJ.C. Serrato, Jr., M.D., Inter-American Council for\ncontribution they will make to national development.\nMedical Assistance, Education and Research\nFrank Springer, Eli Lilly\nHarry Tomlinson, The UpJohn Company\nAlex Townsend, American Foundation for Overseas\nAll contributions to the Program are tax deductible\nBlind\nunder section 501 (c) (3) paragraphs i to vi of section\nCharles Williams, M.D. Pan American Health Organization\n170 (b) (1) (A) of the Internal Revenue Code.\nPAN AMERICAN DEVELOPMENT FOUNDATION\n19th & CONSTITUTION AVENUE, N.W.\nWASHINGTON, D.C. 20006\nOpention\nPAN AMERICAN DEVELOPMENT FOUNDATION\nA PROBLEM\nHOW IT WORKS\nAN OPERATION NIÑOS PROJECT IS\nThere are almost 95 million primary and\nOperation Niños channels funds from\n-an almost forgotten orphanage in a remote\nsecondary school-age children in Latin America\nprivate sector resources in the United States to\nmountainous region of Argentina which\ntoday. 45 per cent of them do not go to school.\nsmall community level self-help projects which\nrequires funds to repair its roof and heating\nOthers attend such poorly equipped and staffed\ndo not fit into the scope of government or\nsystem.\nschools that the education they receive is hardly\nother program efforts. It works with local\nworth the time and effort spent. Many children\nprivate sector organizations throughout Latin\n--a clinic in Guatemala which helps prevent as\nlive in areas where drinking water is not clean,\nAmerica which locate worthwhile projects and\nwell as cure disease by training people in\nsanitation facilities do not exist, diseases of all\nprovide continuing encouragement for self-help\nnutrition and sanitation, in addition to caring\nkinds are rampant, and clinics and hospitals are\nefforts.\nfor the sick and injured\ninaccessible.\n--an educational rehabilitation program for\nvictims of the devastating earthquake in Peru or\nfloods in Nicaragua\n-a vocational training school which teaches\nuseful skills to young boys who have to learn to\nearn a living\n-the rebuilding of a school destroyed by a\nhurricane on the southern coast of the\nDominican Republic\n--adding more rooms to an overcrowded school\nin a Colombian city slum\nAN OPPORTUNITY\nOperation Niños (\"niños\" are \"children\")\nbrings the opportunity of education and health\nservices to rural communities and urban slums\nin Latin America. It makes it possible for the\nchildren and parents faced with this grim reality\nto do something positive about their situation.\nAnd Operation Niños is an opportunity for you\nto help them.\nHOW YOU CAN PARTICIPATE\n--contact the Pan American Development\nFoundation for more information about\nprojects and for assistance in fund-raising\n--no formal arrangements are necessary\n-indicate if you are interested in a particular\ncountry or project and if you would like to\ncorrespond with the recipient of your donation\n-send your contribution to the Operation Niños\nprogram of the Pan American Development\nFoundation\nContributions are U.S. Income Tax Deductible\nA program of the:\nPan American Development Foundation\n19th and Constitution Ave., N.W.\nWashington, D.C. 20006\nFRONT\nLINES\nAgency for International Development\nWashington, D. C.\nthe 'front lines' of the long twilight\nVol. 11, No. 1\nstruggle for freedom\nJohn F. Kennedy\nNovember 9, 1972\nThoughts for a Penny\nLift Hopes, Incomes\nOf Latin Nations' Poor\nBy Karen J. Leventhal\nSamuel Greene's faith in a poor man's willingness to\npay pennies a day to help himself has assisted more than\n50,000 victims of poverty in Guatemala, in addition to\nthousands of other less fortunate peoples throughout\nCentral and South America.\nMr. Greene, now 80, retired 12 years ago to live in\nGuatemala after working 50 years in Montclair, N.J.,\nassisting small businesses that were in financial trouble.\n\"After I moved to Guatemala, I spent a year going up\nand down the country by jeep, on horseback, muleback\nand by foot. I found Indians in the highlands living a life\nof quiet desperation, without hope. I remembered an old\nHindu saying: 'He who offers hope and does not fulfill,\nhe is the worse sinner.' I felt as an American I had to do\nsomething about it.\"\nMr. Greene, a graduate of New York University and\nFordham Law School, had never been involved in social\nwork. He felt he had to draw up some guidelines if he\nwas to be of any real help to the Indians.\n\"I made up rules for myself,\" he said. \"One, I would not\nPhoto by Clyde McNair\nSAMUEL GREENE\ngo out looking for projects. The\ncould get a Penny Foundation loan\nganization for two years, until\npeople had to create a hope\nof approximately $1,800 to pipe\nMr. Greene received a grant of\namong themselves that they could\npotable water from a place locat-\n$26,000 from the Inter-American\nimprove themselves. Two, I would\ned nearly two miles up in the\nDevelopment Bank to institution-\ngive them what they wanted, not\nmountains.\nalize and set up an office.\nwhat I thought they should have.\nThe loan was granted by the\nAnother grant was received\nIf they wanted electricity and I\nfoundation and the pipeline was\nfrom the Council of the Ameri-\nthought they should have water,\nbuilt. Each family of the commu-\ncas for the first several years for\nthey got electricity. Who was I to\nnity pays less than a penny a day,\na helper to assist Mr. Greene in his\nchange it? Three, they had to pay\n25 cents a month, for drinking\ndevelopment efforts for the Indians\nfor everything they got-repay-\nwater. This is less than what it\nin the highlands of Guatemala.\nment on the loan, the cost of ad-\nwould have cost them for doctors\nministration, interest on the\nand medicine to save the children.\n\"El Hawaii\"\nmoney. Four, the Guatemalan\nSpeech Prompts Action\nAnother example of the type\nprivate sector should put up the\nof community effort Mr. Greene\noriginal capital.\nProjects like this came about as\nfostered is \"El Hawaii\", a deep-\n\"There were only two criteria\na result of a speech Mr. Greene\nsea fishing cooperative on the\nfor success: Did they want these\nmade at the Rotary Club in Gua-\nsouthern coast of Guatemela. Liv-\nthings? Would they pay\ntemala City in 1961. It was then he\ning hand-to-mouth with no mea-\nOut of these guidelines evolved\nannounced the formation of the\nsurable income in conventional\nhis \"penny\" plan for self-help and\nFundación del Centavo (the Penny\nterms, this community of 60 fami-\nthe Penny Foundation. Basically, it\nFoundation). Following that, it\nlies - 350 people - had been\nis the idea of community effort,\ntook about a year of hard work,\nwith individuals contributing their\ndoor to door, to raise enough com-\nlabor and a few cents a day.\nmitments to get started.\n(Continued on page 2)\n\"The Penny Foundation started\n45 Children Die\nwhen I had $10,000 from private\nMr. Greene cites as an example\nindividuals and businesses in\nan Indian village near Pujujil in\ncommitments and cash. I think\nSololá, Guatemala, where, because\nI got some contributions because\nof the absence of drinking water\nthey wanted to get this crazy old\nduring 12 months in 1969 and\ngringo off their back!\" said Mr.\n1970, 45 children died of typhoid\nGreene.\nfever. The community constructed\nIn June, 1963, the foundation\nA young Ecuadoran villager\na cemetery to bury the dead chil-\nwas legally established. The Gua-\ncarries brick for a school.\ndren and decided this must not\ntemalan press began writing\nFunds were provided through\nhappen again. They sent the only\nabout it. Word of it was passed\nthe National Development\non by priests, nuns, Peace Corps\nFoundation of Ecuador.\nthree persons able to speak Span-\nish to the National Indian Insti-\nworkers, missionaries and others.\ntute in Guatemala to see if they\nThe foundation was a one-man or-\nPage 2\nFRONT LINES\nNovember 9, 1972\nSAM GREENE'S 'PENNY' PLAN\nFirm Foundation for Self-Help\ncatching shrimp and small fish\nAID Involvement\nsave expenses on medicines and\nThe Penny Foundation, the best\nin a natural canal, but the waters\nWhen Mr. Greene went to the\ndoctors that come from bad water.\nknown non-governmental credit\nwere polluted because of the use\nDominican Republic as a consult-\n\"If they pay three or four cents\nagency in Guatemala, is incorpo-\nof insecticide sprayed by air-\nant for PADF in 1966, a chain\na day for light bulbs and electrici-\nrated as a non-political, secular,\nplanes over a nearby cotton farm\nof events was set in motion that\nty, this is less than they pay for\nnon-profit institution for philan-\nand the fishing was getting worse\neventually involved AID. The\ncandles, which is the most expen-\nthropic purposes. It is involved in\nevery day.\nPADF agreed to encourage pri-\nsive form of illumination.\nvate sector leaders to follow the\nall community improvements -\nThe community had been given\n\"If they finance a consumer\nmodel of the Penny Foundation,\nwater, latrines, elinics, schools,\na plywood boat by the Guatema-\ncooperative they pay back capital\nlan Ministry of Agriculture and an\ngiving local sector leaders respon-\nfrom savings and buying cheaper.\"\nsecondary roads, housing, trac-\noutboard motor was lent to them\nsibility to help development pro-\ntors, trucks - everything for a\ngrams. PADF incentive was its\nPiglet Project\nby the Peace Corps. They were only\nrural population.\nable to use the small boat for a\nability to match local private sec-\nHere is how one group was as-\nTwo Philosophies\nmonth during the summer of 1971,\ntor contributions on a one to one\nsisted:\nand were not able to use it after\nbasis.\nIn the Dominican Republic, de-\nTwo ideas comprise the philos-\nthat time because of heavy winds\nThis brought AID in. Loans and\nmand for pork is strong and pigs\nophy of the Penny Foundation.\nand because it was seriously dam-\ngrants totaling $1.75 million have\nare relatively easy and inexpen-\nOne is that people will work for\naged by a shark. The boat was\nbeen made to PADF since 1967.\nsive to breed and develop. Loans\nand pay for what they get.\nalso inappropriate for fishing in\nNinety-two percent of this amount\nbetween $100 and $200 from the\nThe second is extending credit\nopen waters.\nhas been channeled by PADF to\nDominican Republic National De-\nfor groups outside the cash econ-\nEl Hawaii, staking its future\nthe National Development Founda-\nvelopment Foundation were made\nomy on moral repayment obli-\non the establishment of a deep-sea\ntion (NDF) on the matching\nformula basis. Eight percent of\nto a destitute community living\ngation-no collateral.\nfishing cooperative, requested a\nnear San Francisco de Macoris, to\nthe total AID commitment has fi-\nMr. Greene is presently work-\n$40,000 loan from the Penny Foun-\npurchase piglets which cost about\nnanced a series of inter-American\ning on a plan to use the Penny\ndation, to be repaid in four years\n$15 apiece. The piglets are sold\nseminars on National Develop-\nFoundation philosophy among\nby the community through an im-\nabout three-quarters grown in ap-\nproved income from a more prof-\nment Foundation programs, held\nNorth American Indians and per-\nproximately six to eight months\nin Latin America and the United\nhaps country laborers who work\nitable fishing operation. Each\ntime.\nfamily repays $2.50 a week on the\nStates, encouraging the profes-\nas sharecroppers in the Southern\nsionalization of the NDF program\nThe estimated cost during the\nUnited States.\nloan.\nand to introduce the NDFs to\nfattening process is about $5 per\nFishing Boat\nother agencies in the United\nanimal. The selling price of the\nFounder Honored\nStates, Europe and Canada for ad-\nfattened pigs is $60 each. Minus\nIn recognition of his efforts in\nThe community sought to buy\nditional technical assistance and\nthe $20 cost for purchase and feed,\ndeveloping the Penny Foundation\na 31-foot boat for shark fishing,\nfinancing opportunities.\nthe $40 profit per pig enabled the\nconcept, Mr. Greene was decorat-\na small boat for regular fishing\nThe Guatemala Mission also has\ncooperative members to achieve a\ned by the Government of Guate-\nand shrimp, a processing and\nfreezing plant plus all the fishing\nmade direct grants and loans to\nrelative financial independence\nmala in 1967, with the Orden del\nequipment, and a truck to deliver\nthe Penny Foundation. Since 1970,\nhitherto unknown. Each family\nQuetzal and just recently, he re-\n$125,000 in grant funds has been\nunit pays 25 cents a week to repay\nceived the Orden del Christophe de\ntheir products into Guatemala\nallotted to the foundation to help\nthe loan.\nColumbo from the Dominican Re-\nA Colombian villager welds\nCity.\nin providing development assist-\npublic for his assistance to that\na mattock to help build a com-\nWith assistance from the Penny\nMultiplier Effect\nance to the Guatemalan Indians.\ncountry's successful foundation.\nmunity center. The National\nFoundation, in addition to a $1,000\nThe foundation also has re-\nA considerable multiplier effect\nHe has also received the Lane\nDevelopment Foundation of\nloan for a consumer cooperative,\nceived indirect funding through a\noccurs even after the loan is paid\nBryant International Volunteer\nColombia assisted.\nthe community of El Hawaii be-\nsubloan of $200,000 from the\noff because capital is accumulat-\nAward, the first one for an\nlieves this fishing project has ad-\nNational Agriculture Development\ned in the way of not only money\nU.S. citizen doing volunteer work\nvanced them 50 years.\nbut sows which continue to pro-\noutside the United States.\nBank in Guatemala under the cur-\nIn March, 1966, Mr. Greene was\nrent AID rural development loan\nduce future income for these poor\nIn commenting on Sam Greene's\ninvited by the Dominican Republic\nof $23 million appropriated to\npeople in the way of pigs for\nwork in the development field, Sy\nto help establish a development\nthe Government of Guatemala in\nmarket. These borrowers, as a re-\nRotter, PADF Executive Director,\nfoundation with a similar philoso-\nJuly, 1970.\nsult of having more sows and\nsaid:\nphy of the Fundación del Centavo.\npigs than before to produce a\nAID Task Force\n\"The beauty of the whole thing\nIn this way, the idea continued to\ngreater number of market animals\nis this unsophisticated man who\nspread and there are now 19 na-\nIn addition, AID/Washington\nwere not obliged to request fur-\nlooked at a problem and defined\ntional development foundations in\nhas recently established a task\nther help from the NDF.\na solution in an equally unso-\n17 countries of Central and South\nforce at the request of PADF to\n\"The judgment why we are suc-\nphisticated manner that appeals to\nAmerica and the Caribbean, all\nstudy ways of making addition-\ncessful in repayment is the mys-\npeople and easily understood by\noutgrowths of Mr. Greene's idea.\nal loan funds for the general\ntique that builds up of a collective\nlayman and professional men alike.\nMr. Greene bowed out of his\nNDF program.\nforce that makes one man press\n\"He took a problem that other\nmanaging responsibilities with the\nMore than $4 million in loans\non the other to live up to his\nmen see with such complexity they\nFundación del Centavo in Guate-\nhas been made to community\nobligation, for the people of the\nmala in 1968.\ngroups by 12 of the 19 founda-\ncan't move. Without any degrees\ngroup are born, live and die in\nin economics or political science\n\"I brought the foundation and\ntions involved in financial pro-\nthe same community,\" said Mr.\nits work so far, but I felt no North\ngrams. Most of these follow Mr.\nwhich seem to be the calling\nGreene. He noted that there is\ncards of most development profes-\nAmerican should be managing it. I\nGreene's belief that community\nmoral assurance within a cohesive\nsionals, he simply established the\nam now on the Board of Directors\ndevelopment problems are basi-\ngroup. If one family neglects to\nof the foundation.\" Mr. Greene is\ncally unsophisticated and demand\nfact that if you are going to\npay, other people in the unit put\nwork with poor people and help\nalso presently an advisor to the\nunsophisticated solutions.\npressure on and can exclude the\nthem develop within their own\nBoard of Trustees of the Pan\nMr. Greene noted:\nfamily from the benefits of de-\ncapacity and desires, what you of-\nAmerican Development Founda-\n\"One must always bear in mind\nvelopment assistance in their\nfer them should be simple.\"\ntion.\nthat taking the low economic level\ncommunity. The total unit will\nThe Pan American Development\nat which these people are at, in\ncover a family's payment if there\nMr. Greene loves aphorisms,\nFoundation (PADF), established\nmost cases the amount they pay\nis a valid reason for their not\nhe calls them the \"poetry of\nin 1963, originally functioned as\nin loans as a capital investment\nbeing able to pay. For example,\nprose\". He has one that sums up\na resource for small gifts that\nmerely replaces an existing ex-\nif a husband dies and his wife\nhis work in Guatemala with no\nwere being made to further ef-\npense.\"\nand children cannot pay, the com-\nfurther explanation necessary:\nforts of the Alliance for Progress.\nmunity absorbs the difference as\nyou don't have faith in man-\nIn 1965, the activities of the Pen-\nTo illustrate:\npart of their solidarity and com-\nkind, you don't belong in the de-\nny Foundation became known to\n\"If they have good water for\nvelopment business.\"\nPADF.\nwhich they paid for the pipe, they\nmunity spirit."
}