The countries of the Northern Triangle of Central America (NTCA), which include Guatemala, El Salvador, and Honduras, have a low rate of Foreign Direct Investment (FDI) and, correspondingly, high levels of poverty. The US government pays attention to the NTCA due to irregular migration from these countries into the US. FDI is instrumental in creating the linkages necessary for Small and Medium Enterprises (SMEs) to enter into production schemes with investors, create jobs, and establish local economies. The efforts of the U.S. government and its agencies in building human capital, working with SMEs, and improving the investment climate in the region would be more effective if the NTCA countries could increase their FDI inflows.
Pursuing a political-economic strategy for sustainable development that incorporates the promotion of FDI would improve the legal framework in the countries, strengthen their institutions, and establish policies for improving industrial development. This qualitative research has identified regional case studies that demonstrate it is feasible with a structured vision to increase the inflow of FDI, thereby increasing Technology Transfer (TT), and achieving spillover effects that increase core knowledge levels, technology adoption, and the productivity of the population. Dr. Marcucci concludes that a Ministry for Economic-Industrial Development should be established to coordinate with local business communities to enable and facilitate FDI and promote the necessary linkages with investors.
Dr. Danilo R. Marcucci