The MCAH compact is designed so that policy and planning milestones trigger program disbursements. Transparent selection of rural roads, funding of the Fondo Vial, passage of the access to credit law, and creation of a legal framework for a vehicle weight control system are all examples of this. These stipulations are good in that they create a foundation for sustainability and impacts beyond the life of the compact. But these factors, combined with the reliance on Sefin, means that the MCAH is "knee deep in the government framework," and "can only run as fast as the government is running." This would be okay if the government were fully on board, as in Madagascar where the government has the reputation of accelerating reforms necessary for MCA programs. But in Honduras, where the current government inherited the MCAH from the previous administration, weak government buy-in can cause significant delays. In addition, little institutional depth within government ministries means that each legal, regulatory, planning or budgetary step requires the leadership of ministers or vice ministers.
Examples of this weak government buy-in include: the Fondo Vial, for which it has been like pulling teeth to get the Minister of Finance to come up with the remaining $5 million to meet the 2007 funding level; a reluctance of the new Ministry of Agriculture to engage with MCAH, partly due to the Fonaders situation; and some GOH foot-dragging on legal reforms for the vehicle weight control program (partially due to political pressure from cargo companies opposed to the changes) and the resettlement plan (partly due to fear of precedent). In contemplating these delays, one GOH official exclaimed, "Imagine if we can’t make it happen to take their money! Our government is inefficient!"
The good news is that MCAH is working hard to strengthen relations with the government. It recently hired a communications and outreach specialist who not only aims to increase awareness among the public, but also among government officials. The campaign is apparently starting to work. In the period since interviews were conducted for this report, the President has accepted an MCAH invitation to visit program beneficiaries, and the Ministry of Agriculture has begun to reach out to the MCAH. These are good signs of improving relations, but the real test will be if the GOH steps up to the plate on moving the policy reforms that are conditions for program progress and disbursement.
Next Section: Weak Civil Society Outreach