SMART ECONOMY

ECONOMIC CHALLENGES

Currently, the Monteverde region has a mixed economy based mainly on tourism (e.g. eco-tourism, agro-ecological, rural community and adventure) and agriculture (e.g. coffee, dairy products, vegetables and meat animals). . Although historically these industries have provided many employment opportunities, and have brought much prosperity to the area, they face a less certain future due to factors such as:

• Greater competition from other tourist destinations;

• Globalization of the dairy industry and uncertainty about the Cheese Factory as the future nucleus of local production;

• The progressive homogenization of the specific products and of the economy in general;

• Threats posed by climate change;

• Degradation of natural resources and reduction of environmental services;

• Loss of cooperativism between producers and entrepreneurs around collaborative initiatives or shared brands;

• Shortage of new job opportunities and professional growth for young people between 17 and 25 years old;

• Increase in production costs, especially caused by oil-based inputs;

• Inaccessibility of capital for new ventures and for participants of the "informal sector";

• Lack of a common defined vision for each sector and the articulation of related actions; and

• Absence of legal mechanisms to straighten out property issues.

Opportunities and Weaknesses. At the national level there are many public institutions designed to support the productive sector. Among them are: MEIC, MTSS, MAG, ICT, CNP, INA, Municipal Councils, Banks and Universities. There are also specialized organizations at the regional level that can develop projects such as Chambers, Producer Associations, Integral Development Associations and private NGOs. These institutions present significant opportunities for the traditional development of individuals, businesses and the market environment.

However, there is sometimes a lack of easily available financial resources that can serve as a seed to catalyze local-based projects.

SMART ECONOMY FUND'S PURPOSE

This Fund is a complementary tool to promote a smart economy in accordance with the local vision. In this way, we can fill this void and generate opportunities to leverage additional resources from other sources.

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The goal of this program is to finance projects that succeed in:

• Strengthening the basis in knowledge and participatory planning that inform decision-making and that allow the coordination of strategic actions between organizations that promote a smart economy;

• Reducing the ecological and social footprint of productive activities through sustainable practices, either by means of the raw material used, processes used in production or rendering of services, operational norms or the distribution of final products;

• Encouraging cooperation and linkages between businesses, associations and sub-regions that increase or improve the production of local products and services;

• Increasing the capacity of new enterprises and actors in the "informal sector" to participate in the regional economy in a fair, dignified, legal and sustainable manner; and

• Adding value to the products or services generated by a specific group in our region while generating social and environmental benefits at the local level.