Importance of a Complementary Educational Agenda for DR-CAFTA

In September 2000, the member states of the United Nations unanimously adopted the Millennium Declaration. That document served as the launching pad for the public declaration of eight Millennium Development Goals (MDGs) – which include everything from goal one of halving extreme poverty to goal two of providing universal primary education; all to be accomplished before the year 2015. Progress towards the first seven goals are dependent upon the success of goal eight – which emphasizes the need for rich countries to commit to assisting un curso de milagros with the development of “an open, rule-based trading and financial system, more generous aid to countries committed to poverty reduction, and relief for the debt problems of developing countries.”1

At first glance, the recent actions of Central American countries and the United States to liberalize trade seem to support, at least partially, successful realization of MDG Eight. However, upon closer examination, the picture blurs and the outcome seems uncertain.

Following only a year of negotiations, the Central America Free Trade Agreement (CAFTA) or DR-CAFTA (as a result of its recent inclusion of the Dominican Republic), was signed by the governments of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua and the United States in 2004. The agreement, committing each country to reduce its trade barriers with the other DR-CAFTA countries, was ratified by the United States Congress on July 28, 2005.2

Rather than attempting to ucdm analyze all of the specific economic and social intricacies associated with liberalizing trade in Central America, this brief aims solely to cast light upon the overlap between countries’ efforts to implement the Millennium Development Goal Two/Education for All and their need to implement a complementary CAFTA agenda.

Specifically, this document highlights the importance of educational priorities if economic development efforts are to be successful. The premise of the argument elaborated here is that without sufficient prioritized emphasis by Central American countries, multilateral organizations and targeted donor countries on a complementary agenda that directs resources towards education infrastructure, CAFTA will never succeed in assisting these countries in reaching an ever elusive state of “economic prosperity.” In fact, it may deter them from fully accomplishing the MDGs as well.


With the need for collaboration between economic and educational efforts in mind, let us examine the current status of MDG Two implementation and broader educational reform in Central America:

Over the past fifteen years, most Central American countries have implemented at least basic forms of educational reform. As a result, more children are entering school and spending more days and years enrolled than ever before. On an aggregate level, the larger Latin American and Caribbean region has made considerable progress toward the goal of universal primary education enrollment and according to the most recent UN Millennium Development Goals report, “Net enrollment rates at the primary level rose from 86 percent in 1990 to 93 percent in 2001. The region’s pace of progress in this indicator has been faster than the developing world average (which rose from 80 percent to 83 percent between 1990 and 2001). Net enrollment rates in 23 countries of the region (12 in Latin America and 11 in the Caribbean) surpass 90 percent.” 3 The reality is that, large scale disaster or other unforeseen event aside, all six countries are on target to reach the MDG enrollment targets.

Unfortunately, progress towards the target of completing five years of primary education has been slower and few countries in the region can boast success in this arena. The lack of progress towards completion of this target is most directly related to inefficiencies in the education system and the socioeconomic conditions of poor children – both situations that result in high repetition and desertion rates and both situations that must be ameliorated if CAFTA is to succeed. Furthermore, while the number of children initially enrolling in school has increased, the poor quality of education throughout Central America is also certainly a factor in children’s failure to complete their primary education. Quality must therefore also be taken into account when considering educational infrastructure needs.

While not necessarily relevant to MDG Two but quite possibly relevant from the CAFTA perspective of needing a skilled workforce, Central America’s educational woes most definitely extend beyond the primary school environment. In response to the recent Millennium Development Goals Report 2005, an Inter-American Development Bank representative wrote “It is difficult to avoid the impression that the countries of Latin America and the Caribbean are falling behind with regard to secondary education. Although this is not included in the MDGs, it is the single most important educational indicator separating upper and lower income groups in the region.” 4
When less than one third of a country’s urban workforce has completed the twelve years of schooling that your or I take for granted, how can they hope to compete in today’s technology-dense free trade environment?


Upon an examination of the Mexico of today as compared to pre-North American Free Trade Agreement (NAFTA) times, a rise in the Mexican poverty rate over the last decade or so is apparent. Rather than being directly due to the implementation of NAFTA, it is more likely that this increase in the poverty rate is attributable to Mexico’s failure to simultaneously implement a complementary agenda; specifically, the inability of Mexico’s poorer southern States to improve their poorly trained workforce, infrastructural deficiencies and weak institutions in order to participate meaningfully in a liberalized trade environment. Rather than gain, the southern Mexican states lost even as the northern states benefited from the liberalized trade environment created by NAFTA.

Dr. Daniel Lederman, co-author of the World Bank report entitled “NAFTA is Not Enough” (and issued ten years after NAFTA was originally enacted) explained in an National Public Radio (NPR) interview in 2003 that Mexico’s financial crisis in the 1990s was bound to deepen poverty there with or without NAFTA. Dr. Lederman said:

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