Project ME-426: Comite de Defensa Popular de Zaragoza (CDPZ)
This paper describes the Inter-American Foundations (IAFs) ME-426 project that was implemented in Zaragoza, a small town in Mexico.
ME-426 addressed the lack of adequate housing and health services and low income levels by integrating training, technical assistance and operating capital to enable the community to operate a public health center, a housing microenterprise and an enterprise to raise cows. IAF contributed $423,596 for training workshops, technical assistance, start-up capital for infrastructure and operating expenses for microenterprises and administrative expenses.
The project demonstrated that Mexican social policies need to enhance poor peoples income generating potential and their ability to self-insure against adverse shocks through asset accumulation and grass-roots development. Other lessons include:
- Offering housing finance at affordable interest rates satisfies the demand for affordable housing services and the need to supply life-cycle assets for old age;
- Housing activities that use local knowledge and reproducible physical resources justify the relaxation of existing credit constraints;
- Imposing low interest rate levels limits institutional growth and creates donor dependency.
