Developing Human Capital in Mexico

This paper focuses on two projects in Mexico that began as USAID initiatives and were gradually transferred to local service providers. Both projects address the challenges faced by rapidly growing Mexican MFIs –a limited recruitment pool, competition with other sectors and a strong need for specialized support services. The first project, USAID Access to Finance for Rural Microenterprises (AFIRMA) focused on efforts that would benefit the entire microfinance sector. These efforts also provided initial subsidies for sustainable initiatives that focused on knowledge transfer. The project leveraged local resources, insisted on counterpart co-investment and ensured knowledge transfer to local microfinance support service providers. The second project, the IPN Microfinance Program partnered with one of Mexico's largest public universities to develop local talent for the microfinance sector. The success of these two projects demonstrates that even a relatively modest investment can help develop specialized human talent. The application of good development assistance practices leveraged through strong local partners further ensures its success.