SUB-CONTRACTING BETWEEN HANDICRAFT EXPORTERS/MANUFACTURERS AND SMALL PRODUCERS: FINAL REPORT

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ABSTRACT

For the past several months the PRET Project in Haiti has been exploring ways of building
relationships between individuals and workshops producing handicrafts in Haiti on the one hand,
and manufacturers and export houses on the other. The consultancy that is the subject of this report was
undertaken by Galen Hull of the DATEX, Inc. home office in order to assist in formalizing those
relationships by establishing subcontracting agreements between the two parties. The assignment
was carried out in Washington, DC, and in Haiti during the first two weeks of March 1998. A visit
to Haiti was proceeded by a desk study consisting of phone calls, e-mails, and meetings with persons
and organizations involved in promoting handicraft production and associations, importing of
handicrafts into the U.S., and contracting mechanisms. Included in the desk study was a survey of
project literature in the USAID library. Work in Haiti was undertaken with the collaboration and
supervision of the PRET Project staff.

The consultant was provided a brief orientation by PRET Chief of Party Robert Dressen of the prime
contract, Development Alternatives, Inc. together with Eric Bertheau, he reviewed the scope of work
of the consultant. The interviews in Haiti were conducted over a five-day period fiom March 9 to
13, through the intervention of Mr. Eric Bertheau, the DATEX Specialist in Non-Financial Technical
Assistance. Interviews were conducted with management and owners of rnanufacturing/exporting
firms in the Port au Prince area, Haitian consulting firms, workshop managers, and employees who
are candidates for subcontracting agreements.

This report recommends an action agenda with two objectives. The first of these consists of
formalizing existing relations of selected manufacturers/exporters and small producers/artisans into
subcontracts. The first step in this process is to be accomplished within the next two months and
then repeated with other groups over the next five months. The second objective is the organization
and coordination of a conference on subcontracting in order to bring relevant private sector actors
and government officials together for the purpose of exploring the promotion of subcontracting as
a means of stimulating economic growth. This would likely take place by the end of May.

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