SAN SALVADOR–Through a unique U.S. government initiative to promote tax reform and sound financial management, 53 municipalities competed for grants that will be used for crime prevention activities. The Local Initiative Development Fund, designed by the U.S. Government through the U.S. Agency for International Development (USAID), encourages developing countries to mobilize financial resources to reduce corruption levels, reform tax systems and better manage expenses.

Municipalities competing for the grants, ranging from $75,000 to $100,000, were judged on improvement in fiscal management performance as measured by a series of indicators. The 20 winning municipalities are: Apastepeque, Atiquizaya, Caluco, Chalatenango, El Paisnal, Izalco, Mejicanos, Nahuizalco, Olocuilta, Panchimalco, Puerto de La Libertad, San Antonio del Monte, San Martin, Santa Tecla, Sensuntepeque, Soyapango, Suchitoto, Tecoluca , Tejutla and Zaragoza.

The Local Initiative Development fund, managed by USAID’s Municipal Competitiveness Project, contributes to the Partnership for Growth (PFG) Joint Country Action Plan between the U.S. and El Salvador to improve security and increase the productivity of exportable products to spur economic growth. 

The 20 winning municipalities of the Local Initiative Development Fund will partner with 11 local organizations and institutions to develop and implement crime prevention projects.

The Local Initiative Development fund complements other activities under the USAID Municipal Competitiveness Project by providing resources to high-performing municipalities in order to improve their local business environment and generate increased revenue through new activities focused on crime prevention.  Since 2010, the USAID Municipal Competitiveness Project has helped to improve the business environment in the country through activities to strengthen municipal administrative services and to promote the active participation of mayors in stimulating economic activity and alliances with the private sector.