CESTA

Promotion of Bicycle and Tricycle Use in El Salvador

Homepage Manual Contents Navigation

MANAGEMENT OF ECONOMIC RESOURCES

In order to develop a bicycle culture in El Salvador it is necessary, among other things, to manufacture hundred of thousands of bicycles and tricycles. This means that a very efficient policy of resource development must be devised to cope with the levels of investment required. The resource needs are present at 2 levels:

1. The bicycle user
2. The bicycle assembler or manufacturer of bicycle parts

As far as bicycle use is concerned, the general rule will be that each cyclist pays the real cost of the bicycle, and not many exceptions to this rule are expected to take place. This means that any amount of resources that CESTA might use to finance the acquisition of bicycles by low income groups, will be recovered after a certain period of time and envolve into a rotating fund.

As far as the assemblv of bicyles and manufacture of tricvcles and bicycle parts is concerned, the situation is going to be similar, the workers are going to receive soft loans that will allow them to develop their own investment and working capital. Again, any funds invested by CESTA will become rotating funds.

CESTA considers that the resources to finance this bicycle promotion program may come from three sources:

1. Development agencies
2. The international financing systems
3. Cooperation campaigns to the program in Europe and USA

The third source has already been explored and a cooperation campaign in Europe is now been planned under the leadership of the Research Group on Approprate Technology (GRTA) from Italy.