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60 Years of Promoting Economic Development

The history of Swisscontact reflects the changes in the world economy and international development cooperation. In the beginning, our focus was on industrialisation and the growth of countries in Asia, Africa and Latin America. In the 1980s, the war on poverty came to the fore, and since the 1990s, sustainable development has defined our commitment. Today, Swisscontact implements more than one hundred projects every year, at a time when global projects implemented in numerous countries are becoming increasingly important in their achievement of greater outreach.

Getting the business world involved in economic development (1959)

Amidst growing awareness of the economic challenges faced by under-developed countries, the idea was formed that the Swiss private sector could contribute to the economic development of Africa, Asia and Latin America. In 1959, the ‘Swiss Foundation for Technical Cooperation’ was founded in Zurich with this goal in mind. Since the very year it was founded, the Foundation (renamed Swisscontact in 1971) was engaged in creating educational facilities in India, Pakistan and other countries; these functioned as a type of “Swiss business card”. At the same time, the projects allowed Swiss companies to gain a foothold in future export markets.

Skills development according to the Swiss model (1963 – 1979)

In an effort to promote industrialisation and economic growth, the Foundation’s work was focused on skills development. In 1962 our first vocational school was opened in Chandigarh, India. 36 people received training at the engineering workshop, which was designed according to the Swiss model. One year later, an agricultural training school – financed by Swisscontact – was opened in Sékou, Dahomey (now Benin). From the very start, Swisscontact ensured its partner countries were involved in the vocational schools, for example by having them provide land or buildings.

Click here for more information on both vocational schools

Soon, more vocational schools were opened with the support of Swisscontact, in countries in Asia, Africa, and Latin America. By 1979, there were 16 vocational schools in India, Sri Lanka, Pakistan, Indonesia, Brazil, Peru, Ecuador, Costa Rica, Benin, Tunisia, and Tanzania. Tool manufacturers, precision and maintenance mechanics, refrigeration technicians and agricultural machinery technicians were trained at these facilities. In order to optimise the return on the amounts invested, instructors were also trained, who could then go on to impart their knowledge to many more young people.

Skills development remained a focus of Swisscontact’s work through the 1970s. Indonesia is a good example of this; in 1979, the Indonesian Ministry of Education commissioned Swisscontact to help build six technical schools for 5,000 trainees, as well as a training centre. We had sown the seeds of this partnership five years prior by opening a training school for mechanics in Bandung.

Valuable expertise provided by retired professionals (1979 to the present)

With its Senior Expert Corps (SEC), Swisscontact has since 1979 offered further opportunity to share know-how. Our first Senior Expert, a former spa director from St. Moritz, developed a new tourism concept in Lesotho. Since then, each year more than a hundred retired Swiss professionals share their skills as volunteers on short-term projects. The knowledge transfer takes place in more than 100 branches of industry.

Vocational education becomes more flexible (since 1980)

In the 1980s, there was the conviction that economic growth in underdeveloped countries is a prerequisite to their ability to satisfy basic human needs. Swisscontact responded by offering more training courses designed to integrate disadvantaged populations into the labour market. Vocational education became more flexible, with training programmes which were able to be fine-tuned to reflect the needs of the private sector. Mobile training centres were also introduced.

Fostering small businesses (1981 to the present)

Our first business development project was launched in Costa Rica in 1981. It targeted agricultural machinery mechanics, who received not only technical education, but business management skills too. Furthermore, Swisscontact supported small businesses in their efforts to organise into interest groups and develop new systems to share machinery and equipment. The promotion of small and medium enterprises (SMEs) developed into one of Swisscontact’s core activities, from Peru to Indonesia.

Insufficient access to financial services hugely undermines entrepreneurial initiative. For this reason, Swisscontact has been helping to create a model for business cooperatives. Since the 1990s, the introduction of savings products and microcredit have gained importance. The first pure microfinance project was launched in 1995 in Ecuador, where Swisscontact supported the development of savings and credit cooperatives, ensuring they met the needs of rural client members. Today, over half of Swisscontact projects feature a financial services component.

Swisscontact’s SME promotion has undergone continuous professionalisation. In 1996, for-profit consulting centres were established in Ecuador and Peru. The innovation here was that these centres could earn the money required to run their own businesses.

The environment in focus (1992 to the present)

The Rio Conference in 1992 highlighted the concepte that environmental issues and social problems are inextricably linked. In response, Swisscontact began implementing environmental conservation projects.

In 1993, we implemented a clean-air programme in Costa Rica – the first project in Latin America with the objective of improving air quality. The “Aire Puro” (“Clean Air”) concept was based on the introduction of lead-free petrol and emissions laws and controls, as had been done in Switzerland long before. Auto mechanics were trained on how to tune up motors to minimise toxic emissions and with emissions testing, automotive garages had a new business opportunity. Environmental protection and private sector development were therefore working hand-in-hand. Similar projects followed in Bolivia, Peru, Indonesia and Vietnam.

Eastern Europe

In 1994, Swisscontact supported the development of a training workshop for auto mechanics in Durres, Albania. This was the first Swisscontact project in post-Communist Eastern Europe and provided us with the opportunity to help reform Albania’s entire vocational education system. Since then, Swisscontact has implemented numerous projects that link hands-on vocational education and training with labour market integration programmes.

Competition for project mandates

Soon, the government began tendering out mandates internationally and competition became more intense. Still, Swisscontact was able to win project funding around the world. In 1998, we won our first bids from the Swiss Office for Development and Cooperation (SDC) – in Mali, a vocational training project, and in Ecuador, a programme for promoting financial services. Today, the project mandates that Swisscontact implement on behalf of a multitude of state and private organisations make up the majority of our activities.

Including the poor in the economy (2002 to the present)

Millions of people in Bangladesh are excluded from economic development. The Katalyst Project implemented by Swisscontact changed this situation for many. Since its launch in 2002, numerous initiatives have been implemented to develop markets in such a way as to ensure smallholder farmers may benefit as well.

With this project, Swisscontact has helped spread the “inclusive markets” approach considerably. This approach involves influencing market systems to ensure disadvantaged populations access improved products, services, business opportunities and jobs. Today, Swisscontact applies this approach in all its interventions.

Katalyst is the largest project in Swisscontact’s history. By project end in 2018 – thanks to support from development agencies in the United Kingdom, Switzerland, Denmark, Sweden, Canada and the Netherlands, more than US$100 million has been utilised to sustainably improve basic living conditions for 4.7 million smallholder farmers and SMEs in Bangladesh, increasing net incomes by US$700 million.

Sustainable development as the goal (2003 to the present)

The objective of sustainability, defined as the interdependence of economic, social, and environmental development, defines all aspects of Swisscontact’s work. Skills development, the main objective from the start, remains an important topic, and SME development continues to play an important role. In 2003, Swisscontact began supporting commercial banks in East Africa to develop new and improved financial products. Local banks were able to expand their outreach to low-income clients, mostly through good infrastructure. After the devastating tsunami, in 2005 Swisscontact got involved in rebuilding the economy in Sri Lanka and Indonesia. In Indonesia, emergency assistance evolved into a long-term development cooperation; support for textiles firms that had lost all their infrastructure in the tsunami extended beyond reconstruction and now focuses on building their competitiveness.

Swisscontact remains very active in environmental affairs. In the face of continuous urbanisation, there is a focus on advising state agencies on sustainable urban planning. Since 2009, we have been working on the separation and recycling of household waste in Bolivia, where local neighbourhood involvement plays a key role. In South Africa and numerous South American countries, improving energy efficiency in brickmaking has been an important focal point since 2010.

Since 2013 in Kakuma, Kenya, Swisscontact has been focusing on improving the basic skills of young people in and around Africa’s largest refugee camp. Helping to integrate these people living in a fragile environment into the local labour market presents a special challenge to our staff and partner organisations.

Peru is particularly significant to Swisscontact. In 2016, we reached an important milestone: 50 years of projects, during which time Peru rose from a developing country to a burgeoning economy. In 1966, we started training mechanical engineers. With the greater economic growth that came later, the challenges changed and it is now about including rural populations, who had been largely left out of the development equation, during the growth stages. This is being achieved through the development of sectors such as sustainable tourism.

New Synergies due to Global Projects (2016 to the present)

Our project work in global programmes implemented simultaneously in many countries is of ever-increasing importance to Swisscontact. In these projects too, our role is primarily that of a facilitator. We do not disperse funds directly – instead, we bring local market actors on board to make sure that they are the main drivers. This ensures the activities will continue beyond Swisscontact’s presence.

Since 2016, Swisscontact has been in charge of the Swiss Entrepreneurship Programme, which promotes counselling and the interlink of local start-up enterprises. This initiative is being implemented in Albania, Bosnia and Hercegovina, Macedonia, Serbia, Peru and Vietnam. The programme does not work directly with the start-ups. Instead, it helps local business support organisations to provide assistance and develop professional services. The programme includes incubators and accelerators available to help start-up entrepreneurs with skills, networks and infrastructure while they build their companies. The programme also links entrepreneurs with angel investors.

In 2017, Swisscontact took over implementation of the Swiss Import Promotion Programme (SIPPO), the objective of which is to strengthen export structures in our partner countries and increase export revenues. On behalf of the Swiss State Secretariat for Economic Affairs (SECO), Swisscontact is therefore supporting export promotion organisations and sector associations in 11 partner countries to improve the services they offer their member companies. In this way, the member companies will enjoy more success exporting to or importing into the EU. SIPPO focuses on four Western Balkan countries in addition to Peru, Colombia, South Africa, Indonesia, Vietnam, Tunisia and Morocco.

Development leads to change

Change is essential to development. The history of Swisscontact demonstrates this. Since our foundation in 1959, our work methods have changed and we have added new key areas of focus and new partner countries, but throughout the last 60 years our goal has remained unchanged: Swisscontact has always created opportunities for people to lift themselves out of poverty and develop economically.

The archive photos on this website were kindly provided by the Archives of Contemporary History.

Swisscontact
Swiss Foundation for Technical Cooperation
Hardturmstrasse 123
CH-8005 Zurich

Tel. +41 44 454 17 17
Fax +41 44 454 17 97
E-Mail info@STOP-SPAM.swisscontact.org