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Ing. José Víctor Aragón M.

“History of quality infrastructure in

El Salvador”

Research work for the project:

‘To analyze the present situation of the
national regulatory and
Quality infrastructure in El Salvador”

BY:

José Víctor Aragón Molina

EL SALVADOR

San Salvador, November 15, 2006

Lomas de San Francisco, Calle 1, Nº 2A, S.S., El Salvador, CA, Tel. (503) 22481358/59, Telefax (503) 22481439
E-mail j_v_aragon@hotmail.com

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INDEX

TOPIC PAG
PART I: History 3
1.1 Historical behavior of the Industry in El Salvador 3
1.1.1 Established policies 5
1.1.2 Regulations and Norms 5
1.2 Referring data to Control of Quality, Normalization and Metrology in El 7
Salvador:
PART II: At present 9
2.0 Creation of the National Council of Science and Technology (CONACYT) 9
2.1 Metrological activities Assigned to the CONACYT 9
2.1.1 Developed activities 10
2.2 Activities of normalization Assigned to the CONACYT 10
2.3 Activities of Accreditation Assigned to the CONACYT 10
2.4 Activities of Inspection, Verification and Certification of the Quality 11
Assigned to the CONACYT
2.5 Other Activities in the infrastructure area of the quality of the CONACYT 11
ANNEX 1 CONACYT LAW. (NOT INCLUDED)
ANNEX 2 CONACYT, NEW POLICY OF SCIENCE AND TECHNOLOGY.
(NOT INCLUDED)

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THE QUALITY INFRASTRUCTURE OF EL SALVADOR

PART I: History.

For several years it has been forging a conscience to world-wide level of the importance
that has the application of the integrated system of quality within the manufacture
processes, to reach a high productivity to the different quality levels demanded by a
stratification from the markets, which is translated in a reduction of the production costs
and in better conditions of competitiveness in the market. This awareness has been
obtained due to the high degree of advance of sciences of the communication, of such
luck that the developing countries are taking serious measures to participate in the social
advantages and economic that imply the application of normalization, verification and
certification of the quality, and metrology, as tools to reach in effective form the level of
productivity required in the world-wide context.

1.1 Historical behavior of the Industry in El Salvador. In El Salvador, there are

specified diverse entities that besides coinciding with the historical frame with study, have
showed some important effect in this aspect; as well as to the orientation and promotion of
the industrial activities. This is an effort to show a dynamical vision of the social political
economical context - in who their placed the industrial sector of our country from middle of
last century up to the formation of the national Council of Science and Technology
"CONACYT".
The institutions that due to their developed labor link themselves with the branch in study,
and that therefore deserve mention in this part, are the following:

NATIONAL CENTER OF PRODUCTIVITY (CENAP)

The Inter-American Center of Industrial Productivity, named initially, had its origin in the
general agreement on technical cooperation signed as the governments of The United
States and El Salvador, April 4, 1952, according to Legislative Decree Not. 2935. with the
creation of this Center, was in tented to support the new industrial development across the
technical assistance, since it (was in this epoch that was beginning the process of
industrialization in our country).
Nevertheless, in 1959 by means of another agreement, it happened to be named Center of
Industrial Productivity, but it lacked the whole legal necessary instrument to regulate all the
functions; due to it the awaited results were not obtained in order that the Center was
continuing operating on in benefit of the industrial development and consequently of the
national economy, what gave place to a new agreement in the year 1965, where there is
born the law of creation of the National Center of Productivity (CENAP), whose aims were:
to increase the companies preferably of the small and medium industry and to contribute to
the economic and social development of the country; to contribute with the organizations
involved in the formulation and implementation of the politics of Industrial Development,
framed in the basic limits of the politics of the plan of Economic National Development.

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COMMON CENTRAL AMERICAN MARKET

The Central American countries convinced of the need to unify the regulations on fiscal
incentives to the industrial development and to coordinate the application between them,
agreed to sign a Central American Agreement of Economic Cooperation in May, 1961, in
order to stimulated the industrial development of Central America, in order to improve the
conditions of life and the well-being of their peoples. Taking in consideration that the
industrialization contributes substantially to the fulfillment of this aim and assures a more
effective utilization of the human and natural resources.
With the establishment and height of the MCCA, the country it hoped to massively create
sources of work like direct influence of the proliferation of new industries, goal that was not
reached as it tried because the small companies were moved by medium and the great
ones, and these absorb manual labor in smaller quantity.

NATIONAL BANK OF INDUSTRIAL PROMOTION (BANAFI) According to decree 930 it

was created in December of 1981, an official institution denominated National Bank of
Industrial Promotion, which it would have like fundamental objective to promote the
development of the industrial activities and to create, to modify or to extend the economic
activities derived from the same ones.

SALVADORAN CORPORATION OF INVESTMENTS In the same year 1981, the

Salvadoran Corporation of Investments is created, as an instrument of the State to
promote and to develop to societies and companies dedicated to the industrial activities:
manufactures, land-industries, extractive of fishing, as well as those that had like purpose
the development of the tourist activities.

SALVADORAN FOUNDATION FOR THE ECONOMIC AND SOCIAL DEVELOPMENT

(FUSADES) in 1982 this organism entered in operation, with the vision to make
investigations that allowed to develop the economic sectors with the consequent social
benefit for the country. From it creation has dedicated to the elaboration of studies and
activities of laboratory oriented so much to the industrial sector as to the farming one.

CENTRAL AMERICAN INSTITUTE OF INVESTIGATION AND INDUSTRIAL

TECHNOLOGY (ICAITI) Organism dedicated to the elaboration of general projects
applicable to all the regional industry, as investigations on energy saving, improvement of
the yield of power, etc. as well as to the study of specific industrial processes and to look
for new alternatives in the production of goods as far as processes or used raw materials.
Among other functions, the ICAITI was the organism of normalization of Central America.

On the other hand international organisms exist, like the International Agency for
Developing countries (AID) that through institutions like FUSADES, they have projects to
the improvement of economic and social development.

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1.1.1 Established policies. The policies are the instrument through as the State and the
Manufacturing Sector must coordinate the necessary activities for the development of the
same sector. They contemplate general aspects with regard to technology, markets and
manual labor. Here, the attention to the different aspects will be lent that contemplate the
plans of economic and social development emanated by the Ministry of Planning and
Coordination, to be able to have an idea of the directed objectives to favor the participation
of the industrial production in the manufacturing sector.

PLAN OF THE NATION FOR ECONOMIC AND SOCIAL DEVELOPMENT 1965-1969 The
phase of incipient industrialization (1950) was characterized by the growing of light
industries of internal consumption (soaps, clothes, foods, etc.). The food industries of the
time were reduced long before to drinks and the established sugar industry. The industrial
program of the plan of economic and social development 1965-1969, was oriented towards
the objective to increase the product exports manufactured, to obtain the change of a state
of excessive dependency of one or two agricultural products towards manufactured
products diverse that guaranteed the currency obtaining; it was also oriented to try to
eliminate the basic obstacles and deficiencies that interposed in the way of the economic
development. In order to obtain before expressed, it was made necessary to implement a
series of measures, between which were direct incentives to the export (facilities of credit,
publicity in attractive countries for export products, etc.)

PLAN OF THE NATION FOR ECONOMIC AND SOCIAL DEVELOPMENT 1968-1972 In

this plan a policy of radical reorientation of all the policies of export was considered, that is
to say, which talked about to fiscal incentives and diversification of apt products to export
itself outside the Central American area, since knowledge of the weakening in the markets
of the area existed, as a result of certain saturation reached in the recent years; all it
implied to project the nontraditional product export outside the Central American area. One
of the objectives of the plan was mainly to take advantage of the raw materials to the
maximum and to make a research program and promotion of industrial projects and of
which they managed to project the development of new products and industries. The
reorientation thus raised had like unsolvable obstacle in conflict of El Salvador with
Honduras in 1969, when as soon as the second year of use of the plan was run. This
event dragged with himself the objectives and policies drawn up initially, causing a
deterioration of the economy in general, a weakening of the industrialization rate and the
retirement of Honduras of Central American The Common Market (MERCOMUN) In the
period that starts in 1971, as a result of the policy from penetration to new markets, putting
in practice during first half of the decade of the seventy, industry registered remarkable
advances since it increased the availability of currencies to finance the industrial imports of
raw material and necessary equipment for new investments; political happiness was
accompanied by aggressive enterprise decisions on the diversification of the production,
especially in the product branches of non-lasting consumption. In addition the conscious
State to its normative paper, conducted battles to stimulate the foreign trade, between
which they deserve to mention the approval of the law of promotion of the exports and the
creation of the Salvadoran Institute of Foreign trade.

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PLAN OF THE NATION FOR ECONOMIC AND SOCIAL DEVELOPMENT 1973-1977.

In this five years plan, administrative and institutional reforms considered such as:
1. To suitably define the functions of direction and execution, establishing the greater
one communication and coordination between the National Council of Planning and
Economic Coordination (CONAPLAN) and the Ministry of Economy, in order that
acted harmonically in direction and beginning of the directed measures to develop
the manufacturing sector.
2. The Creation of the Unit of Planning in the Ministry of Economy.
3. To fortify the functions of the INSAFI, relative to the investigation, elaboration,
promotion and operation of industrial projects.
4. To support the creation of the Institute of Accelerated Education, institution that
would provide training basic to workers in the different branches.
For the decade of the 80 ' s was generated in the economy, as a product of the internal
conflict, a violent brake to the industrial development, with the deterioration of the deprived
investment, the migration of industrialists, the national capital outflow, the murder of union
and supervisory leaders, etc. This stage was characterized by a series of conflicts of great
magnitude that to a certain extent have come to interpose to the slow development of the
country. At the present time, having as it puts to be able to face more competitive markets
based on the quality and the efficiency, the change of mentality that it causes an
integrated system of quality within a frame of Industrial Reconversion is a necessary tool
so that our industrialists wake up their interest in the process of continuous improvement.
The constant change in economic, social and political the context existing in our country
pushes the industrial sector to the modernization, which entails changes in prices,
technology of processes and products, systems of quality, approach in the client and by all
means to agreed normalization to this changing world.

1.1.2 Regulations and Norms For the conduction of the industrial activity emanated
instruments of legal type of the State, as well as those exist that have their origin in the
own productive institutions, as they are the different uprisings and agreements. Next
reference to the different laws emitted in the industrialization process becomes that has El
Salvador presented.

LAW OF INDUSTRIAL PROMOTION OF TRANSFORMATION In 1952, the congress of

the Republic decrees this law, with the intention of fomenting and stimulating the industries
of transformation, granting to them to save a series of benefits that allowed their
development.

LAW OF INDUSTRIAL PROMOTION It was the 20 of January of 1961, already when the
law of Promotion of Industries of Transformation did not fill the exigencies of the economic
moment of the decade that started in that year, that becomes the creation necessary of a
new legal instrument that provided greater cover to the industrial activity; and it is as well
as the State in this date decrees the law of Industrial Promotion.

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LAW OF INDUSTRIAL NORMS In official newspaper 239 of the 27 of December of 1961

the decree Not 521 was not published, which talks about to the creation of the Law of
Industrial Norms decreed by the Military Civic Directory. On the basis of this law, it is
created the “Department of Norms and Quality”, which was located in the Direction of
Development and Industrial Power station of the Ministry of Economy. The development
that the national industry had reached in the years 60, made necessary for its better

direction, in good of the industrialists and protection of the consumers that dictated certain
rules related to the nomenclatures, qualities, operation and other requirements that had to
reunite to the products and industrial processes, as well as to facilitate to the industry
necessary the technical attendance for its better development; by this the Law of Industrial
Norms was emitted. This law would allow to uniformity and homogeneity as far as the
nomenclature norms, of quality and operation of the industrial activities. This law was
decreed for one better direction in the industrial field and benefit of the companies,
governmental and consuming organisms; since previously to the creation of this law, the
investors had to resort to diverse dependencies to obtain the norms of production with
which they had to work thus and also for the governmental organisms were difficult to
coordinate each one of the activities that the industry demanded.

LAW OF PROMOTION OF EXPORTS this law was created in 1970 as a result of the
deterioration of Central American the Common Market, which raised the necessity to
extend towards new markets being fomented the exports of manufactured goods. This law
countermanded in 1974, to consider itself inadequate to reach the objectives that were
persecuted. This law intended to foment the product exports outside the MERCOMUN, to
stimulate the development of the industry and power to pay therefore to the imports of raw
material and originating capital assets of countries outside the Central American area. It
was not but until 1981 which the Ministry of Economy delegated to the National Center of
Productivity (CENAP), the function of guarding by the quality of products at level of small
and medium company; as that all industrialist who asked for it, for which acted providing
information counted on a bank of international norms of quality. Besides to provide this
type of information, also he promoted courses on quality control, as a work of awareness
in the small and medium company through programs of industrial connection. The ICAITI
like consulting organism in technology and applied investigation, counted on a
normalization section in which the norms or conditions are formulated that the raw material
and the industrial products must have. These norms are valid, still, so that the national
products can compete with products made in the Central American area.

An agreement of cooperation between the ICAITI and Physikalisch-Technische

Bundesanstalt (PTB) of Germany did that its relevance was still more considerable in
general, and individual in the subject that interests to us. Was the ICAITI, therefore, the
place where one of the metrology structures was located more forts of the region, as
complement and support of the normative work that was already, in fact, most excellent.

1.2 Referring data to Control of Quality, Normalization and Metrology in El Salvador:

The approval of the Law of Industrial Norms goes back to year 1961, published in official
newspaper Not 239 volume 193, of the 27 of December of 1961, in charge of the Military
Civic Directory of El Salvador. On the basis of such law it was created the Department of
Norms and Qualities, to the interior of the Direction of Development and Industrial Control
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of the Ministry of Economy, whose function was the one to promote the emancipation of
dispositions in the matter of norms, quality and metrology, and to control his application.
The regulation relative to the 1961 law never was elaborated, this was one of the reasons
for which to this Department it was not possible to fulfill with the objectives and attributed
functions. Certainly it is not only the most important one that it explains the limited
development of the activities of Normalization, metrology and Control of quality in El
Salvador.

The specialized lack of personnel and the shortage of support received from the superior
authorities justify widely, for example, the almost insignificant normative work, that during
that period was made by the organisms of the Ministry of Economy, with the exception of
few and sporadic collaborations with the ICAITI; while the little bottoms to disposition and
therefore the incapacity to equip their own laboratories, the difficulty of a coordination with
the laboratories of other deprived Ministries or, the lack of prepared technicians and the
disinterestedness of the national industry for these subjects caused the impossibility of any
progress in the field of the control of quality and the metrology, in charge of the institutions
delegated by law to such tasks. Any improvement with the transference was not
pronounced either, in 1981, of all the functions in the matter of norms, metrology and
Control of quality of the Direction of Development and Industrial Control of the Ministry of
Economy of the National Center of Productivity (CENAP) of the Ministry, based on to have
verified in previous studies, that double of functions between both dependencies existed.

From such transfer, the CENAP did not develop to systematic activity some in the field of
the normalization, limiting itself to study some of the proposals of Central American norms
that the ICAITI sent to the countries of the area for their observations and commentaries.
In an attempt to unblock the situation, one is fulfilled in 1987 with the creation of an
interinstitutional commission, by means of agreement Not 681-87 of the 29 of 1987 July,
whose functions had to be those to move in the direction of the formation of an integrated
system of normalization and verification of the quality of products of the industry, from the
elaboration or of the homologation of practical standards and the coordination of the
resources available for the accomplishment of the necessary analyses of laboratory.
Unfortunately the proposals of this commission had never necessary the political
endorsement. A new initiative undertook 1989 by the end of, which took shape at
beginnings of 1990 with the signature in an agreement between the government of El
Salvador and the ICAITI in order that this last one provided the own technical consultation
with the purpose of organizing and of putting into operation an Integrated System of
Normalization, Metrology, Verification and Certification of the Quality of the products that
are commercialized in the country, were these concerned or no, and of those destining to
the export. The financing for such project was provided by the Inter-American
Development Bank (I.A.D.B.).

In 1991, the Re-Te (Association of Technicians for Solidarity and International

Cooperation), which it is a nongovernmental organism of Italy, made an evaluation of the
state of the normalization structures, metrology and control of the quality in the Central
American area, with the purpose of knowing the situation existing and of making the
proposals to implement a project of cooperation directed to the development of the region,
taking like model the European system for the certification.

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THE QUALITY INFRASTRUCTURE OF EL SALVADOR

PART II: At present.

2.0 Creation of the National Council of Science and Technology (CONACYT). The
most important project of the made ones was the financed one by the I.A.D.B. and carrying
out by the ICAITI, directed to the accomplishment of the System Integrated of
Normalization, Metrology, Verification and Certification of the Quality. The continuation of
this previous project, the emanation on the part of the government of coherent legislative
dispositions, indispensable condition imposed by the I.A.D.B. that gave the approval to this
report. In this sense for the obtaining of an opportune legislation the organisms interested
public, looking for, at the same time, to involve to the private sector and the universities
moved, assigned this work to the National Council of Science and Technology
(CONACYT), which was originate by means of decree legislative Not 287 of the 23 of July
of 1992 and published in the official newspaper the 10 of August of the same year (annex
1). This decree countermanded all the existing laws and dispositions in this matter until
that moment. All the fixed assets of the CENAP happened to comprise of the CONACYT. It
is as well as the Salvadoran government account with the science advice and technology
that by law is the Maxima authority in the matter of scientific and technological policy with
attributions to formulate and to direct to the policies and oriented the national programs of
scientific and technological development to the economic and social development, among
them, to direct and to coordinate the activities in the matter of normalization, metrology,
inspection, accreditation, verification and certification of the quality; activities attributed by
legal mandate, previously, to diverse dependencies of the government as they are the
Ministry of Agriculture, Ministry of Public Health and Social Attendance, Public Work
Ministry, local government of San Salvador, Ministry of Economy and Main directorate of
Internal Commerce, telling on a legal document that it indicates in explicit form of what
these activities consist and how they must develop them. It is evident, in addition, that this
situation introduced elements of conflict of competition between the diverse organisms.

2.1 Metrological activities Assigned to the CONACYT The anticipated main functions
for the Department of Standardization, Metrology and Certification of the Quality of the
CONACYT talk about in individual to the programming and the beginning of measures
oriented to the diffusion, application and interpretation of the System the International of
Units; the creation of a laboratory of legal metrology, equipped with secondary standards
of mass, length, dimensional and pressure, properly certified and, in perspective of other
magnitudes; the supervision of the installation and operation of laboratories of industrial
and scientific metrology, with the purpose of serving for the industry, the research
laboratories and of control of quality, the commerce and the citizens in general; the
verification of the operation of the used instruments of measurement in the commerce; the
verification of masses and volumes of commercialized, imported and exported products;
the technical attendance to the industry and the commerce for the calibration of equipment
and instruments of measurement and finally the technical attendance to investigation and
analysis laboratories.

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2.1.1 Developed activities The CONACYT from their foundation has come confronting
some disadvantages, such as lack of financing, little enabled and competent technical
personnel, and others, which has not allowed him to evolve and to extend as they had
wished it. Nevertheless, in spite of this, one has worked in the elaboration of the regulation
that endorses its law of creation, which is necessary for the development and application
of his functions. On the other hand the CONACYT actively contributed in the denominated
project “Contribution to the Development of the Metrological Activities, of Normalization
and Control of Quality in Guatemala, El Salvador and Nicaragua”, which was a sub-
regional project promoted by the Italian nongovernmental organizations Re-Te
(Association of Technicians for Solidarity and the International Cooperation) and G.V.C.
(Group of Civil Volunteers) to initiative of the governments of Guatemala, El Salvador and
Nicaragua. This project lasted of two years and contemplate the taking of steps that helps
to the development of the structures necessary to control the quality of goods and natural
and industrial products. In El Salvador, particularly, the contribution of the project consisted
of the establishment of a laboratory of legal metrology that covers the basic necessities
with the country, and the scientific and technical formation of the personnel, in order to
support its correct operation. The considered instrumentation covers five magnitudes,
mass, temperature, volume, dimensional and pressure.

At the moment the National Laboratory of Legal Metrology develops, along with some
deprived companies, the verification of balances in the commerce, like part of the
protection of the consumer, covering around 3000 instruments in all the national territory.
In addition, it is the one who takes care of the national patterns of mass, volume,
temperature, dimensional and pressure. Account with 4 technicians specialized in
Germany, the USA, Mexico and Brazil. In the short term also it began to develop the
program of verification of the net content in prepackaged.

2.2 Activities of normalization Assigned to the CONACYT The main activity is to

elaborate standards, in form harmonized with regional and international organisms of
normalization. For it are working with 18 technical committees of normalization; having
elaborated approx. 500 recommended and obligatory standards. It is the department that
represents El Salvador in the ISO and the COPANT

2.3 Activities of Accreditation Assigned to the CONACYT: the main activity of this area
is the accreditation of test and research laboratories. Like accreditor organism, the
CONACYT comprises of several international accreditation organisms, having accredited
in several procedures more than 9 laboratories at national level. By law, it is the
accreditation body of certification organisms, but in this area it has not had greater
relevance, because in the country organisms accredited by others accreditation bodies are
working, like ANAB of the USA, EMA of Mexico, etc. It is to make notice that in the field of
certification of ISO 9000, the country counts with more than 100 registered companies and
other 100 in certification process.

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2.4 Activities of Inspection, Verification and Certification of the Quality Assigned to

the CONACYT: In these areas it has not had greater relevance, because in the country it
has not been possible to develop none of these by lack of political support.

2.5 Other Activities in the infrastructure area of the quality of the CONACYT: At the
beginning of year 2006, the CONACYT elaborated the new policy of science and
technology, which at the moment is in public consultation, including in a this new structure
with respect to the part of the integrated system of quality; giving an approach adapted to
the time and fulfilling some lines of the WTO for its adjustment (annex 2). For this new
policy it is necessary to have the political support for his approval and development,
support that seemed to be that it will not have it, since according to the new exposition of
the policies of the central government, through Ministry of Economy, the CONACYT, tends
to disappear to give to the quality infrastructure an approach more of private sector. It will
be necessary to hope to see what happens in the beginning of year 2007, to know that
exposition will bring the central government in relation to the infrastructure of quality of the
country.

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