USAID CBJ FY 2002: Colombia

Summary: The causes of Colombia's illicit crop production are numerous and complex. At the root, Colombia's poorest and most remote farmers have not had opportunities to participate in the mainstream economy in a gainful manner. Agricultural research, extension, credit and land titling institutions have all failed to incorporate large numbers of Colombian farmers. Isolated farming communities do not have access to basic social services, such as schooling for their children, health systems, and potable water systems, which would enable a sustained rural development effort. Nor has the Colombian State been successful in extending national services or the rule of law in broad areas of Colombia. Security and safety are not assured. Guerrillas, paramilitaries and other criminal elements have all conspired to create organizations in neglected areas to promote the cultivation, processing and transportation of illegal drugs.

Eighty percent of all cocaine and up to one-third of all heroin consumed in the United States comes from Colombia. Over the last five years, illicit crop cultivation and processing has exploded in Colombia. In 1994, the country produced coca leaf on 40,000 hectares for a potential production of 180 metric tons (MT) of cocaine, while in 2000, the figure jumped to 136,200 hectares for a total potential production of 578 MT. Likewise, areas of opium poppy production increased from 6,000 to 7,000 hectares from 1996 to 1999 with a present potential of 7.7 MT of heroin. Two-thirds of the country's coca production is located in the two southern departments of Putumayo and Caquetá. In 1999, there was an estimated total of 79,500 hectares of coca in these two departments: 45,900 hectares in Putumayo and 33,600 hectares in Caquetá.

Under USAID's current $15 million alternative development strategy which preceded Plan Colombia, USAID is working to reduce illicit poppy crop production in targeted areas of Colombia (Tolima, Huila, Cauca, and Narino) through voluntary elimination by small producers (less than one hectare of poppy) of these crops. (Coca elimination is addressed in the expanded program 514-008). Simultaneously, USAID's program is working to provide alternative economic opportunities, social and productive infrastructure, and stronger organizational capacity to small farmer organizations agreeing to voluntary elimination. The goal of Phase I of the program, which began in August of 1999 and is expected to conclude in August 2002, is to voluntarily eliminate 3,000 hectares of small farmer opium poppy, support 3,000 hectares of small farmer licit, productive activities, and directly benefit 4,000 small farm families. Programs implemented at the local level will complement activities with internally displaced persons and in municipal strengthening.

Key Results: This $15 million program has resulted in the elimination of approximately 675 hectares of opium poppy, directly benefiting 770 small farm families, and 600 hectares of licit crops have been supported.

Performance and Prospects: Delays in implementation occurred due to the Colombian public sector entity responsible for channeling USAID funds having to use restrictive Colombian procurement procedures. This constraint was resolved by contracting a U.S. firm in May 2000 to manage USAID's financial resources using more flexible USAID regulations. Considerable effort has been spent analyzing Colombian counterpart (PLANTE) capabilities in information management and computer techniques. An information technology plan has been developed by USAID and PLANTE and by mid-2001 USAID funding will facilitate the installation and operation of an interactive electronic information management system in PLANTE headquarters and 10 regional offices, which will considerably improve its analysis, communication and reporting capabilities.

Two million dollars were set-aside in late FY 2000 to jumpstart activities in the Putumayo department under the new southern initiative. Implementation began in December 2000. Activities were undertaken in the production and marketing of cold climate fruits and beans as alternatives to opium poppy in the Tolima department, with additional productive activities to be undertaken in cassava and passion fruit in 2001 in the Huila and Cauca departments. All three of these productive activities are/will be linked to private sector product processing that will help to ensure value added and stable markets. By the end of FY 2002, it is expected that 3,000 hectares of illicit crops will be eliminated by small farmers and 3,000 hectares of licit crops will established through regional alternative development projects, benefiting some 4,000 small farm families.

Possible Adjustments to Plans: Alternative development and environmental activities depend on access to the areas where illicit cultivation occurs. The security situation will determine the pace at which activities can proceed. No activities will be carried out in the demilitarized zone. Achievement of results could be seriously impaired by continued violence between guerrilla and paramilitary forces in target illicit crop producing areas. An additional factor is the aerial spraying of small poppy plots by the Colombian National Police where some licit agricultural activities supported by the alternative development program may inadvertently be damaged. This could seriously affect the credibility of the alternative development program and the achievement of outcomes, and it is being carefully monitored by USAID and its contractor for this reason.

Other Donor Programs: The United Nations Drug Control Program (UNDCP) has a $2 million annual budget for policy development, institutional support and productive activities related to alternative development, drug eradication and demand reduction in Colombia. The Government of Colombia (GOC) is implementing a $50 million loan from the Inter-American Development Bank for alternative development.

Principal Contractors, Grantees, or Agencies: The primary U.S. contractor is Chemonics. Other implementing organizations include PLANTE, which coordinates alternative development activities for the GOC with farmer associations, indigenous groups, local governments and other GOC agencies including the counter-narcotics police; and the UNDCP, which supports dual-purpose cattle production in poppy producing areas in Narino.

Colombia 514-003

U.S. Financing

(In thousands of dollars)

	Obligations		Expenditures		Unliquidated
Through September 30, 1999	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	5,000	INC	93	INC	4,907	INC
	0	SEED	0	SEED	0	SEED
	0	ESF	0	ESF	0	ESF
	0	DFA	0	DFA	0	DFA
Fiscal Year 2000	0	DA	0	DA
	0	CSD	0	CSD
	5,000	INC	1,340	INC
	0	SEED	0	SEED
	0	ESF	0	ESF
	0	DFA	0	DFA
Through September 30, 2000	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	10,000	INC	1,433	INC	8,567	INC
	0	SEED	0	SEED	0	SEED
	0	ESF	0	ESF	0	ESF
	0	DFA	0	DFA	0	DFA
Prior Year Unobligated Funds	0	DA
	0	CSD
	0	ESF
	0	SEED
	0	ESF
	0	DFA
Planned Fiscal Year 2001 NOA	0	DA
	0	CSD
	0	ESF
	0	SEED
	0	ESF
	0	DFA
Total Planned Fiscal Year 2001	0	DA
	0	CSD
	0	ESF
	0	SEED
	0	ESF
	0	DFA
			Future Obligations		Est. Total Cost
Proposed Fiscal Year 2002 NOA	0	DA	0	DA	0	DA
	0	CSD	0	CSD	0	CSD
	0	ESF	0	ESF	10,000	INC
	0	SEED	0	SEED	0	SEED
	0	ESF	0	ESF	0	ESF
	0	DFA	0	DFA	0	DFA

Colombia

Activity Data Sheet

Colombia 514-003

U.S. Financing