BOLIVIA

	FY 1998 Actuals	FY 1999 Estimate	FY 2000 Request
Development Assistance	$27,963,000	$27,161,000	$26,950,000
Child Survival & Disease Fund	$7,962,000	$6,515,000	$6,973,000
International Narcotics Control Funds	$12,000,000	$25,000,000	$16,000,000
P.L. 480 Title II	$17,423,000	$15,882,000	$23,000,000
Economic Support Funds	---	---	$3,000,000

Introduction

Despite continued adherence to macroeconomic norms, poverty poses a continued challenge which must be reduced through economic integration, free trade, social investment and greater inclusion of Bolivia's indigenous population in national life. Significant steps are also being taken to reduce the corrupting influence of the coca/cocaine industry. Sustainable development must be guaranteed through conserving Boliviaīs natural resources, improving the health of its people, providing greater economic opportunities for Boliviaīs poor and strengthening participative democracy. USAIDīs strategy directly supports the principal foreign policy goals contained in the U.S. Mission Performance Plan and the Government of Boliviaīs five-year National Plan of Action (NPOA). Common strategic goals include stopping the illicit production of coca, encouraging a market-driven economy with emphasis on poverty alleviation, nurturing democracy, protecting the environment from further degradation, and improving the health of the Bolivian people.

The Development Challenge

As the fifth poorest country in the hemisphere, Bolivia will not graduate from the need for development assistance in the near-term. Bolivia's population of 7.95 million grows at a rate of 2.3% a year. Over five million Bolivians (63%) live in poverty. The per capita GNP rose from $870 to about $913 in 1998, but 65% of the people remain under-employed. The real per capita income remains at 12% below the 1980 level. Ninety-four percent of Bolivians who live below the poverty line are in rural areas and 88% are indigenous. Poverty remains the leading cause of high infant and maternal mortality rates estimated at 67 per 1,000 and 390 per 100,000 live births, respectively. Systemic constraints such as inadequate governmental, financial and educational institutions; poor technological capability; limited financial services; poor infrastructure; and a shortage of human capital and experience, impede economic growth. Bolivia remains highly dependent on foreign assistance. External debt was modestly reduced from $4.3 billion to $4.1 billion in 1998 and external debt rescheduling was consolidated, including successful Paris Club negotiations of $760 million in bilateral debt relief. Approval of the Highly Indebted Poor Countries initiative by the multilateral banks gives Bolivia access to an additional $448 million. The U.S. Balance of Payments program ($8 million for FY99), which is linked to coca eradication, will help the GOB service its external debt schedule estimated at $305 million for 1999.

USAID and the donor community support the National Plan of Action and recognize that the GOB made progress towards its development goals in 1998. Still, the GOB needs to develop a more coherent poverty alleviation strategy and implementation schedule within the established framework of its Plan and to assign adequate financial and human resources to areas directly related to Plan priorities. The highest USG priority in Bolivia is abolishing the cocaine industry which is also one of the GOB's highest priorities under the NPOA. Significant public support was gained over the past year in this effort and progress in eradication efforts was excellent. Net eradication went from 2,300 hectares in 1997 to 8,000 in 1998, a net increase of approximately 350%. Other Plan priorities include continued work on development and reforms in privatization, local government, the justice sector, education, environment and health.

USAID's five-year strategic plan (FY 1998-2002) closely supports and parallels the GOB National Plan of Action. At the end of the first year of the strategy period (FY98), and in spite of setbacks due to uncontrollable conditions caused by the El Niño phenomenon, USAID's program had great impact in all of its strategic objectives. Key legislative proposals were approved which greatly strengthen the justice sector with increased transparency, accessibility and accountability, thus supporting other USG narcotrafficking-related enforcement objectives. Local government institutions were significantly strengthened by USAID support. USAID conducted a study on poverty alleviation efforts in Bolivia over the past 20 years which is being used to design USAID's poverty alleviation program for targeted communities. Coca production in the Chapare region has been significantly reduced for the third year in a row through direct eradication and continued large-scale, USAID-supported alternative development activities. USAID contributed to steadily declining child, infant and maternal mortality rates as well as to greater access to primary health care, improved health status of mothers and children and lower population growth. Achievements under P.L. 480 Title II include improved road infrastructure, enhanced micro-irrigation, reduced school dropout rates, greater nutritional status of children and improved water and sanitation systems in Bolivia's most food-insecure areas. USAID technical support increased forest certification dramatically with more than 340,000 hectares of forest certified and under sustainable management. Equally dramatic is a 3,000 percent increase since 1997 in marketed eco-certified products ($196,000 in 1997 to nearly $6 million in 1998.)

Damage from a strong earthquake in May 1998 was centered in the towns of Aiquile and Totora. In the Aiquile town center, up to 70% of the buildings were destroyed or suffered serious structural damage. USAID's humanitarian assistance response built over 1,140 temporary shelters to provide adequate protection from the elements while urban and rural residents rebuild their homes. Title II assistance to approximately 100,000 people mitigated the impact on agricultural incomes and reduced the food security effects of the severe El Niño-induced drought. USAID also assisted nearly 11,500 families with a potato seed program to diminish the loss of this dietary staple.

Other Donors

Contributions from Bolivia's active donor community have averaged $500 million annually over the past decade. The U.S. continued to be the largest bilateral Official Development Assistance (ODA) donor to Bolivia in 1997, disbursing $163 million. Japan provided $65.0 million; the Netherlands $59.8 million; Germany $47.5 million and Sweden $20.1 million, while multilateral donor disbursements totaled $264.2 million. At the Paris Consultative Group (CG) meeting in 1998, 26 donor countries and international organizations pledged about $940 million (a 45% increase over 1997) -- 44% in the form of grants to support Bolivia's socio-economic reforms and investment program. After the CG, the GOB organized working groups with the donor community to develop indicators to measure success against the Development Assistance Committeeīs 21st Century Strategy and Bolivia's NPOA. This process, in which USAID played a lead role, led to the GOB-initiated Local CG held in November 1998 which evaluated the main recommendations from Paris and identified areas requiring further attention.

FY 2000 Program

With a $75.9 million request, USAIDīs planned FY 2000 program includes support to: 1) continue our efforts in illicit coca eradication through a limited performance-based Balance of Payments Program which links disbursements to GOB eradication performance, and through the alternative development of marketable crops and self-sustaining linkages to regional and international markets; 2) strengthen the social base of democracy and governance through the implementation of key reforms and institutional strengthening of the judicial branch and local governments; 3) continue increasing income and opportunities for Boliviaīs poor through access to financial services in peri-urban and rural areas; 4) improve production technology, linking local and international product markets, productive infrastructure, and school feeding through the P.L. 480 Title II program; 5) improve the health of the Bolivian population by supporting knowledge, attitude and behavior changes of mothers and children, and improving the quality and coverage of health care options through a more decentralized health care system; and 6) reduce degradation of forest, water, and biodiversity resources by discouraging deforestation and ensuring a reduction of pollution.

BOLIVIA

FY 2000 PROGRAM SUMMARY
($000)

USAID Mission Director: Frank Almaguer

USAID Strategic and Special Objectives	Economic Growth and Poverty Alleviation	Population & Health	Environment	Democracy	Human Capacity Developmnt	Humanitarian Assistance	TOTALS
S.O. 1 Democracy broadened and governance strengthened - DA - INC - ESF	--- --- ---	--- --- ---	--- --- ---	4,500 2,000 3,000	--- --- ---	--- --- ---	4,500 2,000 3,000
S.O. 2 Increased income for Bolivia's poor with emphasis on targeted communities assisted by USAID - DA - PL480/II	4,450 ---	--- ---	--- ---	--- ---	--- ---	--- 9,000	4,450 9,000
S.O. 3 Improved health of the Bolivian population - DA - CSD - PL480/II	--- --- ---	13,000 6,973 ---	--- --- ---	--- --- ---	--- --- ---	--- --- 14,000	13,000 6,973 14,000
S.O. 4 Reduced degradation of forest/water resources and biodiversity protected - DA	---	---	5,000	---	---	---	5,000
Sp.O. 5 Illicit coca eliminated from the Chapare - INC	14,000	---	---	---	---	---	14,000
Totals - DA - CSD - PL480/II - INC - ESF	4,450 --- --- 14,000 ---	13,000 6,973 --- --- ---	5,000 --- --- --- ---	4,500 --- --- 2,000 3,000	--- --- --- --- ---	--- --- 23,000 --- ---	26,950 6,973 23,000 16,000 3,000

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ACTIVITY DATA SHEET

PROGRAM: BOLIVIA
TITLE AND NUMBER: Social Base of Bolivian Democracy Broadened and Governance Strengthened, 511-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: 4,500,000 DA; 2,000,000 INC, 3,000,000 ESF
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002

Summary: Democracy in Bolivia stands on two fundamental pillars: 1) the capacity of elected, representative governments to govern with legitimate and generally accepted authority; and 2) the capacity of the governed to participate in decisions through legitimate and effective channels.

USAID's focus on democracy coincides with Bolivia's recent efforts to support the rule of law and administration of justice development. USAID has been an important player throughout the design and approval of key justice sector reforms. USAID provided intensive technical assistance for the drafting of several laws: Code of Criminal Procedures (CCP), Constitutional Tribunal, Judicial Council (JC), and Ombudsman. Members of the last three institutions were appointed on a merit basis during 1998. Both the JC and Ombudsman have opened doors to the public already. The significance of these reforms, especially the CCP, is that over the next several years, the Bolivian judicial system will become more transparent and reliable.

The decentralization process made very good progress in the municipalities, especially in the rural areas, despite sporadic central GOB efforts to accelerate its implementation. USAID's assistance has helped municipal governments to develop and carry out their action plans in a participatory fashion, engaging civil society in the process. Since 1997 USAID has promoted encounters between single district congressional representatives and their constituents -- a new concept in Bolivia. In late FY 1998, a USAID-funded national Democracy Values Survey (DVS) was conducted. The survey results show a high correlation between participation in municipal governance and support for democracy, thereby providing empirical support for the Mission's local government program, and the basis for refining the democracy strategy.

The Bolivian public will benefit from an accessible, fair, and expeditious justice system. GOB institutions, including the Ministry of Justice, the Congressional Justice Committees, the Attorney General's office, the Public Defender's Office, the Constitutional Tribunal and the Judicial Council will benefit from the full implementation of ongoing reforms. Constituents will benefit from closer relations with members of Congress, and Congress will become more effective. USAID's democratic development and citizen participation activities will have a widespread impact on the conduct of local government by empowering citizens and improving their ability to determine the priorities of their municipalities, and the effectiveness of municipalities to respond to locally defined demands.

Key Results: In order to strengthen and broaden the social base of Bolivia democracy, USAID assistance will result in: key elements of rule of law becoming more transparent, efficient, effective, and accessible; single district congressional representatives becoming more responsive to constituent demands, and local governments in the Democratic Developments and Citizen Participation (DDCP) municipalities effectively responding to citizen needs and demands.

Performance and Prospects: USAID's Democracy Strategic Objective will continue to be achieved through activities promoting the rule of law, improved municipal governance, and the creation of stronger linkages between congress and their constituents. USAID is assisting a cluster of "teaching municipalities" by training them to develop annual municipal action plans with broad citizen participation, improve their budgeting techniques, implement their action plans, and incorporate citizen oversight. Through the use of an NGO grant fund, lessons learned from these "teaching municipalities" are being disseminated through an additional 100 municipalities. USAID is now planning to focus its congressional program to further develop linkages between the single member district representatives and their constituents.

USAID continues to carry out intensive policy dialogue at all levels to ensure that decentralization efforts and the justice sector reform agenda remain a priority. The judicial reform laws have laid the foundation for a complete revamping of the justice sector and for a more accessible judicial system for all Bolivian citizens. In this regard, USAID will continue to seek passage and implementation of the CCP law. During the CCP revision process, USAID is providing intensive technical assistance to the Congress in the drafting of the CCP, and in facilitating its passage. Following its enactment, expected in February 1999, USAID will assist in the establishment of an inter-institutional body which will develop an implementation strategy for the CCP.

Possible Adjustments to Plans: With the DVS completed, USAID will revise its indicators and refine its strategic objective statement to better reflect USAID's manageable interests, and to capture more precisely and reliably the impact of the mission's democracy program. Through use of the DVS, Bolivian citizenry attitudes and perceptions of democracy are measured scientifically. New indicators from the DVS will more accurately reflect the impact of USAIDīs program.

Other Donor Programs: The World Bank has provided a $11.5 million loan for judicial reform. The IDB continues to support citizen identification documentation, decentralization, and congressional modernization. GOB direct contribution to USAID dollar-funded activities for FY 2000 is over $6 million. The OECD Development Assistance Committee (DAC) donor working group functions to ensure donor coordination and includes all major bilateral donors, the World Bank, UNDP and IDB. USAID is responsible for the coordination of the "Institutionality" group, which includes Rule of Law.

Principal Contractors, Grantees, or Agencies: USAID implements its democracy activities through Management Sciences for Development and Chemonics International, Inc.

Selected Performance Measures:

	Baseline	Target (2000)	Target (2002)
Percentage of judges re-appointed on the basis of merit by new Judicial Council	0 (1996)	100	100%
Judicial cases handled by Public Defenders (9 judicial districts)	4,000 (1996)	9,250	12,230
USAID-assisted municipalities: Number of municipalities plans completed with at least 60% of registered NGOs participating	0 (1994)	15	19
Percentage of co-participation funds expended with citizen participation in assisted municipalities 1	0 (1994)	50	65
1 Co-participation funds are the 20% share of national revenue distributed to the municipalities on a per-capita basis.

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ACTIVITY DATA SHEET

PROGRAM: BOLIVIA
TITLE AND NUMBER: Increased Income for Bolivia's Poor with Emphasis on Targeted Communities, Directly or Indirectly Assisted by USAID, 511-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $4,450,000 DA; Title II $9,000,000
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002

Summary: USAID's assistance improves entrepreneurial and business skills, supports rural productive infrastructure, and facilitates economic activities of the poor by providing access to financial services, marketing services and appropriate technology. In 1997 USAID-assisted institutions provided technology services to 3,570 production units and marketing services to 1,189 units; 150,000 poor households had access to credit and 252,000 were active savers; and 280 communities improved their basic infrastructure. USAID continues to play a lead role in supporting the expansion of microfinancial services in Bolivia with more than 190,000 poor clients as of December 1998. Emphasis on the development of financial services and outreach into new areas has resulted in more rural than urban branches of microfinance institutions being opened in 1998 with even greater increases in the rural areas projected through 2002. In 1998 there were 116 rural branches and 72 urban branches as compared to one rural branch and five urban branches in 1990. USAID-assisted activities in the productive sector directly contributed to increasing access to technological services for 4,770 production units (farms, artisans, firms, etc.), while an additional 2,120 accessed marketing services during 1998. Improved technologies and improved access to national and international markets will increase incomes for those who live in poverty.

The P.L. 480 Title II program provides inputs of funds and food-for-work to improve rural roads, access to technology and marketing services, micro-irrigation projects and basic sanitation in 76 municipalities in some of the poorest, most food-insecure areas of the country. This program has increased production of staple crops and introduced greenhouses for the cultivation of vegetables and other high-value crops. However, due to the 1997-98 El Niño-induced drought, agricultural production in the highlands dropped sharply. In some areas, losses exceeded 70%. Rural income figures in general will surely decline from 1997 and we will likely reach only 60-80% of the planned 1998 income target of $786 per rural household.

USAID-supported programs are designed to benefit an increasing number of clients through the provision of credit services from microfinance institutions by more than 200% to 325,000 between 1997 and 2002. The number of poor with savings in microfinance institutions will also grow by 200% to 407,000 by the year 2002 as institutions increasingly mobilize capital from the private sector. In 1999 and 2000, an additional 2,000 rural families per year will benefit from production and marketing services, and technical assistance. These families will also benefit from the construction of 15 rural infrastructure works. USAID assists 100,000 school children per year through a Title II-sponsored school feeding program, which reduces repetitions and dropout rates, specifically among girls.

Key Results: USAID's major focus is to increase income through expanded economic opportunities by overcoming a set of constraints to growth that include: limited access to micro-finance services, lack of access to technology and markets, weak productive infrastructure, and low levels of education.

Performance and Prospects: USAID is committed to fostering broad-based economic growth and to helping overcome principal constraints that inhibit the productivity of Bolivia's poor. USAID assistance will strengthen the sustainability of financial intermediaries as they expand and diversify services while maintaining financial viability. Emphasis will be placed on improving financial services to small savers and borrowers in rural and urban areas. Assistance will also be provided to strengthen bank and financial institution regulation and supervision. USAID will assist rural producers to increase their incomes by developing improved services and identifying new markets.

P.L. 480 Title II resources will be used in targeted communities to improve secondary roads and use of irrigation technologies thereby creating linkages between producing areas and market towns to increase the volume of products farmers are able to sell. USAID activities will focus on improving, rehabilitating, and expanding community micro-irrigation systems to increase productivity and extend the planting season. Activities will include organizing, establishing, strengthening, and training beneficiaries in the maintenance and operation of the improved infrastructure. Revenue collection by beneficiaries is an important activity to ensure the sustainability of infrastructure.

USAID will continue a school feeding program designed to complement the World-Bank-funded Educational Reform Program. This program provides proven incentives for children to stay in school. Since a prerequisite of economic growth is an educated, well-trained labor force, the school feeding programs will contribute to expanded economic opportunity over the longer term. The school feeding program is directed at the poorest primary students in rural and peri-urban areas.

Possible Adjustments to Plans: USAID and the GOB have been working closely in developing plans to support the 1999-2002 Poverty Alleviation Plan of the Ministry of Agriculture. Activities being designed as part of this joint effort may require slight adjustments as new, additional plans emerge.

Other Donor Programs: In 1997, the previous government unveiled a food security strategy that included such key components as improved marketing systems, improved technology and better infrastructure. With DA resources scarce, donor collaboration and leveraging is fundamental to USAID's strategy. The EU is supporting the GOB food security strategy with nearly $60 million and there are opportunities for achieving a much greater impact through synergistic collaboration with the donors. Collaboration with Title II Cooperating Sponsors (NGOs), which work in some of Bolivia's poorest, most food-insecure areas, is also an essential part of USAID's strategy. The Cooperating Sponsors work closely with municipal authorities that, due to the Popular Participation Law, now have financial resources to complement those of the Cooperating Sponsors. The GOB contribution to USAID dollar-funded activities in FY 1999 is estimated to be $840,000.

Principal Contractors, Grantees, or Agencies: USAID implements microfinance activities through U.S. organizations, including World Council of Credit Unions, Agricultural Cooperative Development, International Volunteers in Overseas Cooperative Assistance, ACCION International, Freedom from Hunger, PROMUJER and numerous other local NGOs. The P.L. 480 Title II program is implemented by three U.S. Cooperating Sponsors: Project Concern International, Adventist Development and Relief Agency, and Food for the Hungry International.

Selected Performance Measures:

	Baseline	Target (2000)	Target (2002)
Number of production units receiving technology services	1,430	5,711	9,200
Number of production units receiving marketing services	230	3,248	5,290
Number of households with access to credit	130,877	275,000	320,000
Number of poor households with savings facilities	231,457	337,000	407,000
Number of communities with infrastructure constraints resolved	130	735	870

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ACTIVITY DATA SHEET

PROGRAM: BOLIVIA
TITLE AND NUMBER: Improved Health of the Bolivian Population, 511-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $13,000,000 DA; $6,973,000 CSD; $14,000,000 Title II
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002

Summary: Over the last five years, USAID has contributed to significant improvements in the health of the Bolivian population as demonstrated by data on key indicators from the 1998 Demographic and Health Survey (DHS). A comparison of these data to those from the 1994 Bolivia DHS shows that during the period 1994 to 1998: the infant mortality rate dropped from 75 to 67 deaths per 1000 life births; the percentage of children under five who are malnourished (as measured by weight for age) dropped from 16% to 8%; the percentage of infants with diarrhea in the two weeks preceding the survey dropped from 30% to 19%; the percentage of pregnant women seeking prenatal care from a trained provider increased from 53% to 65%; the percentage of births attended by a trained provider increased from 47% to 57% and the percentage of women in union using a modern contraceptive method increased from 18% to 25%; the modern contraceptive prevalence rate increased from 18% to over 25%; and the couple years protection rate increased 170% during the period from 1994 to 1997. These improvements have been achieved in part because of USAID's role in supporting the implementation of a more decentralized health system, strengthening reproductive health services in the public and private sectors, national health communication and education campaigns, the development and expansion of social marketing projects for contraceptives and locally produced oral rehydration salts, and technical assistance to the national Vitamin A-fortified sugar and iron-fortified flour programs. The 1.3 million Bolivian children under five and two million Bolivian women of child-bearing age are the major beneficiaries of support under USAID's health strategic objective.

Key Results: USAID strives to improve the health of the Bolivian population by: improving child survival and reproductive and sexual health practices; improving quality and increasing coverage of community health care; and supporting a more decentralized and participatory health care system.

Performance and Prospects: In FY 2000, the Health SO will support expanding and improving primary health care and reproductive health care services in the public and private sectors. Through a new five-year health sector bilateral agreement, USAID will continue to finance national family planning training centers; provide technical assistance in management, natural family planning, information, education, communication and counselling activities. USAID will also continue to improve the GOB's National Social Security Medical System's voluntary reproductive health services throughout its network of 94 urban health facilities serving nearly 20% of the population. USAID also will continue to support national immunization, diarrhea prevention and treatment, and GOB social marketing of oral rehydration salts and fortified flour and sugar programs. Support at the district level through the newly created PRODESCO (Community Health Project) will contribute to Bolivia's steady reduction in infant mortality and child malnutrition and improved maternal care. Included in the five-year plan is support to the GOB under USAID's new infectious diseases initiative for improving surveillance, diagnostics and treatment, as well as prevention and control, of key infectious diseases threatening the health of the Bolivian population: tuberculosis, malaria and chagas. USAID will continue to provide technical assistance for the implementation of an innovative model for Integrated Management of Childhood Illnesses promoted by the World Health Organization (WHO) and the Pan American Health Organization (PAHO), which has the potential to significantly improve the quality and effectiveness of child survival interventions.

In the private sector, operational support will continue for Bolivia's model self-financing, high quality, primary health care provider (PROSALUD), and USAID will add more to an endowment for long term sustainability. Bolivia's largest provider of family planning services in the private sector (Center for Information, Education and Services), will receive direct funding, having just recently achieved eligibility for direct USAID financing. A federation of 24 private and nongovernmental organizations (PROCOSI) will receive support to continue providing child survival and reproductive and sexual health services to 35% of Bolivia's rural population. Support will also be provided to Population Services International to increase sales of modern contraceptives, expand social marketing for other primary health care products, and initiate social marketing of reproductive health care services. USAID/Bolivia's P.L. 480 Title II program will continue to support child survival and reproductive health efforts with a combination of food and local currency resources. These resources are directed at reducing child and maternal malnutrition and improving biological utilization of food through integrated health, education, and water and sanitation interventions.

Possible Adjustments Plans: Based on revised health statistics, USAID will continue to adjust program activities to maximize results achievement.

Other Donors: USAID works closely with the United Nations Children's Fund, the United Nations Population Fund (UNFPA), PAHO, the World Bank (WB), Inter-American Development Bank (IDB), and the German, Canadian, British, Belgian, Japanese and Dutch Cooperation agencies in coordinating external support to the health sector. USAID spearheaded a major donor coordination effort to combine resources from eight multilateral and bilateral agencies to fund the 1998 Demographic and Health Survey. The UNFPA continues to finance regional program supervisors and other reproductive health initiatives, and the British Department for International Development finances contraceptives for the public sector. The GOB chairs interagency coordinating committees for vaccination, micro-nutrient/fortification, reproductive health, safe motherhood, and child health in which USAID and other donors participate. The Ministry of Health provides salaries, clinic facilities, and most other recurrent program costs. In 1999, the WB and the IDB will both initiate implementation of large health projects. The contributions from the GOB to USAID dollar funded activities in FY 2000 total $2.3 million. Although not precisely known at this time, total GOB contribution to the sector is many times greater.

Principal Contractors, Grantees, or Agencies: USAID implements its health activities through nine GOB technical units, and over 25 NGOs, almost all of which belong to a USAID-supported NGO network. U.S. and Bolivian commercial sector companies collaborate in social marketing. Significant technical assistance is provided through more than 20 Cooperating Agencies. PVOS/NGOs include CARE, Management Sciences for Health, Population Services International, John Snow International, and Johns Hopkins University, among others. Three U.S. cooperating sponsors (CSs) implement P.L. 480 Title II health activities. USAID/Bolivia will continue working with three CSs: Adventist Development and Relief Agency, Project Concern International and Food for the Hungry International. It is expected that a fourth CS will begin implementation in 1999. The three existing sponsors are implementing five-year Development Assistance Plans that run from 1997 to 2001.

Selected Performance Measures:

	Baseline (1994)	Target (2000)	Target (2002)
Infant mortality per 1000 live births	75	52	47
Maternal mortality per per 100,000 live births	390	220	194
Contraceptive prevalence (% modern methods)	18	40	48
Couple years protection	89,587	203,325	246,023

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ACTIVITY DATA SHEET

PROGRAM: BOLIVIA
TITLE AND NUMBER: Reduced Degradation of Forest and Water Resources and Biodiversity Protected, 511-S004
STATUS: Continuing
PROPOSED OBLIGATION/FUNDING SOURCE: FY 2000: $5,000,000 DA
INITIAL OBLIGATION: FY-1995 ESTIMATED COMPLETION DATE: FY 2002

Summary: Bolivia's forest and biodiversity resources are unquestionably of global significance. The rate of decline in Bolivia's forest cover is alarming, with extensive conversion of biologically rich areas (many inhabited by poor indigenous groups) to often unsustainable agricultural use. Further, Bolivia faces the need to reduce industrial and toxic waste pollution.

The GOB has had an historically strong commitment to sustainable development as evidenced by the creation of the hemisphere's first Ministry of Sustainable Development and Environment, and the GOB decision to host the Hemispheric Summit on Sustainable Development in 1996. USAID is a critical player in Bolivia's environmental affairs and the key donor working to protect forest resources. Achievements in 1998 include more than 225,000 hectares of forest "eco-certified" by international certification agencies. Another 650,000 hectares are in the evaluation phase of becoming certified. A technical, apolitical forest regulatory superintendency was successfully established in the evaluation phase of becoming certified. Further, 20 institutions adopted USAID- introduced pollution prevention technologies.

With the new GOB administration, it is not presently clear what level of priority the GOB is placing on continued protection of Boliviaīs natural resources. Through ongoing policy dialogue, USAID is playing a pivotal role in defining how these issues will be resolved. Several environmental issues were raised during both the Paris and Local Consultative Group meetings.

The number of direct beneficiaries of USAID's environmental program includes the residents of Bolivia's three most important cities (through pollution reduction and environmental education activities); more than 15,000 lowland indigenous populations (with improved forest management and wildlife conservation); and scores of NGO initiatives with community groups (directly improving the lives of more than 50,000 people). Indirect beneficiaries include the global community, through protection of Bolivia's forests and their carbon-sequestration capabilities (reducing global warming), and the wealth of still largely untapped biological resources.

Key Results: USAID focuses on reducing degradation of forest and water resources and protecting Bolivia's globally important biodiversity by discouraging forest conversion and reducing pollution.

Performance and Prospects: USAID supports achievement of its strategic objective by: (1) providing assistance which promotes sustainable forestry management; (2) increasing forest value, developing new eco-certified forest products for export to high-value "green markets," and creating an independent National Certification Council; (3) creating a local environmental watchdog organization; (4) empowering local municipalities to effectively manage and monitor their natural resource base; and, (5) helping to craft the appropriate institutional, legal and regulatory framework enabling responsible resource management. Adoption of sustainable resource management practices continues to be promoted through environmental education programs in both rural and urban areas; by increasing capabilities of local institutions for improved environmental management; and by managing selected wildlife populations by local groups. Pollution is being reduced in target areas by showing factory owners how they can comply with Bolivia's new environmental regulations and yet improve their rates of return on investment.

This program met or exceeded all of its targets in 1997 and expects to do the same in 1998. Looking ahead, USAID supports a sustainable forestry management program (BOLFOR) through the design and implementation of programs for "environmentally friendly" sustainable forest use on some 2.6 million hectares of natural forests by the year 2000. The Parks in Peril Program helps the GOB and NGOs protect almost 1.5 million hectares of some of the planet's most biologically rich areas. USAID supports highly innovative work with the indigenous Izoceño community in managing the 3.4 million hectare Parque Nacional KAA-IYA del Gran Chaco, including work with the 23 communities of Izozog/Guarani indigenous population to implement sustainable resource management practices on their 1.7 million hectares of community lands. This, coupled with work through the Parks in Peril Program, will lead to 4.5 million hectares protected in priority eco-regions. USAID is supporting modest, but path-breaking work with the private sector National Chamber of Industries on industrial pollution prevention. USAID also manages the Enterprise for Americas Initiative (EAI) program. EAI is a debt-for-development swap that is focused exclusively on funding environmental projects implemented by NGOs.

Possible Adjustments to Plans: No adjustments are envisioned at this time.

Other Donor Programs: Collaboration with other donors continues to be excellent. USAID has been a driving force in bringing together donor agencies from Canada, Germany, Switzerland, Holland, England, the World Bank, IDB, Denmark and UNDP. Periodic meetings are held to coordinate environmental activities. The group has expanded from its previous task of conducting an evaluation of the National Environment Fund (FONAMA) in late 1995 and is now meeting regularly to assess the new GOBīs policies and programs related to environmental issues. GOB direct contribution to USAID dollar-funded activities in FY 1999 is $1.375 million. Although not precisely known at this time, total GOB contribution to the sector is many times greater. $2.2 million are disbursed each year to the EAI, with more than $11 million in GOB funds received to date.

Principal Contractors, Grantees, or Agencies: USAID-financed environmental activities are implemented by Chemonics International, Wildlife Conservation Society, Conservation International, the Nature Conservancy, Tropical Research and Development, RCG/Hagler-Bailly, the Worldwide Fund for Nature (WWF). Key counterpart institutions include the Ministry of Sustainable Development and Planning; the Ministry of Agriculture, Livestock and Rural Development; National Environmental Fund; National Chamber of Industries; National Forestry Chamber; the Forestry Superintendency; the Izozog indigenous community; Confederation of Chiquitanos Indians; and a range of Bolivian environmental NGOs.

Selected Performance Measures: (cumulative)

	Baseline	Targets (2000)
Forest hectares under improved management	0 (1993)	2,000,000
Area in USAID priority eco regions protected (hectares)	0 (1995)	4,500,000
Factories adopting pollution prevention	0	20
Note: End-of-Activity targets to be determined

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ACTIVITY DATA SHEET

PROGRAM: BOLIVIA
TITLE AND NUMBER: Illegal Coca Eliminated from the Chapare, 511-SP05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $14,000,000 (INC)
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Summary: Suppression of cocaine production and trafficking is the major foreign policy interest of the U.S. in Bolivia. Without the USG/GOB counternarcotics efforts over the last decade, the coca problem would be significantly worse. Prior to 1992, coca was the principal crop grown in the Chapare and accounted for the majority of income and employment in the region. The area planted with commercially viable crops has now increased from about 46,000 hectares in 1987 to over 105,000 hectares in 1998 -- three times greater than coca cultivation. To date, more than 2,500 families have stopped growing coca and a net of 8,000 hectares of coca were eradicated as of the end of 1998. As a result of alternative development efforts, licit agricultural production in the Chapare now represents 1.7% of Bolivia's gross domestic product. Access to markets is no longer a constraint due to the infrastructure and market development assistance provided by USAID. To date, over 3,000 kilometers of roads have been maintained or improved to all weather standards, and approximately 100 bridges built, making the Chapare the area with the largest concentration of road infrastructure in Bolivia. Even with a dramatically increased output of licit products, competition has not reduced farm-gate prices because product quality is better and improved roads have opened new domestic and export markets. Additionally, the area has benefitted from private sector investments of about $10 million in off-farm agribusiness from over 25 different companies.

Prior to 1996, private growers had to be persuaded to enter into licit alternative crop production and private agribusinesses were provided with investment incentives. Although there has been a reduction of compensation by the GOB, an increasing number of farmers and grower associations are voluntarily signing coca eradication agreements and actively soliciting alternative development support to expand licit production. Farmers now understand the income potential of licit products such as bananas, pineapples, palm hearts, black pepper, citrus, and passion fruit. Between July 1997 and September 1998, 75 Chapare communities and producer associations signed coca eradication agreements. Of the 35,000 family farms in the Chapare Region, approximately 75% cultivate some coca and could benefit from USAID assistance in the next five years if they choose to give up coca production. Currently, approximately 12,000 families receive USAID-funded assistance to improve their licit alternative crops.

Key Results: USAID plans to increase employment and licit income in the Chapare agricultural economy and assist the GOB in the elimination of illegal coca production, processing and narcotrafficking.

Performance and Prospects: USAID works closely with the Narcotics Affairs Section (NAS) of the U.S. Embassy, the U.S. Information Agency, the GOB, the United Nations Drug Control Program (UNDCP) and private partners in the implementation of alternative development activities aimed at eliminating coca-cocaine from the Chapare by the year 2002. USAID intends to allocate resources for balance of payments support to assist the GOB in its continuing successful counter-narcotics efforts, as well as for alternative development activities to build on the achievements already made by current and predecessor programs in responding to producer needs and investor demands.

The new Counter-Narcotics Consolidation of Alternative Development Efforts (CONCADE) activity will make a closer linkage of alternative development with coca elimination by working only with Chapare farmers who sign coca eradication agreements and/or with farmers whose coca has been forcibly eradicated. Using participatory mechanisms, such as consultation with farmer unions and farmers, intensive development assistance will be tailored to the needs of specific zones and offered selectively in return for defined net coca reduction targets. CONCADE activities will include infrastructure improvement and maintenance to roads, electricity, cableways, etc; and, technical support to expand licit agriculture, production, marketing, and packing facilities. Efforts will also be directed to reducing subsidies and developing graduation/exit strategies for farmer organizations to ensure alternative development ventures are sustainable beyond the termination of USAID support. To better link USAID medium-term alternative development actions to NAS short-term eradication actions, the two agencies will jointly plan and share information by: (1) developing a common database including information on farmer unions, municipalities, hectares planted and eradicated, characteristics of geographic areas, identification of farmer groups that have eradicated coca, and income changes as a result of licit crop production; (2) working with the same counterparts and groups; and, (3) establishing common protocols on when eradication/reduction actions end and alternative development actions begin.

Possible Adjustment to Plans: The GOB and USAID recently completed the design for the continuation of alternative development activities in the Chapare and entered into a five-year agreement. This new activity supports the GOB's five-year plan to eliminate illegal coca production in Bolivia. As additional donors buy into the GOB counter-narcotics plan, adjustments to the mission's strategy may be required to minimize overlap and improve coordination with other donors.

Host Country and Other Donors: The GOB has developed a comprehensive counter-narcotics strategy to eliminate all illegal coca from Bolivia by 2002. Although viewed as a lofty goal, 1998 achievements show that the GOB is highly committed to ridding the country of drugs. The fight against narcotrafficking is at the top of the GOB's agenda and it is one of the five major initiatives to improve Bolivia's international image and demonstrate that Bolivia is an attractive and safe country for investors. The United Nations Drug Control Program (UNDCP) indicates that work in illegal crop areas alone will amount to $338 million under the National Plan of Action of which $160 million (47%) has already been secured under bilateral and multilateral grants ($109 million) and from GOB resources ($51 million). The NPOA indicates that host country contributions for the entire counternarcotics initiative will amount to $142 million over the 1998-2002 five-year period. Donor support includes funding from USAID for alternative development and balance of payments eradication activities, European Union for cadastre, infrastructure and road improvement activities, and UNDCP for agro-forestry, forestry, vocational and managerial training, private sector and microenterprise promotion, and global resource mobilization and institutional strengthening activities.

Principal Contractors: USAID will use full and open competition to select a contractor to oversee the implementation of CONCADE activities by GOB entities. The contractor may enter into sub-contracts or grants with local NGOs and/or private businesses.

Selected Performance Measures:

	Baseline (1996)	Target (2000)	Target (2002)
Hectares of additional non-coca crops in the Chapare region	92,300 has.	117,000 has.	130,000 has.
Number of families not growing coca	0	22,000	25,000
Net gross regional licit income generated per capita	0	$2,015	$2,350
Net hectares of coca eradicated	500 has.	20,000 has.	31,000 has.

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