Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
BOLIVIA
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Development Assistance.............. $20,526,000 $27,450,000 $28,015,000 Child Survival and Disease.......... $7,580,000 $8,045,000 $6,215,000 International Narcotics Control Funds $27,000,000 $6,000,000* $23,000,000 P.L. 480 Title II........................... $20,527,000 $24,070,000 $23,910,000
* initial allocation. Additional reprogramming to increase these funds is expected during FY 1998.
Introduction
The principal foreign policy goals of the United States in Bolivia are to help Bolivia reduce and eventually eliminate the illegal coca and cocaine industry, to encourage market-driven and sustainable economic growth and stability, and to nurture Bolivian democracy. In the counternarcotics effort, alternative development programs supported by the United States have successfully promoted licit economic opportunities and employment in the Chapare coca-growing region. The United States is helping Bolivia take significant strides in promoting financial services to the poor and increase nontraditional export earnings. Bolivia's free and fair national election in 1997 -- in which single district congressional representatives were elected for the first time -- demonstrates Bolivia's commitment to democratic processes. This bodes well for the continuation of Bolivia's restored democracy, now in its 16th year. Through innovative family health programs and food assistance, the United States is combating unacceptably high infant, child, and maternal mortality rates that impede development. The United States is helping Bolivia develop sound environmental regulations and build local capabilities to bring increased areas of forests under responsible environmental management. Many of these joint U.S. and Bolivian strategic interests are manifested in a recently launched Government of Bolivia (GOB) Action Plan that promises to continue many structural reforms undertaken by the previous government. Ongoing policy dialogue with the United States will ensure that mutual strategic interests are preserved.
The Development Challenge
Bolivia is not ready for graduation from traditional development assistance in the near-term. In 1997, Bolivia remained the second poorest country in the hemisphere with a per capita GNP of about $870. The statistics reflecting poverty are staggering: 70% of the population below the poverty level; 65% under-employed; and real per capita income 12% below the 1980 level (real per capita income actually dropped 20% for the poorest 25% of the population). Of the 5.2 million Bolivians living in poverty, 88% are indigenous. Poverty is the leading cause of high infant and maternal mortality rates estimated at 67 per 1,000 and 390 per 100,000 live births respectively in 1997. Bolivia's population of 7.8 million is growing at a rate of 2.3% a year. The poverty is symptomatic of major systemic constraints that continue to impede economic growth. These include inadequate governmental, financial and educational institutions, poor technological capability, limited financial services, poor infrastructure, and a shortage of human capital and experience. Bolivia remains highly dependent on foreign assistance as it struggles to meet its $4.3 billion external debt burden. Further, eradication of the illicit coca/cocaine industry is hampered by overwhelming market demand, wide availability of production inputs, weak law enforcement institutions and weak public support. The newly elected GOB is responding by consolidating reforms (privatization, local government, judicial, educational, pension, and land tenure) initiated by the previous administration.
In 1997, USAID responded to this development challenge through a focused five year strategic plan (FY 1998-2002) which supports continued progress on reforms. To date, enormous positive impacts in democracy, environment, health, economic opportunity, and counternarcotics have occurred. With successful, transparent elections held in 1997, there is increased confidence and greater legitimacy in the electoral process. Key legislative proposals were approved that greatly strengthen the justice sector and help meet the challenges posed by narcotrafficking. The capacity of Congress and local government institutions are being significantly strengthened. Bolivia has become a model in economic stabilization. A highly successful microfinance program has created access to credit, jobs and income opportunities for the country´s poor. Domestic markets have been expanded. The country´s nontraditional exports have increased dramatically. For the second year in a row, significant reduction in coca production in the Chapare region has been achieved through direct eradication and an immensely successful large scale, alternative development program which produces marketable crops. National child, infant and maternal mortality rates have steadily declined. USAID support contributes to lower fertility and spaced births, greater access to primary health care, improved health status of mothers and children and lower population growth. P.L. 480 Title II resources have supported a broad range of successes in improved market access roads, watershed management, micro irrigation, school feeding, oral rehydration therapy, nutrition education, water and sanitation systems in the most food-insecure areas of the country. USAID support has enabled Bolivia to be on the cutting edge of a fundamental reorientation of the forestry sector from uncontrolled exploitation to sustainable management. National management standards and regulatory systems have been adopted to enable sustainable forestry management
Other Donors
Bolivia has a very active, large donor community whose contributions averaged $500 million annually over the last ten years. Donors are currently coordinating to support the GOB´s National Action Plan and the Development Assistance Committee´s 21st Century Strategy (which establishes socio-economic goals to be reached by 2015). The Japanese are the largest donors in Bolivia. Other big donors include: The World Bank, Inter-American Development Bank (IDB), UNDP, the European Union (EU), and a large number of other European bilateral donors. As a major donor, USAID coordinates extensively to ensure achievement of its strategic plan.
FY 1999 Program
With an $81.15 million request (consisting of DA, INC and PL 480 Title II resources), USAID´s FY 1999 program plan will cover a broad range of sectors. To strengthen the social base of democracy and governance, support will continue for implementation of key reforms and institutional strengthening of the judicial branch and local governments. Assistance will continue to focus on increasing income and employment of Bolivia´s poor through access to financial services in urban and rural areas. PL 480 Title II will continue to focus on improving production technology, linking local and international product markets, productive infrastructure, and school feeding. Improving the health of the Bolivian population will continue through activities which support changing knowledge, attitudes, and behaviors of mothers and children; improving the quality and increasing the coverage of health care options; and supporting a more decentralized health care system. To reduce degradation of forest, water, and biodiversity resources, assistance will discourage deforestation and ensure reduction of pollution. Progress toward illicit coca eradication is planned through a performance-based Balance of Payments Program with disbursements tied to GOB eradication performance, and the alternative development of marketable crops and self-sustaining linkages to regional and international markets.
BOLIVIA FY 1999 PROGRAM SUMMARY
($000s)
USAID
Strategic and Special
ObjectivesEconomic Growth and Agriculture Population and Health Environ-ment Democracy Human Capacity Develop-ment Human-itarian Assistance
TotalS.O. 1
Democracy broadened and governance strengthened
- DA
- INC
4,200
3,000
4,200
3,000S.O. 2
Increased income and employment for the poor
- DA
- P.L. 480/II
3,350
13,000
3,350
13,000S.O. 3
Improved health of the Bolivian population
- DA
- CSD
- P.L. 480/II
15,165
6,215
10,910
15,165
6,215
10,910S.O. 4
Reduced degradation of forest/water resources and biodiversity protected
- DA
5,300
5,300
Sp.O.
Illicit coca eliminated from the Chapare
- INC
20,000
20,000
Totals
- DA
- CSD
- P.L. 480/II
- INC
3,350
20,000
15,165
6,215
5,300
4,200
3,000
23,910
28,015
6,215
23,910
23,000
USAID Mission Director: Frank Almaguer
ACTIVITY DATA SHEET
PROGRAM: BOLIVIA
TITLE AND NUMBER: Social Base of Democracy Broadened and Governance Strengthened , 511-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: 4,200,000 DA; 3,000,000 INC
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002
Purpose: The social base of Bolivian democracy broadened and governance strengthened through: key elements of rule of law becoming more transparent, efficient, effective, accountable and accessible; national representation becoming more responsive to constituent needs and demands; and local governments responsive to citizen needs and demands.
USAID's Role and Achievements to Date: USAID's focus on democracy coincides with Bolivia's recent efforts to support the rule of law, administration of justice and municipal development. For the first time in Bolivian history, single district congressional representatives were elected and took office in 1997. USAID's assistance has helped municipal governments to develop and carry out their municipal action plans which describe how the municipality will use the co-participation funds its receives from the central government. USAID helped the Bolivian Congress establish permanent, non-partisan, bicameral legislative support services through the Congressional Research Center (CICON). With USAID support ending this year, the CICON was given a permanent line item in the Congressional Budget which will enhance its sustainability.
USAID also 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 of the laws: Code of Criminal Procedures (CCP), Judicial Council (JC), Constitutional Court (CCT) and Ombudsman. With a transition to a new national government in 1997, USAID played an important role in ensuring that the justice sector reform agenda would be adopted by the new GOB. The CCT and CCP draft laws were approved by the new Bolivian Congress in "first reading" and the Ombudsman and JC laws were approved in final form. A critical facet of the new JC law requires that in 1998 all judges to be reappointed based on merit. Provisions to criminalize money laundering have also been approved. Further, accessibility to the justice system increased through the public defense. Planned targets for 1997 were met through the handling of 6000 judicial cases.
Description: USAID's Democracy Strategic Objective will continue to be achieved through activities promoting the rule of law, improved municipal governance, and the creation of linkages between congress and their constituents. USAID is assisting a cluster of "teaching municipalities" by, among other things, training them to develop Municipal Action Plans with broad citizen participation. Through the use of an NGO grant fund, lessons learned from these "teaching municipalities" will be disseminated throughout up to 200 other municipalities. USAID is now planning to limit its congressional program to further develop linkages between the single member district representatives and their constituents.
With the new GOB administration, USAID continues to carry out intensive policy dialogue at all levels to ensure that the justice sector reform agenda remains a priority. These laws have laid the foundation for a complete revamping of the justice sector and for a better judicial system for all Bolivian citizens. In this regard, USAID will continue to seek full implementation of the CCT, JC, and CCP laws. USAID is also providing technical assistance to the congress through design, analysis, discussion and dissemination of information, during the CCP revision process. After its approval, expected in June 1998, USAID will assist the legislative branch, bar associations and universities to prepare for full CCP implementation.
Host Country and Other Donors: The World Bank has provided a loan for judicial reform. The IDB continues to support citizen documentation, decentralization, and congressional modernization. GOB direct contribution to USAID dollar-funded activities for FY 1999 is $1.125 million. Although not precisely known at this time, total GOB contribution to the sector is many times greater. 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 Rule of Law portion of this donor group.
Beneficiaries: The Bolivian public will benefit from an accessible, fair, and expeditious justice system. GOB institutions to include the Ministry of Justice, the Congressional Justice Committees, the Attorney General's office, the Public Defense and the Judicial Branch 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 and the ability of citizens to determine their municipality's financial priorities.
Principal Contractors, Grantees, or Agencies: USAID implements its democracy activities through Management Sciences for Development and Chemonics International, Inc.
Major Results Indicators: Baseline Target (2002) Percentage of judges re-appointed on the basis of merit by new Judicial Council 0 (1997) 100% (1999) Cases handled by Public Defenders (nine judicial districts) 4,000 (1996) 12,230 With civil society participation, USAID- assisted municipalities: - Annual Municipal Action Plans completed 0 (1994) 70% - Co-participation Funds spent 0 (1994) 65%
A CTIVITY DATA SHEET
PROGRAM: BOLIVIA
TITLE AND NUMBER: Increased income and employment for Bolivia's poor with emphasis on targeted communities, 511-S002
STATUS: Ongoing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,350,000 DA; $13,000,000 Title II
INITIAL OBLIGATION:FY 1995 ESTIMATED COMPLETION DATE: FY 2002
Purpose: To increase employment and 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.
USAID Role and Achievements to Date: 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. USAID continues to play a lead role in supporting the expansion of microfinancial services in Bolivia with more than 158,000 outstanding clients as of November 1997. Emphasis on the development of new financial products and outreach into new areas has resulted in more rural branches of microfinance institutions being opened than urban offices in 1997 with greater increases projected through 2002. There were 88 rural branches compared to 71 urban branches in 1997 as compared to one rural branch and five urban branches in 1990. USAID export promotion activities during the past six years (1991-1996) have also generated $578.3 million in nontraditional exports and created more than 106,000 permanent jobs.
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 93 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. These efforts have helped increase rural household incomes by over 20% in the first year of the program.
Description: USAID is committed to helping overcome four principal constraints that inhibit the productivity of Bolivia's poor and to foster broad-based economic growth. USAID will focus on:
1. Increased access to financial services for small borrowers. USAID will provide technical assistance to strengthen the sustainability of financial intermediaries as they expand and diversify services while maintaining financial viability. This would include ensuring the institutional sustainability of NGOs, credit unions and licensed financial institutions. 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.
2. Better access to markets and technology. USAID will support local institutions which provide information that enable industries to develop improved products and identify new markets. USAID will also provide technical assistance for diagnostic studies that enable policy dialogue on reforms as well as identify marketing constraints for specific industrial and agricultural products. The key to USAID's strategy is strengthening primary and secondary producer associations that can act as the catalyst for accessing markets and well as provide technical assistance in a sustainable way.
3. Improved productive infrastructure. PL 480 Title II resources will be used in targeted communities to improve secondary roads and increase access to irrigation. USAID will work with NGOs and municipal governments to improve rural access roads. Linkages will thereby be created 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
in order to increase production per hectare and extend the planting season. Activities will include organizing, establishing, strengthening, training beneficiaries in the maintenance, operation and revenue collection of the improved infrastructure.
4. Improved human capacity. USAID recently began 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 the rural and peri-urban areas.
Host Country and Other Donors: In 1997, the previous government unveiled a food security strategy that includes 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 EU. 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. GOB direct contribution to USAID dollar-funded activities in FY 1999 is $840,000. Although not precisely known at this time, total GOB contribution to the sector is many times greater.
Beneficiaries: Almost five million Bolivians live in poverty. USAID-supported programs are designed to increase incomes by 10% per year after adjusting for inflation and help the private sector create 315,000 additional jobs by 2002. The number of clients accessing credit services from microfinance institutions is expected to grow by more than 200% between 1997 and 2002 to 325,000. The number of poor with savings in microfinance institutions is also expected to grow by 200% to 407,000 by the year 2002 as institutions increasingly move toward mobilizing capital from the private sector.
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 (ACD/VOCA) ACCION International, Freedom from Hunger, and PROMUJER) as well as numerous 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 (ADRA), and Food for the Hungry International.
Major Results Indicators*: Baseline(1996) Targe t(200 2) Number of permanent jobs created 40,900 315,000 Number of production units receiving marketing services 230 6,100 Number of poor households with access to credit 130,877 320,000 Number of poor households with savings facilities 231,457 407,000 Number of communities with infra- structure constraints resolved 130 870 *Based on revised strategy dated 10/97
ACTIVITY DATA SHEET
PROGRAM: BOLIVIA
STRATEGIC OBJECTIVE: Improved Health of the Bolivian Population, 511-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $15,165,000 DA; $6,215,000 CSD; $10,910,000 Title II
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE : FY 2002
Purpose: 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.
USAID's Role and Achievements to Date : Over the last five years, USAID has contributed to the decline in infant and child mortality by supporting the Government of Bolivia's (GOB's) reproductive and sexual health, child and maternal survival, immunization, diarrheal prevention, and water supply and sanitation programs. Recent activities have included continued support for the implementation of a more decentralized health system, working directly with more than 150 of Bolivia's 311 municipalities. USAID also contributed to the development and expansion of social marketing projects for contraceptives and locally produced oral rehydration salts. Through technical assistance for production and marketing, USAID led the implementation of the national Vitamin A-fortified sugar and iron-fortified flour programs. In 1996, USAID's major providers of family planning services increased the number of new users of modern contraceptive methods by nearly 20%. The USAID-supported contraceptive social marketing program averaged over 320,000 condom sales per month during the first seven months of 1997, compared to 190,000 over the same period in 1996. The incidence of sexually transmitted diseases (STDs) among commercial sex workers has been reduced through the AIDS/STD prevention project.
Description: The Health Strategic Objective to improve the health of the Bolivian population will be achieved through efforts to: (1) improve child survival and reproductive and sexual health practices by Bolivian women, men, adolescents, and children; (2) improve quality and increase coverage of community health care services established by local governments and NGOs; and (3) support a decentralized and more participatory health care system. In FY 1999, the Health Strategic Objective will continue to emphasize support for expanding and improving primary health care services in the public and private sectors. USAID will increase support to the GOB's Ministry of Health by increasing new users of family planning among the poorest 30% of Bolivia's population. USAID will continue to finance national clinical family planning training centers and provide technical assistance in management, natural family planning, and information, education, communication, and counselling activities.
USAID financing will continue to improve the GOB's National Social Security Medical System reproductive health services throughout its network of 94 urban health facilities serving nearly 20% of the population. USAID also will continue to support the 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 Community and Child Health (CCH), activity will continue to contribute to Bolivia's steady reduction in infant mortality. USAID also provides technical assistance for the implementation of an innovative model for Integrated Management of Childhood Illnesses (IMCI) promoted by WHO and PAHO, which has the potential to significantly improve the quality and effectiveness of child survival interventions. In addition, in 1998, USAID will initiate support to the GOB under the new infectious diseases initiative (for improving surveillance, monitoring antibiotic resistance, and providing support to prevent the spread of emerging diseases, such as malaria and Chagas) and this program is expected to continue in 1999.
In the private sector, support will continue (1) for Bolivia's model self-financing, high quality, primary health care provider (PROSALUD) to expand its network and continue an endowment for long term sustainability; (2) for Bolivia's most important provider of family planning services in the private sector (Center for Information, Education and Services-CIES) to become an International Planned Parenthood affiliate; (3) for a federation of 24 private and nongovernmental organizations (PROCOSI) to continue providing child survival and reproductive and sexual health services to 35% of Bolivia's rural population; (4) for CARE to expand reproductive and AIDS/STD prevention activities in southern Bolivia; and (5) for Population Services International (PSI), which continues to increase condom sales, market new brands of contraceptive products, and expand social marketing for other primary health care products.
USAID launched a third national multi-media family planning campaign in 1997. The 1996 campaign won the Population Institute's Global Media Award for Best Advertising campaign. New episodes of a television drama series advocating STD/AIDS prevention were produced and aired in 1997. The original episodes were viewed by over 2.5 million Bolivians. Old and new episodes will be produced in a film format to be premiered in Bolivian theaters in early 1998. A television mini-series on reproductive and sexual health topics, including prevention of unwanted pregnancies and STD/AIDS prevention will also be launched and targeted to teenagers. USAID supported a nationwide song writing contest where young musicians and composers presented original music scores and lyrics, based on AIDS prevention themes. This is planned to be an annual event.
Host Country and Other Donors: USAID works closely with the United Nation's Children's Fund (UNICEF), the United Nations Population Fund (UNFPA), the Pan American Health Organization (PAHO), the World Bank (WB), the IDB, and the German, Canadian, British, Belgian, Japanese and Dutch Cooperation agencies in coordinating external support to the health sector. The UNFPA finances regional program supervisors, and other program costs, and the British finance contraceptives for the public sector. The GOB chairs interagency coordinating committees for vaccination, micronutrients/fortification, reproductive health, safe motherhood, and child health which USAID and other donors participate in. The Ministry of Health provides salaries, clinic facilities, and most other recurrent program costs. In 1998, the WB and the IDB are both completing major health center construction and equipment projects, and will design a large health reform project in 1999. GOB direct contribution to USAID dollar funded activities in FY 1999 is $5.5 million. Although not precisely known at this time, total GOB contribution to the sector is many times greater.
Beneficiaries: The 1.2 million Bolivian children under five and 1.9 million Bolivian women of child-bearing age are the major beneficiaries of USAID's health strategic objective.
Principal Contractors, Grantees, or Agencies: USAID implements its health activities through three GOB agencies, 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. Three U.S. cooperating sponsors implement P.L. 480 Title II health activities.
Major Results Indicators: Baseline (1994) Target (2002) Infant mortality per 1000 75 47 live births Maternal mortality per 100,000 390 194 live births Contraceptive prevalence 18 48 (% modern methods) Couple Years Protection (CYPs) 89,587 246,023
ACTIVITY DATA SHEET
PROGRAM: BOLIVIA
TITLE AND NUMBER: Reduced Degradation of Forest and Water Resources and Biodiversity Protected, 511-SOO4
STATUS: Continuing
PROPOSED OBLIGATION/FUNDING SOURCE: FY 1999: $5,300,000 DA
INITIAL OBLIGATION: FY-1995 ESTIMATED COMPLETION DATE: FY 2000
Purpose: To reduce degradation of forest and water resources and to protect Bolivia's globally important biodiversity by discouraging forest conversion and reducing pollution.
USAID Role and Achievements to Date: 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 1997 include more than 225,000 hectares of forest "ecocertified" by the U.S.-based Smart Wood Program, another 650,000 are in the evaluation phase of becoming certified, and the successful establishment of a technical, apolitical forest regulatory superintendency. With the new GOB administration, it is not presently clear what level of priority the GOB is placing on continued protection of Bolivia´s natural resources. Through ongoing policy dialogue, USAID is playing a pivotal role in defining how these issues will be resolved.
Description: USAID supports achievement of its strategic objective by provision of assistance which promotes sustainable forestry management; by increasing forest value, developing new ecocertified forest products for export to high-value "green markets," and creation of an independent National Certification Council; creation of a local environmental watchdog organization; empowerment of local municipalities to effectively manage and monitor their natural resource base; and helping to craft 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.
USAID supports a sustainable forestry management program (BOLFOR), through the design and implementation of programs for "environmentally friendly" forest use on over 1.6 million hectares of natural forests. 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. High-level technical assistance was provided to the GOB in planning the Hemispheric Summit on Sustainable Development. The Environmental Pollution Prevention Program provides models to industry for cost-effective ways to reduce water, soil and air pollution. USAID is also working with the 23 communities of Izozog/Guarani indigenous population to implement sustainable resource management practices on their 1.7 million hectares of community lands. USAID supports highly innovative work with the indigenous Izoceño community in managing the 3.4 million hectare Parque Nacional KAA-IYA del Gran Chaco. USAID is also supporting modest, but path-breaking work with the private sector National Chamber of Industries on industrial pollution prevention and serves as the USG representative on the Enterprise for the Americas Initiative (EAI), a debt-for-development swap that is focused exclusively on funding environmental projects implemented by NGOs.
Host Country and Other Donors: 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 and to prevent overlap. 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 GOB´s 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.
Beneficiaries: 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.
Principal Contractors, Grantees, or Agencies: USAID-financed environmental activities are implemented by Chemonics International, Wildlife Conservation Society, Conservation International, the Nature Conservancy, World Resources Institute, Tropical Research and Development, RCG/Hagler-Bailly, and the U.S. Environmental Protection Agency. 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.
Major Results Indicators: (cumulative) Baseline Target (2000) Forest hectares under improved management 0 (1993) 2,000,000 Institutions trained 8 (1996) 20 Factories adopting pollution prevention 0 (1995) 20
ACTIVITY DATA SHEET
PROGRAM: BOLIVIA
TITLE AND NUMBER: Illicit Coca Eliminated from the Chapare, SpO01
STATUS: New
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $20,000,000 INC
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002
Purpose: Create employment and income in the licit alternative Chapare agricultural economy and assist the Government of Bolivia (GOB) in the elimination of illegal coca production and narcotrafficking.
USAID's Role and Achievements to Date: USAID counternarcotics efforts are closely integrated with other US government agencies as part of a one overall strategy. To combat illicit coca production, USAID provides assistance in two areas: (1) Coca eradication through an annual Balance of Payments Program (from which the GOB must achieve specific narcotics related benchmarks and (2) Alternative development which provides coca farmers a viable alternative source of income based on development of marketable crops and creation of self-sustaining linkages to regional and international markets. Over the past decade, 45,000 hectares of coca were eradicated, representing the equivalent of well over 200 metric tons in annual cocaine production. The GOB now plans to eradicate all remaining illicit coca by 2002.
Prior to 1992, coca was the principal crop grown in the Chapare. Today, the area planted with licit crops has increased from about 60,000 hectares in 1993 to 96,000 hectares in 1997. The hectarage of licit crops in the Chapare is now three times greater than coca cultivation, and 127% greater than 1986. Due to USAID efforts, licit agricultural production in the Chapare now represents 1.5% 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, 2,974 kilometers of roads have been improved to all-weather standards or maintained, and 83 bridges have been built. Even with dramatically increased output of licit products, farm-gate prices of licit crops have continued to stay high because of the improved roads, opening of new domestic and export markets, and enhanced product quality. Also, the area has benefitted by about $4 million of private sector investments in off-farm agribusiness from 16 companies, and about $10 million of additional private sector investments are planned by some 20 to 40 different companies.
Until recently, it had been necessary to persuade private growers to enter into priority licit alternative crop production and to provide investment incentives to profit-seeking private agribusiness. Farmers now understand the income potential of bananas, pineapples, palm hearts, black pepper, and passion fruit. Coca farmers and grower associations are increasingly and voluntarily signing coca eradication agreements with the GOB in exchange for alternative development and farmers rapidly expanding licit crop cultivation. In 1997, approximately 16 coca eradication agreements were signed by Chapare communities and grower associations with the GOB.
Description: To contribute to the elimination of all coca grown in the Chapare, USAID will continue to allocate resources for balance of payments and alternative development activities. The follow-on counternarcotics activity to be approved in FY 1999 will consolidate the gains achieved by USAID and other donor programs and better respond to producer needs and investor demands. Increased emphasis will be placed on linkage of alternative development with coca elimination. This linkage is being achieved by identifying multiple "coca free zones" which will enable closer coordination with the Narcotic Affairs Section of the State Department (NAS) and the GOB's DIRECO eradication unit. In 1997, USAID initiated systematic procedures that condition development assistance within "coca free zones" to the coca eradication actions supported directly by the State Department´s Counternarcotics Office. Using participatory mechanisms, such as consultation with coca grower unions and other farmer groups, intensive development assistance will be tailored to the characteristics of the zones and offered selectively in return for specific net coca reduction targets. These programs could include, for
example, road upgrading, road maintenance, electrification, cableways for transport of specific licit alternative crops (bananas, pineapples, palm hearts, etc.), technical assistance in production, marketing, packing facilities and/or other activities as agreed by the parties under the community zero coca agreements negotiated by the GOB coca eradication agency, DIRECO.
To better link USAID's medium-term alternative development actions with the State Deptartment's (INL) short-term eradication actions, the two agencies will jointly plan and share information by: (1) developing a common data base, including information on coca grower unions, municipalities, hectares planted and eradicated, characteristics of geographic areas, farmer groups where coca is eradicated, and income changes resulting from licit crop production; (2) working with the same counterparts and groups; and (3) establishing common protocols, that is, agree where short-term INL actions end and medium-term USAID actions begin. While USAID must maintain flexibility, alternative development will target activities where eradication is forthcoming. In other words, USAID will work with growers to eliminate coca.
Host Country and Other Donors: The GOB has recently developed and committed to a comprehensive counter-narcotics strategy to eliminate all illegal coca from Bolivia by the year 2002. Host country contributions for this initiative are estimated to amount to $142 million for the 1998-2002 five-year period. In addition, the GOB is negotiating an agreement with the World Bank to finance a feasibility study and the eventual paving of the Santa Cruz-Abapó-Yacuiba road to Argentina. UNDCP has been promoting alternative development in the Chapare coca growing region. IDB improvement of major roads and export corridors provides crucial support for the marketing of licit products from the Chapare. Also, the EU has signed a $30 million counter-narcotics agreement with the GOB which supports a cadastre activity, infrastructure and road improvements in the Chapare.
Beneficiaries: The Chapare Region includes about 35,000 family farms. Of these, it is estimated that 75% cultivate at least some coca and could benefit from further USAID assistance in the next five years if they chose to give up coca production. To date, approximately 12,000 families are receiving USAID funded technical assistance to improve their licit alternative crops.
Principal Contractors: For FY 1999, USAID will implement activities through one or more institutional contractor(s) and local NGOs. The contractors will be selected through full and open competition. The contractor may enter into sub-contracts or grants with local NGOs.
Major Results Indicators: Baseline Target (2002) Hectares of additional non-coca crops in the Chapare Region 92,300 (1996) 130,000 Number of families not growing coca 300 (1997) 30,000 Net hectares of coca eradicated 500 (1996) 31,000
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