UNDCP Agro-forestry project in the Chapare

The Cochabamba Tropics, also known as the Chapare, is the major coca leaf producing region in Bolivia. Estimated total production in 1996 was 25,750 hectares (ha), 95% of which is destined for cocaine production. Eradication and interdiction efforts by the Government of Bolivia (GOB) and alternative development activities effectively reduced coca leaf production by 5,500 ha in 1995 and 7,500 ha in 1996. There was an accompanying drop in local coca leaf prices. The (GOB) is committed to reductions of at least 7,000 ha for 1997.

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Since the 1980s, alternative development programmes in the Cochabamba Tropics have focused primarily on reducing the supply of coca. The strategy has followed an integrated approach by providing farmers with the necessary support and conditions in order to switch production and develop alternative sources of income based on licit crops. This has included assistance at various stages of the production chain from the farm to the market. This includes the following: agricultural research and market studies, provision of improved planting material and agricultural inputs, extension, training and technical assistance, provision of electricity, establishment of water and sewerage systems, improvement of access roads and construction of productive infrastructure like packing and processing plants, marketing information to buyers and sellers, promoting private investment in the region and strengthening local producer associations.

The long-term success of the alternative development in the Chapare is contingent on proper management, the development of alternative crops and conservation of the region's fragile soils by small farmers. There are other areas where marginal soils and environmental factors limit the potential for crop substitution. It is in some of these areas that peasant families are dependent exclusively on coca leaf production. Over the past 20 years coca leaf production and subsistence agricultural practices have resulted in extensive deforestation in the Cochabamba Tropics.

As soil fertility rapidly declines in the areas already cleared, farmers cut and burn remaining primary and secondary forests rather than adopt more sustainable production systems or invest in agricultural inputs. This tendency is due, on the one hand, to the limited knowledge or experience of most farmers in agriculture in the humid tropics and, on the other hand, the low economic value that farmers mistakenly place on their forest resources. This vicious cycle of "cut-burn-plant-move on" is frequently compounded by poor crop selection in relation to soil quality. The economic and environmental consequences of current deforestation trends are already evident in many areas of the Cochabamba Tropics.

On small holdings, a "fallow crisis" is developing where farmers are running out of new forested areas to slash and burn resulting in increasingly shorter fallow periods between cropping cycles and subsequent lower crop yields. Clearing of forest vegetation on steeper slopes and in low-lying areas is causing serious soil erosion, flooding and sedimentation of water courses. Known for its rich fauna and flora, the impact of deforestation on the region's biodiversity is significant.

Forestry based on logs extracted from small-holdings is one the region's most important economic sectors. Unfortunately, only a small number of farmers are benefiting and without proper management, current logging trends are not sustainable over the medium-term. Nevertheless, about 50% of the 550,000 ha colonized area is still classified as "primary forest" with another 30% classified as "secondary forest" (regrowth following clearing of the original forest cover). Studies show that forestry is the highest land use on 80% of the region's soils, and that with proper management and local processing of wood, forestry could potentially offer a sustainable economic based for peasant families especially in more marginal areas. The importance of secondary, non-wood forest products and eco-tourism are only now being appreciated. Building on the accomplishments of project AD/BOL/92/582 and taking into account the need to develop an overall long-term forestry programme for the region, the present project will work with national and local government agencies, farmer and women's groups, and NGOs to expand successful agro-forestry and forest management activities to assure the sustainability of substitute crop production and establish farm-level forestry as a main economic alternative to coca leaf production. The project will be part of broad-based government and donor support to the forestry sector (Forestry Law, Environmental Law, European Union, GTZ - Plan de Tr�pico, USAID).

Bolivian drug control policy is based on its National Drug Control Master Plan approved in February 1993, as well as Law 1008 of July 1988. In this context, the national drug control policy is composed of the following "four pillars": alternative development, coca eradication, interdiction and drug abuse prevention. As regards alternative development in the Tropics of Cochabamba, said policy is aimed at the substitution of the coca-cocaine economy and its illicit derivatives by an alternative economy based on licit activities, including generation of licit sources of income and foreign currency. Equally important, and with reference to Country Programme Framework 1996-1997, UNDCP's assistance in the supply reduction sector prioritizes a "broad-based donor support for Government-led alternative development programmes aimed at the continued eradication of excedentary coca bush cultivation" (CPF 1996-1997, page 13). In particular, UNDCP's strategy reflects assistance to the GOB supply reduction/alternative development national programme with a view to consolidating and strengthening past achievements in the Tropics of Cochabamba.

Furthermore, UNDCP's role includes the promotion of private sector involvement and an active civil society participation in the region. With expanded agricultural diversification and improved production systems in the context of the alternative development programme, private investment in the Cochabamba Tropics in agricultural production, transportation and processing has been steadily growing. Among farmers, there is a trend towards the organization of producer associations to provide members with necessary inputs and technical assistance and improve their marketing position. This has been supported through timely generation and distribution of market information to buyers and sellers alike. In the forestry sector, private operators are well-established in the Cochabamba Tropics although most wood processing and marketing takes place outside of the region. The relatively stable political environment has been reflected in the declining influence of radical coca leaders and general respect for have been key elements in fostering interest in private investment in the region.

The drug control objective of the project is to support the national alternative development policy "to displace, within the framework of overall integrated development, the production of coca leaf and cocaine as major illegal sources of income with other activities, especially in agriculture, livestock raising, agro-forestry and agro-industry, and to have provided target areas with the necessary productive and social support." As part of the GOB alternative development strategy in the Cochabamba Tropics

As follow-up to a two-year pilot phase, the project will promote sustainable production systems for alternative crops through the application of agro-forestry and soil conservation practices. It will also open new economic alternatives based on management and production of native forests, especially in more marginal areas having high coca leaf production where current alternative development strategies and activities may not be feasible for environmental, economic or logistical reasons.

During the project's life, 1997-1999, a voluntary and gradual reduction of approximately 2,000 ha of coca leaf plantations is anticipated as a direct result. Indirectly, the project will contribute to overall national coca reduction goals established by the GOB as farmers move away from coca production. The sustainability of the project's results and activities will be secured at three levels. Regarding the transfer of know-how, the farmer's communities will be responsible for their own agro-forestry and land management activities, and continuity will be assured through training of local promoters. Secondly, the availability of financial resources for the continuation of agro-forestry will be assured through the generation of economic revenues in the short, medium and long terms. The creation of revolving funds administered by local producers' associations and small forestry enterprises will also play a role. Finally, permanent access to technical assistance will be ensured through the institutionalization of project activities through the envisaged Forestry Technical Field Unit and the strengthening of Municipal and Department Forestry Institutions.

Immediate Objective, Related Outputs and Activities

Immediate objective: to establish the basic conditions for the long-term sustainability of present agricultural diversification and coca leaf reduction programmes in the Cochabamba Tropics through the adoption by small farmers of agro-forestry and soil conservation practices. The includes the rational utilization of native forest resources at the farm-level, which reduces farmer economic dependence on coca leaf production.

COMPONENT I: STRATEGIC PLANNING

• Operational and strategic linkages established between the project, and the National Alternative Development Strategy, Sustainable Regional Development Plan for the Cochabamba Tropics, municipal development plans, as well as the recently promulgated forestry law.

Main activities: design and implement subsequent operating plans in close coordination with national, department, NGO and other counterparts and cooperating agencies; play a leading role in the application of the new forestry law and regulations to the Cochabamba Tropics; disseminate information, on the activities and project reports, both at the national and international level.

• An overall long-term forestry programme for the Cochabamba Tropics is developed and adopted; government, private sector, NGO, and donor support secured.

Main activities: undertake necessary technical studies; establish mechanisms for continuous, structured dialogue among involved actors in order to develop an overall forestry program/strategy for the region; sponsor government/donor round tables to consider and adopt a long-term forestry program.

COMPONENT II: SOCIO-ECONOMIC AND PRODUCTIVE DEVELOPMENT - AGRO-FORESTRY AND FOREST MANAGEMENT

• beneficiaries in the production of alternative crops should routinely adopt Agro-forestry and soil conservation practices.

Main activities: consolidate activities in the 48 demonstration sites initiated during project AD/BOL/92/582; refine selection criteria and identify new areas of action; carry out rapid rural appraisals and prepare integrated farm plans in selected sites; select and train promoters from among the beneficiaries participating in the pilot phase; carry out agricultural extension (training, technical assistance, material inputs) directly benefiting 400 farm families and 1000 primary school students and indirectly another 400 farm families; design and implement information campaigns through the local media.

• Community-level forest management plans have been prepared and are in execution for 15 sites.

Main activities: continue implementation of the eight forest management plans prepared in project AD/BOL/92/582; refine selection criteria and identify new areas of action; carry out rapid rural appraisals and provide technical assistance in the preparation and implementation of forest plans; train 300 local beneficiaries and 20 technical counterparts in forest inventory, silvicultural practices, selective harvesting and wood processing.

• Permanent family- and community-level nurseries have been established to provide plant material for implementation of agro-forestry and forest management plans.

Main activities: support beneficiaries with training, materials and technical assistance to install 400 family nurseries and 15 communal nurseries with an annual production of approximately 250,000 forestry and fruit tree seedlings.

• A gender perspective is incorporated in all project activities thus taking into account the key role of women in forest resources management and guaranteeing their access to project benefits.

Main activities: building on experiences with women's groups in the pilot phase, design economic activities that are attractive to women within the context of the local economy and social considerations; directly benefit 250 women organized in 10 groups; as in the pilot phase, hire female technical staff; train project personnel and counterparts on gender issues as they relate to forest resources conservation, farm production and local commerce.

• At least 20 producer associations have been strengthened or organized for the production, processing and marketing of agro-forestry and forestry products.

Main activities: continue to guide administration of rotating funds established with five associations during project AD/BOL/92/582 (ASPROGOMA, ASAP, APAC, women's groups); work with up to 10 other existing associations having 300 members to incorporate agro-forestry activities; support the formation of up to 10 new associations having 300 members including woodworking groups based on the rotating fund concept.

• Market information on agro-forestry (achiote, rubber, apiculture, tropical fruits) and forest products (wood and non-wood) has been generated and widely disseminated to target groups.

Main activities: prepare market studies for identified crops that can be grown under agro-forestry systems; prepare investment plans for forest management plans; research markets for promising value-added and "green seal" forest products that can be manufactured locally especially by women; prepare extension materials and organize events to disseminate the information generated to groups and beneficiaries identified above as well as private industry and local entrepreneurs.

COMPONENT III: INSTITUTIONAL STRENGTHENING

• A permanent forestry field technical unit has been established within the national forestry law in order to assure continuity of activities beyond the project's duration.

Main activities: through dialogue and consultation with concerned parties, define the terms of reference, organization and long-term financing mechanism for the technical unit; train unit personnel in topics relevant to their field work; assist the field unit in the implementation of its activities.

• The ability of municipalities and department agencies to manage forest resources has been strengthened through active participation in project implementation, institutional cooperation, and execution of a training programme specific for this target group.

Main activities: assist the three municipalities and two sub-municipalities in formulating their development plans with concrete proposals for the management of forest resources; train technicians in agro-forestry, nursery management and forest management; support municipalities and department agencies in application of the new forestry law through the organization of workshops, seminars, and short courses.

• A wide range of project activities has been implemented through NGOs, farmer associations, and the Technical Forestry School.

Main activities: define parameters and select NGOs and farmer associations to implement various project components and activities; train cooperating NGO and farmer group field technicians in integrated farm planning, agro-forestry and forest management; define participation of the Technical Forestry School especially in forest management and applied research.

COMPONENT IV:MONITORING OF PROJECT PROGRESS

• A monitoring and evaluation system for project activities, results and objectives has been established.

Main activities: formalize and expand the monitoring system to measure project results, specifically: economic impacts, land use trends, environmental impacts, participation by women; prepare semi-annual project reports; carry out a qualitative study based on interviews with project beneficiaries and cooperating institutions; as a baseline, estimate area under coca cultivation during preparation of integrated farm plans; regularly update estimates during project intervention as part of extension activities..

Counterpart, Institutional Setting and Implementation Arrangements

The United Nations Food and Agricultural Organization (FAO) will execute the project. The project's national counterpart is the National Alternative Development Fund (FONADAL/Ministry of Agriculture). At a operational level, the project will also coordinate and implement field activities with the newly created Forestry Superintendence (Ministry of Sustainable Development and Planning). An Inter-institutional Technical Committee comprised of FONADAL, acting as president, Forestry Superintendence, local governments, UNDCP, FAO and the project chief technical advisor will guide project strategy, monitor progress and approve operating plans. At the field-level, the project will cooperate and establish synergies with participating NGOs and farmer groups, Chamber of Forestry, local agencies, and other actors in the department forestry sector. Furthermore, the direct beneficiaries include some 3.855 farmers and other individuals, as well as over 50 local institutions, such as farmers associations, women-groups, organized communities and local government institutions