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Gran Angular - May 1998


International Aid
European Commission

The European Community and Alternative Development in Bolivia: experiences and challenges


Palmheart crops in the tropics

The European Community's current support to Alternative Development in Bolivia, requested by the national government, is an extension of support given during the 80's and 90's. Previous support was mainly channeled to projects in Yungas directed by non-govenmental-organizations (NGOs), or to small-scale projects with FONADAL. This support also favoured exports through the General System of Preferences and precursor control, through the Andean Community Agreement.

The European Community's current commitment to an Alternative Development Programme, in line with the National Drug Control Strategy, amounts to 30 million ECUs (equal to US$ 32,7 million). The Programme is divided into 3 components:

  • The coca cultivation area of Chapare to receive 19 million ECUs (US$ 20,7 million) for official land registration, a line of credit for production, support to the three main municipalities, and environmental protection.
  • Arque and Tapacar� in the Cochabamba valleys are to receiving 6 millions ECUs (US$ 6,5 million) for the hydro-agricultural and social development.
  • Small mining in the Altiplano region to receive 5 million ECU's (US$ 5,4 million).

The main objective of the programme is to develop licit alternatives for coca producers, contributing to the reduction of coca cultivation.

Programme Supporting the Alternative Development Strategy in Chapare

The project will be implemented in the towns of Villa Tunari, Chimor�, Puerto Villarroel, Sinahota and Entre R�os, involving 30 thousand families extended over of 10,000 square kilometers. The expected duration of the programme is six years and its objectives are to contribute to the socioeconomic development of Bolivia in the illegal coca producing zones. Likewise, the programme will support the processes of decentralization and popular participation in the coca zones of Cochabamba, as well as provide strategic support to preserve and develop the region's natural resources.

To this end, the programme will focus on strengthen basic infrastructure; facilitate access to production credit; guarantee the right of agricultural property, and improve the management of natural resources. It is feasible to consider that the components of official land registration and infrastructure will benefit every family, whereas approximately 2,500 families will benefit from credits and around 10,000 from the environmental preservation component.

Development Programme for the Valleys of Arque and Tapacar�

According to surveys carried out between 1985 and 1989, more than two thirds of the population of Chapare come from the poorest provinces of the department of Cochabamba: Arque, Tapacar�, Bol�var, Mizque and Tiraque. There, work is determined by climate, which forces season or permanent emigration to Chapare. The majority maintain contact with their hometowns. Adults and youth normally emigrate to the Chapare for several months, whereas women and other family members remain in their communities.

The project aims to improve, in a sustainable manner, the possibilities of assuring the income and adequate life conditions for the inhabitants of Arque and Tapacar� within their communities, in order to reduce seasonal migration to the Chapare, thus contributing to the reduction of coca cultivation.

The main goals are to increase the agricultural production and obtain a marketable surplus, to reinforce local municipalities and thus increase their capacity for self-management, and improve social infrastructures qualitatively and quantitatively.

It is envisaged that agricultural development, soil conservation, and agro-forestry management will engage around 11,000 people, while activities for the implementation of social infrastructure will be channeled to the population of the two provinces (around 37,400 people). The programme will particularly benefit that most impoverished population.

Project for the Support of Small mining

The main objectives of this project are to increase earnings from small mining, by improving production conditions and diversifying income sources, by searching for other economic activities and by improving miners working conditions, particularly their security needs.

In addition, there will be an increase in the coverage of the social infrastructure and the capacity of management within municipalities as well as diminishing the negative impact of mining on the environment.

The programme will include several municipalities and mining centers in the departments of La Paz, Oruro and Potos�. In this effort, the municipalities of Unc�a, Chaynta, Llallagua, Huanuni, Machacamarca, Poop�, Colquiri and Coro-Coro have been designated as the Programme's potential beneficiaries.

The potential target population includes 140,000 people who will benefit from activities to improve the social infrastructure and protect the environment, while 8,000 miners will benefit directly from the mining.

The programme supporting the Alternative Development strategy will include 4 fundamental and complementary components:

* Official Land Register

The registration of agricultural land in the Chapare will include an estimated 1,000,000 hectares. The outcome of this modern-technology exercise will be the official land registry (RLC), guaranteeing the rights of property and providing reliable updated-data.

* Credit

The project proposes to establish a credit fund, with private financing and a guarantee fund to support the most promising agricultural, agroindustrial and agroexport sectors as well as commercial activities and services related to these.

The facility of access to credit, loans, guarantee fund and to financial services in general, will be addressed with priority to Chapare farmers who want to substitute their coca. The formation of associations and access to marketing and product processing projects will also be promoted. Secondly, on the basis of fund available, marketing, agroindustrial and the services within the area may gain access to credit.

* Support for the Implementation of Basic Infrastructure

This component envisages the upgrading of living conditions and economic opportunities for the Chapare population by improving infrastructure and services. Above all, the purpose is to provide support to municipalities so they can manage, maintain and consolidate their infrastructure. Also, this will improve their capacity to plan and implement investments using various financing sources.

Maintenance work will be carried out on schools, sanitation networks, 150 kilometers of primary and secondary roads. Likewise, access to potable water and sanitation will be expanded. Coverage should increase from 45 to 65 per cent of the population, favoring approximately 6,000 families.

* Preservation of Natural Resources

This component seeks to sensitize farmers to the preservation of natural resources, through training and organization to improve forestry and agro-forestry management, and through promoting techniques developed by previous projects. It will also promote farmers' associations engaged in the marketing of forestry products, processing them in situ at a semi-industrial level.

The expected life span of the development project in the valleys of Arque and Tapacar� is five years and will be implemented in four components:

* Environmental Preservation and Reforestation

The central problem to be addressed is the deterioration of soil and vegetation cover, which is having a negative effect on soil yield, food safety, income and the general quality of life.

* Agricultural Technology Transfer

The target group demands a technology, which will improve productivity, sustainability and compatibility with the existing production systems. Therefore, infrastructure for water accumulation and irrigation play a crucial role.

* Basis Infrastructure

At the moment, the lack of good access roads hampers communications. Moreover, health, hygiene and education facilities are almost nonexistent or are in very bad shape.

* Institutional Support

The law of decentralization and popular participation foresees the transfer of certain planning and management responsibilities to regional and local institutions. However, municipalities are still in need of material means and human resources.

During the four-years programme, support to small mining will include

* Support to Small Mining

The central problem lies in the way mining cooperatives are currently managed and exploited: single-product exploitation under obsolete production practices, scarce material and very little effort for safe working conditions and environmental protection. Affecting this scenario negatively is the miners low-income, health conditions and a dangerous environmental situation.

* Productive Retrofit

Studies performed show that mining, in the majority of the cooperatives, has medium-term productive potential. Therefore, it is necessary to emphasize the training of the labor force and the search of productive alternatives.

* Basis infrastructure

Roads, sanitary and educational facilities are almost non-existent or in a bad state, worsening the situation of mining towns.

* Institutional Support

The law of decentralization and popular participation provides for the transfer of certain amount of responsibilities concerning the planning and management of municipalities and other grass-root institutions. Nevertheless, municipalities are still in need of the means and human resources in order to implement these tasks.

Issue 37 Contents

The new leadership

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