Press release number: IFAD 27/01

Rome, 5 October - A USD 14.9 million project in the Republic of Bolivia – The ‘Management of Natural Resources in the Chaco and High Valley Regions Project’ will receive a USD 12 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund’s Headquarters by Mr. David Blanco Zabala, Ambassador of the Republic of Bolivia to Italy and Mr. Lennart Båge, President of the Fund.

Although the country has had two decades of stable economic performance, the rural population in Bolivia remains dramatically poor. The primary causes of rural poverty are the historical discrimination and exclusion of native indigenous groups from Bolivia’s social and economic mainstream. As a consequence of these discriminations, resource-poor indigenous farmers live in marginal, ecologically fragile lands with degraded natural resources and low crop potential. In addition, the country’s poorest groups lack educational opportunities and remain excluded from agricultural extension, credit and natural resources management services.

The project area is made up of 26 municipalities in the Chaco region of the departments of Tarija and Chuquisaca and the High Valleys of the department of La Paz. Although ecologically different, both areas have severely degraded natural resources. In the Chaco region, forests are destroyed by slash-and-burn practices and extensive livestock raising leading to desertification. Pollution of the Pilcomayo River by mining activities is diminishing fishing activities. In the High Valley region, desertification is occurring due to slope cultivation and overgrazing. The project target group comprises 58 470 families, of whom 19.4% will directly benefit from project activities and programmes. The population in the High Valleys is of Aymara origin and in the Chaco region, there are indigenous communities of Guarani, Weehenayek and Tapiete origin.

The ‘Management of Natural Resources in the Chaco and High Valley Regions Project’ aims at reducing rural poverty, natural resource deterioration and desertification through the enhanced capacity of beneficiaries to significantly improve their economic standing and the value of their productive assets. Expected results from the project include improved natural resources and enhanced capacity of small farmers to manage them rationally and in a sustainable manner, and access to rural non-financial services. The project will also operate a contest/award scheme based on IFAD’s prior experiences in the highlands of Peru. Families, groups, communities and organizations will contest with others from similar ecological and/or productive environments, creating a competitive spirit with regard to environmental management and conservation.

With this programme, IFAD has financed a total of 9 Projects in the Republic of Bolivia, for a total loan amount of approximately USD 81 million.

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IFAD is a specialised agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 584 projects in 114 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.2 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty. IFAD makes the greater part of its resources available to low-income countries on very favourable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.