Compartiendo saberes en America Latina y el Caribe

Issue number 1: June 2008

IFAD’s Latin America and the Caribbean Division welcomes a new Director

 

Josefina Stubbs, center, meets with her team members

 

Josefina Stubbs is the new Director of IFAD’s Division for Latin America and the Caribbean. A Dominican national, Stubbs has spent 23 years working to promote the region’s economic and social development. For 16 years, she worked for the non-governmental organisation, Oxfam International, where she held the position of Regional Director for Central America, Mexico and the Caribbean. Prior to joining IFAD in March 2008, she worked for the World Bank, carrying out assignments of increasing responsibility in the areas of rural and social development in the Latin American region.

“The challenges facing Latin America and the Caribbean are as interesting as they are complex,” Stubbs explained. “On the one hand, we see a region that is growing rapidly, not only in economic terms, but also in social and political terms. At the same time, the statistics show that rural areas are unable to benefit fully from these advances”.

The globalisation of the economy has brought new opportunities along with new challenges, such as the increase in the prices of basic commodities, for example. “From the macroeconomic point of view, the price increases in products such as soy and maize have had a positive effect on the trade balance of many countries in the region,” Stubbs noted. “However, we are already beginning to see the adverse effects of this phenomenon among the poorest sectors of the population: supply shortages and protests over the increase in consumer prices, the concentration of land in the hands of transnational corporations, biodiversity loss and the unsustainable management of natural resources”.

“In this context, IFAD’s contribution to the region is strategic,” emphasized Stubbs. “Governments and farmers’ associations have a very positive view of the Fund’s contribution to the policy dialogue, the search for new markets for small-scale farmers, increased production and productivity, the exchange of knowledge and the promotion of innovation in the alleviation of rural poverty”.

“The newsletter that we are launching today is also part of an effort to share this wealth of knowledge and experience with people worldwide working for and dream of a better world”.

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Special feature: IFAD’s priorities in the region

 

Countries benefiting from the increase in prices, in blue; those adversely affected, in red. Source: IMF, 2008

 

Eradicate the causes of rural poverty by creating new income opportunities for poor rural populations is at the centre of IFAD’s mandate. Despite the region’s economic growth in the last few years, the majority of the rural population continues to be poor. Recent figures from ECLAC show that 54 per cent of the rural population lives on less than US$2 a day.

IFAD focuses its efforts in the region on projects and programmes that could have the greatest impact on reducing rural poverty and, at the same time, innovate, generate knowledge and help design more effective rural development policies and programmes. Its priorities are:

Changes in global markets. The increase in food prices is seriously threatening the food security of the region’s poorest rural households, which are spending up to 75 per cent of their income on food. Central America, the Caribbean and the Andean countries appear to be the areas affected most by this trend. IFAD will need to adopt differentiated and sector-specific approaches, including:

IFAD will reinforce its support to small farmers to help them integrate into production chains and facilitate their insertion into specialized markets such as the organic products and fair trade markets. It will also work with local communities to identify new opportunities for generating non-agricultural income in rural areas and in corridors that link small urban centres.

 

Generating trade links between poor farmers and new markets

The experience of the Paraguayan Federation of Production, Marketing and Service Cooperatives Ltd. (CEPACOOP) is a good example of how IFAD supports the market integration of small farmers’ organizations in Paraguay.

Between 2002 and 2005, IFAD supported the organization of five newborn or poorly managed cooperatives into an export structure (CEPACOOP). The export structure allowed these cooperatives to save on managerial and administrative costs, to improve their access to financial and specialized technical services, to raise the quality standards of their products up to regional standards, and to find additional markets for selling their agriculture production.

Today, CEPACOOP integrates and supports 641 small-scale farmers. It supplies 37 fruit and horticultural products to the central market of the capital city Asunción, and sells banana and pineapple in the central markets of Buenos Aires and Montevideo.

CEPACOOP’s success is largely the result of an innovative combination of financial and human resources, and of IFAD’s support at different levels: the co-funding of a project to support the Rural Development Fund (Fondo de Desarrollo Campesino) in Paraguay; support to the PROMER programme to strengthen rural micro-enterprises in the Latin American region; and a grant to the Specialized Meeting on Family Farming, which promotes public policies to support family farming in the MERCOSUR region.

CEPACOOP’s experience is not only sustainable, but also very profitable: in 2007 —two years after receiving IFAD’s last financial support— the volume of sales reached US$1.3 million dollars.

For more information, visit the CEPACOOP website  http://www.cepacoop.com

In Guatemala, another IFAD-supported initiative, the Development and Reconstruction Programme in El Quiche (PRODERQUI) has helped 1,500 small farmers’ and their families, most of them from Maya indigenous communities, to quadruple their income thanks to a trade agreement with a national exporters’ association. This has enabled small farmers to export their vegetables directly to the United States.

As a result of the programme —which ended in 2007 after eight years of activities— living conditions, employment and social stability have improved in the municipalities of Sacapulas, Cunén and Uspantán, where rural poverty rates are very high. PRODERQUI was a Guatemalan Government initiative aimed at supporting the fulfillment of the country’s peace accords.
For more information, visit the PRODERQUI website

 

At the regional level, IFAD works with governments and small farmers’ organisations in the member countries of MERCOSUR (the Southern Cone Common Market) to find common solutions to the challenges facing the region’s more than 27 million small farmers.

In 2004, IFAD supported the creation of the Specialized Meeting on Family Farming (REAF), as the consultative body of the MERCOSUR Council. IFAD’s financial support of US$1.09 million has been essential to the consolidation of this permanent forum, which promotes policy dialogue and active participation by farmers’ associations in MERCOSUR’s six member and associate countries. Among the achievements that can be directly attributed to REAF’s efforts are: the establishment of an official register of small farmers and the creation of government institutions specifically dedicated to rural development.

REAF´s experience has also inspired the establishment of the Regional Rural Dialogue Programme among member countries of the Free Trade Agreement between the Dominican Republic, Central America and the United States (CAFTA‑DR). IFAD provides US$800,000 in financial support to this programme, which has been under implementation since 2007.

 

In Uruguay, one of the rural development groups defined improved pest control measures as a priority.

 

In Uruguay, the National Small Farmers’ Support Programme, supported by IFAD, promotes participatory decision-making through the Mesas de desarrollo rural (rural development groups) comprising civil society and local government representatives. Their aim is to: (i) identify development priorities in order to target public spending, and (ii) decentralise the implementation of public policies. The Uruguayan government has applied the participatory methodology used by the mesas to laws and newly created institutions such as the Decentralisation Law and the General Directorate of Rural Development.

In Belize, thanks to a recent grant from IFAD, the experience of the Uruguayan mesas is being adapted to an initiative aimed at strengthening the capacities of local governments and of savings and loans cooperatives.

In Peru, the Sierra Sur Project in the department of Cusco promotes the use of the so-called ´cultural maps’as a planning tool in communities. Since 2003, a national law mandates the preparation of participatory budgets to guarantee transparency, public participation and efficiency in the allocation of public resources.

Climate change and sustainable agriculture.  Agriculture is the main livelihood of the majority of the rural poor; it is also the human activity that is most directly affected by climate change.

Growing climate variability is causing enormous losses among small farmers. IFAD is currently working with the member governments of MERCOSUR to create agricultural insurance programmes to help mitigate these losses. It is also collaborating with national governments and regional organisations to design management plans for fragile ecosystems, such as the semi-arid regions of Brazil’s northeast and Mexico’s northwest, or the Caribbean islands that are threatened by the expected rise in sea levels.

In South America, IFAD is working with local communities to ensure that their contribution to the conservation of natural resources is recognised through payments for environmental services. In the Amazon region, one of the most vulnerable natural ecosystems to the greenhouse effect and climate change, IFAD supports ecotourism projects and sustainable ecosystem management through the PRAIA Foundation. The Foundation is conducting research on indigenous perceptions of climate change and on the traditional age-old techniques used by the Amazon populations to mitigate natural changes caused by the increase in temperatures.

 

"Las Retamitas", a women's rural finance association in the department of Cusco, in Peru, shared their knowledge and experiences with African specialists in the context of a learning route organized by the Corporación PROCASUR

 

South-South Cooperation. IFAD promotes cooperation and mutual learning among developing countries through visits and exchanges between projects. It also encourages initiatives that involve stakeholders from several countries and regions. 

The Learning Routes programme, executed by Corporación PROCASUR and co-financed by IFAD, is an innovative tool for sharing knowledge and learning from other people’s experiences.

The Routes are training strategies that involve visits to successful rural development projects, experiences or practices. This approach is enriching both to the visitors — mainly development professionals of various disciplines, community leaders and policymakers — and their hosts, and provides opportunities for discussion and collective analysis.

Since 2002, a total of 22 learning routes have been implemented in six Latin American countries, and in 2007 some transcontinental routes were added. At the end of last year, Asian and African development experts visited 15 successful micro-finance projects in Latin America.

An international route is currently taking place in Africa. Latin American, African and Asian specialists will visit rural finance group in South Africa, Uganda, Malawi and the United Republic of Tanzania to learn more about the main financial mechanisms used locally.

For more information:

Another example of South‑South cooperation is the recent agreement signed between IFAD and the Bank for Economic and Social Development of Venezuela (BANDES). Under this agreement, the Venezuelan bank will provide up to US$15 million per year to IFAD to co-finance rural development initiatives in the region over the next five years. The governments of Haiti, Ecuador, Nicaragua, Bolivia, Uruguay and Cuba are already working with IFAD on specific action plans.

Remittances, savings groups and private funding sources.  Private transfers, particularly remittances, are a growing source of income for rural communities. According to a recent IFAD publication, Sending money home, in 2006 the volume of remittances sent to Latin America and the Caribbean was equivalent to US$8,000 million. One-third of that sum was sent to rural areas.

Through its projects and programmes, IFAD works with overseas workers’ associations and local communities to promote sustainable development in the migrants’ communities of origin. At present, the Regional Remittances Programme, funded with resources from IFAD and from the Inter-American Development Bank’s Multilateral Investment Fund (IDB-MIF), finances 11 projects in eight Latin American countries: Bolivia, El Salvador, Guatemala, Haiti, Honduras, Mexico, Paraguay and the Dominican Republic.

Based on the experience acquired with this regional programme, IFAD has instituted the Financing Facility for Remittances, (FFR) in partnership with the European Commission, IDB, the Consultative Group to Assist the Poor (CGAP) the Government of Luxembourg, the Government of Spain and the United Nations Capital Development Fund (UNCDF), with the aim of replicating and expanding this approach throughout the world.

More information:

Another initiative supported by IFAD is the Latin American and Caribbean Forum on Rural Financing (FOROLACFR), which promotes financial services specifically adapted to the needs of poor rural communities. FOROLACFR was created in 2001 in the context of the Latin American Microcredit Summit, and is constituted by rural microfinance networks from Bolivia, Brazil, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua and Panama.

For more information visit the FOROLACFR website

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Stories from the field


“Our first million”: the experience of the Quechua and Aymara savers of the Puno‑Cusco Corridor

 

"Las Micaelas" are a group of 20 women savers from Lake Titicaca

 

Small rural businesses can be profitable, a fact that is borne out by the experience of women savers from the Puno‑Cusco Corridor Project. In just four years 7,350 women have managed to raise US$ one million in capital.

The Puno‑Cusco Corridor Project, which receives technical and financial support from IFAD, has designed an incentives component to channel the savings potential existing in the region. This initiative rewards savers for opening a savings account with a sum equivalent to their first deposit, and increases subsequent deposits by 25 per cent. The money cannot be withdrawn during the next four years, as a mechanism to promote a culture of regular saving.

“Before, our savings used to be in the sheep, or under the mattress”, explains Alexandrina Nayra, secretary of “Las Micaelas”, a women’s savings association in the Peruvian highlands. “Sometimes our husbands would take the money. It was hard to save. We thought the bank was going to cheat us”.

 The project began in 2002, shortly after several formal financial institutions went bankrupt, leaving many families without their savings. “Little by little, with the training received, we’re making progress. Nowadays we go to the Caja”, says Nayra, referring to the Los Andes Rural Savings and Credit Union, where she has an account.

Thanks to the project, these women savers have managed to accumulate average yields of US$150. But the most relevant aspect is the knowledge and confidence they have gained about financial systems. “Our money will grow and will be used to educate our children, improve our businesses and buy new plots of land. And this will certainly inspire us with other ideas”.

The video entitled: “Our first million. The Story of the Women Savers of Puno‑Cusco”, is available in Spanish and English.

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As the green iguanas multiply, so do the profits in Panama’s rural communities

 

Breeding green iguanas has become an innovative source of income for poor rural communities in Panama

 

Lucrecia Hidalgo lives in the district of Antón, in the Panamanian province of Cocle, and is delighted with her new job: breeding green iguanas. Now that she understands the potential of this native species, which until recently has been threatened with extinction, she is brimming with new ideas. “I’d like to set up a study and observation centre so that tourists and local schoolchildren can learn about the importance of protecting our native fauna”, she says.

The proposal to establish family-run iguana farms came from the Sustainable Development Committee of Antón, currently chaired by Hidalgo. This committee is one of 200 rural groups that have benefited from the IFAD supported Sustainable Rural Development Project in the Provinces of Coclé, Colón and Panama, which concluded recently.

“Five years ago, when we submitted our proposal, our community had very high rates of poverty and malnutrition”, Hidalgo explained. “However, the influx of tourists into this region made us think that we could take advantage of this opportunity to enter into the incipient ecotourism sector.”

Today, iguanas provide an alternative source of protein for the most isolated communities and are an important source of income for farmers. The project’s controlled iguana-breeding programme has also helped to halt the extinction of this native species.

For more information about this project, contact Lucrecia Hidalgo, tel.: +507 6750 6050 and/or Manuel Martínez, project staff: tel.: +507 6748 4009.

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Documentation campaigns open up new opportunities for rural dwellers in Peru and Brazil

 

In Brazil, 15,000 women have obtained official documents. This enables them to gain access to land and rural credit.

 

Rural poverty is not simply a lack of economic resources – it is, above all, a lack of opportunities.  According to a recent census, more than 4 million rural workers in Brazil, the majority of them women, do not have official documents (identity cards, workers’ books). This often prevents them from having access to basic legal rights and production resources —  such as land title, credit, or receiving pension subsidies.

Since 2004, the Dom Helder Camara Project has helped agrarian reform settlers and small farmers in northeast Brazil to obtain official documents. More than 11,000 people, mostly women, are now able to exercise their rights as citizens.

A similar experience has been implemented in Peru to help rural dwellers gain access to financial and non-financial services. With support from the Puno‑Cusco Corridor Project, 13,000 people have already obtained their respective identity documents, enabling them, among other things, to open their own savings accounts.

For more information, visit the web sites of the projects

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In the Dominican Republic, PROPESUR “has left its mark”

“PROPESUR has left an indelible mark on our communities”, acknowledges Alejandro Murillo, leader of the Mondovalle farmers’ association, one of 102 organisations assisted by the South Western Region Small Farmers’ Project in the Dominican Republic (PROPESUR).

PROPESUR began its activities in 2000, in the midst of the international crisis that affected coffee prices. With a commercial value that did not even cover production costs, many traditional coffee plantations were abandoned. Investing in quality seemed to be the only way to escape the crisis. PROPESUR provided training to small farmers, supported them in creating a cooperative, and facilitated their access to credit and contacts in the international markets. Today, the coffee produced by Café JAMAO is sold in the select European fair trade market.

“The project has provided us with schools, aqueducts, machinery, and facilities for coffee drying and banana packing” explains Murillo, “and that is very important. But even more important is the change experienced by the communities and the farmers’ organisations which now have the capacity to make proposals and design and execute their own work plans”.

Around 15,000 families in three of the country’s poorest provinces - Bahoruco, Independencia and Elias Piña - on the border with Haiti have benefited from this project financed with a US$12 million IFAD loan, which concluded in December 2007.

For more information on PROPESUR, consult the following links:

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About the regional programmes

As a complement to its projects and programmes in the region, IFAD’s activities portfolio includes 33 grants worth more than US$18 million. Over half of these grants —58 per cent— are used to finance regional programmes aimed at strengthening the capacity of the national institutions responsible for designing and executing sustainable rural development policies. We begin this section by briefly presenting two of these initiatives: the Central American Platform RUTA and PREVAL, a programme to improve project evaluation and monitoring capacities.

PrevalKnowing the true impact of projects is crucial to the design of relevant and effective development initiatives. However, it is also essential to ensure that these projects are capable of evaluating their own actions in an objective and professional manner.  This task has been undertaken since 1995 by PREVAL, the Programme for Strengthening the Regional Capacity for Monitoring and Evaluation of IFAD’s Rural Poverty-Alleviation Projects in Latin America and the Caribbean.

One of the most innovative aspects of PREVAL’s work is its emphasis on the use of new information and communication technologies in the monitoring and evaluation of development initiatives. Recent studies ( (R. Torres, H. Preskill, and Mary E. Piontek: 2005) show that audiovisual media and interactive web-based platforms such as Wikis, Blogs, YouTube and Ning are far more effective than traditional written media in transmitting the knowledge generated by projects.

If you are interested in finding out more about using images in project monitoring and evaluation activities the PREVAL document in Spanish: ‘El Seguimiento y la Evaluación por Imágenes. Herramienta para el Aprendizaje en Desarrollo Rural’ (Monitoring and Evaluations by Images. A Learning Tool in Rural Development) 2007, is available online. The document contains texts, videos and links to a selected bibliography.

Programme for Strengthening the Regional Capacity for Monitoring and Evaluation of IFAD projects (PREVAL)
Sphere of action: monitoring and evaluation of project impacts
Geographic area: 24 countries in Latin America and the Caribbean
Total cost: US$1.18 million
Amount of IFAD grant: US$850,000 dollars
Execution period: 2005‑2008 – Phase III
PREVALwebsite

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RutaIn Central America, a new US$1 million IFAD grant will contribute to finance the activities of the Regional Unit for Technical Assistance (RUTA) during the period 2008‑2011.

RUTA is a regional initiative created 25 years ago by international institutions and the Central American governments to promote sustainable rural development and poverty alleviation efforts. RUTA is currently a strategic partner of the region’s governments in the implementation of the Central American Agricultural Policy.

The Regional Unit comprises Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, together with seven international cooperation organisations: ADA, IDB, FAO, IICA, IFPRI, the Ministry of Foreign Affairs and Cooperation of Spain, and IFAD.


During the next three years, RUTA will support IFAD in the tasks of implementing and supervising its project portfolio,  developing partnerships for the execution of initiatives and exchanging knowledge and information on the best rural development practices.

RUTA’s experience in Central America has inspired a similar programme in the Caribbean. Since 2007, the Caribbean Regional Unit for Technical Assistance (CARUTA) offers advisory services to the member countries of CARICOM. CARUTA is funded with a US$753,000 IFAD grant.

Regional Unit for Technical Assistance (RUTA) for Central America
Sphere of action: policy dialogue and institutional development
Countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
Total cost: US$5 million
IFAD grant: US$1 million
Execution period: 2008-2011 (Phase VII)
RUTA website

More information:

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In brief

 

IFAD participated in the Bogotá 2008 Book Fair, Photo: FAO

 

IFAD increases its presence in Latin America and the Caribbean. On April 1, 2008, IFAD opened a new office in Bogotá, Colombia, to coordinate activities in the Andean Subregion, and supervise the Opportunities Project, aimed at promoting rural micro-enterprises in Colombia. The FAO office is IFAD’s host in this Andean country.

Peru and Haiti have been added to the list of countries where IFAD has a permanent presence. In both cases, IFAD will be based at the UNDP country offices, as has been the case in Panama since 2002. In Lima, Luis Tello - an economist and expert on social responsibility in the private sector and on indigenous peoples- assumed the position of National Liaison Officer in March 2008. The inauguration of the IFAD office in Haiti is scheduled to take place during the second semester of this year.

The book ‘Polishing the stone’, a journey through the promotion of gender equality in IFAD-funded projects in the Latin American region, is available at the IFAD website.

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New IFAD projects, programmes and grants in Latin America and the Caribbean

Approved recently:

Under preparation:

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On the agenda

Regional Consultation –  IFAD 2009 Rural Poverty Report. 4-5 August 2008, at the Universidad Andina Simon Bolivar, Ecuador. For more information visit the FIDAMERICA website

Central America. Regional workshop to promote participation of small farmers’ organisations in discussions on Central American agricultural policy. El Salvador, 11 -12 June 2008. For more information visit the web site of Rural Dialogue Programme

Southern Cone.  MERCOSUR’s IXSpecialized Meeting on Family Farming (REAF) Buenos Aires, Argentina, 30 June - 2 July 2008

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Latin America and the Caribbean in IFAD

 

Ambassador Jorge E. Chen Charpentier at the 2008 IFAD Governing Council Meeting

 

In the United Nations system, the 33 Latin American and Caribbean countries are organized in a body known as GRULAC. During the last annual meeting of IFAD’s Governing Council, held in February 2008, the Ambassador of Mexico, H.E. Jorge E. Chen Charpentier, outlined the main topics and issues of common interest to the countries of the region. 

 

Ambassador Van Ardenne plants the first tree of the 'One Million Trees' campaign.

 

Bolivia welcomes the Netherlands’ Ambassador to IFAD
In March, the rural tourism initiatives supported by IFAD in Bolivia received a very special tourist: Agnes Van Ardenne, the Netherlands’ Ambassador to IFAD.

Ms. Van Ardenne visited the Tiawanaku archaeological site accompanied by guides trained by the Small Farmers Technical Assistance Services Project (PROSAT). She also had an opportunity to learn about the project activities implemented by PROMARENA, an initiative that has been extended for another three years. The Ambassador planted the first tree of the “One Million Trees” campaign launched by PROMARENA, a natural resource management project implemented in the Chaco and High Valleys of Bolivia.

For more information visit the following websites

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