updated: 29 April, 2008
IFAD
Operations
International Fund for Agricultural Development
  Photo by IFAD formulation mission, November 2007. Market place in the rural community of Santa Fe, Veraguas.
 

Photo by IFAD formulation mission, November 2007
Market place in a rural community of Santa Fe, Province of Veraguas.

Project area. The project will be located in the Province of Veraguas, in central Panama. It will cover the five poorest districts of the province (Cañazas, Las Palmas, San Francisco, Santa Fe and Soná).

Target group. The target group includes: (i) poor small-scale farmers with agricultural and non-agricultural productive potential, with access to 2-5 hectares of land; (ii) poor and extremely poor, indigenous and non-indigenous, landless and rural labourers; (iii) indigenous and non-indigenous women heads of household; and (iv) extremely poor rural households with young people who are presently unemployed. The project expects to benefit directly 10,000 poor or extremely poor people. Approximately 31 per cent of the beneficiaries will be women and 12 per cent will be indigenous people.

Project objectives. The project objective is to improve the social, economic and living conditions of men, women and young people in rural poor communities through an environmentally sustainable and participative social and economic development process with gender equity. Specific objectives are: (i) empowerment of poor rural inhabitants and their grass-roots organizations to enable them effectively to participate in local development processes; (ii) improvement of the target population’s income-generating capacity; (iii) establishment of a knowledge management and monitoring and evaluation (M&E) system capable of systematizing and disseminating best practices and methodologies; and (iv) reduction of gender disparities in economic activities.

Project description. In addition to project coordination, the project will have three components:

  • Human capital development and citizen participation. The general objective of the component is to strengthen the planning and implementation capacity of the target population, consolidating their abilities for efficient participation in economic organizations and district development councils. Activities to be supported include: (i) human and social capital strengthening to reinforce the district territorial development councils and organizations of poor and extremely poor farmers; (ii) labour skills training for landless and extremely poor young men and women, both indigenous and non-indigenous; and (iii) a production investment fund to provide capital for the production plans of extremely poor men and women.
  • Development of economic initiatives. The objective of the component is to increase income, production and productivity of organized and non-organized rural inhabitants, encouraging, supporting and consolidating economic initiatives. The component has been organized along three lines of action: (i) strengthening of productive entrepreneurial activities (production plans and business plans will be prepared); (ii) a financial fund; and (iii) development of entrepreneurial capabilities.
  • Knowledge management and monitoring and evaluation. Through this component, the project will provide the project management unit and other stakeholders with regular information on the implementation processes, achievement of results and impact of the project. Monitoring and evaluation methodologies that have been regionally tested will be applied with the support of the Programme for Strengthening the Regional Capacity for Monitoring and Evaluation of Rural Poverty-Alleviation Projects in Latin America and the Caribbean (PREVAL). A communication strategy will facilitate the dissemination of lessons learned, methodological approaches and activities throughout the target group.
Photo by IFAD formulation mission, November 2007. Peasant at work on his farm in Las Palmas, Veraguas.  

Photo by IFAD formulation mission, November 2007
Peasant at work on his farm in Las Palmas, Province of Veraguas.

 

Important features. The proposed project is in line with the strategic objectives of the recently completed country strategic opportunities programme for Panama, namely: increasing income opportunities for the rural poor and reducing ethnic and gender-based inequalities through improved access to productive support services, infrastructure and markets; and improving local government and social empowerment - with special attention to indigenous and ethnic groups. The project also expects to add value to the Government’s rural poverty reduction and development policies and programmes (as set forth in the country’s National Development Plan 2004-2009, poverty reduction strategies and other key policy documents) and to the activities of other development partners. The project’s approach is innovative in the country context in that it links equitable participation by vulnerable groups in decentralized rural social and economic development with demand-led market-oriented enterprise development. Organization and human capacity development/strengthening and affirmative action are both a means and an end to the empowerment of the rural poor and extremely poor. The project will also adopt an innovative approach to knowledge management and participatory learning throughout the implementation period.


Potential cofinanciers and domestic contribution. The OPEC Fund for International Development is expected to provide US$1.8 million (on a parallel basis). The Government will provide US$6.0 million and beneficiaries US$0.3 million.

Facts and figures
  • Region: Latin America and the Caribbean
  • Project name: Participative Development and Rural Modernization Project
  • Region: Latin America and the Caribbean
  • Country: Panama
  • Project ID number: 1389
  • Nature of project: Rural development
  • Project cost: US$12.3 million
  • Estimated IFAD loan: US$4.2 million
  • Cofinancing gap: See section on potential cofinanciers
  • Domestic contribution: US$6.3 million
  • Proposed terms: Ordinary
  • Stage of project cycle: Design completed
  • Next step in project development: Negotiations
  • Tentative date for consideration by the Executive Board: April 2008
  • Project duration: Six years
  • Tentative project start-up date: End of 2008
  • Implementing agency: Ministry of Agricultural Development
  • Borrower: Republic of Panama
Hot links
Contact information

Ms J. Stubbs
Director, Latin America and the Caribbean Division

Ms J. Keitaanranta
Country Programme Manager jaana.keitaanranta@un.org.pa

International Fund for Agricultural Development (IFAD)
Via Paolo di Dono, 44, 00142 Rome, Italy
Tel: + 39 0654591
e-mail: ifad@ifad.org