Project ID: 1294
Executive Board Document: EB-2006-88-R-21-Rev-1

The programme aims to create, develop and increase the assets of the rural poor. It is a pilot initiative designed at the request of the Government to test new tools and mechanisms to benefit the rural poor. There are three components: (i) investment and asset enhancement of rural microenterprises; (ii) capacity-building and information for stakeholder linkages; and (iii) knowledge management and programme administration. The programme’s main goal is to expand the access of poor women, youth and peasants to financial resources, technical assistance, knowledge, information and governance structures essential to the development of their rural microenterprises and markets. The tangible and intangible assets of the rural poor provide the starting point for a gradual process to overcome poverty and at the same time strengthen the social fabric and rebuild citizens’ trust in the state.

The programme’s innovative approach is based on full participation by beneficiaries in: (i) defining their livelihood strategies and income opportunities; (ii) identifying their technical and microfinance service needs; (iii) creating local committees for allocating programme resources; (iv) signing agreements with the programme to manage financial resources without intermediation, and being accountable for those resources; (v) cofinancing their initiatives in an effective and progressive way; (vi) contributing to policy dialogue through the systematization and dissemination of their own knowledge and experiences; (vii) strengthening their organizations; and (viii) monitoring and evaluating the programme. The underlying philosophy of the programme extends beyond the scope of a participatory project by aiming to empower the rural poor through their direct management of programme resources. By targeting rural women and youth, the programme will actively seek to ensure equity and create ownership of the programme.

The programme will be implemented initially in small settlements in rural Colombia, specifically in the Departments of Bolívar, Córdoba and Sucre in the Caribbean Region
and in the Departments of Boyacá and Santander in the Andean Region; it will later be extended to progressively include other poor municipalities in the Pacific Region (Departments of Cauca, Chocó and Nariño) and the remainder of the country, covering 714 municipalities. The programme will directly target – as individuals and as groups – rural, poor small-scale producers, peasants, microentrepreneurs and craftworkers who have scant access to resources but dynamic social, economic and cultural potential. The programme will attach high priority to women and youth and will reach 15% of rural households with unmet basic needs (32,000 households). There will be 128,000 direct beneficiaries, equally distributed among adults (males and females). The programme beneficiaries include 20,000 Afro-Colombians and 2,500 members of indigenous groups.

Loan Amount

SDR 13.45 million (equivalent to approximately US$20 million)

Total programme cost: US$32.1 million

Cooperating Institution:

Andean Development Corporation