Project ID: 1317
Executive Board Document: EB-2004-83-R-31-Rev-1

National Rural Development Programme: Central and Eastern Regions

The programme will promote economic integration of the rural areas of the five central and eastern departments into Guatemala's social and economic development mainstream. Programme support to the participation of grass-roots organizations, coupled with activities directed towards the development and consolidation of beneficiaries' economic activities, will contribute to strengthening the self-esteem of the rural poor, particularly of rural women and young people - and thus promote empowerment of their local social and economic organizations. The programme will strengthen the productive and infrastructure resource base of 30 000 direct beneficiaries (men and women poor farmers, landless farmers and rural youth). The stimulus to the social and economic development of the region will also benefit 70 000 indirect beneficiaries, who will capitalize on social and rural infrastructure and productive investments. Thus improvements in rural health, education and communications infrastructure and basic services will bring an improvement of the living conditions in rural poor communities. The human-resource capacity of rural young women and men will be enhanced through a systematic labour-skills training programme for 8 000 rural youth. In addition, 6 000 adult and young men and women beneficiaries will be trained and supported in small microenterprise management and marketing, particularly those involved in traditional crafts manufacturing.

The central and eastern regions are inhabited by a mestizo population of Maya and Spanish descent (ladinos). The target group comprises the country's more vulnerable groups of the rural poor, including poor men and women small farmers and landless farmers (44%), microentrepreneurs and artisans (20%) and poor, landless young men and women (36%). The beneficiary group was estimated at 100 000 persons, comprising 30 000 direct beneficiaries, including 36% adult males, 38% adult women and 36% young men and women.

The programme concept is to involve beneficiaries in planning, management and supervision of activities as a vital form of expression and participation, and ultimately as a way of strengthening rural civil society, and particularly indigenous organizations. The programme will support market-oriented, small rural business through technical and financial support. Since Guatemala's decentralization programme focuses on community and municipal development councils as participatory, rural development planning and budget-allocation mechanisms, programme support to both councils will enhance the role of rural grass-roots organizations, strengthening their capacity for participation in development mechanisms. The programme aims to support representative groups of beneficiaries - including small farmers, small entrepreneurs and rural youth - in developing the capacity to express their views and negotiate their demands with departmental, municipal and microregional development programmes. The programme will train beneficiaries' representatives in the skills needed to participate in the community, municipal and departmental planning councils that will be implemented as part of the decentralization law and government policy. Beneficiaries will also participate in programme monitoring and evaluation activities. Feedback mechanisms among small farmers, contracted private support organizations and the programme management unit technical staff will be established.

Loan Amount

SDR 11.35 million (equivalent to approximately USD 17 million) on intermediate terms

Total programme cost: USD 38 million

Cooperating Institution:

United Nations Office for Project Services (UNOPS)

Project ID: 1274
Executive Board Document:EB-2003-79-R-24-Rev-1

National Rural Development Programme Phase I: the Western Region

The programme development goal is the reduction of the levels of poverty, exclusion and discrimination of the poorest indigenous and non-indigenous population of Guatemala. The general objective of the Programme is the active and equitable (gender focused) participation of all stakeholders in the development and transparent implementation of the pro-poor national rural development policies and institutional framework. The programme will promote the integration of rural areas in the five western departments. It will support the participation of base organizations and the development of beneficiaries' economic activities, thereby strengthening self-esteem among indigenous groups, rural women and youth, and empowering their social and economic organizations. Developments in rural health, education, communications infrastructure and basic services will help improve the living conditions of rural poor indigenous and non-indigenous communities.

Loan Amount:

SDR 21.55 million (approximately USD 30.0 million) on intermediate terms

Total project cost: estimated at USD 48.0 million, of which beneficiaries will provide about USD 2.0 million, the OPEC Fund USD 10.0 million and national Government USD 6.0 million.

Cooperating Institution:

UNOPS

Project ID: 1085
Executive Board Document: EB-99-68-R24-Rev-1

Rural Development Programme for Las Verapaces

Armed conflict over a period of 36 years has had devastating consequences, especially for the rural population of Guatemala. Accordingly, one of the highest priorities under the Peace and Reconstruction Agreements signed in 1996 by the Government and the rebel forces was to combat rural poverty in the areas most affected. To that effect, the Government requested that IFAD finance a project to support its fight against rural poverty. This ten-year IFAD-initiated programme will contribute to the reduction of rural poverty among indigenous peasants who live in a very fragile natural resource environment in the poorest municipalities of the Las Verapaces Department. The specific objectives of the programme are to:

- increase indigenous peasants' incomes through the promotion and support of agricultural and non-agricultural income-generating activities;

- promote and strengthen peasant organizations so that they function as effective local institutions;

- empower peasant women and guarantee their full participation in the programme's social and economic activities;

- improve and preserve the natural resource base for future generations by implementing sustainable conservation practices; and

- foster the integration o f rural communities into the mainstream of the national economy.

The target group is comprised of poor rural families whose income level is lower than USD 1.3 per capita per day, the poverty benchmark. The programme will directly benefit approximately 16 000 rural families - mainly composed of landless and marginal producers; subsistence producers; and emergent commercial producers. Innovative Features:

- A key feature of this programme is its use of the FLM. The adoption of the FLM allows greater flexibility in resource allocation, planning and implementation. During the fourth year, this mechanism calls for a revision of implementation, based on pre-set targeted indicators. The proposed revision will be submitted to IFAD's Executive Board, and Board members will then decide whether to continue the programme. The FLM will also enable the programme to respond adequately and in a timely manner to new priorities arising both from the evolving socio-economic situation in the country and from beneficiary demands, while at the same time contributing to the successful accomplishment of long-term development objectives.

- The programme's highly participatory and gender-sensitive approach used during its design phase will be maintained throughout implementation.

Loan Amount:

SDR 10.9 million (approximately USD 15.0 million) on intermediate terms.

Total Programme Costs:

Estimated at USD 26.0 million, of which USD 5.0 million will be provided by the OPEC Fund, USD 3.7 million by the Government and USD 2.3 million by the beneficiaries.

Cooperating Institution:

UNOPS.

Project ID: 1085
Executive Board Document: EB-99-68-R-24-Rev-1

Armed conflict over a period of 36 years has had devastating consequences, especially for the rural population of Guatemala. Accordingly, one of the highest priorities under the Peace and Reconstruction Agreements signed in 1996 by the Government and the rebel forces was to combat rural poverty in the areas most affected. To that effect, the Government requested that IFAD finance a project to support its fight against rural poverty. This ten-year IFAD-initiated programme will contribute to the reduction of rural poverty among indigenous peasants who live in a very fragile natu ral resource environment in the poorest municipalities of the Las Verapaces Department. The specific objectives of the programme are to: Armed conflict over a period of 36 years has had devastating consequences, especially for the rural population of Guatemala. Accordingly, one of the highest priorities under the Peace and Reconstruction Agreements signed in 1996 by the Government and the rebel forces was to combat rural poverty in the areas most affected. To that effect, the Government requested that IFAD finance a project to support its fight against rural poverty. This ten-year IFAD-initiated programme will contribute to the reduction of rural poverty among indigenous peasants who live in a very fragile natu ral resource environment in the poorest municipalities of the Las Verapaces Department. The specific objectives of the programme are to:

- increase indigenous peasants' incomes through the promotion and support of agricultural and non-agricultural income-generating activities;

- promote and strengthen peasant organizations so that they function as effective local institutions;

- empower peasant women and guarantee their full participation in the programme's social and economic activities;

- improve and preserve the natural resource base for future generations by implementing sustainable conservation practices; and

- foster the integration of rural communities into the mainstream of the national economy.

The target group is comprised of poor rural families whose income level is lower than USD 1.3 per capita per day, the poverty benchmark. The programme will directly benefit approximately 16 000 rural families - mainly composed of landless and marginal producers; subsistence producers; and emergent commercial producers.

Innovative Features:

- A key feature of this programme is its use of the FLM. The adoption of the FLM allows greater flexibility in resource allocation, planning and implementation. During the fourth year, this mechanism calls for a revision of implementation, based on pre-set targeted indicators. The proposed revision will be submitted to IFAD's Executive Board, and Board members will then decide whether to continue the programme. The FLM will also enable the programme to respond adequately and in a timely manner to new priorities arising both from the evolving socio-economic situation in the country and from beneficiary demands, while at the same time contributing to the successful accomplishment of long-term development objectives.

- The programme's highly participatory and gender-sensitive approach used during its design phase will be maintained throughout implementation.

Loan Amount:

SDR 10.9 million ( approximately USD 15.0 million) on intermediate terms.

Total Programme Costs:

Estimated at USD 26.0 million, of which USD 5.0 million will be provided by the OPEC Fund, USD 3.7 million by the Government and USD 2.3 million by the beneficiaries.

Cooperating Institution:

UNOPS.