600 Bolivian families to improve their income and productive capacity

(La Paz, January 26, 2012) .- Through non-reimbursable funds, CAF- Latin American development bank -and the cooperation organizations SNV, ICCO, Avina Foundation and ART GOLD/UNDP will contribute to the economic development of localities neighboring the La Paz-Oruro Two-Way highway and improve the productive capacity and income of about 600 families living in the area of ​​influence of the 200-kilometer highway.

The multilateral bank signed the financing agreement for the Inclusive Two-Way Street Program with these partner institutions with the aim of supporting sustainable development in the area with productive projects with what is known as Inclusive Business (IB). The program encourages business initiatives to include low-income communities in their value chains based on principles such as respect for the environment and building a platform to increase the sustainability of small producers in the area.

"CAF aims to contribute to Bolivian development not only by promoting integration infrastructure but also strengthening sustainable development with social and economic inclusion by providing non-reimbursable funds targeted at low-income communities. In this case, productive projects will be executed which incorporate segments of the population settled in the area of ​​influence of the two-way highway that CAF is financing between La Paz and Oruro which have productive potential and require technological inputs, best practices and specific knowledge to position them as reliable suppliers or participants in companies’ production chains. In this way we are strengthening our role as a partner of Bolivia in achieving its development goals and going beyond the role of financier," CAF representative director in Bolivia Emilio Uquillas said.

In the Bolivian altiplano 87.7% of the population live in poverty and 47.2% are destitute, a higher percentage than the national figure of 21.7%.

The Inclusive Two-Way Street Program includes environmental analysis of the communities, identifying inclusive business opportunities, design of at least six inclusive businesses, measuring their impact and implementation, sharing of results and their systematization and promotion as public policy recommendations.

The expected results include startup of productive undertakings that generate sustainable and scalable income, 20% increase in the income of the 600 families, identification of ten productive undertakings with implementation of six of them, along with a 10% increase in volume, quality and value of production.

The agency responsible for implementing the program, SNV, is a development organization set up in 1965 operating in over 30 countries in Latin America, Africa and Asia and dedicated to alleviating poverty by raising the income of low-income people, and increasing employment opportunities in specific sectors. It also helps improve access to basic services including water, sanitation, hygiene and renewable energy.