More than 4,000 families between La Paz and Oruro benefited from the project "Inclusive Double-Lane Highway"
José Carrera, CAF Corporate Vice-President of Social Development, arrived in La Paz to present the second publication in the Pasos (Steps) series, "Inclusive Double-Lane Highway," which includes the main results of the project that is part of the Steps to Inclusion program.
The Inclusive Double-Lane Highway project initiated by the Development Bank of Latin America (CAF) and other partner organizations, promoted the social and economic inclusion of 4,224 families from 10 communities along 204 km of the highway between La Paz and Oruro, increasing their income potential by between 12% and 125%, according to the speakers at the publication's launch, made today in the institution's auditorium.
With an investment of USD 496,000 - of which CAF contributed with 43.55% - the Double-Lane Highway project established six inclusive businesses that directly helped 962 families (362 more than the original estimated target) and indirectly benefited another 3,262 families.
These businesses include milk suppliers, which benefited 32 families, with an increase in milk production of 80 to 5,000 liters per day that, in turn, increased daily income from Bs 46 to 58. Another business that experienced a 50% increase in income is the Andean cereal supplier SIMSA, which benefited more than 36 families whose family income increased from Bs. 16,000 to Bs. 24,000 a year, with a considerable increase in production.
During his presentation of the document, Emilio Uquillas, CAF representative-director in Bolivia, emphasized the joint effort made by the Dutch Service for Cooperation and Development (SNV), the United Nations Development Program (UNDP), the Dutch Inter-Churches Organization for Cooperation and Development (ICCO) and the Avina Foundation, who together were able to implement the concept of social profitability of the infrastructure by reinforcing the productive capacity of vulnerable communities in the areas of influence.
"The idea of inclusive business is to 'combine' development of infrastructure projects with activities that foster the socio-productive impact of communities living close to the project. We will make sure that the highway not only connects places or makes transportation easier, but also that it is a vehicle for economic, social and productive change," said Uquillas.
José Carrera, CAF Corporate Vice-President of Social Development, who arrived in La Paz following the board meeting held in Santa Cruz a few days earlier, explained that the Steps to Inclusion program seeks to create value through socio-productive projects in CAF's areas of influence, to improve the standard of living of the more vulnerable Latin American communities by increasing their abilities and skills. "As a complement to its loan business and to expand it, CAF is seeking to build social and productive skills in the poorer communities near where it operates. The Inclusive Double-Lane Highway project is a successful experiment in productive empowerment in vulnerable communities in the areas where CAF conducts its loan operations, since this project was performed as part of the construction of the La Paz-Oruro Highway", emphasized Carrera.
Successful inclusive businesses
The Steps to Inclusion program provides tools for people from economically marginalized groups to increase their income by establishing inclusive businesses that contribute to reducing poverty structurally.
Horacio Barrancos, SNV senior adviser and one of the project's main players, explained that six inclusive businesses had been set up that benefited a total of 4,224 families, directly or indirectly, by diversifying their business activities thanks to the improvements made to their community organization and business schemes, upgrading equipment and infrastructure, job training and specialization, and development of community organization techniques. "The Inclusive Double-Lane Highway project opened up new sources of exchange and well-being and ensured that rural families producing goods in 10 communities gained access to formal markets, substantially improving their productive and competitive opportunities, and thus transforming their lives," said the adviser.
The project's geographical area encompassed 10 municipalities traversed by the Oruro - La Paz highway (Toledo, Eucaliptos, El Choro, Caracollo, Patacamaya, Calamarca, AyoAyo, Umala, SicaSica and Achocalla) with a rural population of 97,673. "With this geographic coverage, the Inclusive Double-Lane Highway project is a community project aimed at enhancing production and association abilities in the communities, so that they may manage their own development", concluded Barrancos.