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USAID/Bolivia 

Operational Plan 

FY 2006 

June 15, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: This past year has seen significant political and social 

unrest in Bolivia. In June 2005, former President Mesa resigned from office following months of largescale protests and blockades on sensitive issues related to nationalization of hydrocarbons and formation 

of a Constituent Assembly to rewrite the nation’s constitution. The country avoided a significant 

constitutional crisis when former President of the Supreme Court, Eduardo Rodriguez assumed the 

Presidency. His mandate since June was to ensure elections before the end of 2005. On December 18, 

Bolivians elected a new President, Congressional representatives, and for the first time, prefects (similar 

to U.S. governors). The indigenous leader Evo Morales won the elections with 53.7% of the vote and 

officially took office on January 22. USAID’s assistance will focus on strengthening democratic processes 

and improving the participation of civil society in the country’s democracy. 

One of the first actions that the new government is expected to take by the first week of February is the 

passage of a law convening the Constituent Assembly, in order for the elections to take place as planned 

in July 2006. The elected representatives to the Constituent Assembly will be charged with rewriting the 

nation’s Constitution and presenting a referendum on regional autonomy, which could alter the federal 

structure of government. 

The outgoing government left a relatively healthy economy. Real GDP growth reached 4.0% in 2005, up 

from 3.7% in 2004. Bolivia has also made important progress in reducing its fiscal deficit to 1.6% down 

from 5.7% in 2004 and 8.1% in 2003, and exports have reached a historic record of $2.7 billion, up from 

$2.1 billion in 2004. International reserves currently amount to $1.6 billion. Nevertheless, Bolivia has the 

second most unequal distribution of national wealth and third highest rate of poverty (62% of the 

population) in Latin America; however, it is a country rich in natural resources, which, carefully managed, 

could substantially raise living standards. Bolivia must seek broader and permanent opportunities to 

export; the U.S. market provides excellent potential for growth, hence the importance of Bolivia joining a 

free-trade agreement with the U.S. Bolivia's agricultural sector, while limited by low productivity, 

uncertain land tenure and a poor road network, has demonstrated an ability to compete in niche markets 

abroad. Much work still needs to be done, however, in increasing productivity and product quality, and in 

developing market networks. This will increase employment, reducing poverty and social conflict. 

Illegal coca cultivation for the international narcotics trade remains a constant challenge to the country 

and to Bolivia’s counternarcotics strategy. According to State Department figures, there was a 7.7% 

increase in coca cultivation nationally from 2004 to 2005, with about 26,500 hectares under cultivation. 

The illegal coca issue requires close and continuous attention and adroit USG/GOB intergovernmental 

coordination to avoid the rollback of important gains in licit alternative economic and social development 

in coca-growing areas. Lessons learned indicate that alternative development produces the best results 

when coordinated with interdiction and eradication. Expanding the licit economy and increasing state 

presence and basic public service delivery are critical. 

High levels of poverty and a consistent pattern of social and political exclusion of the indigenous majority 

persist. Over 60 percent of the Bolivian population is poor, with correspondingly low levels of education, 

health and nutrition. According to the last national survey in 2003, infant mortality stands at 54 per 

thousand live births, and 26.5 percent of children under five are chronically malnourished. Diseases such 

as malaria, tuberculosis, leishmaniasis, and yellow and dengue fever are widespread. Health services in 

rural areas are very sparse and poorly equipped and staffed. The GOB's fiscal difficulties limit its ability to 

expand services, making it imperative that private providers and NGOs take a much larger role in 

increasing the amount and quality of, and access to, health services, particularly in rural areas. 

Bolivia is extraordinarily rich in natural resources, yet severe, widespread rural poverty creates stresses 

on the environment as the poor exploit these resources in an unsustainable manner. Natural resources 

are threatened by calls for nationalization of forestry and water resources. Water pollution and soil 

erosion and degradation are widespread and serious. The GOB lacks sufficient capacity to effectively 

manage these resources. 

Despite the significant turnover in counterparts over the course of the year, the GOB and USAID have 

maintained a strong and positive partnership. USAID works very closely with key Ministers, including 
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Health, Agriculture, Economic Development, Popular Participation, and Sustainable Development. That 

said, the GOB’s political weakness and its prolonged and severe fiscal crisis impede its ability to fully 

meet its policy and financial commitments to the donors, including to USAID’s country strategic plan. The 

USG is looking forward to a continuing partnership with Bolivia on areas of common interest. 

U.S. Interest and Goals: 

Key U.S. objectives in Bolivia focus on promoting democratic stability and mitigating conflict by supporting 

a well-informed citizenry; improving the responsiveness and transparency of national and local 

governance and the justice system; increasing economic opportunities for the poor through business 

development, trade, improved agricultural productivity, and financial services; promoting licit economic 

growth for rural farm families and expanding state presence in coca-growing and associated areas of the 

country; enhancing health practices and the quality of, and access to, health services; and sustainably 

managing natural resources and biodiversity. 

USAID/Bolivia’s strategy remains highly flexible, allowing the Mission to respond to the fluid political 

environment. The Mission’s efforts this past year have particularly emphasized support to the strategic, 

conflict-prone city of El Alto, an area that has contributed importantly to the fall of two presidents over the 

past two years. At the same time, through OTI and the Democracy SO, the Mission supported the 

electoral process through wide dissemination of civic and voter education material, election observation, 

political party development, and conflict mitigation. In addition, Mission programs are working in 

democracy, economic growth, integrated alternative development, health, and environment to directly 

address the sources of unrest and tension among the highly-marginalized and impoverished indigenous 

populations of El Alto and other strategic areas of the country. 

Donor Relations: 

Within Bolivia, USAID is the largest bilateral donor and is the second largest donor overall after the 

Andean Development Fund, which provides concessionary loans as opposed to grants. Bolivia has one 

of the highest per capita dependencies on foreign assistance in the hemisphere, with an estimated 66% 

of public investment coming from donors. Fourteen bilateral and four multilateral donors and the UN 

system provide an average of $600 million annually in concessional loans and grants to Bolivia. Donor 

coordination is strong, and joint donor-GOB working groups have effectively influenced GOB policy. The 

groups align donor assistance in: the National Dialogue and Poverty Reduction Strategy; the Constituent 

Assembly; Competitiveness and Productivity; Fiscal Management, and Harmonization. Bolivia is eligible 

to bid for FY 2004, 2005, and 2006 Millennium Challenge Account (MCA) funds. The GOB has submitted 

a draft compact proposal. 

Key Achievements: 

1. Increased Income for Bolivia’s Poor: USAID/Bolivia’s economic opportunities SO takes a strategic 

approach to promoting economic growth in ways that promote stability and reduce social tension and 

conflict. The program helped increase non-traditional exports by 24% ($203 million) in FY 2005, 

increasing incomes, permanent jobs, and reducing poverty and migration to overburdened urban areas. 

Through $7.2 million in assistance in agriculture over five years, USAID helped generate $47.6 million in 

increased economic activity in target rural areas. USAID linked producers to local and international 

markets and helped them to improve skills and production techniques to meet market demand. USAID 

financial sector activities complemented trade capacity building to improve capital and investment 

opportunities. Over 16,400 new savings accounts were opened with credit unions collaborating with 

USAID. In El Alto, a quickly-growing, majority indigenous city with high unemployment, USAID stimulated 

job creation and promoted value-added, labor-intensive exports. USAID’s support directly generated 

3,267 new jobs in El Alto and poor areas of Cochabamba and Santa Cruz over the last two years, 

exceeding the program target of 2,300. Export promotion also generated almost $1 million in local sales 

for those conflict-prone areas. 

2. Improved Health of the Bolivians, Contributing to their Quality of Life: USAID/Bolivia’s health program 
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focuses on improving the health of Bolivians, particularly those with limited resources who have been 

historically marginalized. Improving health outcomes relies on a three-pronged approach: promote 

behavior change and responsible community management of public health services; expand the delivery 

of high impact, cost-effective interventions that address key public health problems; and build a 

sustainable service delivery platform in both the public and NGO sectors. As a result of USAID 

interventions, there is a greater use of modern family planning methods, providing 368,832 couple-years 

of protection in FY 2005, an over 20% increase from three years ago. With Title II program funds, 

malnutrition rates continued their steady fall and reached 34%, down from 47% in FY2002. Despite 

tremendous obstacles, including social unrest and government turnover, the health program exceeded 

targets for immunization coverage, reaching 81% in USAID-assisted areas. USAID also surpassed initial 

goals for HIV/AIDS counseling and testing in six new alternative voluntary counseling and testing centers 

by over 25% in its first year of implementation. 

3. Forest, Water, and Biodiversity Resources Managed for Sustained Economic Growth: USAID 

promotes the sustainable use of Bolivia’s rich natural resources while addressing a number of root 

causes of instability and conflict. This SO is increasing jobs, generating more economic growth, 

improving democratic practices at the local level, and enhancing inclusion of historically marginalized 

indigenous populations. Specifically, the environment program works to: improve business practices for 

forestry exports and broaden the benefits by including more community forest operations; enhance 

conservation of the eastern slopes of the Andes by engaging municipalities and generating local 

economic development through ecotourism and sound watershed management; and improve 

environmental management of urban and industrial pollution. USAID assistance was critical to over nine 

million of Bolivia’s 32 million hectares of designated forest lands falling under approved management 

plans. Of those, more than 2.2 million hectares of land were independently certified as under adequate 

management, enabling more than $21 million in certified wood exports from Bolivia (of $130 million in 

total wood exports) and demonstrating Bolivia's global leadership in forest management. Wood exports 

currently support 50,000 direct jobs and 250,000 indirect jobs, with the potential for much higher numbers 

with increased investments. 

4. Licit Economic Growth in Coca-Growing and Associated Areas Increasingly Sustainable: USAID’s 

Integrated Alternative Development program underpins achievement of USG and Bolivian 

counternarcotics objectives. The alternative development program strengthens the sustainability of licit 

economies in coca growing and associated areas of the Chapare and the Yungas through a mutuallyreinforcing set of interventions aimed at: increasing the market competitiveness of licit rural enterprises; 

supporting more responsive, transparent and inclusive democratic institutions; and improving basic public 

services and social conditions. In this manner, the program integrates economic, democratic and social 

development to help farmers as they transition out of coca cultivation to licit crops. The program also 

helps prevent coca expansion to new areas. Through FY 2005, USAID assistance has benefited 49,901 

Chapare and Yungas families, exceeding program targets by 11%. The value of licit crops leaving both 

regions has reached an estimated total of $81.7 million. These are helping to win allies for coca control 

and have contributed to GOB-community agreements declaring 250,000 hectares free of coca. USAID 

also implemented numerous social and productive projects in both regions including packing plants, road 

improvements, potable water systems, and health posts, exceeding program goals. 

5. Increased Confidence in Democratic Institutions and Processes: USAID’s program focuses on helping 

Bolivia to make its key justice sector institutions more transparent, efficient, and accessible; assisting 

political representatives to be more responsive to constituent demands; making local governments more 

effective; and supporting anti-corruption and transparency efforts. In addition, the program has 

demonstrated its significant flexibility through timely electoral assistance. In 2005, over 6,600 cases were 

resolved by USAID-supported Integrated Justice Centers, which increase access to justice by historically 

marginalized populations, particularly indigenous, in conflictive areas. A USAID civil society network of 

more than 100 NGOs was successful in advocating for transparent nomination procedures for justice 

sector officials, supporting the merit-based nomination of Supreme Court Ministers, Judicial Council 

Members, the Attorney General, and the nine district attorneys representing each of the nine departments 

in the country. This was the first nomination process where political considerations were marginalized in 

favor of meritocracy, thus increasing judicial independence. The Office of Transition Initiatives (OTI) 
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contributed substantially to this SO as well through increasing access to balanced information on issues 

of national importance and promoting peaceful participation and stability in El Alto and other conflictprone areas. 

6. Title II Program: The P.L. 480 Title II program has proven to be one of the Mission’s most strategic 

and durable activities in addressing political instability over the past two years. Continuing to work with 

Quechua and Aymara populations in the most food-insecure areas of the Altiplano and high valleys, the 

program has successfully reduced chronic malnutrition by 13%, helped provide more than 60,000 people 

with new water and/or sanitation systems, developed more than 3,700 hectares of conservation areas to 

protect economic resources, and increased the income of beneficiaries by more than 7% in FY 2005 as a 

result of agricultural commercialization and trade capacity building, irrigation system development, and 

farm to market road improvements. In addition, the Title II program has been agile enough to respond 

quickly and effectively to the political crisis that brought down the Mesa Government in June 2005, 

generating temporary employment for 27,000 people, mostly women, through food for work programs that 

helped to minimize unrest and create needed water, gas and road infrastructure in the city of El Alto. The 

program also distributed almost 10 tons of food to women and children in orphanages and hospitals 

whose food supplies were cut off by prolonged blockades in this strategically important city. 

Gender: High levels of poverty correlate with gender and indigenous peoples in both rural and urban 

areas. Gender inequities and political violence hinder Bolivian women’s ability to access decision-making 

positions and participate in development processes. All Mission SOs either directly target or substantially 

benefit poor rural women, in recognition of both the key role they play in family health, food production, 

and microenterprise, and of their exclusion from full participation in society and the economy by practices 

that make them disproportionately under-educated and poor. To better address the needs of women 

affected by program activities, the Mission is ensuring gender is prominent in the larger Inclusion/Diversity 

Strategy, including a monitoring and evaluation component with specific activities and targets. 
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FY 2006 Program 

SO: 511-002 Increased Income for Bolivia's Poor 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($882,000 DA). USAID works in the poorer areas 

of Bolivia which lack adequate municipal government services for schools, such as the city of El Alto and 

the Altiplano region in Southwest Bolivia. USAID is assisting these schools with the rehabilitation of 

classrooms and provision of furniture, libraries and computers, and civic education training for teachers 

and students. Principal grantee: Casals and Associates. 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($1,950,000 DA). USAID is providing technical assistance and 

training to link farmers with trade and market opportunities and to support the adoption of improved 

production techniques by small producers. This assistance will open access to markets for small 

producers, thereby raising rural household incomes and quality of life. USAID is working in some of the 

poorest regions of Bolivia, providing technical assistance to strengthen key local organizations and to 

provide financial support for local farmers. Principal contractors and grantees: Chemonics International, 

The Valleys Foundation. 

Increase Trade and Investment 

Increase Trade and Investment ($2,475,000 ESF). USAID assistance is helping to increase exports and 

create jobs, especially in key areas such as El Alto and Santa Cruz. Technical assistance and training 

will target labor intensive, value-added, nontraditional export sectors in which Bolivia has a competitive 

advantage. Business development centers in El Alto, Cochabamba, and Santa Cruz will connect 

producers with market opportunities and provide the techniques and skills needed to compete effectively, 

including clean production concepts. Technical assistance is also being provided to guide private 

enterprises to generate income, reduce poverty and mitigate conflicts. Principal contractors and 

grantees: Chemonics International, Florida International University, Bolivian Catholic University, and 

others to be determined. 

Protect and Increase Food Security of Vulnerable Populations 

Protect and Increase Food Security of Vulnerable Populations. The P.L. 480 Title II program continues to 

introduce new agricultural technologies, effective food security assessment tools, and training materials to 

increase yields and reduce storage losses in the most food insecure areas of the country. USAID is 

organizing farmers' groups and marketing associations, and strengthening existing partnerships with 

communities. These efforts help to address both food security and economic inclusion of rural indigenous 

populations. Cooperating sponsors are the Adventist Development and Relief Agency, Food for the 

Hungry International, CARE, and Save the Children. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector & Increase Access to Capital ($1,020,000 DA). USAID is 

providing technical assistance to promote policy dialogue and to strengthen Bolivia’s market-based 

financial system. Principal contractors and grantees: World Council of Credit Unions and others to be 

determined. 

FY 2007 Program 

SO: 511-002 Increased Income for Bolivia's Poor 
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Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($900,000 DA). USAID will continue working in the 

poorer areas of Bolivia which lack adequate municipal government services for schools, such as El Alto 

and the Altiplano. USAID plans to assist these schools by rehabilitating classrooms and providing 

furniture, libraries and computers, and training for teachers and students. Principal grantee: Casals and 

Associates. 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($2,084,000 DA). USAID plans to continue to link farmers with 

markets. It will also provide technical assistance on new production techniques as well as help the 

Valleys Foundation strengthen its management capability and diversify funding sources. Principal 

contractors and grantees: Chemonics International, The Valleys Foundation. 

Increase Trade and Investment 

Increase Trade and Investment ($2,900,000 ESF). USAID will further increase exports and create jobs 

throughout the country, including in key conflict-prone areas, by connecting producers with market 

opportunities, technical assistance, and training. Principal contractors and grantees: Chemonics 

International and others to be determined. 

Protect and Increase Food Security of Vulnerable Populations 

Protect and Increase Food Security of Vulnerable Populations. The P.L. 480 Title II program will continue 

to enhance agricultural yields, income generation, and community development activities with emphasis 

on the poorest, most food-insecure areas. New cooperating sponsors are to be determined. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector & Increase Access to Capital ($850,000 DA). USAID plans to 

continue providing technical assistance to promote policy dialogue and to preserve and strengthen 

Bolivia’s market-based financial system. Principal contractors and grantees: To be determined. 

FY 2006 Program 

SO: 511-003 Improved Health of the Bolivian Population, Contributing to Their Quality of Life 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($5,787,000 CSH). USAID is providing technical assistance to 

the Government of Bolivia (GOB) on policy development and service delivery guidelines, while working 

with local partners to implement maternal and child health activities in 18 networks at both the clinical and 

community levels. The program will expand coverage of the national immunization program. Technical 

assistance is helping launch a municipal matching fund that will leverage local financing. This will allow 

for expanded access to services and facilitate sustainability. USAID's health program will also 

incorporate a tailored model for improving access to health services in the indigenous city of El Alto. 

Under the P.L. 480 program, USAID provides technical assistance to local and government partners to 

standardize approaches to a community-based "growth promotion" strategy. This will further reduce 

childhood (under three years of age) malnutrition rates, improve food production, and reinforce long-term 

sustainability in the poorest areas. Primary contractors and grantees: John Snow International, Save the 

Children, Food for the Hungry, CARE, and Adventist Development and Relief Agency. 
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Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases Of Major Importance ($3,465,000 CSH). USAID is providing 

technical assistance and policy support in the prevention and control of tuberculosis, chagas and 

leishmaniasis. USAID assists the Ministry of Health and local nongovernmental organizations (NGOs) to 

expand access to voluntary testing and counseling for HIV/AIDS. A formative research study on hard-toreach groups is being conducted as a first step toward developing a program of prevention messages and 

voluntary testing and counseling for HIV/AIDS. USAID continues to assist the Ministry, local health 

providers, and health service clients to prepare for contagious influenza in general, and for contingency 

plans related to avian influenza should an outbreak occur. USAID is also working with partners on 

contingency plans for a possible influenza pandemic. Principal contractors and grantees: John Snow 

International, the Centers for Disease Control (CDC), and local NGOs. 

Reduce Transmission & Impact Of HIV/AIDS 

Support Family Planning 

Support Family Planning ($7,227,000 CSH). Technical assistance is helping to ensure that women and 

couples have greater access to voluntary family planning services. USAID is implementing a basic 

package of family planning services in 18 health networks (each consisting of several local health 

centers/posts and a hospital). USAID continues to support a national social marketing program to 

promote family planning among urban and rural populations that historically have lacked access to 

reproductive health services. USAID is also working on improving the financial sustainability of key 

Bolivian public health entities. Principal contractors and grantees: John Snow International, 

EngenderHealth, and local NGOs. 

FY 2007 Program 

SO: 511-003 Improved Health of the Bolivian Population, Contributing to Their Quality of Life 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($5,500,000 CSH). USAID will provide technical assistance to 

reduce newborn illness and mortality, strengthen routine immunization services, and enhance 

management capacities at the local level. The matching fund will expand into additional municipalities 

and USAID will assist these municipalities to supplement funding for community-based health services. 

An additional seven to 15 health networks may be incorporated. The P.L. 480 Title II program will 

continue to implement the growth promotion strategy. Principal contractors and grantees: John Snow 

International, Engender Health, and local NGOs. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases Of Major Importance ($3,485,000 CSH). USAID will continue to 

work with the Bolivian Ministry of Health to expand prevention and control efforts for tuberculosis, chagas 

and leishmaniasis. USAID will also expand access to voluntary testing and counseling for HIV/AIDS, 

especially for high risk groups. Principal contractors and grantees: John Snow International, CDC and 

local NGOs. 

Support Family Planning 

Support Family Planning ($5,704,000 CSH). USAID will continue to provide technical assistance for the 
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delivery of family planning counseling and services. The delivery of basic health services, including 

family planning, will be expanded from 18 to at least 25 health networks. Continuous quality improvement 

techniques will be reinforced to ensure that health facilities are focusing on quality of care and client 

satisfaction. USAID will continue to work toward greater partner cost-recovery through technical 

assistance in management and finance. An external evaluation of the social marketing program will be 

conducted. Principal contractors and grantees: John Snow International, EngenderHealth and local 

NGOs. 

FY 2006 Program 

SO: 511-004 Forest, Water and Biodiversity Resources Managed for Sustained Economic Growth 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources & Biodiversity ($3,665,000 DA). USAID is 

providing technical assistance to promote a public-private alliance among landholders, indigenous 

communities, and municipal development authorities. This will result in the creation of a centralized wood 

collection and processing center in northern Bolivia to increase wood exports and generate higher 

incomes. Public-private partnerships with the Bolivian Forestry Chamber and the Amazonian Center for 

Sustainable Forestry are strengthening institutional capabilities to preserve Bolivia's natural resources. 

Technical assistance is exploring use of partnerships and approaches to resolve illegal logging in Bolivia. 

USAID is also providing technical assistance to strengthen conservation efforts and natural resource use 

policies in the bio-diverse Amboro-Madidi Corridor of Bolivia by developing compatible land use planning 

processes, implementing sustainable natural resource management practices, and increasing awareness 

of local populations on the benefits of conservation. USAID is working with university programs to 

incorporate environmental economics curricula, build capacity through enhanced secondary classroom 

instruction and provide scholarships for promising students. Principal Contractors and Grantees: Virginia 

Tech University, Conservation International, World Wildlife Federation (WWF), Wildlife Conservation 

Society, and local non-governmental organizations. 

Reduce, Prevent & Mitigate Pollution 

FY 2007 Program 

SO: 511-004 Forest, Water and Biodiversity Resources Managed for Sustained Economic Growth 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources & Biodiversity ($3,700,000 DA). USAID will 

continue to strengthen linkages between small-holder forestry concessions, municipal development 

planning, and medium-large scale forest concessions. Lessons learned from application of these models 

in three different sites will inform other local forestry initiatives in the country. Public-private alliances will 

produce jobs and market opportunities for both small and large holders, produce a steady supply of 

quality wood to meet local and export demand, and may begin to address illegal logging. USAID will 

continue to provide technical assistance to local organizations to conserve the ecologically important 

eastern slope of the Andes. Primary Contractors and Grantees: Virginia Tech University, Conservation 

International, Pact Inc., and local non-governmental organizations. 

FY 2006 Program 

SO: 511-005 Licit Economic Growth in Coca-Growing and Associated Areas Increasingly 

Sustainable 

Develop & Expand Alternative Development 

Develop and Expand Alternative Development ($33,660,000 ACI). The program will be implemented 

through the following activities: 
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USAID continues to strengthen the market-driven competitiveness of key licit on and off-farm (e.g. tourism 

and agro-processing) sectors so that farmers have alternatives as they transition out of coca cultivation 

due to law enforcement or voluntary reduction. USAID technical assistance will increase incomes 

generated from licit crops and increase employment opportunities along the value chain in coca growing 

regions. USAID is assisting financial institutions to increase access to diverse financial services for licit 

sectors of the economy. USAID also continues to improve sustainable management of natural resources 

and biodiversity conservation in coca-growing regions through technical assistance and training to 

families in vulnerable areas, including isolated buffer zones and neighboring protected national parks. 

Additionally, USAID funds transportation improvements in coca-growing regions and associated areas to 

expand market access for licit products. These efforts are closely coordinated with, and often co-financed 

by, municipalities and communities. 

USAID supports GOB presence, democratic institutions and processes, and citizen rights in coca-growing 

regions. USAID funds technical assistance and training to improve citizen participation in and oversight 

of democratically elected local governments, as well as improve municipal transparency and performance 

in all municipalities in the Chapare and Yungas. USAID supports Integrated Justice Centers in cocagrowing areas to provide citizens with access to the formal justice system and state-sanctioned conflict 

resolution services. Support includes training, technical assistance, and equipment to help justice sector 

staff (judges, prosecutors, human rights defenders, conciliators, mediators, forensic doctors) increase 

their effectiveness in mediating conflict, applying the law, ensuring due process, and extending civic 

education to citizens. Depending on other donors' efforts, USAID may also expand current efforts to 

extend legal land titles to Chapare citizens, so that they can exercise their constitutional right to land 

ownership. This effort also strengthens judicial security and land markets in the Chapare. 

USAID is building local support for coca reduction by funding small grants for local community social and 

economic development. Additionally, USAID funds technical assistance, training, equipment, and 

infrastructure to improve the delivery of health services and citizens’ health knowledge, attitudes, and 

practices. These services strengthen primary health care, maternal and child health, and control of 

infectious diseases. These efforts help strengthen state presence and local commitment to coca control 

in these regions. 

USAID’s expansive social communications activity supports the GOB counter narcotics communication 

strategy and assists the GOB with monitoring, coordination and conflict management for its integrated 

alternative development program. 

Principal Contractors and Grantees: Chemonics International, United Nations Office on Drugs and 

Crime/Food and Agriculture Organization (UNODC/FAO), John Snow International, Agricultural 

Cooperative Development International/Volunteers in Overseas Cooperative Assistance (ACDI/VOCA), 

and Checchi and Company Consulting Incorporated. 

FY 2007 Program 

SO: 511-005 Licit Economic Growth in Coca-Growing and Associated Areas Increasingly 

Sustainable 

Develop & Expand Alternative Development 

Develop and Expand Alternative Development ($29,000,000 ACI). USAID plans to continue providing 

technical assistance, training and related support to farmers and businesses to increase the 

competitiveness of farming, tourism, and agroprocessing sectors, and improve access to domestic and 

international markets, including support for natural resources management in coca-growing and 

associated regions. USAID plans to initiate a new decentralization activity to strengthen local democratic 

governance in the coca-growing regions. The new activity will support Integrated Justice Centers, 

improving their ability to manage conflict, apply the law, ensure due process, and advance civic 

education. USAID plans to continue efforts to extend land titles in the Chapare in order to strengthen 

citizen rights to land ownership, strengthen judicial security, and improve land markets. USAID also plans 

to continue funding small social and economic development grants in coca-growing areas to strengthen 
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social capital, community development, and local support for coca control. This will include support for 

emergency and immediate impact activities to help the GOB mediate conflict and preserve peace in these 

areas. Finally, USAID plans to continue the social communications activity to support the GOB counter 

narcotics communication strategy and to continue assistance to the GOB monitoring, coordination and 

conflict management unit. Principal Contractors and Grantees: Chemonics International, UNODC/FAO, 

ACDI/VOCA, Checchi and Company Consulting Incorporated. 

FY 2006 Program 

SO: 511-007 Increased Confidence in Democratic Institutions and Processes 

Promote And Support Anti-Corruption Reforms 

Strengthen Civil Society 

Strengthen Civil Society ($1,109,000 ESF). USAID provides technical assistance to enhance the 

capacity of civil society to monitor the activities of the public sector as an important element of Bolivian 

democracy. As part of this support, and as a reflection of the importance of indigenous groups in 

pluralistic debates on issues, USAID also is identifying and supporting indigenous leaders and their 

participation in public discourse. Principal contractors: Casals and Associates. 

Strengthen Democratic Political Parties 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($2,470,000 ACI, $1,356,000 ESF). Justice sector activities focus on 

increased access to justice, implementation of justice reforms, and strengthening key justice sector 

institutions. ACI is being used to fund additional Integrated Justice Centers, increasing access to justice 

services by traditionally marginalized populations (women, youth, and indigenous) in coca growing 

regions. ACI is also strengthening the Public Defense Service by establishing a training institute, and 

providing technical assistance for legal reforms to improve both the investment climate and the criminal 

procedures code. ESF is being used to assist a national advocacy network of civil society organizations 

to promote accountability and transparency in the sector. Principal contractors and grantees: Checchi 

and Company Consulting, Inc., State University of New York at Albany (SUNY-Albany), Partners of the 

Americas. 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($480,000 DA, $1,000,000 ESF). DA funds 

support technical assistance and training to new congressional representatives elected in December 

2005 on their duties and responsibilities. ESF funds are being used to promote constituent consultation 

in order to increase Congress’ effectiveness and responsiveness, as well as civil society oversight and 

interaction with deliberative bodies (e.g., Congress and Constituent Assembly). Principal contractors and 

grantees: SUNY-Albany, Vanderbilt University. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($500,000 ACI, $2,094,000 DA). DA funds 

provide technical assistance to address social conflict at the local level by enhancing effectiveness of 

local governments in transparent financial management, local economic development, and inclusion in 

decision-making of marginalized populations. ACI is being used to provide technical assistance to 

support governance efforts in coca-growing regions. This is the first year that democratically-elected 
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prefects, equivalent to U.S. governors, will exercise their authority over departmental governments. DA is 

being provided to assist and train prefects in the execution of their responsibilities. Principal contractors 

and grantees: International City/County Management Association, Federation of Municipal Associations, 

and others to be determined. 

FY 2007 Program 

SO: 511-007 Increased Confidence in Democratic Institutions and Processes 

Strengthen Civil Society 

Strengthen Civil Society ($1,100,000 ESF). USAID plans to continue to provide technical assistance to 

support an active, credible civil society as an important element for Bolivian democracy. As part of this 

support, USAID plans to continue to identify and assist indigenous leaders and their participation in public 

discourse. Principal contractors: Casals and Associates. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($1,500,000 ACI, $466,000 DA, and $1,000,000 ESF). USAID plans to use 

DA to provide technical assistance to support the strengthening and independence of the Supreme Court. 

Because many conflicts in Bolivia reflect the marginalization of large segments of the population, 

particularly the indigenous, USAID plans to use ACI to expand access to justice through the 

establishment of new Integrated Justice Centers in coca-growing regions. ACI may also support 

additional legal reforms related to terrorism and money laundering, public disclosure for government 

officials, and to provide technical assistance and training to strengthen the Public Ministry (Attorney 

General’s Office) to better direct criminal investigations. USAID anticipates using ACI to support the 

integration of the Supreme Court and Public Ministry’s internal systems to enhance their policy making 

ability. ESF is planned for consolidation of civil society coalitions that advocate for justice reforms and 

can serve as effective watch-dog entities. Principal contractors and grantees: Checchi and Company 

Consulting, Inc., and others to be determined. 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($650,000 DA, $1,000,000 ESF). With DA, USAID 

expects to continue supporting the legislative branch while the Constituent Assembly rewrites the 

Constitution in FY 2007. USAID may support constituent outreach mechanisms of the Congress and/or 

Assembly and may provide substantive input on issues being deliberated in the Assembly. USAID will 

adapt to the new political processes that emerge from the Assembly, and adjust activities as required. 

USAID plans to use ESF to reach out to moderate indigenous leaders, and support conflict mitigation, 

and civil society oversight of deliberative bodies (e.g., Congress and Assembly). Principal contractors 

and grantees to be determined through a competitive process. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($1,350,000 DA, $500,000 ACI). The 

Constituent Assembly and the Autonomy Referendum scheduled for July 2006 are expected to alter the 

interaction between different levels of government. The nascent departmental governments will still be 

evolving and the potential for social instability will continue to exist. Possible assistance using DA 

includes technical assistance to strengthen different levels of government, their relationship to one 

another, and each level’s ability to provide checks and balances with other levels of government. USAID 

will further public-private alliances as well as coordinated initiatives between levels of government such 

as joint planning between municipal and departmental officials. USAID plans to use ACI to promote 

governance in coca-growing regions. Principal contractors and grantees to be determined through a 

competitive process. 
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Results Framework 

511-002 Increased Income for Bolivia's Poor 

Program Title: Increased Economic Opportunities 

 IR 2.1: Increased access to financial services in underserved areas 

 IR 2.2: Increased access to agricultural technology and marketing services 

 IR 2.3: Increased trade capacity and competitiveness 

511-003 Improved Health of the Bolivian Population, Contributing to Their Quality of Life 

Program Title: Improved Health 

 IR 3.1: Increased ability of individuals, families, and communities to take action to improve health 

 IR 3.2: Expanded delivery of quality, high-impact services through health networks 

 IR 3.3: Strengthened institutional capacity for health care management and sustainability 

511-004 Forest, Water and Biodiversity Resources Managed for Sustained Economic Growth 

Program Title: Natural Resources Sustainably Managed 

 IR 4.1: Forestry Management Improved 

 IR 4.2: Targeted Parks and Protected Areas Conserved 

 IR 4.3: Urban and Industrial Pollution Reduced through Improved Environmental Management 

511-005 Licit Economic Growth in Coca-Growing and Associated Areas Increasingly Sustainable 

Program Title: Integrated Development 

 IR 5.1: Increased Market Competitiveness of Licit Rural Enterprises. 

 IR 5.2: More Responsive, Transparent, and Inclusive Democratic Institutions 

 IR 5.3: Basic Pubic Services and Social Conditions Improved 

511-006 Economic Stabilization 

Program Title: Balance of Payments Support 

511-007 Increased Confidence in Democratic Institutions and Processes 

Program Title: Democracy 

 IR 007.1: Key institutions of the Rule of law are more transparent, efficient, and accessible 

 IR 007.2: Political representatives are more responsive to citizen demands 

 IR 007.3: Local Governments are more effective and efficient in responding to increased citizen 

demands 

 IR 007.4: Anti-corruption efforts yield more transparent and effective Government