ECONOMIC GROWTH PROGRAM
Increased Income for Bolivia’s Poor

USAID helps create opportunities for small and medium sized Bolivian businesses and small farmers, increasing their incomes through high-value, market driven and value-added production. USAID seeks to achieve the following results:

• Promote the expansion of financial services to underserved areas and improve the financial sector regulatory framework;
• Improve agricultural technology and market access; and
• Increase the productivity of small Bolivian businesses and their ability to take advantage of market opportunities.

The Economic Growth program directly supports the Bolivia Productiva pillar of the National Development Plan (PND) of the Government of Bolivia.

Improved Financial Sector Regulatory Framework and Expanded Financial Services

USAID has been a key actor in the development of Bolivia’s financial sector for over two decades, helping financial institutions to grow within a market-based system, and to expand services to traditionally underserved areas. Increased access to credit, savings and other financial services, including remittances, is allowing Bolivian businesses to obtain the capital they need to take advantage of market opportunities.

USAID views innovation in the provision of financial services as a key element to promote the expansion of financial services to underserved areas. Through the Rural Finance Expansion Grant, Bolivian financial institutions can receive funding to test new methodologies and expand the frontier of financial services to reach more Bolivians.

Improved Agricultural Technology and Market Access

This program enhances incomes and employment opportunities through a strategy of improving small agricultural producers’ access to markets and stimulating new market demand, working closely with the Bolivian government through the Bolivian System of Agricultural Technology (SIBTA) and with producer associations and communities. 

USAID helps small farmers in Bolivia’s main agricultural valleys and impoverished Altiplano take advantage of trade opportunities through activities that focus on improving production and post-harvest techniques, quality control and access to market information and linkages. 

Increased Productivity and Ability to Take Advantage of Market Opportunities

This program works to boost Bolivia's productivity and ability to take advantage of opportunities in both local and international markets to promote job creation and increase incomes for small businesses. USAID focuses on value-added manufacturing sectors that are labor-intensive and in which Bolivia has an advantage, including textiles/apparel, jewelry, wood products and other areas. The program includes technical assistance to small and medium-sized businesses to improve productivity and quality, expand operations, train new workers (directly related to real, permanent job opportunities), promote strategic alliances between smaller and larger companies, and help small businesses connect directly with markets. Business development centers connect small producers with market opportunities, developing the techniques and skills needed to improve their position in the marketplace, increasing sales and creating jobs.

USAID has also worked in partnership with local producers, artisans and associations through technical assistance in product development, training and marketing, thus strengthening their small businesses and ability to access local and international markets (including the U.S. market through trade preference legislation). This support has not only increased incomes and employment among Bolivia’s poor, but has also increased appreciation of Bolivian indigenous designs in local and foreign high-end markets.

Program Impact

• USAID supported the creation of a $12.5 million fund on the Bolivian stock exchange that provides liquidity to small and medium enterprises; the installation of automatic teller machines for credit unions in rural areas; and the securitization of microfinance loan portfolios as an alternative funding source.

• Since 2001, the program has worked with more than 50,000 farmer families in the Valleys and Altiplano regions. USAID’s support has led to $25 million in new sales, and these farmers increased their incomes on average by 50%.

• From 2003 through 2006, the program helped create over $43 million in value-added exports, generate some 3,000 permanent, full-time jobs (many of these women), and incorporate over 350 small enterprises into export chains.