The United States has supported Bolivia's development for over 60 years. The United States Agency for International Development (USAID) was established in 1961. USAID is the official development agency of the United States Government (USG). USAID has one of the oldest and largest development assistance programs in Bolivia and is well known in many parts of the country, where thousands of projects have been implemented. USAID works with Bolivians to support broad-based, equitable and sustainable development.

Like many donors implementing development assistance programs in Bolivia, USAID obligates some of its funding unilaterally and some bilaterally.  We consider a range of factors when determining which approach to take and our decision is often driven by legal considerations, both US and Bolivian.  For example, in many cases USAID is required to obligate its funding either unilaterally or bilaterally according to laws passed by the U.S. Congress.  In many cases, as provided by the U.S. Congress, USAID obligates its funds bilaterally with the Government of Bolivia, through so called Strategic Objective Grant Agreements (SOAGs).  Indeed, close to 50% of USAID funds are obligated through SOAGs with the GOB.  One example is our Strategic Objective Agreement with the Government of Bolivia to support integrated development in coca growing areas.  USAID and the Government of Bolivia’s Vice Ministry of Coca and Integrated Development jointly agree to work together and coordinate implementation of this program which supports coca control through diversified economic and social development in these areas.
When obligating funds unilaterally, USAID considers not only U.S. laws provided to USAID by the U.S. Congress, but also Bolivian law.  For example, certain provisions of Bolivian law constrain government ministries from transferring resources they receive to Bolivian non-governmental (non-public sector) organizations, including NGOs.  In these cases, USAID often relies upon a direct, unilateral relationship with these organizations, when they have demonstrated the technical and administrative capacity necessary to manage USG funds transparently and effectively, according to USG rules and regulations. This is the case with Bolivian NGOs like PROSALUD (a world-class network of health clinics that USAID has helped for more than twenty years to provide medical assistance to low-income Bolivians, now serving more than 500,000 people each year), or the Center for Promotion of Sustainable Technologies (which uses USAID support to strengthen the competitiveness of local enterprises through cost saving, environmentally-friendly technologies that reduce pollution and support improved public health).  Through these programs and often in close coordination with GOB institutions, USAID is helping to build the capacity of a broad range of local organizations to contribute to Bolivia’s social and economic development.  An additional consideration is that, unlike with bilateral obligations, unilateral obligations do not require a 25% counterpart support contribution from the Bolivian government; rather our NGO partners provide a counterpart contribution ranging from 25 to 50% or more in some cases.  
Regardless of whether the funding mechanism is bilateral or unilateral, USAID works hard to ensure that the goals of each activityis aligned with and contributes to the goals of the Bolivian government’s National Development Plan and that Bolivian governmental agencies are regularly informed on their progress.

• For the period 2002-2007, for every dollar USAID spent supporting close to 50,000 small farmers under the Market Access and Poverty Alleviation project, family incomes have increased by $3 - and will continue to increase over time.
  
  
• In 2006, thanks in large part to $3 million in USAID health investments, a range of public and private not-for-profit institutions attended to over 1 million patient visits with quality and culturally-sensitive health care on a wide range of critical health issues.
  
  
• USAID supported a network of non-governmental organizations by investing about $264/person to train 3000 Bolivian citizens to observe the 2005 and 2006 elections, which they declared free and fair.
  
  
• When completed next May, USAID's work with the Government of Bolivia's (GOB) Agrarian Reform Institute (INRA) will have supported the award of close to 30,000 land titles - a priority for the GOB. In its 2006 Plan Nacional de Saneamiento de Tierras, the GOB recognized USAID's cost effective and timely titling support.
  

USAID has supported Bolivian government and civil society efforts to strengthen the country's democracy since the mid-1980s. USAID's democracy programs are fully consistent with the Inter-American Democratic Charter of the Organization of American States, adopted in September 2001, which commits the nations of the Americas to collectively promote and defend democracy.

USAID supports the same types of democracy programs in Bolivia that the U.S. supports in other countries worldwide. These programs include collaboration with governments to support free and fair elections, strengthen justice systems and legislatures, increase citizen participation in democratic processes and promote civic education. The purpose of this assistance is to help governments strengthen their democratic institutions and processes, working with individuals and groups across the political spectrum. Many members of previous governments and the current government have benefited from the opportunities for training and technical assistance that USAID programs provide. Furthermore, USAID's democracy programs are very similar to those supported by several other foreign donors. In a number of cases, such as in activities to support the Bolivian Congress, USAID's programs work closely with those of other donors.

USAID recognizes and respects the sovereignty of each country's government where we work. In Bolivia, USAID works with all branches and levels of government, the private sector, civil society, and across the political spectrum. The U.S. government and the implementing partners that use our funds hire on the basis of merit and through competitive processes, without regard to political affiliation. Some members of the current Bolivian government administration have worked for USAID projects, or with USAID supported institutions, in the past. Moreover, individuals who are hired to work on USAID-funded grants and contracts are prohibited from publicly expressing their political views while employed with U.S. funds. USAID staff and project staff are experienced professionals, dedicated to the U.S. Government objective of supporting Bolivia's development.

In the case of departmental governments, USAID works with all nine departmental authorities who represent political parties ranging across the political spectrum. Of the 165 municipalities where USAID-funded projects are currently active, 51 or nearly 30% are governed by mayors from the ruling party, a percentage that parallels very closely the national distribution of mayors by political party. USAID projects work with more than twice as many mayors from the ruling party than from any other party.

One example of USAID's democracy activities is the Strengthening of Democratic Institutions (SDI) Project, also known in Spanish as Fortalecimiento de Instituciones Democráticas or FIDEM. The FIDEM project has three components:

1) Decentralization. This component focuses on enhancing the public dialogue about decentralization, facilitating economic development in Bolivia's departments, strengthening departmental planning, budgeting, transparency, oversight and financial management, and improving the delivery of basic services to citizens.

2) Legislative Strengthening. This component focuses on increasing the Congress' effectiveness and responsiveness to its constituents. The program aims to improve the Congress' ability to research and draft legislation. Activities also seek to streamline Congress' legislative duties by creating a registry of existing Bolivian law and designing a process to systematize laws. The component is closely coordinated with Bolivia's Congressional leadership, including the Office of the Vice President (in Bolivia, the Vice President is also the President of Congress).

3) Civil Society Strengthening. This component supports citizen education, to train citizens in the use of peaceful methodologies for conflict resolution and advocacy.