FAO Investment Centre

Rural Alliances spark agricultural transformation in Bolivia

Vanesa López, Coordinator of the Hydroponic Lettuce Producers Association and PAR beneficiary, inspects her hydroponic lettuce crops in Sacaba, Bolivia. With the programme’s support, she has adopted techniques to enhance crop quality and sustainability.

©Programa EMPODERAR

29/10/2024

Agriculture in Bolivia, a cornerstone of the country’s economy and the primary livelihood for its rural communities, is undergoing a transformation. The sector has long been instrumental not only in driving economic growth but also in reducing poverty, creating jobs and improving nutrition.

However, challenges such as urbanization, climate change and the need for more sustainable resource management are pushing Bolivian agriculture to adapt in innovative ways.

The Rural Alliances Project (PAR), an initiative led by the Government of Bolivia with funding and technical support from the World Bank and additional technical assistance from FAO, has been pivotal in driving this transformation.

Since 2006, PAR has connected small-scale rural producers with buyers, associations and institutions.

These alliances are built around robust business plans designed to improve efficiency, profitability and market access and to share investments and risks.

Farmers in BoliviaEmilio Torrico, from the Apiguardia beekeeping alliance, inspects a honeycomb frame while a fellow beekeeper uses a smoker to calm the bees in La Guardia, Bolivia. @Programa EMPODERAR

How rural alliances are enhancing production and market access

One example of PAR’s impact is the Apiguardia beekeeping alliance in San Ramón, which includes 18 men and 10 women. Through specialized training in beekeeping techniques focused on hive management and flora conservation, this group has increased their hive count, improved yields and boosted profits.

Apiguardia adopted migratory beekeeping, regularly relocating hives to areas with specific flora to achieve distinctive flavour, aroma and colour in their honey. PAR provided technical assistance to incorporate techniques ensuring the product’s purity and safety, along with materials for installing new hives. FAO contributed by identifying the environmental services associated with this activity, which is useful for evaluating this type of work from an economic perspective.

By elevating their honey’s quality and scaling production, Apiguardia has become more competitive, gaining access to more formal and stable markets.

Reflecting on their journey, Emilio Torrico, a member of the alliance, recalls tougher times. “Initially, we struggled to produce even a tonne of honey. With PAR’s support, we developed our skills and expanded production,” he says. “Our producers’ quality of life has greatly improved.”

Farmers like Emilio across the country have diversified and increased their incomes. And more women, youth and Indigenous people are involved in the production system, ultimately enhancing the quality of life in entire communities.

Farmers in BoliviaAsapiguardia workers carefully process honey—from inspecting honeycombs to packaging—to enhance quality and market reach. @Programa EMPODERAR

Collaborative efforts to energize the sector

PAR’s success stems from the close collaboration among its partners. “Over the past 18 years, we’ve worked together to design solutions tailored to the unique needs of each community,” explains Griselle Vega, Senior Agricultural Specialist at the World Bank.

“Thanks to alliance plans crafted for specific circumstances,” Vega adds, “many small producers in Bolivia are now using agricultural techniques that enhance resilience, reduce greenhouse gas emissions, conserve water and improve soil fertility, allowing them to withstand droughts and adapt to shifting production patterns. These practices don’t replace traditional methods but rather complement them, helping farmers adjust to an ever-evolving reality.”

A lasting initiative

Jhonny Delgadillo, Coordinator of the EMPODERAR Program at Bolivia’s Ministry of Rural Development and Lands, highlights that the first phase of PAR began in 2006 with a USD 64.8 million investment. This initial phase benefited over 28 000 rural households and established 768 alliances. PAR II followed in 2012, reaching more than 23 000 families across 120 municipalities, with an additional USD 150 million from the World Bank.

Both phases significantly raised rural incomes, transforming small-scale agriculture from a subsistence activity into a market-oriented sector. According to Delgadillo, “The market value of these products has increased by 35 percent, enabling many rural families to move beyond meeting basic needs to generating surpluses they can reinvest in their crops or their children’s education.”

These efforts have contributed to a tangible reduction in poverty, particularly among the lowest-income beneficiaries. “Moderate poverty decreased by 11.7 percent, and extreme poverty fell by 10.1 percent,” Delgadillo notes.

Farmers in BoliviaGreenhouses in Cochabamba enable farmers to efficiently grow crops such as peppers. These facilities boost sustainable agriculture and improve food security in the region. @Programa EMPODERAR

A model for future investments

The recently launched third phase of PAR (PAR III) is focused on bolstering the resilience of the agriculture sector against climate and economic shocks. With a commitment of USD 300 million and running through 2027, this phase aims to support around 128 000 rural families, prioritizing agricultural practices that account for climate variability.

Jorge Samaniego, Agriculture Officer at FAO’s Investment Centre, explains: “PAR’s success lies in its iterative approach, with each phase building on the insights and lessons of the previous one. The design of each phase involved a careful analysis of the most pressing needs of the target population.”

The lessons from PAR provide a valuable model for other countries aiming for similar transformations, Samaniego adds: “We are witnessing a systemic shift in how agriculture is managed in Bolivia, and this model has the potential to be replicated globally.”