Análisis del escenario político

million for a variety of public and private sector activities, pertaining to micro finance, governance, competitiveness, sustainable development, integration and culture.

Enhanced governance was promoted through the Program for Institutional Strengthening and Training in Decentralization and Citizen Participation, by means of workshops for leaders and sup- port groups nationwide, and by strengthening several government institutions.

Through PAC(the Andean Competitiveness Program), acting together with Bolivia’s Productiv- ity and Competitiveness Unit, CAFprovided support to the promotion of four clusters (grapes, wines and singanis; woods; leather products; and textiles and garments.) In addition, CAFcontinued its col- laboration with the effort to create Business Incubators of Bolivia. The technical assistance of the University of Pennsylvania’s Wharton School, designed to promote exports to the U.S.market, was provided by CAFto the high-potential area of wines and singanis.

46

Operations approved for Bolivia. Year 2003 In US$Millions

Client and Executing Agency Operation Objective Amount Term Project

(Years) Cost

Finance Ministry Support for the Economic Reactivation and economic 124 10 777

Program stabilization. Structural reforms.

National Roads Service/ Support for the Transportation Lend support to the development, 100 15 143

Office of the Chief Sector improvement and conservation

for the Department of La Paz of road infrastructure in Bolivia.

Finance Ministry Program to strengthen equity Contribute to the reactivation of the 75 10 160 positions and competitiveness productive sector by strengthening

of enterprises the equity positions and competitiveness of its enterprises.

Economic Development Program for suburban and rural Supply the basic infrastructure 55 15 69 Ministry infrastructure, natural gas required by people in the suburban

and social safety net and rural areas.

Ministry of Public Works Investment Program Provide support for improving 30 15 496 and Services for Basic Sanitation productive capacity in the country

by carrying out infrastructure projects for basic sanitation in the period 2002-2007.

Central Bank of Bolivia Liquidity Facility for Bolivia's Improve liquidity in the financial 25 90 days 25

Central Bank market.

Republic of Bolivia Financing for the National Help employment generation

Emergency Employment Plan by hiring micro-enterprises to build 25 10 103 infrastructure works in urban

and rural areas.

Finance Ministry Treasury operations 100 Varied

Telecommunications Corporate loan Lend support to the cooperative's 15 6 15

Cooperative of Santa institutional and financial

Cruz - COTAS strengthening.

Various clients Trade and working Provide financing for foreign trade, 67 Varied capital financing working capital requirements

and capital goods.

Various clients Other operations Technical cooperation and Fondeshu 3 Varied

In the area of culture and community development CAFgave support to traditional art manage- ment projects jointly with the Ministry of Economic Development; to training programs in basic trades with existing workshops; to instruction in orchestral and choral music, and the teaching of instrument-making techniques and skills; and to the Tahuichi Academy’s sports training efforts in girls’ soccer, as a tool for social rescue. Lastly, CAFprovided aid to community projects for tourism in Uyuni and Tiwanaku, and for health and education in Morochata and

Calamarca.

Above:

Rehearsal by the youth orchestra of Urubichá (Chiquitanía) as part of CAF’s Culture Through Music Program, aimed at providing training in the art of ensemble performance to children and youths, as a way of fostering their development into sensitive, peaceful and well-structured individuals.

Besides:

Girls from low-income families gain access to soccer practice within a social rescue effort sponsored by the Tahuichi Aguilera Academy in Santa Cruz de la Sierra.

Right:

Through its Andean

Competitiveness Program CAF

has lent support to Tarija’s cluster for grapes, wines and singanis, helping it to design a strategic development plan for its enterprises.

CAFhas approved an aggregate amount of $3,695million in operations for Colombia, resulting in a yearly average of $739million. Over the same span of years, disbursements were $2,507million, representing 25%of the Corporation’s total.

With $325 million disbursed in 2003, Colombia’s total portfolio* reached$1,991million, distrib- uted sectorally as follows: 69%for infrastructure; 15%to support production reactivation, investment projects financing, and for trade and working capital of small and medium-size enterprises; and the remaining 16% for manufacturing, public administration, and other areas of economic activity. Within the proportion disbursed for infrastructure, 47percentage points went to transport, electric power and waterworks projects, and the remaining 22percentage points to social infrastructure – mostly for educa- tion, community and social services, and health.

Year 2003approvals were $617million, or 19%of CAF’s total $3,303 million. Of the amount approved, $300million was for government programs aimed at improving the management of public funds, and strengthening public sector investment.

Regarding the first subject, the effort for reform of the State has already resulted in several organi- zational changes, including the merger of ministries, the restructuring of some agencies and the elimina- tion of other unnecessary ones; as well as staff reductions through natural wastage. Such organizational changes have generated significant savings for the government’s central budget. In addition, a set of functional and operational reforms have improved the formulation of policies on government procure- ment practices, management of productive state-owned assets, evaluation of public sector management and employment, and rationalization of administrative regulations, as well as the production of a strategy for the Nation’s legal defense.

The public sector investment component of the program includes support for infrastructure proj- ects with high social benefits, such as subsidies to low-income housing in both the urban and the rural areas, and the establishment of a new school system with more efficient resource allocation mechanisms, aimed at improving the quality of young children’s education. CAF’s financing was also used in the pub- lic health field, to support programs for prevention, control and monitoring, as well as for expanded vac- cination campaigns, all intended to eradicate immuno-preventable diseases or to control their spread. Financing earmarked for the transport sector was used to support projects under execution by the Nation- al Roads Institute, and for the mass-transit systems in Bogota and Cali.

To assist the government’s banking sector to provide resources for the needs of small and medium- size private enterprises, CAFestablished a line of credit of up to $50million in favor of Banco de Comer- cio Exterior de Colombia. The operation was funded with local currency generated with a CAFbond issue in the Colombian market, in its first-ever operation of this kind in the region. In addition to helping to strengthen the nation’s capital markets, this type of bond issue provides opportunities to channel domestic savings towards strategic sectors for the country’s competitiveness.

Using its own resources and those of co-participating institutions attracted by it, CAFcontributed an aggregate amount of $263million to the financing of working capital and investment requirements for

Colombia

OVER THE PRECEDING FIVE YEARS (1999-2003)