PROA [Programa Piloto de Desarrollo - Bolivia] : sustainability strategies, evaluation, and lessons learned

Adjacent to the capital of La Paz, the town's population is growing at over 9% per year -- the highest growth rate of any municipality in South America. Poor rural migrants form the overwhelming majority of El Alto's residents and are responsible for 90% of its annual population increase. In 1988, A.I.D. sponsored the establishment of a nongovernmental organization, PROA, to work with local government and community groups in development activities. PROA is now in transition from pilot project to established program. This report reviews PROA's experience to date, assesses the organization's potential for financial sustainability, and presents lessons learned regarding A.I.D.'s role in promoting municipal development and local democracy in Bolivia. The pilot project was very successful. PROA has helped attract $38.4 million in investment to El Alto and maintained good relations with local government and other organizations, despite a highly politicized environment. Due to the weaknesses of local government, PROA channels most of its assistance to community organizations. PROA's participatory method has gained credibility with local people and many organizations. However, PROA must become more project-driven in order to achieve higher cost recovery. A.I.D. should continue to fund substantial portions of PROA's revenue gap over the next 3 years, but in declining amounts and on condition that PROA implement a business plan with targets for self-financing. The Agency should also promote PROA to other donors.