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Paraguay - Caazapa Area Development Report (English)

This is the Implementation Completion Report (ICR) for the Caazapa Area Development Project in Paraguay. The objectives of the project were to: (a) increase accessibility to the project area; (b) increase production on existing farms; (c) improve land management to decrease soil erosion and water run-off, (d) improve the utilization of timber being removed from agricultural lands;( e) test the technical and economic feasibility of sustained yield management of the area's tropical hardwood forests on small and large private landholdings and on public and; (f) improve the health of the rural population; and (g) increase rural employment opportunities. Bank's performance was satisfactory. Borrower's performance was satisfactory. The key lessons learned were as follows: (i) project design should reflect in scope, scale and strategy a realistic assessment of the "political economy" within which the project will be implemented; (ii) program approach to rural development, with carefully-sequenced sets of activities designed to build sustainable results incrementally over the medium-term, is a more rational development tool than multi-sectoral and multi-component projects which tend to overwhelm the resources of the Borrower; (iii) projects also need to include measures/incentives to ensure that programs are accorded equal priority with the physical elements of institution-building, by executing agencies; (iv) the strategy must be transparent and participatory and should incorporate financial, social and geographic criteria; project documents should define the beneficiaries and strategy in unambiguous terms, and supervision should monitor performance; (v) the credit-worthiness of smallholders can be enhanced through risk-sharing groups, serious policies governing arrears and the building of credit histories; (vi) beneficiary participation and organization create "ownership" of project goals, programs and achievements, and foster sustainability; and (vii) the M&E system should be established and operational before loan effectiveness.


  • Document Date


  • Document Type

    Implementation Completion and Results Report

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  • Volume No


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  • Country


  • Region

    Latin America & Caribbean,

  • Disclosure Date


  • Disclosure Status


  • Doc Name

    Paraguay - Caazapa Area Development Report

  • Keywords

    Economic Rate of Retum;economic and sector work;conservation of natural resources;legal and regulatory framework;conserving natural resources;natural resource conservation;lack of commitment;land use practice;weak enforcement capacity;exchange rate policy;Exchange rate policies;forest management system;machinery and equipment;demand for credit;buffer zone management;method of procurement;indian land rights;flow of credit;procurement and disbursement;suspension of disbursement;technical assistance program;assessment of outcome;dollar exchange rate;sustainable land use;road and bridges;rates of return;information service center;rates of interest;macroeconomic and fiscal;international commodity price;interest rate policy;area under cultivation;provision of credit;form of credit;emergency medical supply;Regional Economic Development;health care system;efficient land use;weights and measure;watershed management operation;sustainable forest management;cost of production;availability of credit;ex post evaluation;area of forest;integrated rural development;recipients of credit;Indigenous Peoples;land title;land clearing;large farmer;cash crop;agricultural area;counterpart funding;project execution;family farming;coordination problem;sectoral lending;credit line;soil erosion;beneficiary participation;farm model;protected area;investment cost;small-scale farmer;farmer organization;government commitment;financial viability;emergency program;community involvement;preventive care;health problem;rural employment;project administration;credit disbursement;small farmer;agricultural producer;target beneficiary;crop diversification;collateral effect;social objective;flood emergency;rural population;hardwood forests;agricultural land;land management;farm size;Technology Transfer;road component;world price;project risk;lending practice;agricultural potential;extension service;agriculture sector;vaccination program;subsistence crop;institutional credit;production increase;Agricultural Extension;smallholder production;components design;monopolistic market;fragile land;mitigation measure;health facility;soil management;farm level;technological improvement;guarantee requirement;exploitative rate;family consumption;improved seed;commercial farmer;economic expansion;study including;smallholder system;credit funds;land size;internal regulation;informal saving;political condition;soil quality;civil society;long-term lending;grace period;rational choice;project startup;financial rate;political difficulty;conservation concern;excessive bureaucracy;innovative feature;land holding;participatory practice;marketing arrangement;indigenous community;smallholder borrower;micro-enterprise development;land acquisition;project sustainability;heavy rain;investment credit;forestry management;catchment area;cropping pattern;indigenous communities;government institution;sugarcane cultivation;alternative crop;contractual arrangement;farm enterprise;loan covenant;budget resource;soil degradation;climatic condition;road program;export tax;forest removal;loan finance;family labor;poverty alleviation;sugarcane production;economic empowerment;special requirements;national economy;participatory methodology;microenterprise finance;loan value;market difficulty;project financing;Exchange Rates;Credit History;project goals;baseline data;insufficient information;political support;conservation objective;smallholder income;credit operation;efficient coordination;external funding;long-term outcome;Fiscal policies;unrealistic expectation;government support;health post;flood relief;reduced expenditure;net effect;project operation;forest reserve;pumping station;sustainable management;conservation measure;quantitative measure;Cash flow;Political Economy;ecological reserve;institution building;Programmatic Approach;sliding scale;rural smallholder;Maternal Mortality;landless laborer;environmental issue;improved communication;commercial enterprise;demonstration effect;cultivated area



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Paraguay - Caazapa Area Development Report (English). Washington, D.C. : World Bank Group.