peru’s rural roads program at a...
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Peru’s Rural Roads Program at a glance
April 07, 2006
Project Goal and ObjectivesProject Goal and ObjectivesGoal: improve access to social services, markets, and income generating activities with gender equity, to help alleviate rural poverty and raise living standards of rural communities Specific Objectives:– integrate poorly accessible areas to markets and economic
drivers;– generate employment and stimulate further income-earning
activities in rural areas;– strengthen local institutional capacity to manage rural road
networks.Phase 1 (1995-2000) US$250 million– WB loan US$90 m.
Phase 2 (2001-2006) US$150 million– WB loan US$50 m.
Both phases co-financed with the IDB– Sharing of specialists and harmonization of procedures
Three key strategies for reaching the RRP goals
Three key strategies for reaching the RRP goals
Targeting the rural poor in the highlands of PeruTargeting the rural poor in the highlands of Peru
POVERTY LEVEL BY GEOGRAPHIC DOMAIN (%)
Total Northern Central Southern JungleHighland Highland Highland Jungle
Total Poor 70.1 64.1 65.4 76.7 73.6 Extreme Poor 34.6 25.1 25.3 44.8 45.8Non Poor 29.9 35.9 34.6 23.3 26.4
(Poverty line criterion, 1994)
12 departments that rank highest in rural poverty
Northern
Southern
Jungle
Center
1
Constraints faced by people living on less than $1 a day
Household Consumption by item(%)More than 85% on most basic needs
6%
18%
6%5% 4% 3%
57%1%
Food Clothing & Footw earHousing & Fuel Health & MedicinesTransportation & Commun. Education & AmusementOther Goods & Services Transfers - Remittances
Connectivity with regional markets - economic poles(network effect)
Rehabilitation of “networks” of ruraland connecting secondary roads….
Improving basic accessibility:networks for better integrationImproving basic accessibility:
networks for better integration
…followed by maintenance performedby community-based organizations….
2
Large communities depend exclusively on NMT for transportation of people and export/import goods
Basic Accessthrough Non-Motorized Tracks (NMT)
ConsolidatedAccess through Motorized Roads
Distance
Trip
freq
uenc
y (c
umul
ativ
e)
100%
50%
25 km0 50 km
Water,firewood (3%) ~1.7 km ,Education & Health 9.5%; 2,1 km
Work 34.6%; 9.7 km
Sell products 11%, 20.2 kmSocial Act. 3.7%; 24.7 km
Purchase products 18.5%; 33.3 km
Administrative Act 6%; 42.7 kmVisit relatives (13.7%) 42.8 km
10 km
Trip Distribution by Purpose
3 Beneficiary participation in project activities and evaluation of results
Members of Committee “Virgen de Encarnacion”, Sacsamarca (Ayacucho)
Participation and social inclusion during project design and implementationParticipation and social inclusion during project design and implementation
Consultation & participatory workshops to: – assess transport needs, understand poverty links as perceived by
communities; – confirm with beneficiaries priority of works and commitment to their
maintenance;– validate designs and include local solutions;– mobilize local government support for road maintenance and
institutional building;– provide local governments with necessary information about project
and their roles;– build-up ownership of key stakeholders on strategies/actions.
Critical in Phase 1, with incipient decentralizationIncreasingly through representative entities (governmental, civil society) in Phase 2, with decentralization in place since 2002
What participation accomplishedWhat participation accomplishedBetter understanding of the transport needs as perceived by communities
Woman groups keen in picturing how lack of transport services impacts their day-to-day lifestyles.
Role of project in poverty alleviation and participation of beneficiaries /local governments became a fully shared objective
Creating opportunities:Creating opportunities:MicroMicro--enterprises for road enterprises for road maintenance and local developmentmaintenance and local development
Creating opportunities: micro-enterprises for road maintenanceCreating opportunities: micro-enterprises for road maintenance
Community-based organizations engaged in labor-intensive contracts for maintenance:– legal status;– contractual relationship, not welfare program!
Number of ME 600 Direct Employment 6,000 No. of Kms 13,000 Conditions for success
Appropriate selection of candidates; Presence of leaders; Emphasis on entrepreneurial culture Favorable economic conditions
How are the M.E How are the M.E financed?financed?Contract payments, which they allocate to wages (89%), tools, rentals, transportation and a saving investment fund.
Who are the new entrepreneurs?People from communities along road. On average, 36%, 18-30 years old; and 46%, 31-45 years old. A balanced education level: 60% primary education; 3% are illiterate.
Outcome 1:Cost effective solution to provide year-round accessibility with gravel roads: 600 ME maintain almost 13,000 km (10-14 members for 20-30 km)
Outcome 2: Catalysts for local development by creating entrepreneurial capacity in community: 27% of M.E. started productive activities, stimulating labor markets in their communities; members of MEshave subsequently become leaders of their communities
Outcome 2 (cont): Positive results hinge on M.E.s’ opportunity to access a secure income stream, technical assistance, and entrepreneurial capacity.
… but also show difficulty of working in rural environment, Interruption Rate 21.6%Reasons for interruption:Lack of financing 24%Insufficient training/assistance 40%Lack of market 20%Other 16%
An Association of MEs created in Apurimac to overcome difficulties
Outcome 3: Generation of long-term, direct employment for ME members, and indirect for others in community through complementary activities. Focal point for community work to ensure continuous support from community.
Improving non-motorized transport access to reach the most poorImproving non-motorized transport access to reach the most poor
Tracks serve transport needs of most isolated, impoverished communities; and of women in particular for whom most trips may not be along formal road system.
Communities perceive benefits of improved accessibility: increased safety (people, animals), reduced travel times, greater payloads with longer life to their valuable animals
The NMT ComponentThe NMT Component
Communities perceive benefits of improved accessibility: increased safety (people, animals), reduced travel times, greater payloads with longer life to their valuable animals
Villagers value technical, organizational skills. NGOs with credibility among villagers enhance side (social) effects
The NMT ComponentThe NMT ComponentParticipatory planning essential: only communities able to set priorities among ample number of alternative routes that fulfill similar trip purposes.
Traditional community structures demonstrated capacity to assign tasks and wages, control the use of funds, and contribute with free labor (faenas). Payments reinvested in other community initiatives.
Measuring results to better understand impacts Measuring results to better understand impacts
Comprehensive Impact Survey completed at end of Phase 1 and at mid-term of Phase 2Comprehensive Impact Survey completed at end of Phase 1 and at mid-term of Phase 2
– Surveys in areas of 74 rural roads and 16 tracks improved under project (+same number control roads)
– About 370 villages visited; in each, one focus group with 5+ people interviewed per village
– About 2,000 households interviewed» To keep panel data, the number of households reduced to 1,300 in
Phase 2
– Use method of the double differences for the estimation of impacts
» Comparison of roads under the program with control group not under the program (but that might have been rehabilitated under other programs)
Impact atSector Indicator Term Hypothesis end Phase I
TRANSPORT Travel time Short Decrease HighTraffic rate Short Increase HighPassenger fares Short-Medium Decrease Moderate-HighFreight tariffs Short-Medium Decrease HighRoad closure Short Decrease ModerateReliability of public. transp. Short-Medium Increase Moderate-High
ACCESS TO Nº School Registered Children Medium-Long Increase LowSERVICES Nº of Health Consultations Short-Medium Increase Moderate
Nº of Judicial Causes Short-Medium Increase NullNº of Police Interventions Short-Medium Increase High
PRODUCTIVE Farmed Land Area Medium Increase LowACTIVITIES Land value Medium Increase Null
Productivity Medium Increase NullLivestock ownership Medium Increase ModerateFarm prices Short-Medium Increase HighCrop allocation Medium-Long Variation NullMarket-oriented produce Medium Increase NullAccess to the marketplace Short-Medium Increase ModerateAccess to credit Medium-Long Increase LowNº and income of com. estab. Medium Increase LowIncome structure Medium-Long Diversification Low
EMPLOYMENT Type of occupation Medium-Long Variation LowOccupation category Medium-Long Variation NullProductive activity Medium-Long Variation NullAgricultural Day's Wage Medium Increase ModerateLabor Force structure Medium-Long Variation Low
MIGRATION Nº of migrants Medium-Long Decrease NullNº of returning migrants Medium-Long Increase Low
POVERTY Poverty Levels Medium-Long Decrease LowINSTITUTIONAL Nº of new institutions Short-Medium Increase Moderate
NEGATIVE IMPACTSTRANSPORT Nº of traffic accidents Short Increase LowENVIRONMENT Use of soils Medium Increase Null
Use of chemicals Medium Increase NullDeforestation Short-Medium Increase Low
Impacts Measured
in Second Survey
Impacts Measured
in Second Survey
Outcomes
Impacts
High Moderate Low Null
Outcomes (Transport) Measured in Second SurveyOutcomes (Transport) Measured in Second Survey
Impact atSector Indicator Term Hypothesis end Phase I
TRANSPORT Travel time Short Decrease HighTraffic rate Short Increase HighPassenger fares Short-Medium Decrease Moderate-HighFreight tariffs Short-Medium Decrease HighRoad closure Short Decrease ModerateReliability of public. transp. Short-Medium Increase Moderate-High
Impacts (Economic) Measured in Second SurveyImpacts (Economic) Measured in Second Survey
Impact atSector Indicator Term Hypothesis end Phase I
PRODUCTIVE Farmed Land Area Medium Increase ModerateACTIVITIES Land value Medium Increase Low
Productivity Medium Increase NullLivestock ownership Medium Increase ModerateFarm prices Short-Medium Increase ModerateCrop allocation Medium-Long Variation NullMarket-oriented produce Medium Increase NullAccess to the marketplace Short-Medium Increase ModerateAccess to credit Medium-Long Increase LowNº and income of com. estab. Medium Increase LowIncome structure Medium-Long Diversification Moderate
Impacts (Socio-Economic) Measured in Second SurveyImpacts (Socio-Economic) Measured in Second Survey
Impact atSector Indicator Term Hypothesis end Phase I
ACCESS TO Nº School Registered Children Medium-Long Increase LowSERVICES Nº of Health Consultations Short-Medium Increase Moderate
Nº of Judicial Causes Short-Medium Increase ModerateNº of Police Interventions Short-Medium Increase High
EMPLOYMENT Type of occupation Medium-Long Variation LowOccupation category Medium-Long Variation LowProductive activity Medium-Long Variation NullAgricultural Day's Wage Medium Increase ModerateLabor Force structure Medium-Long Variation Low
MIGRATION Nº of migrants Medium-Long Decrease NullNº of returning migrants Medium-Long Increase Low
POVERTY Poverty Levels Medium-Long Decrease LowINSTITUTIONAL Nº of new institutions Short-Medium Increase Moderate
if compared to overall rates for country
Moderate
time3 8
Impact ofintervention
0Basic Access
achieved
High
Medium
Low
Base line
OutputAccess
improved
OutcomeReduction travel time/cost
Reliability servicesAccess services
Access to marketsIncrease income &productive assets
Impact on living stds. & poverty
Base line changes due to external factors
1998 - El Nino (flooding, drought)1999-2001 Economic Recession
?
Gender impact analysisGender impact analysisActivities rehabilitated roads have enabled women to do (percent distribution)
Women’s interactions outside homestead facilitated acquisition of skills, knowledge, and the confidence that such interactions bring about“Engendering” actions: (a) women participation in workshops; (b) training of stakeholders on gender issues; (c) application to project components
Source: Impact Survey, 2000
Women responses YES NO N/ATravel to farther places 77.3 22.0 0.7Travel more frequently 70.3 29.0 0.7Travel safe 66.8 31.6 1.6Travel secure (assaults, violations, etc.) 53.6 42.2 4.2Obtain additional income 42.9 53.2 3.9Access new tools, domestic artifacts 38.8 55.2 6.0Access temporary employment 40.5 53.9 5.6
Some indicators on genderSome indicators on gender
Micro-enterprises• First cohort: 5% of members were women• Last cohort (62 micro-enterprises): 23%
NMT Tracks• About 50% of Road Committees members are women
Technical supervisors• 50% of contracted professionals are women
“Local development window”• Between 22% and 50% women participation in the design of local development plans and in the definition of public and private projects
Ongoing initiatives and next steps: towards strengthening the
impacts of the program
Ongoing initiatives: promoting local development
“Local Development Window” (LDW):(i) To enhance asset profitability and human capital in areas
in which transport conditions have become reliable.
(ii) To promote active community participation in the identification of regional economic potential and provide technical assistance to communities in the design and implementation of viable social and productive initiatives.
(iii) To create broader employment opportunities within rural communities, attacking poverty through income generation.
AREAS OF INTERVENTION
Implementation:
•PROVIAS RURAL (formal responsibility).
•NGO (Caritas del Peru),through its decentralized network acts as executing agency, working closely with communities in project generation and financing quest.
•Investorsinclude International and National Development Agencies, Foreign Governments, Development Funds, Private Enterprises, Cooperatives, Regional and Local Governments, and benefited communities, among others.
Examples of Results of the LDW
Fish Farm in Sauce, San Martin Cultivation of ‘Yacon’ in Orcotuna, Junin.
Prioritized in the Concerted Local Development Plan of SAUCE, during Phase I.
Prioritized in the Concerted Local Development Plan of ORCOTUNA, during Pilot .
Attained financing from the VASQUE GOVERNMENT, for an amount of S/158,589, through Caritas Tarapoto.
Attained financing from FODAM, for an amount of S/20,706, through Caritas Huancayo.
Local Counterpart accounted for S/101,900
Local Counterpart accounted for S/14,294
Project Concept: Cultivation of ‘Tilapias’ in Lago Sauce, to supply local markets. The rehabilitation of the rural road accessing Tarapoto, through the project, has enabled the local population to reach said destination in two hours, when traditionally it took them six. The project is managed by an Association of Fishermen (APESA) and by a Committee of Dames.
Project Concept: Cultivation of ‘yacon’, a traditional tuber dating from the age of the Incas which is in risk of extinction and has many natural virtues, including medical uses for people with Diabetes. This product is being commercialized in local markets and exported to destinations worldwide. The project is managed by an Association of Producers.
Number of beneficiaries:61 families
Number of beneficiaries:40 families
Results attained with the LDW (2001-2005)
QUANTITATIVE QUALITATIVE
81 districts prepared Concerted Local Development Plans and Inventories of Local Governments and Institutions involved in local development promotion within the area.
Over 600 project profiles and project ideas identified by the communities in participatory workshops
Over 40% female participation in LDW initiatives.162 Productive Projects selected for pre-
feasibility stage33 Projects have attained financing, amounting to
US$6.3 million.200 people have received training, including local
authorities (governance) and associations of producers (identification of projects, technical skills)
20 LDW Management Committees have been created at district level, born as an initiative of benefited communities
Provided a new mechanism for dealing with rural poverty, changing the traditional assistance based model for a proactive approach, based on identifying and exploiting existing potential, enhancing the entrepreneurial spirit among rural communities
Fostered growing community participation, with a clear gender focus, strongly empowering women.
Contributed to national decentralization and regionalization, triggering the institutionalization of Local Development Plans nationally and working in line with the ‘Mesas de Concertación’ and Participatory Budgeting processes.
Enhanced coordination between public and private entities
Generated awareness among communities on the importance of technical assistance.
Ongoing initiatives: developing institutionsOngoing initiatives: developing institutionsSupport to decentralization agenda through gradual establishment of municipal road agencies
Currently 40 provincial road institutes created and responsible for road management within their jurisdiction (out of about 100 provinces where the project is operating) with
oversight from a group of neighboring municipalitiesaccountability mechanisms
Increasing co-financing participation of municipalities in the funding maintenance costsIncorporation of competition among micro-enterprises for maintenance contracts
Next steps: Enhancing complementarities of interventionsNext steps: Enhancing complementarities of interventions
Analytical study on rural infrastructure sectors (water, sanitation, electricity, telecommunications, and transport)
An integrated strategy to coordinate complementary actions: confluence of activities produces synergies and enhances sustainability.
05
1015
2025
30
water + electricity water + electricity +telephone
water + electricity +telephone + all-
weather road
% c
hang
e of
rura
l hou
seho
lds'
in
com
e
with interactions without interactions
Distribution of rural households’ income moves towards higher incomes when a higher number of infrastructure services becomes available
Source: Escobal and Torero, 2004.
Bundling benefits and povertyBundling benefits and poverty
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