Development Effectiveness Report 2023

CHAPTER 3

SUSTAINABLE RURAL DEVELOPMENT PROGRAM FOR THE NORTHERN REGION OF GUATEMALA

Rural poverty has been a defining characteristic of Guatemala’s population since statistics have been availa- ble. At the beginning of the 21st century, the rural poor in the country accounted for about 71 percent of the total

19 municipalities in the Northern Region. Specific objec- tives of the project were: i) to build human and social capi- tal; ii) to enhance production processes and market access mechanisms; iii) to conserve and manage natural resourc-

population. Including indigenous households which are particularly vulnerable and highly dependent on agriculture (subsistence farming and agricultural jobs) for their livelihoods. Rural poverty in the country is chiefly associated with lack of access to land, fragmentation of landholdings, ineffi- cient marketing systems and lack of

es; iv) to promote rural microenter- prises to create employment opportu- nities and income; and v) to contribute to consolidating the country’s rural sectorial planning and action coordi- nation structures at municipal and de- partmental levels. Under the program, the OPEC Fund financed components related to social infrastructure rehabil-

access to productive resources, particularly water and pro- duction technologies. Additionally, the poor lack access to financial and business services and linkages with the agri- business sector. They also suffer from the deterioration of natural resources through deforestation, soil erosion and fertility losses. Limited access to services that support hu- man capital (employment, education, health and housing) is yet another factor contributing to rural poverty.

itation works, market access and rural roads. The program was completed in 2018 having benefited 46,033 house- holds with an estimated rural population of 230,168. The total number of people receiving services from the project was 51,356, including 26,346 females. 1,501 jobs were creat- ed, including 1,252 for youth. In terms of improved market access, 31 rural businesses began sustainable operations and 28 rural microenterprises accessed local, regional and international markets. In terms of infrastructure, 71.93 km of road were rehabilitated, 1,778 households gained access to potable water and 2,000 families received wood-saving cook stoves to improve their health conditions.

In 2008, OPEC Fund approved a US$15 million loan to the government of Guatemala to improve the living condi- tions of the targeted rural and indigenous populations in

The total number of people receiving services from the project was

51,356

including 26,346 females.

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