RURAL DEVELOPMENT PROGRAM

"The integral progress of Mexico requires urgent resolution of problems affecting the peasant, pursuing as objective the economic and moral elevation of the human element and the increase of agricultural production".
(Miguel Aleman Valdes, affirmation at Congress as President of the Republic, 1/12/1946)

The Miguel Aleman Foundation, through its Rural Development Program, has put a strategy and methodology in practice for rural development, which has as its objectives the promotion of :

• Increased productivity and income for low income farmers.
• Participation of the private sector in the development of rural areas.
• Complementarity with governmental programs.

To achieve these objectives, the Foundation, supports and provides services to local institutions in the interior of the Republic, which themselves promote development and provide services to low income farmers in the region.

Antececedents of the Program 1997/1998

The situation which has obtained in the Mexican countryside in the last years, makes evident the need for changes in productivity methods in agriculture and livestock operations, to make production more competitive and efficient. Among the changes it is fundamental to consider a new focus on marketing: "We need to change from trying to sell what is produced, to producing that which can be sold."Desarrollo Social Campesino

The Farmer's Social Development

We conceive of social development as the fruit of organization:

Organization is a voluntary process, a freely assumed committment, based in human promotion to obtain the benefits of scale by associating with others in work. Organization unites the efforts and work of a group or community, structuring common objectives for them.

Through the means of a farmers' organization, its members modify their behavior, generate new activities and strengthen their solidarity values, cooperation and mutual confidence.

In fulfillment of these principles, in the Foundation Program, we state the following indicators:

• More than 90 societies which group about 3,000 farmers have been organized with increase productivity objectives.
• A mid level organization groups 32 small social solidarity societies.

Technology Development

In relation to the acquisition of technology by the farmers, we can inform:

Dramatic modification of farmer attitudes toward technology were achieved via

• Joint participation of farmers and extension agents of the National Institute of Agricultural Forests and Fisheries using a "producer-experimenter" model for research and technology packet definitions.
• Definition of "technology packets" by micro region, which permits productivity increases and rationalize investment.
• Acceptance for use of improved seed and new cultivation practices.
• Use of administrative controls for the entire production process.
• Acceptance of agriculture insurance contracts.
• Acceptance of paying for technical assistance.

Credit Operations

The Foundation also offers financial services to participating farmers. During the period under review, due to the "Avance PROCAMPO" program of various banks, our amounts of credit diminished; nevertheless, the following amounts were put to work:

Financing authorized with IDB funds

As consequence of climatic disturbances during the last three agricultural cycles were present natural disasters but, thanks to the advance in the contract on agricultural insurance and participation of Proteccion Agropecuaria company, the recuperation porcentage in financing is 98%.

The Rural Promotion Center of Acayucan.

The Acayucan Rural Promotion Center currently works in the municipalities of Acayucan, San Juan Evangelista, Hidalgotitlan, Rodriguez Clara, Mecayapan, Soteapan, Pajapan, Hueyapan de Ocampo, Las Choapas, Sayula and Texistepec in the State of Veracruz. There are three principal programs: cattle raising, basic grains agriculture and small rural industry.

During the period under review, in collaboration with the Secretariat of Labor, in the CIMO program, 16 training courses were designed for owners of small cattle operations covering: animal sanitation, animal nutrition, seeding pasturelands, intensive pasture techniques and artificial insemination. This project benefited 160 producers.

Additionally, in a community development program the farmer participants were supported with services of : promoting savings; in collaboration with the Secretariat of Education and Culture of the State of Veracruz,, "Initial Development Education"; as well as diverse courses for women, such as handbooks, dressmaking, cooking and pastry making.

The Alica of Nayarit Foundation

The Alica Foundation and the Miguel Aleman Foundation have an agreement through which we share advisory and consultative services, exchange information and carry out some joint activities in their rural development program, which is focused to promote the modernization and productivity of cattle raising in the State of Nayarit.

The Association of Mexican Business Women.

The Association of Mexican Business Women, is the Mexican affiliate of Women's World Banking, the international organization which promotes credit services and business practices training for women who are participating in economic activities by means of creating and operating micro-enterprises. The affiliate in Mexico was organized in the City of Veracruz, Veracruz and promoted by Miguel Aleman Velazco.

The Association has authorized 789 credits in the amount of $5,795,648 Mexican Pesos for the benefit of about 1550 families.

A permanent training program called, "Administration and Control of small businesses" has been attended by 1578 women micro enterprise owners and 147 men. They also awarded the "Second Diploma for Integral Development for the Woman" to 50 businesswomen, owners of micro-businesses, professionals and business executives. Lecturers for the course came from the Iberoamerican University.

The Interamerican Development Bank granted financing of U.S. $250,000 for a revolving fund for lending credits to micro-businesswomen of Veracruz, and U.S.$120,000 for institutional development.

The Miguel Aleman Foundation has made a grant to the Association to fund advisers to help with the improvement of governance and operations. It has also opened a line of credit which to date is $200,000 Mexican Pesos from which the Association extends credits to micro-business women.

Finally, I wish to take advantage of the occasion to extend thanks to all the institutions which have helped us and have collaborated with us in this program: the Interamerican Development Bank, FIRA, BANRURAL, MASECA, the U.S. Feed Grains Council, the Federal and Local authorities in the States of Veracruz and Nayarit, the members of the Administrative Councils of the associated Centers and Foundations, the members of the local operating plants, without whose dedication and work in the field the successes reviewed would not have been possible. I wish particularly to highlight the dedication of Oscar Eguiza, who for medical reasons had to be relieved from his activity for several months, but fortunately he has now reincorporated himself into his work. During his absence we counted on the efficient coordination of Ruben Borroel. Of course, we give especial thanks to members of the Evaluation Committee of the Rural Development Program.

The Rural Development Program Evaluation Committee

Advisors:

Coordinator:

Secretary: