Bolivia has historically been one of the poorest countries in South America and has experienced considerable political turmoil, including violent rioting. In this tumultuous environment, the financial services sector faces significant challenges in remaining viable, particularly in the microfinance field, which makes credit available for low-income Bolivians. Because a strong microfinance sector supports national economic growth, poverty alleviation, and the economic empowerment of disadvantaged groups, PREMIER worked throughout the country to strengthen this sector.

Building on DAI’s microfinance successes in Bolivia under USAID’s Bolivia Rural Financial Services contract, PREMIER had three primary focuses: national policy reform, microfinance industry development, and innovation. DAI staff advised the Bolivian government concerning legal and regulatory reform of the financial services sector, including coordinating policy dialogue with relevant local, national, and international agencies. DAI also supported an operational credit information bureau that assisted with the sector’s development, strengthened the microfinance industry association and alliances, developed dissemination channels such as a market intelligence newsletter for the industry, undertook market studies, created training alliances, and lay the groundwork for an agricultural insurance system to support industry development. Lessons and innovations from similar USAID programs in El Salvador and Ecuador were incorporated throughout the project.

Finally, DAI promoted institutional innovation and expansion using new products and strategies such as deposit capture, stored value (“smart”) cards, satellite communications, warehouse receipts, improved loan guarantee mechanisms, remittance and payment services, improved customer service, and enhanced information systems. [AMAP BDS IQC]