The Colombia Project is structured to encourage good results. Since 100% of loan repayments stay within the local Colombian community, it is difficult for loan recipients to justify non-repayment. 50% of the repayments feed a loan pool to support additional micro-loans in that same community and 50% covers the administrative costs and builds capacity for the Colombian grassroots partner that administers the Colombia Project loans. Since the Colombian partner is financially rewarded for good results rather than good intentions, there is a strong incentive for partners to hone their skills at identifying viable micro-enterprises and mentoring loan recipients to a successful project implementation.
Thanks to built-in incentives for good performance, The Colombia Project can allow maximum flexibility for its local partners to work out the details and avoid pitfalls associated with micro-managing from the US. This is consistent with the Peace Corps approach of working with good leaders and supporting local solutions to local problems to achieve results in the way that is best suited to the circumstances and resources of each individual partner.