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The Ninth region is considered the poorest in Chile, with 42.7% of individuals living in poverty. Two of the main towns in the region, Nueva Imperial and Carahue, are ranked among the poorest 23 towns of Chile.

Twenty-two percent of the people living in poverty are classified as indigenous (UNICEF 1998) and although migration out of the smaller communities towards the larger Chilean cities has been considerable, the Ninth region still possesses the largest percentage of Mapuche in the country. The majority of the beneficiaries of the Fundación are indigenous.

In comparing the social statistics of rural indigenous to rural, non-indigenous individuals, great inequality is found for the indigenous people with respect to distribution of income and financial resources, as well as access to education, work-opportunities and medical care. For example, a study undertaken in 1998 indicated that the Mapuche infant mortality rate was double that of the non-indigenous national average and that life expectancy for Mapuches was similar to that which existed in the early 1970´s.

In the region there are two types of farmers: medium-scale producers who work the land with modern machinery in order to marginally profit by raising cattle and cultivating crops, and small-scale producers who work small plots of land with very little modern technology, struggling to produce just enough for family consumption and selling very little product for profit. These producers’ lives are further complicated since their farms normally are located far away from markets and suppliers, lack infrastructure and public transport. These small-scale farmers make up the majority of beneficiaries of Fundación Chol-Chol.

In spite of the amount of exhaustive work that is necessary to maintain a farm, many small-scale producers are classified as unemployment since they receive no formal paycheck for their labor. As a result, many people seek out temporary jobs, both within and outside of the region, in an attempt to increase their monthly earnings. It is during this job search that many rural people discover that their lack of education impedes their ability to secure a stable and better-paying job. Therefore, the education that Fundación offers is largely needed and greatly appreciated by the isolated, rural communities.

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