The Inter-American Foundation (IAF), an independent agency created by Congress, funds local private organizations that support the self-help efforts of the poor in 25 Latin American and Caribbean countries. In fiscal year 1989, IAF approved 208 new grants, 175 grant supplements, and other program activities totaling over $25 million. The average grant size was $70,000, and grantee matching contributions averaged $1.33 per IAF dollar. The breakdown of grants by program area was: (1) 44% for food production, agriculture, ecodevelopment, and other rural programs; (2) 17% for small business development and management training; (3) 24% for education and training activities, such as organizational and vocational skills training, adult literacy programs, materials development, and technical publications; (4) 10% for community services programs; and (5) 2% for cultural expression projects. Other program activities included: (1) fellowships awarded to 29 graduate students conducting field research on grassroots development in Latin America and the Caribbean and to 15 scholars from Latin American and Caribbean institutions pursuing graduate study at U.S. universities; (2) in-country support services; and (3) publications, videos, and translations. Brief articles discuss the elements of a grassroots development strategy, the democratization of development, networking, and information dissemination. This report includes brief descriptions of the 383 grants and grant supplements, grant application information, and breakdowns of financial and statistical information for 1972-1989. (SV)