Evaluates project to establish the Fundacion Hondurena de Investigacion Agricola (FHIA), a private Honduran agricultural research organization. Midterm evaluation covers 9/84-11/87 and is based on document review, site visits, and interviews with USAID/H and FHIA officials. FHIA should be highly commended for establishing itself and addressing its institutional mandate within the relatively short period of 3 years; however, it lacks the resources to carry out research in crops of national (cacoa, etc.) and international (banana, etc.) importance and at the same time investigate potential export crops (e.g., mango, black pepper, etc.). Original project funding and staffing levels were totally inadequate for the scope of effort required. It is estimated that another 10 years will be required to lay the groundwork for FHIA to sustain an impact on Honduras”s agricultural economy. FHIA”s original mandate was too broad and has not changed as FHIA has evolved. In addition, FHIA”s governance system is cumbersome and inefficient; an organized base of constituents (producers and other parties) has not been developed to ensure long-term viability; and FHIA is critically understaffed in technical areas. However, good research progress has been made in some areas. The banana/plantain program has made important advances in controlling Black Sigatoka disease (within 5 years, FHIA should release resistant banana varieties that should save producers $100 million yearly), but it needs to establish connections with firms that can exploit the new technology; similarly, the cacao program is progressing well and cacao shows good promise as an export. The citrus and vegetable programs are well organized, but it is doubtful whether Honduras can gain a comparative advantage over other citrus/vegetable exporters in a highly competitive regional market. Recommendations are to (1) redefine FHIA”s mandate, giving emphasis to research on export crops and requiring FHIA to refrain from direct involvement in production development; (2) prioritize research efforts, add or reassign staff, and ensure long-term research funding by asking USAID/H to apply funds programmed to 1992-93 to 1988 and 1989, requesting endowment funds from the Honduran government and USAID/H, and initiating aggressive fundraising efforts; (3) continue to develop national and international linkages to improve research dissemination; and (4) publicize the role of FHIA in the development of Honduras” agricultural export capacity. The project teaches that good fiscal planning and careful definition of the institutional mandate is essential when developing new entities like FHIA, as is developing an international identity through strong institutional relationships.
