Commodity import program in Egypt, 1975-1984 : a review and assessment

Special evaluation covers the period 1/75-12/84 and is based on document review and interviews with project personnel. Through some 4,400 transactions, the CIP has financed food commodities, industrial machinery, raw materials, semi-finished products, and spare parts. The program seems efficiently managed and, given the profusion and complexity of CIP objectives and time and resource constraints, has a remarkable record of success. Although the CIP has had an increasingly small effect on Egypt's balance of payments (BOP) deficit, it has helped prevent further BOP deterioration and has had a generally positive impact on the GOE budget, employment, import substitution, and backward and forward linkages, with no major adverse effect on income distribution and equity. The CIP contributed to 15 out of the 16 priority economic sectors identified in the GOE's Five-Year Plan. In order to improve CIP management and to help meet its many, often conflicting objectives, it is recommended that: (1) clear guidance be given to technical divisions on their review of CIP procurements to ensure that they support USAID/E's other assistance goals; (2) "project-like" packaging of selected transactions be encouraged beforehand with adequate resources to monitor progress; (3) USAID/E disseminate information about CIP more widely; (4) continued effort be made in implementing the efficiency measures listed in the 1984 PAAD; (4) USAID/E cease involvement in programming Special Account funds after joint decision is made about which AID-financed projects are to receive funds; (5) arrangements be made to verify training, planning, and other preparation steps when imports of large capital equipment are proposed; and (6) the end-use audit system should be expanded slightly and standardized. (Near East abstract, modified)