Evaluation of PL-480 Title I and Title III agreements

480 Title I and III programs in Bolivia. Interim evaluation is based on site visits, interviews with program personnel and beneficiaries, and document review, and covers the period 6/84-3/87. Providing about the equivalent of $20 million in support annually, the P.L. 480 programs have been USAID/B's single most important policy leverage instrument. P.L. 480 wheat imports have relieved pressure on the Government of Bolivia's (GOB) balance of payments, helped to maintain food supplies, and, for many, modestly improved the quality of life. Impacts in purely economic terms have been distorted by economic instability, but Bolivia's current economic reform program is likely to provide more opportunities for productive use of P.L. 480 funds. The programs fund literally hundreds of development projects, most of them small and widely distributed throughout the country, although there has recently been a shift toward larger programs in rural credit. However, in their efforts to help many people in many communities and to support GOB economic reactivation initiatives, the programs seem to have taken on more activities than their funds, facilities, and management can fully support. Recent trends toward utilizing intermediate credit institutions (ICI's) and trust funds should help ease the administrative burden. More specific findings fall into four areas. (1) The GOB's P.L. 480 Executive Secretariat (ES) has not increased its administrative capabilities despite the rapid growth in the number and complexity of projects; further, there is some duplication of management functions between the ES and USAID/B. (2) P.L. 480-funded agricultural projects have helped prevent declines in production, but (due partly to climatic catastrophes) have produced little in the way of increases. Increased funding is needed for TA, R&D, rural infrastructure, and services to small farmers. However, some host agencies (farmer organizations in particular) have become financially dependent on P.L. 480 projects. Adequate project evaluation is currently beyond ES capacity. (3) Credit projects have suffered from late disbursements by the GOB, from the fact that there are too many credit lines (complicating recordkeeping and accounting), and from problems caused by Bolivia's interest rate structure. Also, while ICI's are moving money effectively, the long-range implications of reliance on them should be examined. (4) P.L. 480 funding of PVO health projects (most are in rural areas, which are underserved by GOB health programs) has been effective. Key needs are more collaboration among PVO's and the GOB and more emphasis on community participation.