Evaluation of PVO co-financing projects I & II (1974-1990)

Final evaluation covers the period 1974-90, with emphasis on the years 1985-90. The projects have played a key role in the development of Indonesia's NGO sector, helping NGO's to set agendas, conceptualize projects, and improve management. NGO's supported by USAID have furthered democratic pluralism and served as effective advocates for their constituents, and coordinated the activities of independent organizations sharing common goals. PVO projects supported by USAID, such as CARE's water systems and sanitation project on the island of Lombok, have contributed to improving the lives of many of Indonesia's poor. Of the six indicators of success identified in the 1985 amendment, four were fully achieved and one was partially achieved, as follows: (1) since 1985, 25 Multi-Project Support (MPS) grants have been made, 14 to indigenous PVO's (IPVO's), against respective targets of 7 and 3; (2) the percentage of the budget used to support urban and off-Java programs was about 56%, against a target of 50%; (3) six new IPVO's, with capabilities to implement programs in line with USAID priorities, have received direct grants, two more than targeted; (4) USAID currently funds 3 IPVO's with national policy impact potential, consistent with target; (5) since 1985, 39% of project funding has been channeled through MPS grants, partially realizing the target of 60%. The objective of reducing the number of active grants by 1990 was not achieved, however; in fact, at the time of the evaluation the number had grown from 34 to 47. Despite this good record, NGO training needs are still considerable in the areas of project design, monitoring and evaluation, and financial management. Recommendations for the next phase, the Strengthening Institutional Development/PVO Co- financing III project, are that USAID: continue emphasis on improving NGO management skills; work collegially with NGO's on the substance and intellectual content of their projects; select NGO's capable of promoting democratic pluralism; help IPVO's diversify their funding sources; and fine-tune its own management of the project.