EVALUATION OF THE AGRICULTURAL SECTOR LOANS FUNDED BY USAID/ETHIOPIA

THE LOAN MADE AVAILABLE A SURFEIT OF RESOURCES CAUSING AN INCREASE IN PROJECT IDENTIFICATION AND PLANNING. THE LOAN COVERED ONLY LOCAL CURRENCY EXPENSES. AFTER THE MONEY HAD BEEN SPENT, PROJECTS WERE ATTRIBUTED TO ASL AND ENDORSED BY USAID. THE EVALUATORS RANKED ASL-ATTRIBUTED ACTIVITIES BY THEIR EFFECT ON INCOME DISTRIBUTION AND EMPLOYMENT AND CONCLUDED THAT THE IMPACT OF THE ACTIVITIES VARIED CONSIDERABLY. CONCLUSIONS INCLUDE; (1)THE BASIC FINANCIAL UNDERTAKINGS WERE ADEQUATELY FULFILLED; AND (2)CAPACITY TO PLAN AND IMPLEMENT DEVELOPMENT ACTIVITIES PROBABLY INCREASED. RECOMMENDATIONS FOR ANY FUTURE LOANS INCLUDE: (1)INCLUDE AN EQUITY CRITERION; AND (2)CONSIDER REQUIRING THAT SELF-FINANCE OF AGRICULTURAL CAPITAL EXPENDITURE SHOULD GROW AS FAST OR FASTER THAN (A)DOMESTIC REVENUES OR (B)THE SELF-FINANCE COMPONENT OF THE CAPITAL BUDGET, WHICHEVER IS LARGER. THE EVALUATORS ALSO RECOMMENDED THAT THE LOAN SHOULD MOVE FROM PRIMARILY SUPPLYING A TEMPORARY GLUT OF RESOURCES IN AGRICULTURE TO BECOMING MORE SPECIALIZED IN DIRECTION AND PURPOSE.