Evaluation of the Haitian development foundation

Special evaluation covers the period 7/81-6/82 and is based on document review, indepth interviews, and site visits. The Haitian Development Foundation (HDF) has made good progress. The number of loans approved has increased from 88 to 214 and of clients assisted with TA and/or loans from 302 to 431; HDF membership has risen from 122 to 177. There has also been a remarkable reduction in the fund-raising operations deficit. The key element of the HDF, the animateurs, are being trained in all aspects of small business administration: accounting, record keeping, inventory control, procurement, credit management, marketing, and rural development assistance. Previous evaluations estimated that four jobs would be created by each loan; however, the average has been closer to two new jobs per loan. Income and productivity levels of the targeted small privately-owned businesses is increasing. The internal management of HDF and its fund raising operations have improved considerably. Operating deficits have been reduced and progress has also been made toward achieving the long-range goal of economic development impact on the targeted community. After a second year of experiments, some at a very high cost, the HDF director has an excellent staff. Some minor problems still exist; however, the general feeling is optimistic for HDF"s future operations under its present management. Recommendations include: the project director should put loan collectors in the credit department. The board of director"s terms should be increased to a 2-year term with half the board being elected each year. HDF should closely monitor the animateurs" preparation of quarterly financial statements for each client. New jobs generated and the salaries of all new employees should be indicated. HDF should avoid increasing its budget due to its precarious financial situation. The credit department should have a fire-proof file cabinet or safe to keep all the clients" files and other documents. Finally, an official policy should be made by the directors to determine when a loan is in default.