Evaluation of the Haitian Development Foundation phase IV

External evaluation covers phase four activities (9/84-12/86) and is based on a review of pertinent documents and financial records and interviews with USAID/H and HDF personnel and selected loan recipients. A.I.D. support has enabled HDF to moved from a state of near collapse to a level of satisfactory performance. The most dramatic changes have come in the area of personnel. Two years ago, Board members, management, and key staff were compromised by incompetence and charges of dishonesty. Loan making had halted and HDF's reputation was weak. Today, the Board is composed of new members; the current Executive Director is firmly in control; capable key personnel are in place; new loans are being processed and granted; old loans, even some considered uncollectible, are being repaid. HDF's reputation, among both borrowers and the financial community, is much improved. In general, HDF is making a social and developmental impact. Among the 8,000 Haitian micro entrepreneurs, HDF is almost a unique source of funds. HDF is not without problems; however, the Foundation recognizes its weaknesses and is taking steps to overcome them. For example, HDF's management information system is inadequate, accounting and record keeping need upgrading, and loan processing is slow and not suited to a small loan size, large volume operation. To improve these functions, HDF has installed a data processing system based on a personal computer; training on the system has already begun. Another problem is the need for TA in business management (e.g., bookkeeping, management methods) for HDF's borrowers. A course is being offered for $150 (originally $300) by the Management and Productivity Centre (MPC) but cooperation between HDF and MPC has been lacking and the course has been little used. A.I.D. should continue to support HDF and encourage its expansion. Numerous specific recommendations to improve HDF performance are included.