Evaluation of the LAC/C crop credit insurance systems project

Special evaluation covers the period 8/78-11/80 and is based on site visits and interviews with contractor, Inter-American Institute of Agricultural Sciences (IICA), and A.I.D. personnel. Strengthening the Panamanian Agricultural Insurance Institute (ISA) and establishing new programs in Bolivia and Ecuador have benefitted small farmers by reducing risk, raising production, and stimulating similar indigenous efforts; and have also yielded a store of data useful in continuing this project and in analyzing rural credit insurance in general. Programs are expected to be underway soon in Costa Rica and Venezuela. Nevertheless, the project is 18 months behind schedule due to difficulties in hiring skilled personnel, obtaining government approval in Ecuador and Bolivia, and locating necessary data. Among the evaluators" recommendations are that A.I.D.: (1) double funding to ensure completion of project research and operation; (2) transfer remaining P.L. 480 funds to Bolivia to finance the local program; and (3) clarify the project"s relation to the Productive Credit Guarantee Project; and that IICA: (1) extend coverage to medium farmers to reduce costs and raise output; (2) assist insuring agencies to recoup the costs of technical assistance; (3) relocate its Insurance Division to Washington and hire a deputy director to speed research and promote staff morale; (4) schedule subgrants in decreasing annual amounts to persuade local governments to bear a greater share of costs; (5) emphasize the project"s institution building nature over research; (6) encourage private reinsurers and multilateral agencies to promote underwriting of risk; (7) investigate local production of inputs (e.g., seed) in Bolivia; (8) target the training of the permanent staffs of the insuring agencies; (9) assist ISA to become a source of planning, research, and training assistance to other insurers; and (10) promote dialogue between the insuring institutions and Missions.