Evaluation of the policy dialogue support project (518-0089)

The evaluation covers the period 9/90-11/93. The project is being implemented by the Instituto Centroamericano de Administracion de Empresas (INCAE). PROGRESEC has achieved a significant number of accomplishments, but there are questions as to its overall impact as well as the direction it is headed. The main successes are those to be expected from a prestigious academic institution like INCAE. The short-term economics training being provided is probably the best ever available in Ecuador: the teaching and materials presented are almost invariably excellent and have succeeded in raising both the level of information and the level of debate. What is less clear is the success of the policy dialogue program, especially the policy implementation component. INCAE has improved the environment for policy dialogue, and has contributed to greater understanding of Ecuador"s economic model and macroeconomic issues, but it has not advanced policy debate on specific issues. The lack of a strategic focus is now reducing this component"s potential impact. The policy implementation assistance component was added in 1992, but with a couple of important exceptions, little activity has taken place. Although INCAE (reluctantly) agreed to take on the component, it has argued that cost, along with its need to maintain a position of strict neutrality, make it very difficult to take an active role. Realistically, INCAE is not likely to improve its performance in this area, so alternatives must be sought. Given INCAE"s current structure and operational mode, sustainability of PROGRESEC activities after the PACD is unlikely; little in the way of local capacity building for the three components has been generated. INCAE should begin to explore mechanisms to reduce PROGRESEC"s dependency on INCAE"s headquarters in Costa Rica, help PROGRESEC develop its own personality and identity, and seek greater local input on project management and emerging opportunities and issues. USAID/E and INCAE must jointly re-define the project"s objectives, re-examining each component and the linkages among them.