Evaluation of the project development assistance program

Special evaluation covers the period 9/81-8/83 and is based on document review, site visits, and interviews with project, host government, and private sector personnel. The program, a well-adapted approach to the special needs of the Islands and Belize, has been modified during execution to focus on private, rather than public, sector investment, a transition necessitating some important changes. PDAP's strengths are an experienced industrial promotion specialist as consultant, capable field representatives, and effective linkages with Island USAID's and other donor and investment promotion organizations (principally the Caribbean Development Bank). PDAP has helped promote 13 new enterprises, which are providing 226 jobs, with employment for 2000 expected eventually. It has also financed 10 technical studies and conducted 14 marketing studies of acceptable professional quality but addressing industries dependent on local capital and know-how, rather than the employment-intensive industries supported by foreign investments that are needed. The program has a number of weaknesses. Its goals are not sufficiently ambitious; the target of 3,000 industrial jobs should be nearer 30,000. The nonavailability of industrial buildings for potential investors is a major bottleneck; the program does not transfer investment know-how to host countries; and the reporting system is not adequately geared to the new private sector focus. Most importantly, the search for potential investors, centered in the Coopers and Lybrand (C&L) Washington office, involves a staff inexperienced in industrial promotion, a program too small and passive to be effective (given the new targets), overconcentration on secondary markets at the expense of prime U.S. market promotion, a poor location away from the business mainstream of New York, and a standard approach to promotion (repeating diffuse general publicity rather than concentrating on a few promising pre-selected target firms). A budget shortfall is threatening, and the revised budget proposed by C&L is inadequate. Recommendations address all these issues, and advise continuation of PDAP for an additional 3 years.