Evaluation of the special development activities fund for the program office of the USAID mission to Peru

Special evaluation covers the period through 8/83 and is based on site visits, questionnaire data, discussions with A.I.D. and implementing personnel, and case studies of 24 representative SP's. Most SP's have been implemented rapidly; it takes 3-4 months from the time an idea is submitted until funds are allocated and then 4-6 months till SP completion. A total of 681 SP's have been implemented; most, contrary to project intent, been socially oriented (because the need for social improvements is so great and because income-producing SP's are much harder to implement). The social SP's (in education, water/sewage, health, and other areas) have brought significant community improvements and strengthened community ties and faith in established institutions. Community participation has been high, but maintenance of SP improvements remains a problem. Income-producing SP's have been less successful. Funding (usually $5,000) is generally not adequate, potential beneficiaries lack the resources (e.g., education) needed to contribute to implementation, and the quick-impact timeframe is simply too short. Of 7 SP's studied, 5 have generated no jobs. Moreover, these unsuccessful SP's have no idea what to produce, how to organize themselves, or where to channel sales. Finally, most beneficiaries are unaware that the SP's are funded by the U.S. Government. Key recommendations are to increase the SDAF budget to $500,000 or 0.5% (whichever is greater) of the annual A.I.D. budget and divide funds equally between social and income-generating SP's. Individual income-generating grants should be larger and should be channeled through large institutions wherever possible, with more TA and training provided. If the SDAF budget is not increased, income-generating SP's should be cancelled, for the social SP's have more impact on more people at less cost. Grant criteria should ensure that groups with access to funds elsewhere do not receive funds (as has occurred). Appended are reports on each of the 24 SP's studied and the questionnaire instrument.