Evaluation of the USDA-USAID restructuring agriculture and agribusiness project

Department of Agriculture (USDA) Restructuring Agriculture and Agribusiness project -- are moving forward at an uneven pace. The changes occurring in these countries are profound. In a very short time, the agricultural economies of these countries have been turned upside down. Some, such as Poland"s, are doing well. Others, such as Bulgaria"s, have far to go before the benefits of a market economy can affect most of the population. In all of the countries there are formidable obstacles to achieving the basic goal -- internationally competitive agricultural sectors that can assure domestic consumers both a dependable supply of basic foodstuffs and a wider assortment of high quality, reasonably priced food products. USDA activities have successfully met the overall objectives of assisting governmental agencies to perform tasks necessary for the efficient and effective functioning of a market economy. In some cases, such as the extension activity in Poland, the project has met these objectives in an exceptional manner. The USDA programs are providing essential skills and resources at critical points within governmental structures to support the development of strong private sectors and market-based economies. Overall, the project has been cost-effective and timely in carrying out its operations, although some suggestions to increase cost-effectiveness could be considered. The programs established by USDA have addressed major needs of the countries in important ways. Assistance activities have been in priority areas and have usually received good government support. The exceptions are activities in Hungary, where the Economic Research Service (ERS)-supported situation and outlook report activities were canceled because of lack of host country support, and the difficult yet essential task of agricultural research restructuring in Poland. Post-project sustainability of project activities seems assured for all nonpilot activities. A mutual review of the pilot activities will decide whether they warrant continued support. It is too early to judge sustainability in the Bulgarian projects as they are just beginning. Further, long-term host country plans for agricultural services in Bulgaria have not been confirmed, leaving decisions on services and funding uncertain. The USDA activities have been well coordinated with host country priorities and adequately coordinated with assistance provided by other donors, though this coordination is an area of continuing concern. In a few cases, primarily in Bulgaria, potential conflicts in donor activity were noted. However, given the early stages of these activities and, most importantly, the desire of field staff to coordinate activities, these potential conflicts may not materialize. Programs in operation for several years (extension in Poland, and ERS in Czech Republic, Slovakia, and Poland) have had measurable impacts. The short-term work on heavy metal contamination in Bulgaria also has had an important impact. The other activities are either of a pilot nature or, like most activities in Bulgaria, not yet fully underway. While the bulk of the project"s resources are directed toward governmental agencies (the agribusiness marketing seminars being the principal exception), many activities have had positive impacts on the private sector. Examples include a business plan for a new private milk plant set up with extension service assistance, private investment decisions made using situation and outlook reports, and private slaughterhouses working with the Agricultural Marketing Service in setting up grades and standards for pig carcasses. Private sector spin-offs related to the USDA activities (such as a private sector farmer information system) are being considered by private investors but little has occurred to date. (Author abstract)