Evaluation of the women's entrepreneurship development program

External evaluation covers CY86 and is based on visits to 4 WEDP centers and interviews with personnel from the implementing Bangladesh Small and Cottage Industries Corporation (BSCIC), center staff, and clients. The WEDP is operating far below potential, primarily because of limited support from headquarters level to field offices in planning, programming, and evaluation. As a result, management varies from center to center, with particular problems in Laksam. Improvements in the management and support system can probably be made using existing BSCIC resources. Loan experience is mixed. As of 6/86 sufficient loan funds were available for another 2 years, but these funds are being kept in a non-interest bearing account. Also, the reported recovery rate - an exact figure is not available due to inconsistencies in reporting procedures - is only 76%, and the overhead rate is unacceptably high: it costs 1.47 taka to lend and recover one taka. Between 7/84 and 6/85, the rate of increase in new clients varied from 73% to 473% at 3 of the centers; as more clients are signed up, decline in these rates is unavoidable. Finally, only 22% of clients are actually involved in making investment decisions and evidently only 35% are actually involved in managing their enterprises. WEDP's impacts on living conditions also appear mixed. If labor wages are imputed (labor is almost always provided by the family), nearly all WEDP-funded enterprises are operating at a loss, except for those related to tailoring and packaging. On the other hand, 81% of respondents at 3 centers reported increases in income and 67% reported improved nutritional levels. (Virtually no increases in income or nutritional levels were reported in Laksam.) Also, 25-50% of loan funds are diverted from their intended use and spent on consumer goods. USAID/B provided adequate financial support, but TA from both USAID/B and BSCIC was inadequate. USAID/B and BSCIC have not agreed on statistical goals for loan recovery or on measurement of WEDP progress. It is recommended that: (1) WEDP headquarters be expanded and improved to better assist in resolving operational problems in the field; (2) the recovery rate be increased to 85% by 6/87 (except that Laksam's recovery rate should be established in an independent review) and subsequently to above 90%; (3) the overhead rate be reduced by 15% by 6/87 and subsequently reduced to less than 0.5 taka; (4) WEDP guidelines be revised to properly describe its conceptual focus and modus operandi; (5) qualitative and quantitative benchmarks goals be established for measuring progress; and (6) USAID/B continue its support pending implementation of these recommendations.