Evaluation of the Zimbabwe commodity import program 613-K-603

Special evaluation covers the period 2/82-3/84 and is based in part on interviews with project officials and beneficiaries. For the first CIP in a new recipient country, the project worked very smoothly. Rapid disbursal (88% in 18 months) was achieved by: using existing GOZ import allocation procedures and the commercial banking system; assigning a full-time A.I.D. officer to handle implementation; distributing a booklet explaining the CIP to the public/private sectors; and excluding policy linkages from the CIP agreement. CIP commodities - 69% of them finished goods (mainly capital equipment) - were appropriate and at the micro level increased output and employment (among small firms surveyed) 20-50%, and generated 2,200-4,800 jobs. Macro level impact was far less, however, since CIP commodities mainly served to make up for the 42% reduction in overall commodity imports which occurred between 1981 and 1983. The program"s support for efficient industries was probably greater than the controversial Jansen Study, which tried to determine Zimbabwe"s industrial comparative advantage, would suggest. Local currency generations supported the capital requirements - and the GOZ the recurrent costs - of rural reconstruction and development projects in education, health, agriculture, and small businesses. Projects were quickly and efficiently implemented due to: sound GOZ planning, budgeting, and management; the use of private sector contractors under competitive procurement procedures (thus reducing A.I.D. and GOZ management burdens); the local market"s ability to supply most materials; and a general absence of graft and corruption. A.I.D. targeted large (thus fewer, more efficient) projects which built on existing GOZ programs, were institution-building, and had immediate impact. The program was so effective that a follow-on was added in 2/83 and another is planned for 2/84. Its local currency program should be studied for use in LDC"s with similar public and private sector management capabilities. Other recommendations include narrowing the focus of local currency projects to specific subsectors and institutional development and improving GOZ project reporting/monitoring systems.