FINAL EVALUATION OF THE BOLIVIA SMALL FARMER ORGANIZATIONS I PROJECT

Final evaluation covers the period 1975-4/81 and is based on site visits, document review, and interviews with project participants. The project has largely failed, serious deficiencies in implementation jeopardize progress made to date, and neither the Oficina Nacional/Fomento de Cooperativas Integrales (ONCICOOP) nor Robert R. Nathan Associates, the contractor, seems able to address these weaknesses. Only three co-ops (Gran Chaco -- GC, Santa Cruz del Norte -- SCN, and Cochabamba -- CB) are participating -- Tahuantinsuyo was suspended for not repaying a loan to the Credito Rotativo de Fomento/Organizaciones Campesinas (CROFOC). No co-op is financially self-sufficient or, except for SCN, is expected to be in the near future. Delinquency on loans, especially medium-term loans, is high. Co-op memberships have all fallen below the target of 1,500 -- GC has 234 members, SCN has 584, and CB has probably one-half the 1,750 members it claims. Functioning of co-op participatory structures, the Groupos Associados de Base (GAB), is fair in CB and SCN and is poor in GC. These problems are partly due to the co-ops having operated only 15 months under the current, improved institutional structure following 4 years under the previous deficient system. In addition, ONCICOOP"s resources are insufficient and have been poorly applied. Planning, management, technical assistance (TA), and the design and implementation of the credit system were all inadequate. Bolivia"s political and economic turmoil have impeded accurate forecasting and fostered disunity within the co-ops. It is recommended that USAID extend the project, continue co-op subsidies and TA, and retain the relationship with ONCICOOP and CROFOC. ONCICOOP should redesign and better implement the credit system, revise co-op financial projections, organize co-op federations within 2 years, improve administration of TA and management of the input suppl system, upgrade accounting practices, promote decentralized co-op member participation, and analyze women"s role in the project.