FY 1984 PL-480 Title III : Sudan program evaluation

Finds the program successful, particularly in supporting macroeconomic reform. Delays in project implementation threaten the loan reduction value of the Title III program, due to devaluation of the currency. Recommends shifting offset to policy performance basis. Cites program contribution to balance-of-payments support. Title III-financed studies provided important support to the reform maintaining public investments in the rural sector. Project progress has been much slower than expected, due to A.I.D contracting delays. Concludes that local currency provided significant support to A.I.D project implementation, but does not assess program impact on rural sector. Concludes that information on possible disincentive impact is inconclusive, due to widely varying estimates of the gap between local production and requirements. Title III has contributed to success in policy reform in the food sector, including price reform for wheat products. The Sudan program effectively combines program assistance aimed at policy reform with project support through local currency generation. Management burdens were underestimated and became a major problem in the early years, but systems are now in place for adequate control and monitoring. The requirement for Washington approval of individual project budgets continues to be a problem. (Author abstract, from PN-ABD-893)