GUATEMALA - REVIEW OF THE RURAL DEVELOPMENT PROGRAM, FEBRUARY 7-25, 1972

EVALUATION WAS CONDUCTED THROUGH ONSITE VISITS AND CONVERSATIONS WITH USAID AND GOG PERSONNEL. PRINCIPAL ACCOMPLISHMENT NOTED THUS FAR IS THE ESTABLISHMENT OF THE INSTITUTIONAL FRAMEWORK OF THE LOAN -- BANDESA, THE AGRICULTURAL CREDIT BANK, INDECA, THE PRICING, MARKETING AND STORAGE AGENCY AND DIGESA, THE TRAINING AND RESEARCH AGENCY. BANDESA, IT IS NOTED, THUS FAR APPEARS RELUCTANT TO DEAL WITH THE VERY SMALL HIGHLAND FARMER. IN REGIONS REVIEWED, VIRTUALLY ALL BORROWERS WERE PREVIOUS CUSTOMERS OF PREDECESSOR AGENCIES. WHILE BANDESA OUTLETS BEING ESTABLISHED AT THE SUB-REGIONAL LEVEL ARE NOT YET ADEQUATE TO REACH TARGET GROUPS OF FARMERS, THE PLANNED DISTRIBUTION, IF IMPLEMENTED, IS DEEMED ADEQUATE. IT IS NOTED THAT INDECA IS APPARENTLY RUN BY QUALIFIED PERSONNEL AND THE PRICING POLICY SEEMS CLOSELY COORDINATED WITH THAT OF OTHER CENTRAL AMERICAN COUNTRIES. PROCESSING, STORAGE AND MARKETING OF DIVERSIFIED CROPS ARE DEEMED THE MOST SERIOUS WEAKNESS IN THE PROGRAM. NO INDECA STORAGE FACILITIES EXIST IN THE HIGHLANDS, AND IT IS LIKELY THAT PUBLIC STORAGE FACILITIES WILL BE NO GREATER NEXT YEAR. WHILE THE DIGESA RESEARCHED PROGRAM IS JUDGED TO BE TECHNICALLY STRONG, THE PROMOTOR PROGRAM IN DIVERSIFIED CROPS IS EXTREMELY WEAK DUE TO LOSS OF TRAINED PEOPLE THROUGH TURNOVER. MAJOR OMISSION NOTED IN THE PROGRAM IS THE LACK OF PROVISION FOR MARKETING OF DIVERSIFIED CROPS. RECOMMENDS 1) THE FORMATION OF A JOINT AID-MINISTRY-INDECA COMMITTEE TO CONSIDER ESTABLISHING A NEW CATEGORY UNDER THE LOAN FOR MARKETING OF SUCH CROPS; 2) APPROVAL OF AN EVAL SYS FOR ENTIRE PROG TO DETERMINE EFFECT AT THE FARM LEVEL; 3) ESTABLISHMENT OF ICT AS A SEMI-AUTONOMOUS NATL ADAPTIVE RESEARCH INSTIT. ALSO RECOMMENDS ANOTHER PROGRESS EVALUATION FOLLOWING THE FIRST CROP SEASON IN LATE 1972. CONTENDS THAT MAINTENANCE OF FARMER CONFIDENCE IN INDECA'S ABILITY TO SUPPORT PRICES OF MAJOR GRAINS IS MOST CRITICAL FOR PROGRAM SUCCESS.