Haitian crafts development project 521-1069 input no. 7 : final evaluation

Final external evaluation covers the period 7/83-6/85 and is based on document review, site visits, and interviews with CARE, USAID/H, and other donor personnel and with beneficiaries. The project - which rejected the social welfare approach to crafts production used previously (under the Haitian-American Community Help Organization - HACHO) in favor of a more entrepreneurial approach - was highly successful, showing that crafts projects, when well-managed and relevant to the intended beneficiaries, can provide a basis for substantial employment and income generation and can help to develop new products compatible with export market requirements. Several stable handicraft enterprises were established, as well as a self-sufficient retail outlet whose success has exceeded all expectations; the project also built a solid base for assisting producers in exporting their crafts. The quality and dedication of project staff was a key factor in the success of the project. Two factors negatively affecting implementation were logistic problems due to the remote location of many craft centers and decreased export potential due to the strength of the U.S. dollar. The project teaches that future and/or follow-on projects should include: (1) capital generation schemes that encourage producers to view themselves as independent entrepreneurs; (2) quality control mechanisms whereby artisans are directly identified with their products; (3) a revolving credit fund to make short-term loans available (the project's fund had a default rate of 0%); (4) a component to make funds for raw materials procurement available to producers; (5) TA to producers in financial management and accounting; (6) targeting of producers best able to absorb project inputs (in this project, small producers responded much better than did microartisans); (7) strong financial controls and regular contact with beneficiaries; and (8) mechanisms to contribute to project self-sufficiency. A follow-on project is strongly recommended.