Human resources project : initial evaluation

Special evaluation covers the period 7/82-5/83 and is based on document review, site visits, and interviews with project personnel. The project has had little success. Although the Fundacion de Credito Educativo (FCE) has disbursed over 400 AID-funded student loans, none have gone to the targeted lower-income groups. Lacking labor market data with which to devise a new scheme to analyze loan risk based on students' future (after-training) income projections, the FCE has continued to grant loans based on recipients' current ability to repay, thus disqualifying those from lower-income groups. No institutional loans have been disbursed. Although needs assessments forms (a preliminary to applying for loans) have been completed by 17 secondary and postsecondary insitutions and are being analyzed by FCE and Texas A&M University (TAMU) TA staff, they contain inadequate data. Further, no institutional development plans (on which loan decisions were to have been based) have been drawn up. The TAMU team has successfully completed a systems analysis report (the recommendations of which the FCE has resisted adopting, e.g., to purchase administrative computer software packages), is helping FCE prepare regional profiles and a bibliography of existing labor market studies, and has visited all collaborating institutions. However the planned labor market survey (necessary for establishing training priorities and devising a new loan disbursal system) will not be finished and there has been no FCE staff inservice or overseas training and little institutional TA follow-up. The project has been hampered by: an overly-ambitious project calendar; lack of communication among TAMU, FCE, and USAID/H staff resulting in misunderstood roles and poor working relationships (especially between TAMU and FCE); and FCE's failure to provide counterparts trained in vocational education and labor market issues. Recommendations are included.