Improvements must be made in the Sahel regional development program; audit report

Audit report covers the period l974-80 and is based on analysis of data and interviews with host government, Club, donor, and A.I.D. officials. Despite a critical need for and substantial progress resulting from donor assistance in the Sahel, current levels of assistance exceed the region"s absorptive capacity. There is a large and growing gap between funds committed and funds disbursed; host governments are unable to continue projects after aid ceases; capable local management personnel are scarce (leading to abuse of donor-paid salary premiums); implementation at the local level is characterized by excessive waste and seriously deficient financial practices; and almost all A.I.D. projects are experiencing long delays. Moreover, CILSS and the Club have not clearly defined a regional development strategy; have pressured donors to finance 300 projects of questionable merit; and have not instituted adequate project evaluation and reporting systems. It is recommended that A.I.D. efforts in the Sahel proceed with great caution. Specifically, A.I.D., in cooperation with CILSS and the Club, should: (1) study the Sahel"s absorptive capacity; (2) qualitatively improve the Sahel regional development strategy; (3) target projects more likely to gain donor funding; (4) develop an evaluation and reporting system; (5) fund and promote the development of donor groups at the national level; (6) pursue the issue of inadequate host government financial management and the need to develop comprehensive financial training programs; (7) develop a consistent and equitable policy on salary premiums to host government administrators; and (8) study the feasibility of moving its Sahel Development Planning Team to Ouagadougou, Upper Volta, the location of CILSS headquarters. In addition, the Missions in Upper Volta and Mali should assist CILSS and the Sahel Institute to establish adequate accounting systems.