LOCAL DEVELOPMENT PROJECT; EVALUATION; PROJECT NO. 492-11-995-256

PROVINCES, PARTICULARLY THOSE WHICH HAVE BEEN IN THE PROGRAM FOR A LONGER PERIOD OF TIME, ARE PLANNING A MORE IMPORTANT ROLE IN INFLUENCING DEVELOPMENT, NOT ONLY WITH THEIR OWN RESOURCES, BUT WITH THOSE OF OTHER GOVERNMENTAL INSTITUTIONS. THE ORGANIZATION, PHILOSOPHY, PROGRAMS, SYSTEMS AND PROCEDURES DEVELOPED UNDER THE PROVINCIAL DEVELOPMENT ASSISTANCE PROJECT (PDAP) ARE REPLICABLE FOR USE IN MOST OTHER PROVINCES IN THE COUNTRY. THIS HAS BEEN DONE TO SOME DEGREE ALREADY. THE EVALUATORS RECOMMEND THAT, AFTER THE PROJECT IS TERMINATED, USAID CONSIDER ASSIGNING ONE ADVISOR TO WORK WITH PDAP AND THE PROVINCES TO ASSURE THAT CURRENT PLANNING AND INFRASTRUCTURE ACTIVITY DOES NOT REGRESS. THERE WILL BE A CONTINUING NEED FOR CENTRAL GOVERNMENT LEADERSHIP AND GUIDANCE TO THE PROVINCES; IT IS BELIEVED THE CURRENT PDAP ORGANIZATION SHOULD BE KEPT INTACT FOR THIS PURPOSE. THE MAJOR PROBLEM CONFRONTING THE PROVINCES IS THE LIMITATION OF FINANCIAL RESOURCES AVAILABLE FOR DEVELOPMENT PURPOSES. FINANCIAL RESOURCES EXTERNAL TO THE PROVINCES WILL BE REQUIRED IF THE PROVINCES ARE TO PROGRESS BEYOND THE SOMEWHAT LIMITED ROAD AND BRIDGE PROJECTS. CREATION OF AN INSTITUTION TO PROVIDE LOANS TO THE PROVINCES AND CITIES IS STRONGLY ADVOCATED BY THE TEAM. IT IS SUGGESTED THAT THE PRESENT APPROACH TO ECONOMIC FEASIBILITY ANALYSIS BE UPGRADED TO AN APPROACH USING ECONOMIC SHADOW PRICES AND INCLUDING DISTRIBUTIONAL WEIGHTING OF INCOMES AND CONSUMPTION. THIS APPROACH WOULD ENHANCE THE ECONOMIC FEASIBILITY AND PRIORITY OF PROJECTS AIMED AT BENEFITING THE RURAL POOR AND ENSURE THAT THE RESULTS OF THE FEASIBILITY ANALYSIS ARE CONSISTENT WITH NATIONAL AND PROVINCIAL OBJECTIVES ON INCOME DISTRIBUTION.