Mid-project evaluation of development decentralization I

Special evaluation covers the period 1978-81 and is based on interviews with project personnel and visits to 21 villages. The project is well on its way to achieving its purpose; all participants - the Organization for the Development of Egyptian Villages (ORDEV), Checchi and Company, and USAID/E - have done their part well. ORDEV has established a Local Development Fund (LDF), received 426 loan applications, and made over 200 loans totaling $5.5 million; about 100 village projects are now being implemented. The geographic distribution of the loans - 83 to Upper Egypt and 124 to Lower Egypt - is consistent with population distribution but not with economic hardship; 81% of loans have gone to low-risk poultry, cattle fattening, and transportation projects. Most projects will be or are already profitable. Many training programs have been carried out. Thirty-three ORDEV staff have attended courses in enterprise development, management, and finance at the Bluegrass Consortium in Kentucky, and 30 have returned to work with the LDF. The Consortium has developed 15 case studies of LDF projects for use in training. Also, 36 participants spent 1 month in the Philippines for training in rural development and small scale industries. Locally, 614 village council members and head executive officers have attended 21 seminars on local government and the LDF. The good quality of village recordkeeping can be traced to this training. Establishment of the ORDEV training academy has been delayed by Egyptian budgetary constraints. It is recommended that: ORDEV give increased attention to building and maintaining the LDF and assisting maturing village enterprises institutionally; Checchi strengthen and refocus its technical assistance on management and finance, based upon close examination of village projects; and USAID/E carefully assist and monitor progress. Fifteen more detailed recommendations are also included.