MUNICIPAL DEVELOPMENT INSTITUTIONS IN LATIN AMERICA; INTERIM REPORT

INFOM HAS USED ITS OWN RESOURCES RECENTLY TO MAKE ABOUT THREE-QUARTERS OF ITS LOANS FOR REVENUE-PRODUCING PROJECTS. PRIOR TO 1970, A HIGHER PERCENTAGE WAS BEING USED FOR NON-INCOME-PRODUCING PROJECTS. THE FOUR MAJOR AREAS OF CONCERN ARE: (1)THE LENDING PROGRAM HAS NOT SERVED TO ENCOURAGE LOCAL INITIATIVE, PLANNING, COMMUNITY INVOLVEMENT AND ACTIVE SUPPORT; (2)THE LENDING PROGRAM HAS NOT BEEN USED AS A LEVER TO CARRY OUT FINANCIAL AND ADMINISTRATIVE REFORMS; (3)THE STANDARD LIST OF BASIC SERVICE PROJECTS IS LIMITED IN ITS IMPACT ON GUATEMALA"S BASIC PROBLEMS; AND (4)MUNICIPAL DEVELOPMENT SO FAR HAS BEEN UNRELATED IN MOST INSTANCES TO OTHER DEVELOPMENT EFFORTS IN GUATEMALA. WITHOUT WELL-DEFINED ESTIMATES OF NEEDS AND TARGETS FOR MEETING THEM, INFOM LACKED A BASIC FOR SOUND BUDGETING AND FINANCIAL PLANNING WHICH RESULTED IN WIDE VARIATIONS BETWEEN PLANS AND PERFORMANCE. AID ASSISTANCE APPARENTLY SERVED TO CONFIRM INFOM"S LIMITED APPROACH. THE EVALUATORS MADE 24 RECOMMENDATIONS ON: (1)STRATEGY AND POLICY; (2)ORGANIZATION AND PROCEDURES; (3)LEGAL MATTERS; (4)FINANCIAL MATTERS; AND (5)AID SUPPORT. THEY ALSO COMPARED INFOM TO A SIMILAR INSTITUTION IN COSTA RICA.