USAID. MISSION TO GUATEMALA
Summarizes final evaluation (XD-AAZ-185-A) of a pilot project to establish a mortgage guaranty program which would enable Guatemalan small farmers to purchase arable land and to provide production credit and TA to participating farmers.
1989

Abstract
The project was implemented by the Penny Foundation. The evaluation covers the period 8/84-8/87. The project has made a promising beginning. Formerly landless campesinos are farming their own land and have the possibility of achieving a living standard equivalent to that of middle class urban residents. However, in order to ensure long-term viability, the program must be strengthened and expanded. The Penny Foundation"s implementation capability could be improved by establishing formal guidelines for farm selection, strengthening the management information system, and utilizing existing regional offices as logistical support centers for field technical staff. The experience of the Penny Foundation should also be used to help other organizations, such as the Guatemalan cooperative federations, to replicate the program. To maximize project benefits for participating farmers, more effort should be made to increase participants" awareness of their rights and responsibilities and also to provide them with training in financial management of their farms. Harsh living conditions on farms, a cause of resistance to participation and also of health problems, deaths, and desertions from the program, should be improved, particularly with respect to housing conditions and access to education and health care. In addition, many participants would benefit from access to counseling from social workers in how to use their increased income to improve their living standards. It is also recommended that the program attempt to expand into the Highlands, where it could help to alleviate pressures that have recently led to intense civil conflict. Among the project"s lessons are that (1) many beneficiaries were unable to afford the 10% downpayment that was to be required upon their receipt of a provisional title, and (2) the fixed parcel size (4 manzanas) established in the original project design was likewise untenable, given variations in terrain, soil conditions, etc.
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USAID DEC