Planning and implementation of rural development projects, an empirical analysis

The report draws on data collected for a previous analysis undertaken for AID by Development Alternatives Inc. Specifically, a Factor Analysis method is used to mathematically reduce the original multicollinear set of variables to a smaller number of independent factors. The sample is confined to the 36 heterogeneous African and Latin American projects mentioned above; variables focus on rural development-related political, economic, and social conditions in a given project area and include measures of a given area"s small farmer success rate. The report summarizes the completed Factor Analysis, which identifies three general functions of rural development project success: (1) degree of community participation, (2) extent of financial resource commitment, and (3) impact of contextual surroundings. Projects are ranked according to success indicator. The report also considers the study"s implications for future policymaking. Finally, the paper presents conclusions and recommendations, stressing in particular the importance of active small farmer participation in decision-making. Appendices provide a list of projects, equations for the statistical model, a commentary on analytical method used, and a bibliography.