PVO co-financing II

and indigenous PVO"s working in the Philippines to implement development activities aimed at helping the rural poor. Evaluation covered the period 1984-1/87 and was based on document review, site visits, and interviews with project personnel. The project has been a great success. The number of PVO"s - particularly Philippine - capable of planning and implementing subprojects (SP"s) has grown substantially since the initiation of the predecessor project, with 51 Philippine and 24 U.S. PVO"s now registered with USAID/P. The range and number of activities has also expanded, with 38 SP"s underway, primarily in the areas of agriculture, health, microenterprise development, and multisectoral rural development. The evidence suggests that the growth in PVO capabilities has resulted partly from the stimulation provided by funding support and partly from direct USAID/P efforts to train and assist PVO"s in planning and managing projects. The impact on beneficiaries cannot yet be measured in quantitative terms, but field observations and interviews indicate that the participants perceive the activities as having a favorable impact on their lives. PVO management has been cost-effective and USAID/P registration, approval, and evaluation procedures are sensible and well-regarded by most PVO"s. However, USAID/P staffing problems may arise as the project expands and the rate of implementation increases. There are unresolved issues regarding the sustainability of community activites in the absence of adequate continuing support structures. The current 3-year SP grant period may be too short to ensure the establishment of self-sustaining village organizations. Also, the number and potential complexity of income-generating activities warrant closer examination by an economist to ensure they are solidly based in market realities. Two lessons have been learned. (1) Making grants to PVO"s and providing them with guidance and training does increase their institutional capacities to carry out projects with positive impacts on beneficiaries. (2) Continued thought must be given to structures needed for sustainability. It was recommended in the evaluation that USAID/P re-examine its policy of general opposition to allowing PVO"s to use SP funds to procure vehicles. (Author abstract, modified)