Report of evaluation of rural savings mobilization project (517-0179)

Special evaluation covers the period 8/83-11/84 and is based on document review and on interviews with 37 persons. The project"s Agricultural Bank (BAGRICOLA) and research components have achieved remarkable results. Workshops of 10/82 and 10/83 were instrumental in initiating thinking among senior BAGRICOLA officials about the benefits of savings mobilization, and the extent and rapidity of BAGRICOLA"s savings development has clearly outrun targets: 20 branches have taken $RD2,827,000 in deposits; this level of performance, however, raises the issue of whether BAGRICOLA has been too successful - there may be serious risks in encouraging extensive deposits and lending before the institution is fully capable of handling the operation. Eight research studies on Dominican financial markets are underway and research workshops were conducted in 11/83 and 10/84; while research quality is uneven, much of it is good and very relevant to the project. Less positively, the credit union (CU) component got off to a slow start (problems in selecting pilot CU"s, weak FEDOCOOP support, and the extent of work needed to prepare the CU"s to mobilize savings) and still suffers the lack of an institutional base. However, an accounting system has been developed and 2 Dominicans trained (and 1 partially trained) to provide TA to cooperatives; one of the four participating CU"s - which have mobilized a total of $RD227,158 - has reached an adequate level of competence. The project has been exceptionally effective as an instrument of policy dialogue - expanding its rural focus to generate a reexamination of nationwide financial policy concerns - and as a process model for preparing CU"s for savings mobilization. has also attracted considerable participation by individual Dominican professionals in research, policy dialogue, and operational areas, as well as strong institutional commitment, especially from the Central Bank and BAGRICOLA. TA from Ohio State University has been excellent. Recommendations address both the project"s current needs and follow-on plans.