REVIEW OF THE AID PROGRAM IN TANZANIA

Audit report covers 6/76-6/79 and is based on document review, site visits, and interviews with project personnel. Program shortfalls include major differences between AID/W and USAID/T regarding goals set in USAID/T"s 1981-85 Country Development Strategy Statement (CDSS). AID/W cited the CDSS"s lack of projects emphasizing profitability and productivity and suggested a new direction be taken. Poor communications left USAID/T without formal policy and planning guidelines and without planning documents to replace the rejected 1981 CDSS. Also, USAID/T"s supply management has been deficient, and in some cases, the Government of Tanzania (GOT) has useed Title I food proceeds for activities which differed from USAID/T priorities. Project sustainability is at question in: (1) the Disaster Relief project (0128) - drought roads and cattle holding grounds have been constructed, but the former are at risk due to the GOT"s failure to establish maintenance capability; (2) the Agricultural Research project (0107) - significant research has been conducted, but neither research nor management functions have been indigenized; and (3) the Agricultural Manpower project (0119) - the GOT has failed to assign counterparts, and of 44 persons trained, only 7 have been stationed at agricultural training institutes; farmer training is just getting underway, following contracting delays. Regarding other projects: (4) The Livestock Marketing project (0122) suffered a slow start and a faulty design and cannot achieve objectives by the planned completion date, but still has an excellent chance to increase livestock productivity and profitability. (5) The Agricultural Credit project (0117) has had problems with funds disbursement, and loan arrearages are high due in part to transport problems, an employment freeze, and parastatal policy changes. (6) The Seed Multiplication and Distribution project (0092) has been troubled by, inter alia, procurement problems and poor design of storage and drying facilities and equipment; improvements have been initiated, however. (7) The Dairy Production OPG to Heifer Project International (0129) has had serious problems with disease, inadequate facilities, and lack of skilled personnel. (8) Implementation of the Agricultural Education and Extension project (0135) is just getting underway; the GOT has been slow to meet conditions precedent.