Rural equitable economic growth (CRECER)

Mid-term evaluation covers the period 6/95-10/98. All three project components -- policy analysis (POL), rural financial enterprises (RFE), and rural enterprises (RE) -- have yielded positive results. The demand for the services provided by each component is visible; the project is reaching the intended sector -- the rural poor; and significant impact has been achieved in both tangible and intangible terms. The POL component has implemented important technical support and training activities, especially within the Policy Analysis Unit (OAPA) of the Ministry of Agriculture (MAG). However, the sustainability of this effort is doubtful, due to high staff turnover and low salaries in the Ministry. The RFE shows good quantitative and qualitative achievements in delivering technical support to credit unions, whose progress during this period in improving their financial policies and management systems stands above other projects of a similar nature. Nonetheless, improvements are needed in several important areas, such as governance and decapitalization of savings capital. The high turnover of membership and the need for a more efficient and relevant project management system must also be addressed. (A recommendation that FEDECACES assume overall technical leadership before the PACD was not agreed to by USAID and CRECER; no follow-up project will take place.) The RE component has benefitted the institutional development of the beneficiary enterprises and significantly reduced rural poverty. This is due to the excellent organization and leadership of RE staff, who have initiated a fundamental shift in vision among agricultural and non-agricultural entrepreneurs, and to the RE coordinator"s unique understanding of the challenges facing the agricultural sector. Despite its successes, CRECER is hampered by its design, with separate subcontractors implementing each of the project"s three components. Nonetheless, it is recommended that the current design be maintained through the PACD. The over-arching recommendation is that an integrated information system be implemented to measure the impact of project results and the micro level using enterprise- level data.