Section 416 program in Chile : an evaluation report

External evaluation covers the period FY83-FY87. All activities subsidized with Section 416 commodities are well-established, meet the statutory requirement to feed needy people, and include appropriate complementary services. In the absence of a Mission in Chile, the U.S. embassy economic counselor and a local employee manage the program. Their motivation, commitment, and ability, together with the high level of Chilean performance, produce excellent results. A.I.D./W administration is less satisfactory and shows little consideration for Chilean capabilities or for the competing demands on embassy staff time. The Government of Chile's (GOC's) National Secretariat for Development and Social Assistance effectively coordinates both private and governmental food programs. Two Chilean PVO's monitor food distribution to centers operated by other local agencies, a role which is usually handled by U.S. PVO's in other countries. The GOC pays embassy administrative costs, ocean freight and all local distribution costs, and makes substantial annual payments to the PVO's. It will pay 1/3 of their ocean freight charges for FY87, increasing payments to 100% by FY89. On the negative side, shipping delays have been a significant problem throughout the program. Agreements for FY87, for example, were not signed until early July, 1987, and commodity distribution will not start before FY88. Lack of commodities has caused reductions in ration size, coverage, and regularity of distribution. From inception, the program has relied heavily on milk donations. Nevertheless, participating sponsors accommodated rapidly to the abrupt decline in milk availability in early 1987 by substituting rice and wheat. The limited future availability of dairy products under Section 416 and the high cost of the program to the GOC make the program's future uncertain. Although target group need remains strong, A.I.D. has not yet decided whether to continue the program and the GOC has not yet decided to continue participating. Immediate resolution of these uncertainties is essential for effective program administration and for preserving the political benefits of past activities. Program termination would require adequate notice to Chilean agencies and clear delineation of any political considerations involved.