Shelter solutions for low income families in rural areas

Final evaluation, prepared by a consultant, covers the period 6/79-8/82 and is based on document review, visits to 4 of 9 participating Mutuals, and interviews with Mutual officials and and project beneficiaries. Although implemented in the wake of the worst economic crisis ever to hit Bolivia and the CACEN, the project had an outstanding impact on Bolivia"s rural poor and developed the capacity of CACEN and the S&L system to finance low-income shelter solutions in widely diverse geographic areas for over 3,000 families not previously served by any credit institution. Technicians were trained, branch offices opened, widespread enthusiasm for ongoing project services generated, and a solid foundation for new projects laid. The S&L system has learned from the problems associated with implementation of the project, such as excessive paperwork, difficulties with agrarian reform lands, and the time required for special legal work, mortgage registry, loan processing, and outreach efforts. On the negative side, administrative costs were high, due in part to increased outreach efforts and a lack of financial planning capabilities, and the amount of savings generated was low. The S&L system"s continued ability to finance shelter solutions depends on the retention of key technicians and the availability of funds from loan repayments or generated savings. In responding to the severe economic crisis, CACEN should gradually increase interest rates and consider a media campaign to explain measures being taken to counteract the crisis. CACEN should also require use of the environmental checklist for type B and C loans. The project taught the need to: consider linguistic and personal interaction skills in technician selection and training; follow up media campaigns with personal visits; staff branch offices with qualified personnel; provide production as well as housing credit; and incorporate a cost/design methodology in technician training.