Solidarios

Evaluation covers the period 6/78-2/80 and is based on document review, interviews with project personnel and beneficiaries, and site visits in the DR, Guatemala, Nicaragua, and Ecuador. With approximately 33% of project funds disbursed, Solidarios has provided loans and technical assistance to six NDF"s, and has successfully attracted international financing enabling Solidarios to better assist NDF"s and to establish a revolving credit fund. Although evaluations of NDF capacity to organize and assist low income groups are underway, loans to four NDF"s of proven institutional capacity will not be further analyzed, and loan follow-up, in general, remains inadequate. NDF planning and program design are improving as a result of functional seminars, the arrival of one technician to assist NDF planning and two financial analysts to advise on credit administration and disbursements, the adoption of standardized bookkeeping procedures, and preparation of a procedures manual. Nonetheless, NDF repeat funding of the same farmer groups indicates a lack of progress in preparing groups to qualify for loans from other financial institutions and is limiting the number of new groups which can be funded; loan disbursement delays resulted from nonconformance with funding eligibility requirements on the part of smaller NDF"s; and achievement of project goals in Nicaragua and Guatemala is threatened by economic and political turbulence. It is recommended that Solidarios: (1) complete the procedures manual; (2) recruit contract specialists to implement systems and procedures with NDF"s; (3) promote more labor and production intensive crops to improve income growth of Guatemalan farmers; (4) raise interest rates on production credit to fund expanded technical assistance; (5) set deadlines for established groups to be eligible for normal credit channels and extend assistance to more and smaller groups; (6) insure group transition to small-scale commercial farming; and (7) develop a uniform baseline data collection system.