STUDY OF A PILOT IN DIRECTED AGRICULTURAL PRODUCTION CREDIT IN ECUADOR

USAID ASSISTANCE WAS PROVIDED TO THE DCP TO INCREASE AGRICULTURAL PRODUCTION THROUGH THE DEVLPMNT OF RURAL AGRI CREDIT UNIONS. INFO FOR THE ANALYSIS WAS COLLECTED FROM RECORDS OF THE COOPERATIVE BANK OF ECUADOR & A SURVEY OF CREDIT UNION MANAGERS CONDUCTED IN 5/69. STUDY CONCLUDES THAT THE DCP REALIZED SUBSTANTIAL SUCCESS IN A VERY SHORT PERIOD OF TIME WITH 26 CREDIT UNIONS ESTABLISHED OR REVITALIZED IN 4 1/2 YRS. HOWEVER,THE EVAL NOTES THAT THE MOST IMPORTANT REASON FOR ITS SUCCESS WAS THE AMT OF MONEY SPENT. AS OF 12/31/68, USAID MADE GRANTS TOTALLING $125,000 COVERING DCP'S ADMIN EXPENSES & THE COST OF CUNA (CREDIT UNION NATL ASSOC) TECHNICIANS. IN ADDITION, $650,000 OF A USAID LOAN TO THE ECUADOR CO-OP BANK WAS USED EXCLUSIVELY FOR THE DCP. STUDY DESIGNATES THE FAILURE OF THE FEDERATION TO PROVIDE ADEQUATE TECH ASSISTANCE TO THE DCP CREDIT UNIONS AS THE MOST SERIOUS SHORTCOMING. STUDY RECOMMENDS THAT THE FEDERATION ASSIGN ADDITIONAL AGRONOMISTS OR OTHER AGRI EXPERTS TO THE PROG; ALSO, THAT THE NUMBER OF PARTICIPATING CREDIT UNIONS BE REDUCED TO APPROX 5. THIS REDUCTION IS REQUIRED TO CUT COSTS & IMPROVE PROG ADMINISTRATION AS WELL AS TO INCREASE THE AMT OF SUPERVISION & TECH ASSIST AVAILABLE TO THE CREDIT UNIONS. ALL 6 URBAN ORIENTED CREDIT UNIONS SHOULD BE EXCLUDED FROM THE PROG. STUDY CONCLUDES THAT INSTITUTION-BUILDING (INCREASING THE NUMBER OF DCP CREDIT UNIONS) WAS EMPHASIZED OVER PROG QUALITY TO A DETRIMENTAL DEGREE. THE STRESS ON QUANTIFIABLE GOALS MAY BE DUE TO THE INFLUENCE OF CUNA INTNATL WHICH USES STATISTICAL INDICATORS TO ASSESS THE LA CREDIT UNION MOVEMENT. STUDY SUGGESTS THAT USAID HELP TO LESSEN THIS EMPHAIS AND THAT PROG NOT BE EXPANDED ANY FASTER THAN PERSONNEL ARE ACQUIRED TO SERVE AS MANAGER, FIELD INSPECTORS AND AGRONOMISTS.