Trade and investment : non-traditional industrial exports (NTIE) with FEDEXPOR

The evaluation covered the period 9/91-9/93. FEDEXPOR"s poor understanding and execution of the Project Paper design has resulted in an overall lack of strategy and focus. Part of this problem is due to the phasing of the project in which FEDEXPOR personnel were not hired immediately, a change in USAID/E personnel, and later contracting of international TA. FEDEXPOR"s four service activities are not well integrated. Some (studies, policy dialogue, publications, the commercial information system) have been done well, others (seminars, trade fairs, some TA) less well. Some real progress has been made in the macroeconomic and legal framework, with FEDEXPOR contributing to an improved export environment in Ecuador. hand, comparative advantage for the three targeted NTIE subsectors (processed foods, metal mechanics, and ceramics) shows only moderate strengthening, and FEDEXPOR"s targeting strategy for these subsectors is quite weak; they require separate strategies because they have different specific needs and are at different levels of development. Additionally, FEDEXPOR"s relationship with guilds and associations is not good, and use of the latter as a means for technology transfer has been deemphasized. Regarding impact, the NTIE sector is increasing employment annually at about 8% per year, with women benefitting more than men. Ceramics and metal mechanics subsectors have increased export sales steadily, and FEDEXPOR has made a good contribution to facilitating contacts among exporters and buyers. FEDEXPOR has made progress in upgrading its internal operations (expanding personnel, equipment, and offices). Overall, while FEDEXPOR"s project delivery at the activity level is functioning adequately, there is room for improvement. still relies heavily (73%) on USAID funding, its prospects for sustainability are precarious. An action decision is to extend the Cooperative Agreement with FEDEXPOR 1 year in order to facilitate an orderly close-out.