USAID efforts to promote agricultural policy reform and institutional development in developing countries : lessons for design and implementation

Funding for these efforts has totalled about $1.9 billion, allocated among some 71 projects and programs. Half of this assistance took the form of program aid, while the other half was in the form of project aid. This article evaluates these efforts using both a qualitative, case study approach as well as quantitative analysis of the association between project characteristics -- project environment, the quality of project management, budget and length of the initiative, degree of political or economic crisis in host country, and type of initiative (program or project) -- and project effectiveness. The study finds that project environment is the critical variable in determining which approach to policy reform is most appropriate. In particular, policy reform programs are highly unlikely to succeed in environments lacking in well-trained host agency staff, strong support from influential policymakers, an internal demand for policy analysis, and a solid record of USAID support in the country. These findings indicate that USAID can increase the likelihood of success in policy reform and institutional development initiatives if the design process is sensitive to particular aspects of the host country environment.