Completion evaluation

Introduction

Background of the evaluation. The loan for the Rural Development Project of the Mayan Communities in the Yucatan Peninsula was approved by the Executive Board of the International Fund for Agricultural Development (IFAD) in December 1995. The loan contract was signed in July 1996 and took effect in November 1997. The project was scheduled to end on 31 December 2001, but two extensions have been granted, bringing the completion date to 31 December 2004.

Approach and methodology. The IFAD Office of Evaluation decided to send a mission to conduct a project completion evaluation. The mission¹ visited the country from 22 November to 18 December 2004. Prior to its visit, the mission collected and analysed the documentation available at IFAD headquarters, and prepared evaluation instruments. Once in the country, the mission met with authorities from the executing agency and other institutions involved in IFAD cooperation, subsequently visiting the project areas, contacting organizations and interviewing directors and beneficiaries.

In undertaking the evaluation process, the mission followed the methodological framework adopted by the IFAD Office of Evaluation. IFAD's project evaluation methodology calls for close cooperation between the borrower, the project management and beneficiaries in jointly examining the progress and impact of the project.

On 13 December 2004, the mission conducted a workshop in the city of Mérida to present preliminary conclusions to officials from the executing agency, and on 16 December 2004, it held a final meeting in Mexico City with the parties involved to present the aide-mémoire summarizing the initial findings of the evaluation.

Main design features²

Project rationale and strategy. The project is consistent with the Mexican government's policy of promoting rural development through support for the reorganization of productive services³, encouraging autonomy and strong participation on the part of beneficiaries, which is also in line with the IFAD strategy that emerged from the Special Programming Mission in late 1992. Similarly, the provision of special supports for women and the most vulnerable social groups is consonant with the specific aims and priorities of IFAD and is of particular importance in an area that is one of the poorest in the country and that has a predominantly Mayan indigenous population.

Project area and target group. The project area comprises the three states that make up the Yucatan Peninsula: Campeche, Quintana Roo and Yucatan, which have a total of 64 municipalities and an indigenous population of approximately 670 000 people. The target group⁴ includes 51 100 families⁵.

Goals, objectives and components. The goal set for the project was to assist 10 000 families, including at least 30% women among the beneficiaries of the various planned activities. In addition, nine regional funds (RFs) were to be included within the sphere of action a similar number of indigenous coordinating centres (ICC); 520 productive projects were to be formulated, with financing provided for about 470; and 200 training events and about 45 studies or consultancies were to be carried out.

The general objectives established for the project centred around improving the income and living conditions of the target group, strengthening the development of local institutions to enable them to provide technical and financial support services for production and marketing, and establishing mechanisms that would allow for an equitable distribution of the benefits of the project.

For the achievement of the objectives, the design identified four main components: (i) investment financing; (ii) technology development services; (iii) promotion of demand for services; and (iv) the project executing unit. The gender perspective was considered a cross-cutting element essential to the implementation of all components.

The base cost of the project was of USD 16.22 million and the total cost (including physical and financial contingencies) was USD 17.2 million⁶, of which IFAD was to contribute USD 10.4 million and the borrower approximately USD 6.8 million. Of the total cost, 60% (USD 10.35 million) was for the productive investment financing component; 11.4% (USD 1.95 million) for the technology development component; 14.6% (USD 2.51 million) for the demand promotion component; and 13.7% (USD 2.36 million) for the execution component (project executing unit, plus programming and monitoring).

Implementation partners and arrangements. For its implementation, the project was to have a trust fund⁷, which would channel resources to the RFs, in addition to the project executing unit, located within the National Indigenous Institute [Instituto Nacional Indigenista (INI)] (now the Commission for the Development of Indigenous Communities [Comisión para el Desarrollo de los Pueblos Indígenas (CDI)]. Responsibility for the evaluation of project execution by the borrower was to be entrusted to qualified independent entities, such as universities or other specialized institutions.

The borrower's representative vis-à-vis IFAD is Nacional Financiera (NAFIN SCA). Other federal or regional public institutions could also be involved in the project, contributing additional funds or technical support. The United Nations Office for Project Services (UNOPS) was designated as the IFAD cooperating institution.

Major changes in policy and institutions during implementation. The project originated during a period of structural, institutional and economic change.⁸ Two significant events occurred in the course of its execution: a change of government, with the election of a president from the opposition, and a restructuring of the INI, which became the CDI, with a less centralist operating structure.

Design changes during implementation. The trust fund originally conceived as the mechanism for channelling funds to the RFs was replaced by administrative procedures of the executing institution⁹, and the RFs were given direct responsibility for administering the resources for investment financing. Federal funds channelled annually through the budget and earmarked for the project were intended to complement the funds from the IFAD loan.

The list of nine RFs to be assisted was expanded to 16, encompassing virtually all¹⁰ of the RFs existing on the peninsula.

The project fell behind schedule and did not really get under way until the second half of 1998, which led to two extensions of the project completion and loan closing dates.

The differentiation included in the original design in terms of assistance for the target population, which provided for the possibility of non-reimbursable financing with resources other than recovered funds, was modified¹¹.

The PEU was not established in the normal way. Officials from the central office took over executive management of the project, while state representatives from the INI/CDI were responsible for coordinating execution in the states. Later on, a regional coordination office was created for the entire peninsula.

The technology assistance council (TAC), which was to have provided advice on the technical assistance activities of the project, ceased to function a few months after its creation¹².

Summary implementation results

Financing for productive investments. For the period 1998-2004, the regional funds provided financing to about 420 groups (most of them mixed) for productive projects, extending credit to about 8 300 members, not all of whom met the requirements established by the project¹³ and most of whom continued producing and marketing their products individually.

Of the projects financed, 65% were livestock-related. The average amount of financing per project in 2004 was USD 7 412. The average amount per user was only around USD 662, but that amount was fairly significant in the small-scale economy of the borrower, generating self-employment and income opportunities. The percentage of women recipients of credit rose from 24% in 1998 to 55% in 2004, averaging 30% for the period as a whole, which was the established minimum.

Strengthening of the regional funds. The performance of the RFs assisted through the project showed positive changes: extension of the term of loans and increases in their amounts, greater participation by users, improvements in credit approval procedures¹⁴ and collections and in recovery rates and organizational aspects; management of accounting and automated information; and interest rates that were closer to inflation rates¹⁵. However, the RFs continue to be heavily dependent on resources from fiscal revenues.

The training provided, both for members of the boards of directors and for the group representatives, is still in a very early stage, and information on financial performance (FIS) is generally not accessible to decision-making entities in the manner in which it is presented, nor is it comprehensible to directors and representatives.

Technology development services. The project helped to improve the documentation accompanying applications for financing, and standards for the formulation of technically and economically viable projects were formulated. A review committee established in 2003 to assess the quality of proposed projects and approve applications helped to enhance the quality and transparency of the process.

The training programme has not had sufficient impact on the target population. Few of those interviewed showed that they had acquired sufficient additional knowledge and skills to enable them to carry on the activity generated by the project on their own. This deficiency was even more evident among groups of women and family groups of indigenous origin.

The RFs contracted for technical assistance directly, averaging 45 technical experts per year to assist all the groups financed by the project. Field observations showed small-scale improvements in basic technology, diversification of production and increased animal assets. Assistance for the sale and marketing of products was limited, and technical support for women was weak¹⁶. Members played an active and significant role in counterpart contributions to the loans of the RFs.

As of 2003, a total of 54 demonstration plots had been established on members' land in order to disseminate best practices and innovations in their communities, with varied results. In general, the impact of the demonstrations in terms of participants reached was limited.

The TAC that was to have advised on the technical assistance activities of the project functioned only for a few months. In the framework of its objective, some institutional or individual agreements for cooperation and assistance were reached, which remain in effect, although the advisory services and studies provided were insufficient to ensure the expected level of specialized advice.

The productive activities financed, most of which were very limited in scale, had little or no effect on environmental conditions¹⁷. Moreover, the project resulted in some growth in organic farming.

Promotion of demand. According to information from the executing agency, fewer than 20% of the RF member groups have been able to reach the consolidation stage, as they have not achieved financial autonomy and self-management. Most are still in a phase of formation or strengthening, and their membership diminished when the first financing was obtained. Regional meetings and training, together with systematization of experiences and other mechanisms, have contributed to closer ties between the groups and the RFs.

The capacity of young people (members or associates of these groups) to serve as links between the instructor and the group members was not exploited, nor was use made of personnel available in communities who had training in promotion techniques.

The assistance for indigenous school residences and the use of the radio in the Mayan language were limited in time and scope¹⁸, and there was little distribution of instructional support materials for training, promotion and dissemination, designed by those responsible for "communication".

The percentage of female credit users increased significantly, rising from 23.65% in 1998 to 55.15% in 2004 and the presence of women involved in leadership of the RFs also grew. However, there is still a great deal of unmet demand among groups composed primarily of women¹⁹, despite their good performance as borrowers.²⁰

Project management and coordination. One of the advantages of the organizational model adopted for project execution was institutionalization of the measures introduced to strengthen the performance of the RFs, as well as of measures aimed at improving the quality and execution of the projects formulated. Some progress was observed in decentralization and coordination of decision-making and activities.

Monitoring and evaluation of execution. Progress was noted in the implementation of the system for monitoring project execution, but there continue to be problems with timely and ready availability of the data collected and with use of the information for feedback.

Performance of the project

Relevance of objectives. The objective of developing a system for financing productive activities through regional solidarity funds (RSF) or regional indigenous funds (RIF) and strengthening these institutions remains very valid, given the need to ensure access to financing for excluded rural populations.²¹

The promotion and strengthening of community-based organizations and of their affiliation with the RFs, coupled with the dissemination of information in the Mayan language about the RFs and their services, proved to be effective ways of encouraging the active participation of the target population and channelling their demand for financing.

The goal of reducing inequity in the project area is in line both with current social demands and with the official policies and the specific aims and priorities of IFAD.

Effectiveness. The project has shown progress in increasing the value of family work and in opening up new productive options. In successful cases, it led to expansion and improvement of productive activity, increased the incomes of beneficiary families and enabled families to build some capital and reduce their vulnerability.

Project support contributed to the strengthening of the RFs; however, the local capacity of these institutions is still insufficiently developed to enable them to achieve participatory and autonomous management.²²

A significant number of producer groups and community-based organizations have become members of the RFs, in general family-based²³ groups; however, they frequently do not feel real ownership of the RFs and have not, in practice, achieved the capacity to work as a cohesive group.

During project execution, mechanisms were adopted to reduce the existing inequities in the communities and groups of members. Nevertheless, the beneficiary selection criteria established for this project were not strictly applied.²⁴

Efficiency. As the project neared completion, virtually all of the external resources allocated and most of the counterpart funds had been disbursed, and the physical goals had been met to a satisfactory degree. However, despite the advances mentioned above, there were some deficiencies in execution, including high operating costs of the RFs and low recovery of loans; training activities that were not sufficiently structured and differentiated; technical assistance that lacked continuity and was not always appropriate; insufficient promotion; and little use of opportunities for dissemination and communication. In addition, the use of monitoring indicators for purposes of project management is incipient, and expenditure on instruments for the coordination of project activities in fact did little to improve coordination.

Impact on Rural Poverty

Impact on physical and financial assets. Members have made small investments for productive purposes (acquisition of animals, mainly). Any surpluses have not generally been used for household equipment or home improvement. Rating²⁵ for impact on physical assets: 4.

Impact on human assets. The training activities and technical assistance provided under the project, with the weaknesses noted above, helped to strengthen human capital to some extent in the target population for the project. Rating for impact on human assets: 4.

Impact on social capital and empowerment. Owing to the deficiencies in the RFs and their member organizations and groups, the project contributed only in a limited manner to the formation of social capital. Rating for impact on social capital: 4.

Impact on food security. The mission detected some improvement in productivity (in physical terms) and increases in production, although they were not always accompanied by increases in the profitability of the activity or the income of the producer.²⁶ The acquisition of animals, the increases in production and, in successful cases, the achievement of surpluses helped to improve the food security of members to some extent. Rating for impact on food security: 3.

Impact on the environment and communal resource base. The productive activities financed were complementary and small in scale. Additionally, organic production and processes with low environmental impact were promoted. Impact rating: 4.

Impact on institutions, policies and the regulatory framework. The project has helped to bring about institutional improvements in the CDI and other development programmes²⁷. Impact rating: 5.

Impact on gender. The project has helped to make visible the contribution of women to productive activities and ensured their presence in groups and organizations and in the RFs. Women's access to the benefits of the project was significant in terms of access to credit, but much still remains to be done in order to achieve more effective participation and representation of women. Impact rating: 4.

Sustainability. Despite the contributions of the project, the RFs involved are unlikely to be sustainable: the loan recovery rate is still low and income from interest on loans and other sources is not sufficient to offset high operating costs. In addition, continuity of the technical assistance after the project ends is doubtful. Rating for project sustainability: 2.

Innovation and replicability/scaling-up. The measures implemented by the Yucatan Peninsula Project to strengthen and improve the performance of the RFs²⁸ have been institutionalized by the executing entity, and their application has been promoted in other regions. Impact rating: 5.

Other poverty impact. The mission did not note any impacts on poverty other than those reported above.

Overall impact assessment. The project has had some impact on the rural agriculture context of the Yucatan peninsula, helping the traditionally excluded and vulnerable population to begin to access productive options that could pave the way towards future undertakings. Overall impact rating: 4.

Performance of partners

Performance of IFAD. IFAD has maintained constructive relationships with the national counterparts responsible for administration and application of the loan funds. Users' appraisal of IFAD's participation is generally favourable. There were some delays in processing disbursements in the course of project implementation. IFAD carried out supervision and support visits to the country and the project, which were complemented by the activities of the cooperating institution. Rating for IFAD performance: 5.

Performance of the cooperating institution. The performance of UNOPS was consistent with its terms of participation. The information and suggestions presented in its reports have provided useful guidance, although some of its reiterated observations were never applied in the execution of the project. Rating for UNOPS performance: 5.

Government and its agencies (including project management). The counterpart financing to the IFAD loan, particularly in the beginning, was reduced significantly, which affected project performance. In addition, there were delays in releasing the resources allocated. Overall performance rating: 4.

The performance of the executing agency (CDI) showed steady improvement. In general, it was able to meet its objectives and carry out its managerial functions. However, excessive interference in the RFs was noted, as were some weaknesses or difficulties in the coordination of activities, in the training approach and strategy, in the selection of extension agents, in the dissemination of information and in the performance of the monitoring system. Rating for performance of the executing agency (CDI): 4.

Performance of non-governmental and community-based organizations. The RFs increased their assets and made some headway towards being able to operate as self-sustaining and participatory financial intermediation entities. However, they remain highly dependent on fiscal resources, and they did not succeed in bringing about any significant increase in the availability of financing for the target population.²⁹ Performance rating: 4.

The fact that families comprised many of the producer organizations and groups lends them a degree of permanency; but these groups lack capacity for self-management, they are not really integrated into the RFs, and their members continue to approach their work basically as individuals.

Overall assessment and conclusions

At its completion, the project, which was extended twice³⁰, shows a performance that can be considered satisfactory from the standpoint of achievement of physical and financial goals.

The project's impact in improving the income and living conditions of the beneficiary population was modest; but for families of limited means, it afforded a valid opportunity for getting involved in new productive activities and strengthening existing ones in a context of greater responsibility and self-determination³¹. Although it was not possible to ascertain the exact extent of the change in production and/or productivity³², observation in the field revealed improvements in basic technology, diversification of production and an increase in animal assets³³.

The project helped to increase the number of and strengthen the RFs, although it was not possible to achieve a level of capacity development that would enable them to function in a truly autonomous and participatory manner.

The financial performance indicators of the RFs improved steadily over time.³⁴ The approaches and mechanisms introduced by the project, in terms of financial, administrative and accounting management³⁵ and support for productive investments, have made an important contribution to the implementation of development programmes and have been institutionalized by the CDI and adopted in other regions and programmes.

Although the boards of directors of the regional funds prepare annual programmes of activities, the mission did not find any cases of FRs that prepared an annual budget or any other estimate of expected income and expenditures. In addition, the accounting information on the performance of the loan portfolios of the RFs is, for the most part, cumulative.

The project has helped to bring a great number of producer groups and community-based organizations into the RFs, most of them family-based groups³⁶ motivated by access to financing. In practice, however, most still lack to the capacity to manage financing, obtain technical support for production, or work and market their products collectively.³⁷

The project contributed effectively to the improvement of applications for financing and to the development of technically and economically viable productive projects³⁸. With regard to technical assistance for production, the mission noted problems with continuity and lack of specialization and suitability of technicians and trainers.

The fact that the project explicitly set a minimum percentage for women's participation in its activities and suggested ways of increasing women's leadership and direct involvement in the decision-making of production groups and RFs has yielded positive results. In general, the most recent RFs have shown improvements in their management, with more participation by women than older funds.

The training programme objectives were not fully realized among the target population, particularly women's groups.³⁹ The communication subcomponent yielded some positive results. The use of the radio in the Mayan language to publicize the project was effective and showed high potential. Similarly, the indigenous school residences proved to be effective vehicles with high potential for transferring innovative and best practices.

With respect to the environment, the project activities and approaches have, in the vast majority of cases, been respectful of the traditions and values of the predominant cultures and of natural resources and the environment generally, providing support for organic and balanced production processes.⁴⁰

The efforts made and the advances achieved by the executing agency were insufficient to overcome weaknesses in the coordination of activities, the systematization of experiences and the compilation and organization of relevant data, as well as the dissemination of related information.

IFAD's involvement was decisive in making the loan operation a reality. The cooperating institution's role was consistent with its terms of reference for project supervision.

Insights and recommendations

Insights

An important strength of the regional funds assisted under the project is that they have brought together organizations comprising members of varying political positions, religious beliefs, age and sex, although the organizations themselves have all been relatively homogeneous from a cultural and socioeconomic standpoint.

The absence of a clear definition of the nature of the RFs (financial, social or financial-social) makes it difficult to plan strategic actions that would help ensure their sustainability over time.

Proper selection and training of technical advisors, as well as conditions of job stability and incentives, are crucial conditions for achieving quality and efficiency in the provision of technical assistance services.

The use of radio broadcasts and communication in indigenous languages offers great potential for publicizing projects and for informing and training the target population. This resource should be utilized efficiently.

The fact that the project executing agency was the institutional structure of the CDI itself, reinforced strategically, may have had an impact on the improvements and changes in approaches and priorities introduced by the project, which were progressively institutionalized.

Recommendations

Decentralization of implementation. Take concrete action to ensure that organizations and communities of the target population are given increasing responsibility for decision-making about project implementation and resource administration.

Regularity in resource allocation. Take steps to ensure that project budget funds flow as scheduled.

Definition of RFs. Clearly establish the financial and social nature of the RFs and plan their strategic actions accordingly.

Institutional development of RFs: Protect RFs from political contingencies, strengthen their diverse nature as representatives of low-income rural populations, promote their involvement in participating communities and emphasize capacity-building for and participation by their directors.

Training for RF directors. Inform and train RF boards of directors adequately with respect to legal and institutional instruments relating to the institution's activities and specific circumstances, as well as basic aspects of managing and interpreting accounting records and useful instruments for that purpose.⁴¹

Recovery of subloans. Continue to stress the need to improve loan applications and productive projects and the need for transparency and rigour in approval processes. Emphasize the responsibility of borrowers to repay loans, and assess the real possibilities for recovering small loans to populations with minimal assets and productive resources.

Diversification of financial sources. Arrange for the use of the various sources of financing available from the Mexican government to alleviate poverty and promote rural development and stimulate autonomous access by the RFs to those resources.

Quality of the technical assistance model. Conduct an in-depth review of the technical assistance model adopted in order to make future service more effective and more efficient. Develop an intervention strategy diversified by category of family beneficiary according to sex and age. Consider, for the medium and long term and once productive units are operating efficiently and producers have raised their incomes, including part of the cost of technical assistance in the loan.

Specialized assistance. Ensure the specialized advisory assistance needed by the technical assistance service for productive projects financed by the RFs.

Gender perspective Include an explicit gender perspective in designing projects and in dealing with social and organizational issues.

Support for demonstration plots in residences. Step up financial and technical support for activities such as those included in the indigenous school residences subcomponent of this project.

Exchange and systematization of experiences. Strengthen the promotion of and support for events to exchange and systematize the experiences of various projects and institutions.⁴²

Training of trainers. Training of trainers⁴³ should receive the full support of the CDI in order to empower the population and lend sustainability to the improvements introduced. Promote efficient and effective strategies and mechanisms as a complement to technical assistance in order to ensure social and generational equity⁴⁴, as well as cohesion of groups.

Producers' demonstration plots. Encourage "demonstration plots" on land owned by members for applied research and testing of improved techniques, ensuring that they fulfil their intended demonstration and dissemination function.

Strengthening of organizations. Promote the idea that the objective of creating a group should extend beyond a simple short-term purpose, need or interest. Help strengthen the internal organization of groups and communities for decision-making purposes, and step up participation by current and potential beneficiaries in deliberative and decision-making assemblies and bodies. Also promote the concept of ownership among FR member groups so that they understand that the FRs belong to them.

Information and diffusion. Motivate and support the RFs in the intensive dissemination of their programmes, regulations and requirements.

Institutional experience with implementation. Conduct an in-depth review of experience with the direct implementation of projects by a pre-existing national or regional institution having been strengthened to that end.⁴⁵

Replicability of RFs. Consider the possibility that the RF model, with adjustments and refinements as needed, could be replicated in order to strengthen organizational, economic and productive aspects of rural and indigenous communities in Mexico.

Coordination of project activities. Promote the incorporation of mechanisms to strengthen the coordination of project activities.

Monitoring of implementation. Require and provide the necessary support to enable executing institutions to develop and maintain up-to-date project indicators and instruments⁴⁶ that will facilitate monitoring and timely corrective action during implementation.

Following recommendations. Take steps to ensure that recommendations arising from supervision visits and evaluations are in fact analysed and, where appropriate and relevant, applied by the executing institution.

1/ Consisting of Mr Raúl Alegrett, Mission Leader and expert in project management and institutional development; Ms Omaira Lozano, expert in microfinance institutions; and Ms Myra Speelmans, gender and evaluation expert.
2/ This information refers mainly to the original project design (developed during the appraisal phase). As is noted at the end of this section, several modifications were introduced in the course of project execution.
3/ Basically, access to credit and technical assistance.
4/ The appraisal document specified that to be included in the target group families had to meet the following criteria: (i) residents of a rural area, (ii) indigenous households, (iii) production units of around 5.0 ha. and income falling below the poverty line, which at the time was USD 400 per capita a year.
5/ Of the total number, 33 836 families lived in the state of Yucatán, 8 184 in Campeche and 9 080 in Quintana Roo (1995).
6/ The amounts for the project components are listed in the table entitled "Financing plan by component" in the December 1995 report and recommendations of the Chairman of the Executive Board of IFAD.
7/ The trust fund was seen as an appropriate institutional mechanism for providing financing to the target group and strengthening the institutional sustainability of the RFs and the farmers' organizations associated with them, making it possible to avoid their being subject to the control of public agencies, facilitating private investment and reorienting the role of public institutions towards strengthening of basic infrastructure.
8/ Particularly in late 1994, Mexico underwent a grave economic crisis.
9/ The CDI is required to negotiate its budget funds with the Secretariat of Finance and Public Credit [Secretaría de Hacienda y Crédito Público (SHCP)].
10/ One additional recently created fund (Escárcegas) received assistance only in the form of  training.
11/ With the acceptance of supervision.
12/ However, its objectives were borne in mind and several specific agreements were established with accredited institutions.
13/ The criteria for the target population of the project set limits on farm size and family income.
14/ The adoption of technical criteria (technical, financial, environmental and social feasibility) for the approval of credit applications, coupled with the implementation of qualification committees in 2003, improved the prospects for loan recovery.
15/ The interest rates currently being applied by the funds range from 6 to 12%, which, compared to the interannual rate of inflation for 2004 (4.5%) seem adequate; however, operating costs (travel, food and lodging, collection activities, etc.) amounted to considerably more than that percentage. There are some regional funds which, based on the financial indicators applied, show an expenditure/income ratio of 369%, with a strong tendency towards loss of capital and, potentially, failure.
16/ This was no doubt because the project did not have specialized technical support for these target groups.
17/ Mostly backyard production, with little or no increase in the areas devoted to crop or livestock-farming.
18/ Although more than 90 school residences were involved over the life of the project, in most cases the assistance was not sustained.  
19/ Most of the women interviewed indicated that their requests for financing: (i) had not been answered promptly; (ii) had been channelled towards other areas of production; (iii) did not have the technical support needed; (iv) were not accompanied by training suited to their needs and opportunities.
20/ In addition to being good "payers", women in groups engaged in "traditional activities" were able to generate family savings (generally in the form of farm animals), earn a small income from performing their day-to-day tasks and, with the second loan, acquire some goods or equipment for the performance of their productive activities.
21/ The project area is one of the poorest in the country, with a large proportion of marginalized population. Apart from simple subsidies, the RFs are about the only option available to this population for accessing financing.
22/ For example, although the quantitative achievements are satisfactory in terms of number of beneficiaries served and number of planned activities and events carried out, the same is not true of the number of well-trained managers and members, knowledge on the part of the population of the characteristics of the RFs and the project, the possibilities for membership and the responsibilities of members.
23/ Extended families or several nuclear families from the same extended family, together with nearby neighbours.
24/ The mission found several instances of RF participants whose income levels and land holdings were significantly larger than the established parameters and noted that in practice these groups with higher incomes and social status obtained better and bigger results than the IFAD target population.
25/ Based on the rating scale of 1 (negligible) to 6 (very high) used by IFAD.
26/ Lack of availability of accurate data on basic variables makes this measurement difficult. The project monitoring and evaluation office expects to have this information ready by the administrative closing date.
27/ Operational innovations, development and implementation of operating guidelines, manuals, norms and procedures.
28/ Introduction of technical and managerial elements, improved efficiency in their management, increased transparency, better technical quality in the design and execution of projects financed by the RIFs as a basis for supporting beneficiaries' production through financing and improving project execution through technical assistance.
29/ The RFs have been operating with non-financial resources (non-reimbursable funds from fiscal revenues), with little or no diversification of income, no capture of savings, low interest rates, low loan recovery rates and relatively high operating costs.   
30/ Institutional changes, budget cuts and decentralization of  the operational units of the executing agency (INI/CDI) short after the start of project implementation hindered disbursement of the loan funds.
31/ The activities of the RFs in the framework of the project have helped to raise the value of family labour, generating increased family earnings and, in general, increasing opportunities for productive work among members. Moreover, for the project's target population, the RFs are the only credit mechanism currently available, except for subsidy-based programmes.
32/ The project monitoring and evaluation unit expects to have this information ready by the administrative closing date.
33/ Any funds remaining from productive projects have generally been used for investment in animals, which has reduced the vulnerability (risk exposure) of member families at least to a small degree and has enabled them to address unexpected needs.
34/ The recovery rates for financing provided in the last three or four years (since 2000) have been much better than in earlier years. The RFs have also exhibited improvements in their boards of directors and greater concern with becoming self-sustainable.
35/ Including operational guidelines, manuals, norms and procedures.
36/ Extended families or several nuclear families from the same extended family, together with nearby neighbours.
37/ Many of these deficiencies may stem from the lack of strategic systems of support for the community and the groups that comprise it, as well as the absence of technical personnel with training in social areas (organization, training-communication, anthropology and gender).
38/ The project review committee established in 2003 to assess the quality of proposed projects and approve applications helped improve loan recoveries in 2004.
39/ Very few of those interviewed demonstrated that they had acquired sufficient additional knowledge and skills to enable them to carry out their new activities independently.
40/ However, the very limited scale of the interventions financed, especially in terms of farm size, lessens their potential environmental impact.
41/ This training should include assembly delegates and/or their children.
42/ Both among RFs and among technical assistants from different regions and member organizations.
43/ Both technicians and producers.
44/ In order to take advantage of opportunities (experience and knowledge of elders, capability and energy of youth) and reduce the inequities that exist within participating families (limited access to goods and services, excessive workloads for women).
45/ Important advantages include the institutionalization of the programmes, measures or instruments introduced, possible economies of scale and improved prospects for sustainability of the actions undertaken. Among the negative aspects are the risk of diluting efforts and attention, diversion of some project resources to other programmes, change in the nature of programmes and greater influence of partisan politics.
46/ Input of information requires constant effort to ensure consistent and complementary action between the state delegations and the RFs so that the information is readily available in a timely fashion. Priority should be given to using data to provide feedback to operating units and RFs in the form of reports addressing their specific needs.