ACORDE

Summarizes attached final evaluation (XD-ABI-178-A) of a project to strengthen the capacity of the Costa Rican Association for Development Organizations (ACORDE), a second-level financial intermediary, to provide credit to micro- and small enterprises. Evaluation covered the period 1986-6/93, and was conducted in response to ACORDE's request in early 1992 for an additional $5 million grant. The solution to ACORDE's financial needs is not to provide further grants, but to encourage ACORDE to continue its recent steps towards self-sufficiency. Up until 1991, ACORDE's main income-producing activity was to invest funds in the local financial market. While it also provided loans and grants to about 50 local PVOs, interest earned on loans from 1986-1991 amounted to only 0.15% of ACORDE's total income. During this same time period, ACORDE had destined only 3.9% of its resources toward TA and training for PVOs. The provision of TA/training was not awarded on a cost/benefit basis, nor have these activities, as performed by ACORDE, been considered to be of much practical value. In addition, ACORDE's administrative and general expenses are very high. When ACORDE was created in 1986 it was

Source: DEC abstract, PD-ABI-178 (1993). The source's own text.