Evaluation of the USAID-Kosovo SME and Agriculture - Economic ...

Development Associates, Inc.1. Major constraints to KEAP achieving project objectivesAbsence of transfer system, public or private.Lack of access to farm credit or agribusiness investment credit (short-term suppliercredits were available).Absence of policy framework and regulatory system.Loss of export markets from pre-war status for agriculture products (Kosovo was netexporter of fruits and vegetables).The Kombinants control of large parcels of better farm and pasture land that wereinaccessible to growers.IFDC’s activities apparently were well coordinated with other donors and other USAID projectsand generally focused on achieving mutually agreed objectives for providing relief assistance inthe agriculture sector. IFDC coordinated with UNMIK, World Bank, other bilateral donorprograms and a large number of NGOs to achieve the project goals.There is no cost analysis on this project but the method of operation was selected in part for thecost effectiveness benefits. The utilization of private sector input supply companies andfinancing was a very efficient and cost effective means of mobilizing the input supply program.Equally important it provided the basis for the private sector to begin functioning again onsustainable basis.The impact of KEAP’s accomplishments were quite significant. The project contributed togetting the agricultural economy of Kosovo moving again after a long period of deterioration andviolence. Farmers were able to begin growing crops again with the seed and fertilizer madeavailable through this project. This was a great accomplishment in a very short period of time.Project activities contributed to income generation and job creation. The farmers income waslargely in-kind as they were able to begin producing crops again to feed families and sell in themarket. Additional people were employed in the input supply distribution companies, the creditinstitutions, the trucking and other service companies, although there are no data to confirm theincome value of those jobs. The whole effort was an important part of getting the economymoving again.As an emergency operation, sustainability was not a goal of this project but in fact the activitieslaid the groundwork for future development of a national agriculture input supply system thathave continued and expanded until 2004.LESSONS LEARNED 301. Technical lessons?The high quality seed and fertilizers supplied under this program definitely achieved higheryields than the farmers were accustomed to getting.30 From IFDC reportsEvaluation of the USAID/Kosovo SME 80 May 2004and Agriculture/Agribusiness ProgramsVolume I