Proposal for a program in appropriate technology


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Proposal for a program in appropriate technology
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Table of Contents
    Front Cover
        Page i
        Page ii
        Page iii
        Page iv
    Table of Contents
        Page v
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    Legislative history
        Page 1
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    Proposal by the Agency for International Development for a program in appropriate technology
        Page 4
    I. Introduction and background
        Page 5
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    II. Outline of section 107 program
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    III. Organization
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    IV. Appropriate technology--definition
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    Attachments A. List of attendees appropriate technology meetings
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    Attachments B. "Private and voluntary organizations and appropriate technology," PASITAM
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    Attachments C. "Appropriate factor proportions for manufacturing in less developed countries: A survey of the evidence," Lawrence J. White
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    Attachments D. "Policies to encourage the use of appropriate technology," Howard Pack
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    Attachments E. "Appropriate institutions for appropriate technology," Gary Hansen, Bruce Koppel
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    Attachments F. Extracts from papers on appropriate technology
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    Attachments G. Extract from "The inducement of U.S. firms to adapt products and processes to meet conditions in less-developed countries," Robert B. Stobaugh and Management analysis Center
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    Back Cover
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Full Text
yq, -T A

94th Congress
2d Session co TTEE PRINT






Jung E 4 it
JULY 27, 1976

Printed for the use of the Committee on international Relations US, GOVERNMENT PRINTING OFFICE 7+4WO WASHINGTON 1976



CRLES C. DAIGGS, JoR., chia.HRETBRE lrd R0;,T .C NX enslaiaPERES u OT Dlwr DOAD .FASR ineot HRLSW WA3, R, li



CoMmrrrEE ON- IN-TER-NATIONAL REUXTIONS, Washington-, D.C., Jidy 27,1976.
Last year, the House Committee on International Relations proposed a new section 10' of the Foreign Assistance Act, of 1961 to authorize the Agency foi- International Development (All.)) to support an expanded and coordinated private effort, to promote the developinent and dissemination of technologies appropriate for developing countries. The new provision called on AID to prepare and transmit to this committee and the Senate Foreign Relations Committee a detailed proposal to carry out the section.
Accordingly, AID undertook a study of what could tisefully be done to implement section 107. This study included both extensive discussions within the Agency and a series of workshops participated in by a wide range of knowledgeable individuals from private organizations and businesses, as well as Members of Congress and mngressional staff. At the same time, the Agency commissioneda number of papers on various aspects of the subje4. '
On June 30, 1976, AID transmitted to Congress the proposal which resulted from this lengthy study.
The committee is publishing the Agency's proposal and several of the annexed papers, together with the text of section 107 and relevant committee report language, so that the results of the AID study may be available to Members of Congress and other interested individuals and organizations.
The committee strongly believes that appropriate, or intermediate, technology, through its favorable impact on employment and selfreliance, can be an important means of implementing a development strategy which emphasizes participation and concentrates on improving -the lives of the poor majority of people in the developing world. It is -the committee's hope, therefore, -that this new proposal will be a useful and constructive step in focusing development efforts more sharply on the needs of the poor. THOMAS S. MORGAIN, Chairman.


Foreword ----------------------------------------------------------- III
Legislative history -------------------------------------------------- I
Proposal by the Agency for International Development for a program in appropriate technology --------------------------------------------- 4
1. Introduction and background --------------------------------- 5
II. Outline of section 107 program -------------------------------- 20
III. Organization ------------------------------------------------ 45
IV. Appropriate tecbnology-Definition --------------------------- 72

A. List of attendees at appropriate technology meetings ---------------- 75
B. "Private and Voluntary Organizations and Appropriate Technology,"
PASITAM ----------------------------------------------------- 78
C. "Appropriate Factor Proportions for Manufacturing in Less Developed
Countries: A Survey of the Evidence," Lawrence J. White ---------- 114
D. "Policies to Encourage the Use of Appropriate Technology," Howard
Pack ----------------------------------------------------------- lfr2
E. "Appropriate Institutions for Appropriate Technology," Gary Hansen,
Bruce Koppel --------------------------------------------------- 1249
F. Extracts from papers on appropriate technology:
"Appropriate Agricultural Technology: Assessment of Non-Farm
Impacts," Clark Edwards ------------------------------------- 315
"Appropriate Technology for Agricultural Development," John
Balis, ------------------------------------------------------- 316
G. Extract from "The Inducement of U.S. Firms to Adapt Products and
Processes to Meet Conditions in Less-Developed Countries," Robert B.
,Stobaugb and Management Analysis Center ----------------------- 319
. . .... . ... ............. .. .

Attachments to AID Proposal on Appropriate Technology not included
in this document but available from AID
1. "Appropriate Technology Study: Some Background Concepts, Issues,
Examples and Recommendations," Louis J. Goodman and East-West
2. "IT Organizations and the Indian Sub-Continent," Intermediate Tecbnology Development Group.
3. "Appropriate Technology in Latin America," VITA.
4. Report on A.I.D.-Private Sector Meetings on Section 107.


On December 20,1975, the International Development and FoodAssistance. Act of 197.5 was enacted into law as Public Law 94-161. That act introduced a new section 107 into the Foreian Assistance Act of 1961 that authorized the Agency for International Development to undertake a new effort in the field of intermediate teclinology. Section 107 reads:
Of the funds made available to carry out this cliapter for
the fiscal years 1976, 1977, and 1978, a total of $20,000,000 may be used for activities in the field of intermediate technology, through grants in support of an expanded and coordinated private effort to promote the development and dissemination of technologies appropriate for developing countries. Tile Agency for International Development sliall prepare a, deta'iled proposal to carry out this section and shall. keep the Senate Foreign Relations Committee and the House, International Relations Committee fully and currently ii-iforined concerning the development of the proposal. The proposal shall be transmitted to these committees no later than March 31, 1976, and shall not be implemented until thirty days after its transmittal or passage by each committee
of a resolution in effect approving its implementation.
House Report 94442 explained the various provisions of the Nternational Development and Food Assistance Act of 197.5 as voted by the House Committee on International Relations. Regarding inter'mediate technology, that report states: cqi Assistance Act of 1961
This new section of the Foreig I
permits a total of tip to $20 million of the funds made available under sections 103-106 over the 3-year period covering fiscal years 19,76--78 to be used for grants to siipport aii expanded and centralized private effort iii thp field of hitermediate technology.
The experience of more. than a quarter century of development assistance programs overseas has clearly demonstrated that much of the technology used in the United States and other industrialized countries is not well suited to tile economies of.developing countries. It is too big, it is too expensive and it does not create the jobs needed to absorb rapidly expanding labor forces in countries which already have an abundance of labor. It is not appropriate for use on the very


small farms and in the very small business enterprises that make up so much of the economic activity in the developing world.
If the poor are to participate in development, as envisioned by the reforms enacted in the Foreign Assistance Act of 1973 and by this bill, they must have access to tools anid machines that are suited to labor-intensive production methods and fit their small farms, small businesses, and small incomes. They must have access to technology which is neither so prihnitive that it offers no escape from low production and low income nor so highly sophisticated that it is out of reach for poor people and ultimately uneconomic for poor countries-in short, intermediate technology.
Accordingly, the bill adds this new section 107 to the Foreigni Assistance Act of 1961 in order to impel AID to study proposals for an institute of intermediate technology and to develop a plan for expansion and centralization of private efforts in this field. It is not meant. to limit the amount of AID f unds used for other activities involving- intermediate technology. which should be expanded as rapidly as possible.
Ami-ong the objectives of such an increased effort in intermnediate technology are the following:
(1) To promote the development and dissemination
of techinologies appropriate for- developing countries, particularly in the areas of agriculture and rural dlevelopment, small business enterprise, and energy;
(2) To identify, design, and adapt from existing
designs, appropriately scaled, labor-intensive technology, and policies and institutions directly related to their use;
(3) To formulate policies and techniques to facilitate
the organization of new small businesses;
(4) To engage in field testing of intermediate technology;
(5) To establish and maintain an information center
for the collection and dissemination of information on
intermediate technology;- and
(6) To support expansion and coordination of developing country efforts in this field.
These objectives are based on the experience of the several institutes of intermediate technology that are functioning in both industrialized and developing countries.
The committee expects AID to begin immediately to develop its proposals for use of the funds authorized under this section, in conjunction with the private organizations now carrying out activities in intermediate technology and those which would be involved in a new effort, and to keep the committee fully informed during the planning process.

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Section 107 of the International Development and Food Assistance

Act of 1975 establishes new grant funded, private program to stimulate the development and dissemination of appropriate technology in developing cou tries.

The legislation states:

"Of the funds made available to carry out this chapter for

the fiscal years 1976, 1977, and 1978, a total of $20,000,000

may be used for activities in the field of intermediate technology, through grants in support of an expanded and coordinated private effort to promote the development and dissemination of technologies appropriate for developing countries. A.I.D. shall prepare a detailed proposal to carry out this section and shall keep the Senate Foreign Relations Committee and the House International Relations

Committee fully and currently informed concerning the

development of the proposal. The proposal shall be transmitted to the committees no later than March 31 31 1976 and

shall not be implemented until 30 days after its transmittal or until passage of each committee of a resolution in effect

approving its implementation."

The deadline for submitting the proposal required by the

legislation was extended to Jure 30, 1976. This paper 4S submitted to the Senate Committee on Foreign Relations and the House International

Relations C ittee in compliance with Section 107. It contains three parts:

1) an introduction and background; 2) description of the proposed goals and activities of the Section 107 program; and 3) a statement of the organizational steps A.I.D. proposes to take in carrying out the program. This proposal has been prepared by a work group representing all major A.I.D. bureaus and offices.


The Private Sector Focus: Section 107 mandates an expanded and

coordinated private effort to stimulate the development and dissemination of apprupriate technologies in developing countries. The

Congressional Committees interpret the term "private effort" widely. Section 107 is intended to complement on-going A.I.D. programs by stimulating a variety of non-A.I.D. entities to undertake innovative programs in appropriate technology. This includes U.S. private and voluntary agencies, private business, individual citizens, not for profit organizations, and universities whether privAely or state

supported. Under the legislation, grants can be made directly to LDC private. groups or publicly supported groups such as LDC R&D institutions, universities, or others.

In reporting out the legislation, the HIRC suggested that we

consult with U.S. private groups active or interested in appropriate technology. These consultations have been a major part of our preparations for this report.

Four day and a half workshops with representatives of U.S. private


and voluntary agencies, businesses, and academic institutions were held in April this year. A larger meeting of private sector representatives was held in May. More than 100 individuals and representatives from
private groups attended the meetings.

These meetings generated a large number of suggestions on the

goals and activities of an appropriate technology program. The program described in this report is drawn largely from these recommendations. The meetings constituted the first step in an on-going dialogue between the private sector and A.I.D.

In addition to the meetings, A.I.D. commissioned a survey of

eighty U.S. private and voluntary agencies to ascertain their current
and prospective involvement in appropriate technology programs. The survey notes numerous instances of successful development and use of appropriate technology by private and voluntary organizations. It contains a number of recommendations for enhancing U.S. private agency capacity in appropriate technology.

The overall impression from the meetings and the survey is that the Congressional decision to engage the talents of the U.S. private sector as a complement to A.I.D. programs in appropriate technology was well taken.- We have been impressed with the diversity of

The list of attendees is appended as attachment A.

2 "Private and Voluntary Organizations And Appropriate Technology" PASITAX Bloomington, Indiana, May 1976. (Attachment B)

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a contributor to unemployment in developing countries. Capital-lahor ratios for new investment projects in LDCs are frequently $15,000 or more per worker while the capital available per worker is less tha a tenth of this figure. The high capital cost of modern technology has also contributed to the development of dual economies small, relatively well-off enclaves of high productivity and well-paid workers side by side with relative stagnation among the larger community.

In this context, a conviction has grown that developing countries need technologies which require little capital per worker (labor intensive), are efficient on a small scale, are easily serviced and maintained, do not require high levels of education or training to operate, and utilize locally-available materials: In short, technologies which are appropriate to the environment of developing countries.

This prescription has not developed without-controversy. Some assert that capital-intensive technologies are highly efficient and produce relatively higher returns per unit of investment. They state that in most sectors there are, in fact, few practical alternatives to modern technology. The so-called spectrum between traditional and modern technologies is really devoid of efficient techniques with alternative capital-labor ratios,

Quite a volume of literature has grown up around this controversy. In preparing this proposal, A.I.D. commissioned a survey of this


literature which indicates that, while the issues are complex and vary with circumstances, the view that LDCs are currently condemned to high capital-labor ratios because there are no efficient alternatives simply
is not consistent with the evidence,

The range of technologies available and in use throughout the

world is much wider than has been thought. This is true for the =ajoritj of industrial products (particularly those with a technical life of more than 20 years), agriculture cultivation and harvesting techniques, excavation, earth moving, and some road building and construction
techniques, means of transport, and a variety of service activities.

For instance, the work by a group of economists at Strathclyde University (Scotland) on the sugar and shoe industries in India,

Ghana, and Ethiopia demonstrates that over a wide range of technology, both individual profits and employment are higher if factor proportions reflect true factor costs. In these countries, production efficiency can be obtained through more intensive use of labor. Other studies show the possibility of expanding the effective use of appropriate technology in ancillary process, such as handling, packaging,

Lawrence J. White, Appropriate Factor Proportions for Manufacturing in Less Developed Countries: A Survey of the Evidence, April, 1976, Atta. hment C

ILO, E!R lon!nt.,- Growth -and Basic Needs: A One-World Problem, Geneva 1976, p. 144.


transporting and storage.

This is not to say that capital-intensive technologies are

invariably inappropriate in developing countries. In some circumstances, efficient, labor-intensive technologies may not exist (e.g. petro-chemical industries) or competitiveness in export markets may require precision machine-made products. Developing countries require a mix of technologies. The problem in many developing countries, however, is that the current mixture is felt to be over-rich in a capital-intensive direction to the detriment of both employment and output growth.

In terms of the competitiveness of the small-scale sector

vls-a-vis large, capital-intensive enterprises in LDCs, White points out that comparisons of the relative efficiency of small and large firms are extremely difficult since product characteristics are usually different. In addition, larger firms often produce more of their own inputs or do some of their own distribution, both of which alters their capital-labor and capital-output ratios.

However, there is anecdotal and other evidence supporting the robustness of small scale industry. The ILO states, "small units

Studied tend to show that the scope for use of alternative technologies is narrower if the characteristics of the product are fixed. If consumers deman drip dry, color fast, cotton/dacron shirts, the scope for substitution of technology in a labor intensive direction is more restricted than if consumers will accept cotton shirts. To this extent, ,the problem of appropriate technology is also one of consumer demand which may in part be a function of income distribution.

generally compare favorably with large scale units on the efficiency

indicators of particular relevance capital-output ratio*, capital

surplua, yield per acre of land 7
and propensities to save and invest."

Pack states that "analysis typically reveals that small firms are at

least as efficient as the larger ones in the sense that if both were

to face the same socially relevant factor prices .... the average

cost of production in smaller firms would be competitive with that
of larger firms, indeed often lower."

Neither small nor large scale industries have intrinsic

advantages across the board. Small scale industry typically employs

502 or more of the manufacturing work force in LDCs, is labor intensive,

and hence is a prime user of appropriate technoloky.
In summ ary appropriate technology may be defined as follows:

In terms of available resources, appropriate technologies are
intensive in the use of the abundant factor, labor, economical

ILO, op. cit., p. 147.

Howard Pack, "Policies to Encourage the Use of Appropriate Technology" Paper prepared for A.I.D., April, 1976, Attachment D

A more rigorous' definition of appropriate technology is appended to this paper. Other terms which have been used to describe the same concept include optimal, progressive, intermediate, low-cost, middle ievel and light capital technology. The term "intermediate technology" was coined by E.F. Schumacher, the British economist who helped formulate the concept in the mid-1960's-. Cradually, intermediate has given way to appropriate. Among LDCs, the word "intermediate" hae come to connote second-best or second-hand. The term appropriate has wider currency and has been adopted by a resolution in 1972 of the UNESOD,. and later by the ILO and other international agencies*

74-665 0 76 2


in the use of scarce factors, capital and highly trained personnel, and intensive in the use of domestically-produced inputs.

-- In terms of small production units, appropriate technologies are small scale but efficient, replicable in numerous units, readily operated, maintained and repaired, low-cost and accessible to lowincome persons.

In terms of the people who use or benefit from them, appropriate technologies seek to be compatible with local cultural and social

Appropriate technology includes software as well as hardware. It includes health delivery systems, educational methods, credit systems and management methods which reduce the need for administrative overhead and highly skilled personnel. The concept of appropriate technology also includes products since shifts in the product mix or in quality standards can improve the utilization of a country's factor endowments.

Appropriate technologies, need not indeed can not maximize all the above criteria simultaneously. For instance, not all appropriate technologies are simple in their construction or in the degree of technical and engineering knowledge required to produce them. Solar energy equipment and concepts are highly sophisticated as are electric power and improved batteries which'might be used to provide energy in remote areas.

Thus stated, the definition of appropriate technology is broad. For operational pirrposes the Section 107 program needs to concentrate on specific fields and problems within this broad area. The program described in Part II below suggests such a concentration.


A2PrPPriat Technology in Devekq "in Countries: A.I.D. c issioned preliminary surveys of existing appropriate technology activity in Asia, Africa, and Latin America. These surveys are appended to this report, as Attachments H 1, and J.

The picture in developing countries, as one.would expect, is

mixed. There is a substantial group of skeptics who see appropriate technology as "technological imperialism!', a way in which Western natidns are trying to keep poor countries in their place so that they can retain access to the energy and resources needed to mAintain high

consumption Western life styles. At a recent meeting on the employment problem in Latin America sponsored by the ILO, a number of Planning and Finance Ministers asserted that appropriate technology was a means of keeping developing countries dependent on the United States for

imports of modern technology. While not rejecting the concept of labor-intensive technology entirely, they stated that Latin America 10
would continue to produce the most modern technologies.

Much of the economics and politics in developing countries favors

capital- intensive technology. Public policy with respect to foreign exchange rates, licenses for imported materials and components, interest rates, wages, allocation of investment funds and others are often biased

in favot of larger, capital-intensive methods. Regulations tend to favor large enterprises in metropolitan centers over small businesses and 10
One indication that the penchant of government officials for the most modern equipment may not extend throughout society is this wall poster from India: PROTEST MEETING Against Forcing Computer into South Eastern RailwaX under Armed Police Guard despite Mass Protest of Workers
and Employees. Demonstration Indian Association Hall January 13.


entrepreneurs in small cities. Years of training in Western universities ot in LDC universities with western curriculums has yielded "engineering bias" toward Western technology among educated elites. Many of the policies above have political roots and are difficult to extirpate, Nonetheless, while no governments have adopted appropriate technology as a national policy, there are ministries and public agencies in many countries that are sponsoring appropriate technology organizations and appropriate technology work.

In Africa, five countries have appropriate technology organizations which are intended to become nation-wide focal points Nigeria, Tanzania, Ethiopia, Ghana, and Kenya. A sixth such center is now being planned in Botswana. In addition, the survey commissioned by A.I.D. identified more than a hundred organizations involved in appropriate technology in 32 African countries. These organizations include community development groups, university engineering and agricultural faculties, research institutions and technical centers,, and sufall industry extension units.

In the ten countries surveyed in East and South Asia, we identified 25 public agencies and universities involved in appropriate technology work plus dozens of smaller, mostly private organizations. Pakistan, India, and Bangladesh all have appropriate technology units in one of their central ministries.

In Latin America, government support of appropriate technology

is just beginning. One of the.first publically-sponsored organizations,


in Honduras, is being planned as this report in written as part of an A.I.D. rural development project. However, the survey of Latin Americo identified more than 300 organizations, nearly all private, involved in appropriate technology in Latin countries. Forty-six of these have a very high and direct involvement in appropriate technology.

The work being done by these public and private organizations

cover a spectrum of appropriate technology. Research and design work includes farm mechanization, food storage, preservation and processing, brick-.making and other building techniques, alternative energy, textiles, ceramics, foundries, coconut products, glue, salt, electro-plating, to

name just a few. in some countries, such as Kenya, Sri Lanka, and Philippines, appropriate technology organizations are involved in industrial extension, financing of small business, market development, and information systems.

This array of organizations and activities confirms that there

is a base for the Section 107 program to build on in developing 48d disseminating appropriate technology in LDCs.

Other Donor Activity: A.I.D. has not conducted a survey of other donor programs in appropriate technology. The following derives from informal contacts made while preparing this report.

The ILO is perhaps the leader among international agencies.

The employment studies conducted by the ILO in Colombia, Kenya, Philippines and other nations have had a major influence on the

development of the concept of appropriate technology. The ILO is


nov doing an evaluation of small scale industry projects which may prove useful to the management of the Section 107 program.

The World Bank is paying increasing attention to the appropriateness of the technology included in Bank projects. In Egypt, for example, a loan to modernize cotton ginning incorporated labor-intensive rather than capital-intensive machinery. Water projects in Bombay, India and several cities in Colombia are based on a capital-saving technology for water filtration. A recent loan to Yugoslavia is aimed at small-scale

agro-industries. Loans for slaughter houses based on labor-intensive techniques have been approved for Honduras and Cameroon. The Bank has done extensive work on labor-capital substitution in road construction.

The Peace Corps has considerable experience in village-levelappropriate technology and is. preparing training materials based on its work. These materials will be made generally available. The principal subjects on which the Peace Corps is now working are small farm grain storage, health education, construction of buildings and roads, forestry and conservation in arid lands, freshwater fisheries, and well construction. Peace Corps volunteers are also developing a program of bio-gas plants in Nepal.

In terms of other agencies, IDRC in Canada is funding Technonetf Asia, an experini'ntal small scale industry extension service operating in a half dozen Asian countries. UNIDOis developing plans for a Clearing House on Industrial Information which may complement the

Seration 107in proram

sees rughy Fprle 1 toc ta! iDn deei ng contie and$ 4m. an whs w l e o e o h ith of t e S c i n 1 7 p o r m


the conditions-of small farmers. Much of A.I.D.'s economic research on questions of employment and development strategy bears on the question of choice of technology.

The Congress has indicated that it expects A.I.D. to continue activities in appropriate technology in addition to the monies allocated fof Section 107 grants. The House Appropriation Committee states that it expects such activities "to account for a steadily increasing share of A.I.D.'s development budget... beyond the modest 11
allocation under Section 107."

There are two main areas for expansion. One is to expand funding for projects such as those listed above which are directly concerned with assisting LDC's develop and utilize appropriate technologies. Such projects would der-ive from sector or other analysis of country needs and would be part of the on-going development assistance program for the country. A second area for expansion is to insure that questions of choice of technique are carefully attended to in all A.I.D. projects, whether they are titled appropriate technology projects or not. Peter Timmer's analysis of the choice of rice milling technology in Indonesia indicates that A.I.D. financed engineers recommended capital-intensive technologies even though their own economic analysis showed that more labor intensive techniques would generate both higher returns and

Foreign Assistance and Related Programs Appropriation Bill, 1977, Report of June 3, 1976, p. 14.

sorejobs Theheedforrigorous consideration of choice of tecniqe rnsthroughout A.I.D .'s program.

Expansion of A.I. t evelop and disseminate appropriate

techoloy i L iplispaed o tdevel ctriteria t istnus beteer tehnialasithne gas activities D miet fu 07

proramareclaifid, ndas the new Section 107 organization

develops~~ ~~ dmntaecopecein given areas.

(Soe 'auionry als),, Harvard Univrsity, 197, pp. 6-6



The program outlined in this section reflects the priorities and recommendations for action expressed in A.I.D.'s April and May meetings. It is an initial configuration. It has been drawn from recommendations of U.S. private groups and tailored by A.I.D.'s internal judgment as to priorities for action. Several steps are needed to sharpen it further.

First, consultations with developing countries are required. One of the first steps taken by the management of the Section 107 program should be to hold participatory planning meetings with LDC groups active or interested in appropriate technology. These meetings should help clarify priorities and determine opportunities for action.

Second, more detailed A.I.D. private sector planning is

needed for each section of the program. The meetings produced a preliminary overall design with five main areas of activity. Further joint planning will be needed in each area and this may rebound to alter the overall design,

The outline below describes a comprehensive program with funding of approximately $10 million dollars per year. This program will not spring to life full-blown at some date in the future, but will necessarily start small. Hence, this program can be considered a guide for future development. The ultimate


shape of the program will be determined by both planning and action-pursuing promising activities and winnowing out less successful ones. B% Goals and Policies for Section 107

Goals: The over-all goal for the program expressed at the April-May meetings is to assist developing countries strengthen their own capacities to develop, adapt and utilize appropriate technology. Development of indigenous capacities for appropriate technology involves policies and institutions as well as hardware. It includes management, tax structures, marketing infrastructure, 13
education, financial institutions, and other concerns.

This goal is ambitious for a $10 million per year venture. Yet as was mentioned in all our consultations development and dissemination of appropriate technology in and by LDC's- is a nascent endeavor. There are no clearly lit or conventional paths to accomplishing the job. A great deal of experimentation, learning from experience, and innovations in approaches to the problem as well as specific innovations in technology are required. It is here that 'the rimary contribution of the Section 107 program to 'larger problem of appropriate technology should-be found.

The program is intended to serve, not just as a founder of

Thffire was a clear consensus that while development of new techn6f6gids or transfer of technology from developed to less developed
counties or among developing countries may be a part of the program,
this is not the goal of the program in the first instance.


privately run projects, but as a source of experimentation,

evaluation and ideas in appropriate technology which can be

picked up by LDC governments and aid donors or be spread by

private enterprise. This is a basic reason for using A.I.D. funds

under Section 107 to engage and stimulate the talents of a widerange of private U.S. and LDC groups. The Section 107 program

is seen as a forum for innovation a provider of yeast to 14
leaven the larger efforts of aid donors and LDC governments.

In this context, the operational goal of the program can

be stated as:

-carry out innovative projects in appropriate technology

in LDC's which enhance the on-going capacities of developing

countries to develop and utilize appropriate technology;

advance the state of practical knowledge about the problems

of appropriate technology and develop through trial and

As an illustration, we have an application from a U.S. small industry development group which is linked with a group in the Philippines. They propose a pilot project to provide village or household potable water systems using a ceramic filter recently developed under a Swiss government research contract for their army. The filters are reportedly extremely effective and inexpensive; they use locally available materials and could be the basis for a local industry. The pilot project estimated at $100,000 would be to see if the filters can be fitted intoa system which meets local needs. If successful, dissemination might be by the Philippine government and/or by private industry.
The significance of this illustration lies in tfie fact that it picks up a little known technology, combines a private U.S. group and a Philippines group with local knowledge, and seeks a quick acting, flexible source of funding for a pilot effort.


evaluation, surer means for assisting developing countries

develop, adapt and utilize appropriate technologies.

It is important to stress that pursuit of this goal in a

particular country or project should begin not with consideration of technology but with identification of real needs of people in their local environment. Countries do not face appropriate technology problems in isolation. They face development problems of which technology is one part. Appropriate technology is part of a multi-disciplinary approach to development problems and it is the problems which constitute the analytical foundation for appropriate technology programs.

For purposes of program management the goal stated above will need to be refined into specific project goals whose accomplishment can be evaluated. It also needs to-be linked to a higher order of goals which derives from the aid legislation itself and forms the backdrop for all Section 107 activities. As expressed it our Aprilmay meetings. this is to: (1) help contribute to broad based growth of jobs and output in LDCs through more effective use of resources;

(2) assist the poor participate in development by raising their productivity and standards of living; and (3) help foster, through technical and economic growth, national independence and selfreliance. This umbrella of principles animates all Section 107 activities.

Program Policies: As a matter of policy, the program will

focus on the small scale sector in LDC's small farms and small and medium scale enterprises. It will focus on appropriate technology to provide low cost services and consumption god for the poor. The concentration on the small scale sector is not .intended to be exclusive. In terms of jobs and improving icm distribution, the program is also concerned with appropriate technical choice in larger enterprises and government public works as well as with exploiting subcontracting and other complementarities between the large and small scale sectors. In addition, the focus on the small scale sector should not ibe calcified asexclusiire attention to the smallest farmsa or enterprises. These may not be productive users of appropriate techno logy. The point is that, while focusing on the small scale sector iis basic to the program, the interpretation of this policy will need to be flexible. Fidelity to the concept cannot be ensured by definitions, but will be the responsibiity of program management.

The program is expected to be oriented-.largely though not exclusively toward rural areas.* Included are villages; market towns, and those small cities which are centers of~ rural regions. Although this policy was not endorsed by all participants in A.I.D,'s meetings with private groups, we believe it isoperationally sound The primary focus of the present U.S. assistance legislation and mn


(not all) of the private U.S. agencies concerned with appropriate technology is toward rural development. Again, this emphasis on rural areas is considered a predominant program direction, not an exclusive focus. For instance, there is some feeling that the export oriented, traditional goods sector may be a natural entry point for appropriate technology programs in some countries and while this industry may not be rural, it may be a base from which a more rural orientation can be developed.

As a matter of policy, specific attention will be given to the role of women throughout the program.

In work overseas, emphasis will given to working with existing, qualified developing country institutions concerned with appropriate technology rather than creating new ones. This policy was strongly

recommended by the private groups consulted during our April workshops. As described in Section I, there are many institutions in developing countries already working on or around appropriate technology.

As a matter of policy we believe grants under Section 107

should be given to private or publicly-supported institutions in developing countries regardless of whether A.I.D. has a

Mission and a bilateral program in the country. However, by law A.r.D. can not provide direct assistance to more than 40 countries. There is a fairly complex set of considerations which apply in determining what constitutes direct assistance and we recognize that a blanket application of this policy is not possible. It depends


on legal judgments which will be made on specific proposed grant activities when the program gets underway.

As a matter of policy, we beLieve grants under Section 107 should require prior notification but not prior approval of Missions and Embassies in developing countries.

Emphasis will be given to maintaining close links with U.S.

groups concerned with appropriate technology for the United States. Efforts will be made to encourage a return flow of information and experience from LDC efforts into the United States. C. Program Areas Under Section 107: As stated above, five areas for activity under the program .emerged from the April-May meetings. These are:

1. Communication and coordination: Programs to gather and, evaluate past and present experience with appropriate technology; to improve communication among practitioners of appropriate technology; and provide both information about selected specific low-cost technologies, and models to be tested and adapted.

2. National policies for appropriate technology: Efforts to encourage LDCs to adopt economic and other policies which facilitate choice of appropriate technology by private entrepreneurs.

3. Appropriate technology projects in LDCs: Grant projects in fields such as assisting LDC small businesses, assisting local R&D units, farm machinery and food processing,, health, and energy. This is the main business of the program; the program will be organized around

aaciney, mal buines eterrise, health, enrgy.

investm~tbs for~T appoprat technlogy

5. .S.busnes: rogam to f indmans toinolve U..bsiess

on cae-y-csebassin pprpratetehnoog prgams inch devloin countries.fin~r~

Furhe eplaaton of the prgrmara follo. y

1-Commnicatin andCeoriiation

This~~~~~~~~~~~ isake unto fra rgamwic eksttepn
knwldg aot ltrntietehnlois ndth d' ad o4'


technology, but they lack the resources to communicate this experience to others.

Improving communications among organizations and groups

active in appropriate technology is one aim of this part of the program. Another is to improve understanding and acceptability of appropriate technology among a wider audience of LDC and DC opinion leaders and policy makers. One of the barriers to expanding activities in appropriate technology in LDCs is widespread lack of understanding or negative attitudes toward the concept. Stated simply, some selling of appropriate technology is necessary. This requires not crude proselytizing but marshalling and presenting better information about ap appropriate technology in a variety of formats for different audiences.

A third aim of this aspect of the program is to develop better coordination and division of labor among groups and institutions active in appropriate technology. We received many recommendations concerning the need for an international federation of appropriate technology organizations. We understand that ITDG in London and the ILO are interested in this concept. A long-range goal in this connection would be to strengthen developing country abilities to collaborate among themselves in appropriate technology endeavors.

Some of the activities suggested during.our April workshops for carrying out this segment of the program are listed below:


(1) Surveys and case studies of existing or completed
projects (successful or unsuccessful) to develop
and disseminate appropriate technology.

(2) Video tapes or other visual media to capture the
on-going experience of practicing appropriate
technology groups. Using existing groups to teach
other appropriate technology groups.

(3) Travel grants Funds for cross-fertilization of
ideas through travel of practitioners, government
officials, or individual entrepreneurs.

(4) Workshops and seminars for government and private
persons in both DCs and LDCs.

(5) Grants to U.S. and developing country organizations
involved with appropriate technology to expand their capacities to communicate their experience to others.

(6) Exchange of proven and prototype equipment.

2-National policies for appropriate technology

Government polices have a critical impact on widespread adoption of appropriate technology by private entrepreneurs. These include policies which affect the prices faced by entrepreneurs for labor and capital, policies on credit and finance, and regulatory policies affecting small businesses. The types of policy actions which are open to government to encourage adoption of more socially usef l, appropriate technology are extremely sensitive politically and include:

(1) Undertaking programs to increase the supply o f wage
go3ds (e.g. food) in order to reduce their price.

(2) Limiting the growth of wages paid by the government.
These often serve as a guidepost for private sector

(3) Removal of the minimum wage, particularly for new


employees, or reducing it to the levels prevailing
in the craft sector.

(4) limiting fringe benefits such as social security.

(5) maintaining the official exchange rate at its equilibrium
value, i.e., that at which the supply and demand for
foreign currency will be equal, without imposition of
tariffs, administrative limits on imports and so on.
Alternatively, and less desirably, tariffs on imported capital goods could be introduced to raise their cost
in domestic currency.

(6) Removal of interest rate ceilings.

(7) Elimination of tax incentives which reduce the cost
of utilizing capital in production.

,(8) Elimination of the licensing of imported raw materials,
a practice which has often been shown to discriminate
against small, labor intensive enterprises.

Two comments can be made on these policies; First, it would be difficult to construct a more politically contentious set of policies. Second, with the exception of individual economists at our meetings, few of the U.S. private groups we talked to see themselves as working on this sort of macro-policy issue.

This presents a problem for the program. Although it is possible

to fund micro projects to develop and disseminate appropriate technology in LDCs, such efforts are probably unsustainable over Eime unless the environment for use of appropriate technology is favorable. This requires competition in product markets and reduction of distortions in relative factor prices.

In this context, we believe one of the goals of the program should be to find better means to encourage planners and policy makers to

regrdPac reommnds using Section 107 funds to systematically catalog ~ atraieeomcally efficient techiques for vaious

industries.~ FovxmlPc hw the aggregt employment and

Typ ofLoo Rquiemetsper Capia/bo Inesmet Aiiditional Percentage
10 mllonsqare Ratio (2) (1) Funds Savd Indirect Increja e yard perannu Usig Emloymnt Output
()()(3) Lanca~hire
Mayas netmn 4) (5 6)

Btey110 71,635,000 6,454 $ 35,815,000 21,772 100

Aijt 2 7,7700 9,665 42,957,000 26,114 120

Suzr50 150,063,000 j29,715 114,243,000 69,449 319

Coun n 2 indicate the inputs~ required to produce an

addition 10 million square yards of material. Column 3 indicates

thecapta-labo ratio associated with each~ type of process. 1Column

Colmn5 idiate te aditoal employmnt whc could be generated

by ivesingthe funds thus saved in an activity whose capital-labor

Pack,~ ~~ op it,(ttcmetD


ratio was no greater than that of the Lancashire loom. These must be added to the differences shown in Column I to derive the total difference in employment. Finally, Column 6 presents the percentage increase in output which could be generated by investing the saved funds in additional weaving capacity.

The table shows that using the Lancashire loom and investing the .capital saved from not using the Sulzer loom, would produce about 71,000 more jobs and 3192 more output than if the Sulzer loom was used.

Pack states that such comparisons in other industries are likely to yield equally large benefits and that these calculations may be helpful in stimulating LDC govern nts to consider the policy changes needed to realize these benefits.

Other activities suggested at our meetings to facilitate policy

changes in LDCs include:

-Grants through private U.S. entities or direct grants to LDC

institutions such as universities, science policy councils, and ministries of planning, industry or agriculture to help

develop their capabilities for analyzing and choosing alternative

technologies and for considering effect of alternative
technologies on national economic and social development. 16
A recent study in India financed by the Ford Foundation (Tata Economic Consultancy Services, "Industry in the Second India", Orient House. Bombay, 1975.) projects industrial growth through the year 2000 assuming alternative growth strategies. Were the product mix and the technologies employed selected to increase the output to capital ratio, it should be possible to virtually eliminate underemployment and increase the GNP by 80% in the year 2000 over a projection of the currently employed strategy of relatively low output to capital industry. (Information supplied by Joseph Stepanek.)

-Tave ad cnaltoratin grnto facii at ntprp ang of laner ad pliy ag e s fo g possil pn coutby s

For~ intne vists to dountrio ahid dissemiatiearodt

aprpraetehoog oice y fiiaso countries

whihwciity sunde poecions in erorms.o hega

-Ilopng innoations inknegabu appropriatenogy

~~oce oaporaetechnology, and aleratvepliynhocsindprp

teer-ie b ofteveoigrosr.gvrmntisitto,

3-elctd nnvtie recsto develop t and disseminate appropriate

This ist e isyactvitu ndierSciy, 0 n mso the prgrmoilan l

the ongoingcapacta eoies of peeoinonrobl nemnd s ciitiutons

Area fo cocenratin sggetedso far include:


--Agricultural machnr an ua ae odpoesn nutis

-Projects to asist small and meiu cale~ enterrss at

icularly ia rural areas;-faciltt tlzto o prpit

technology for small and medumal enepie ycanln

appropriate assisac to thmi anaeet rdimreig

as vell as in technology.

-Energy for rural areas; coo~king fuels.

-Health, sanitation.

--Low-cost housing

-Projects to strengthen capbilitis of LCinstituin o

identifying local problems and develpn anddismntg

appropriate technology in response to those needs. For

instance, assistance to LDC research institutes or indsra 17
extension services.

Some of these areas are broad and need further shareig Otr

areas suggest themselves; rural works, construction. One ofth prime tasks of the program management will be to define the portfolio of projects as ~a result of consultations with developin countries and A.I.D. missions, and further planning with rheprvt sector.

For a perceptive analysis of the problem of strengthen D
institutional capacities in aprorate tehooy se ". ae
by Bruce Koppel and Gary Hansen: Appropriate lnstitutioiis for Appropriate Technology, April, 1976, Attachment E<.


Ap important point here is that at the project level, the

multi-disciplinary aspects of appropriate technology come to the fore. As stated earlier, technology is only an ingredient in the solution of a particular development problem. The relative role of technology

in a project depends on the nature of the problem and the context of the tar-got group. This merely reiterates the truism that any specific project in an LDC must start with identification of local needs, consider-the many ingredients necessary to solve the problem, and place the technology involved in its proper role. 4-Education and trainin'gThe goal is to assist developing countries develop educational

innovations which increase the relevance of their educational investments for appropriate technology.

There was a strong feeling at all the meetings that the manner in which LDC education systems are planned, curricula designed, and educational pedagogues and technology chosen is a critical part of fostering more appropriate technological development. There is evidence that curriculums in developing countries in fields such as

engineering are oriented to Western standards, overly academic, or discipline oriented. Also, the formal education system reaches only a fraction of the populace giving rise to needs for grassroots training methods and programs.

While there was consensus on the problem sufficient to warrant


its inclusion as one wing of the program there were relatively few concrete ideas on penetrating the problem presented at the April-May meetings or in the papers we commissioned. Funds would be spent on pilot or innovative efforts which would complement or feed into larger programs. Some action ideas suggested at the meetings were;

-Grants to assist LDC institutions develop model appropriate

technology design and lab courses in engineering and technology


-Grants to develop multi-disciplinary programs in "development

technology" at developing country universities. Basic

technological and engineering skills would be one aspect of

such programs, but it would also include micro and macro

economics, industrial and rural sociology, regional development, and R&D and extension management.

-Development of pilot programs for management training and

on-the-job technical training.

5-Involve U.S. Business in-Appropriate Technology Programs in LDCsThe goal is to involve U.S. businesses in development and dissemination of appropriate technology in developing countries either by facilitating direct investments or through organized transfer of relevant business management experience and technology.

There was a consensus among the participants at the meeting

that U.S. businesses should play a role in the appropriate technology effort. It was noted that many U.S. small businesses employ technology

iiiii iiii 3 7

Api-a'me nso o ..cmaie col bebstivovd

p a t i u l r l.i th a iiiiiiiiiiiiiii"Hi~HHilii Hiiiiiii iiiii lo n i g iiiiii iiiiii'-tiier iiiiiiiiiim u n su b siiiiiiiiiiiiiiiiiiiiiiii~iiiiiiiiii iiiiiiiiiiiiiiiiii~iiiiiiiiiiiiiiiiiiiiiiiiiiiiii ii ii~ ~ ~~~ i iiiii inv o v e e n

i is
desig or manufacturing proiiiiiiiiii iiiiii ii ii se s in iiiiiiiresponse to LDC conditions.iii iiiiiii ii iiiiiiiiiiiiiiiii
Th ure

deeoigcutisb ..frsaegnrlymtr n el

esabihe. xmpesmgh e onlakpro bttreso or inxesv oo coes h einadtcnlg o
them prdut has bee welwre 'ou an th aktfrte
n th U.. an uoei elnn.Frsaegnrlylaht
i~ t fud an eninern tim in n thes prdc deins
fo deeoigcutycniin.Ti ednyi enfocdb
th srn.peeec fr"etr"goswih fe rvisi Ds

Lclym nufcue od.wt etr rn ae a fe


command premium prices which further reduces the incentive for product adaptation.

The survey concludes that development or adaptation of

simplified, but modern, products for low income markets by large multinational enterprises has not occurred often in the past and does not seem likely to expand significantly in the future. These firms are more interested in developing new p-roducts for high-income markets. The report notes, however, that development of such products might prove fruitful for small engineering :_rms.

The evidence on the willingness of U.S. firms to utilize

labor-intensive manufacturing processes in LDCs is mixed. White reports that a number of surveys of multi-national corporations by Reuber (1973), Hughes and Seng (1969), Baranson (1.971), Yeoman (1968), and Gregory and Reynolds (1965) have- concluded that only a modest amount of technological adaptation has taken place, and that has been mostly in response to lower volumes, not local
factor costs.

But there is an interesting paragraph in Boon (1975, p. 270)

that is worth recounting at some length. He describes an interview at an engine plant-owned by a multi-national corporation in Mexico. At the beginning of the interview, the management assures Boon that the Mexican plant uses exactly the same technology as that used in

Lawrence White, op. cit., pp. 31-33, (Attachment C).


the parent plant in the developed country. But as Boon tours the factory, it becomes clear that the factor proportions are different.

The main machinery process are automated, but second-hand equipment is used. And all of the auxiliary processes, like packaging, handling, transporting and storing, are done much more labor intensively.

White feels that any researcher who looks around a multinational corporation in an LDC is likely to find substantial adaptations of capital-labor ratios, particularly in auxiliary processes. This is the case for Boon (1975), Pack (1972, 1976), Barenson (1967, pp 59-62); Strassmann (1968, chs 5 and 6), Mason (1970), IIA) (1972b, pp. 446-450), Wells (1973), and Armas (1973). Ranis (1971, 1973, 1974, 1975), Relleiner (1973a; 1973b), and Baerresen (1971) find multi-national corporations adapting to labor-intensive processes for export products.

Both locally controlled firms and multi-national corporations can and do adapt their factor proportions. Is either group more likely to adopt more labor-intensive methods? On this question, Strassmann, Pack, and the ILO mission to Kenya all find the multi-national corporations to be more labor-intensive; they explain

this anthe grounds that adopting labor-intensive *technology requires good management and multi-national corporations have this in abundance. Mason (1970;1973) finds that for a group of

matched pairs of firms, U.S. controlled firms tend to be somewhat

7 At)

more capital-intensive than locally owned Philippino or Colombian firms; he explains this on the grounds that the U.S. firms pay higher wages and have access to cheaper capital. Radhu (1973a) also finds foreign firms to be more capital intensive than locally owned Pakistani firms. But Cohen (1973; 1975) finds no significant differences between foreign and Korean firms producing for export markets. The evidence is clearly mixed.

White concludes that although the multi-national corporations may not be the heroes of appropriate technology, they appear to be far from the villains that many make them out to be. They have the management expertise, and they are frequently willing to use it to adapt to labor intensive processes.

These surveys are general. But they clearly indicate that U.S. firms investing in LDCs are not a monolith. As our meetings with the private sector clearly confi rmed, there are companies and people within companies who are clearly concerned with the problems in developing countries and are seized with the idea of appropriate technology. Ford and General Motors are both producing and marketing low-cost vehicles in developing countries.

What this indicates is that opportunities for involving U.S. firms in appropriate technology doubtless exist on a case by case basis, and the strategy for the Section 107 program -- initially at least is to search out such opportunities and seek to capitalize on them. There was a clear consensus at all our meetings that more investigation of


such opportunities should be undertaken and modest experimental programs launched.

Some initial ideas for activities which emerged at the meetings include:

(1) Establish a system (possibly through banks) to seek out

medium-sized U.S. companies for matching identified needs

in developing countries.

(2) Conduct surveys and in-depth analysis to determine what

it takes to get U.S. small business to participate in the

process of technology transfer.

(3) Fund a two-way exchange program for managers of U.S. and

LDC small business to facilitate transfer and know-bow and


(4) Assist emerging small scale industry projects to develop by

encouraging the direct involvement of similar U.S. small


(5) Organize a number of firms in a specific U.S. small scale

industry to help them transfer technology and management

practices to similar firms abroad. For instance,.the

Denver Research Institute is considering organizing about

30 small metal working firms in Colorado as a resource

for technical and managerial advice for similar working

firms in Mexico.


(6) Training or orientation programs in the choice and evaluation

of appropriate technologies for U.S. equipment suppliers, U.S. manufacturing companies, and U.S. consulting firms.

Such courses could be given on an industry basis and include

entrepreneurs from LDCs.

In addition, monetary incentives might be used to encourage U.S. firms to consider alternative technology, although we believe the Section 107 program should be very cautious about using grant funds as incentives. Some suggested ideas are:

a) Ask U.S. investors about to invest in a less-developed

country to develop a new design of plants that would employ

more labor and use less capital than their customary plant

designs. If the investor, after having developed a new

design decided not to use it, Section 107 grants would pay for

the extra expenses incurred in making the design (a limit on

the expenses provided would be set in each case) and would

obtain the rights to the design so that it could be made available to other firms. If on the other hand, the new design were to be adopted by the firm that developed it,

no reimbursement would be due.

b) Give grants to U.S. equipment manufacturers to encourage

the development of appropriate technologies for lessdeveloped countries. The reward system might be similar


to that discussed above under (a); i.e. the firm is paid for the design if it does not use it, but not paid if it


CODA Window on the West

All the activities and goals described for the program above are

directed toward developing countries. Yet part of the audience for the Section 107 program lies in the United States. This is true in several senses.

First, as already stated, the program is to serve as a source

of expertise, knowledge, and influence on A.I.D. and other donors.

Second, there are actions large and small which can be

taken in the United States to facilitate the development and dissemination of appropriate technology in developing countries. For instance, U.S. universities can be encouraged to introduce appropriate technology into engineering courses for foreign students. There are both national and international policies (for example, international patent policies) which can hamper LDC efforts to develop their own appropriate technologies. A program of the size of Section 107 cannot do much to deflect these forces. But it can maintain a watch on them and at the least not proceed on the narrow assumption that the problem of appropriate technology for LDCslies solely overseas.

.Third, there is a significant movement in this country toward .lower cost, small scale, decentralized technology. The National

74-665 0 76 4


Center for Appropriate Technology is being established in Montana under federal funding. There are numerous private groups at work. The appropriate technology program needs to build links to these groups both to help overcome the notion that appropriate technology is suited only for underdeveloped countries and to encourage two-way flows of information between domestic and overseas groups.

coorinae Sctio 10 acivites.Accrdig to the staff of

-a~~~.i felngta asal nt ol be more flexiles could

act qickl, an bet e ufl the inoa i spr to

-a eelng ha an id ependet triateA1~ enty ith aW

govenin bord rom he rivte ontyuld morte

Th HRCrelze tht aopan outside a igh .drifteun


of the Overseas Private Investment Corporation or the Inter-American Foundation); or (3) an Office of Appropriate Technology inside A.I.D. responsible for the full range of Section 107 activities.

After careful consideration, A.I.D. has decided on an independent, private, non-profit organization to carry out Section 107 activities. We have chosen this option because we believe that it can best fulfill the innovative, private aspects of the program.

An independent, non-profit organization will be an organization of and by the private sector. It will have a board consisting of representatives of business, private and voluntary agencies, universities, and others. The orientation of both the board and staff will be toward the private sector. As such, we believe the program will readily garner private sector support.

In addition, experience with. similar organizations has shown that they generally have a great deal of flexibility and can make grants rapidly in response to perceived opportunities. There is less procedural red tape and more rapid decision-making. Such organizations have a, great deal of flexibility in hiring and managing staff a condition which does not pertain in A.I.D.

We believe these attributes have an important bearing on the innovativeness of the program. Certainly no organizational format can ensure innovativeness, but the flexibility, links with the private sector, and ability to act rapidly which are characteristic of a small, independent organization are to some extent preconditions for innovation

a n h w e iiiiiiiiiiiie d t isiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii a iiil t ai v e.iiiiii
At tesm time A. iiocre ht h eto 0
p r o g riaiiiiiiiiiiiimi se rv ei a s a n e n rgi zeriiiiii an d r e s o u rce............................................................................
program. Asttdi Seto ,AI arayhsadvesfe otoi
of aciite inaporaetcnlg.Cnrs xet n

tehoog ohitrso seii rpittcnlg rojct an"sa nerlpr o u eeomn civities
Re~ ti ial motn htiesgnrtin eto 0


the new organization is to fulfill its innovative mandate, it needs freedom to move into areas and activities in which A.I.D. is not currently active. In this sense, ensuring complementarity becomes something of a balancing act: maintaining broad congruity with A.I.D.'s priorities while preserving enough freedom to embark on new initiatives. Keeping these in balance will require close communication anid collaboration between A.I.D. and the management of the new entity.

In terms of specific activities, there are a number of on-going and prospective A.I.D. projects which might be referred to the new~ 107 entity for possible funding as grant projects. We believe over time a division of labor will evolve under which certain types of actions will be funded by Section 107 and others through. normal A.I.D. channels. However, such a division of labor should evolve only as the-new organization demonstrates its competence in given areas. The criteria for deciding ;Thich types of projects might be referred to the new organization and which types should be funded by A.I.D. directly should evolve as the Section 107 program develops and be based on development of demonstrated competence by the new entity.

The basic point is that A.I.D. expects to continue to be a

creative actor in a ppropriate technology; the existence of the Section 107 program does not absolve the agency from this responsibility. A.I.D. bureaus and offices will continue to develop appropriate technology projects and activities. As the new organization develops, it is expected to become a growing resource for A.I.D. efforts, but it


B. OganzatinalFramework; The decision to establish a new, independent prvt ntity for Section 107 is one aspect of the propsedorgaizaional framweworkc for appropd-ate technology. Beyod ths, tereneed to be appropriate mechanisms for liing

the ~ ~ Secio 10 ndaut.prgam ene t orgntzatitilt format ie proos ha senra pesaerloets.nris

The first~t israu and newsns nhsofn
-protyfi enpurinopaeTechnoloy Fued

This ~ ~ ~ *m oraitto wilrcev il nl ~rant aro siD or Stiohn 107 pogras an wil i tur,mae inb-rantio on rc weth locatee

actviie crredou b .I. bureas a msin Thsficawl

Linkng hesetwoorganizational elements will b~e a series of polcie an poceure wich will gvern in effect the qulity and ffeciveess fte eationsh~ip between te.Tese incet among ~ ~ ~ EI ote hns poiin o A.I.D. participation at the bord

leve oftheneworganizat ion; provisions for A.ImD. participation in


technical panels or conferences the Fund; and provisions in the grant agreement designed to insure consultations on policy and program, and flexibility in day to day operations.

.We outline each of these three elements below. Much detailed planning remains to be done. This will be carried out following approval of this report by the Congress. C. The Appropriate Technology Fund: The Fund will be an independent, Ron-profit corporation located in the Washington area.

The Fund will not be an operational entity in the sense that it will run appropriate technology programs overseas. It will be a facilitator of actions in appropriate technology taken by others. It will make grants to or contracts with private groups; serve as a resource for A.I.D. programs; serve as a communications channel; and help organize and coordinate the activities of various U.S. and LDC groups active in appropriate technology.

More specifically, the functions of the Fund will be to: 1. Develop overall policy and programs for Sect',ion 107.

2. Encourage innovations in appropriate technology and projects

to develop and disseminate appropriate technology in LDCs;

receive, review, and approve projects and grants.

3. Evaluate appropriate technology projects and programs;

seek widespread utilization of appropriate technology

innovations, or adoption of appropriate technology programs,

commnicaionpoint; hl rnfrslce nomto

abutaprorit tecnlogy. teedt rce

Encuraentwrk of ognztnsirste in appropriate tecnolgyiteUnlied SotaiIts and fs help coorinatoe

activtieso oraizatiode sinterete r anpratorit specfiogy

6. SrveaI>a woreloms sucd cntrbtionsproriwe trechssumigy

7. Receive ianallisbuthe fundpA...adi othr theanizains

The pprprite sTchnlogyih Fund wll neeowee o tr ecttio or~crportios. I.coldupind sporteceiveoatrractsfode ctiic

in te foeseeblefuture.

TheSecion107authorization extens to 1978, buat the propsa for coninu th auhorzaion beond this date assumn dqaepromne

Webeiee fthe onresonl omites ccpttisprpoa


that they should provide explicit assurance that they understand the funding basis for the new Fund and that they will not condition future funding on criteria other than performance.

We believe the Board of Directors for the Fund should include

representatives from business, private and voluntary agencies, academic institutions and alternative technology groups in the United States. We believe at least two A.I.D. officers should participate regularly in Board meetings as non-voting observers and as advisers on A.I.D. policies.

in terms of organization and staffing, we have drawn up organization charts, staffing patterns, and cost figures for two illustrative versions of the Appropriate Technology Fund. These are attached to this report. They are intended to indicate the approximate maximum magnitude of the outside office and serve as a guide for planning.

In drawing up these organizational proposals, we consulted with two organizations which are analogs for the proposed Appropriate Technology Fund: the Inter-American Foundation, and th Pathfinder Fund in Boston.

The Pathfinder Fund is an independent, non-profit fund which receives $4-5 million per year from the A.I.D. Population Office. It, in turn, makes small sub-grants to LDC and (some) U.S. organizations for family planning projects. It has a staff of 27 persons at its Boston headquarters and 35 employees (all foreign nationals) in 6 field offices overseas. Its administrative and staff costs amount to about $1.0 million out of a $4.5 million budget. ($600,000.for the Boston staff; and $400,000 for the


regional offices.) It receives 90% of its budget from A.I.D. Pathfinder makes about 180 small grants a year ranging between $2,000 and $20,000.

The Inter-American Foundation is larger. It is an independent government corporation which makes grants to LDC private groups for social and cemunity development projects. Its budget is about $20 million a year; its grants average about $120,000 each the smallest being $400 and the largest $1.8 million. It has a staff of 64, all in Rosslyn, Virginia. Total costs for salaries and administration are about $1.8 million per year.

We estimate that the proposed Appropriate Technology Fund

established for Section 107 would be somewhat larger than Pathfinder's 27 man Boston headquarters and smaller than IAF. We follow the IAF pattern of having no overseas offices. We have estimated average

grants of $100,000, and a maximum annual budget of $10.0 million per year,

apropriate Technology Fund Alternative A: The first version of the Fund would be at maximum a 30 man office consisting of 12 program professionals, 8 administrative staff, and 10 clerical/secretarial staff. -professionals include a director and deputy, eight specialists

in fields such as small business enterprise, and agriculture machinery

and food processing, and a two man comunicat ions/ inf ormat ion/ eval uat ion staff. T* al annual staff and overhead costs are $1,004,820.


Appropriate Technology Fund Alternative B: This is based on consultations with the Pathfinder Fund. The estimated maximum total staff under this alternative is 34 and administrative and overhead costs would be $1,021,738.

The principle difference between this and Alternative A is

that it: (1) reduces the administrative staff; and (2) strengthens the professional staff. On the professional side, there are two specialists in each functional area and, except for an editorial associate, there is no separate communications staff. Communications and information would be part of the job of the functional specialists and thus better integrated into the ongoing program, The smaller administrative staff is based on Pathfinder's experience. it assumes that auditing and legal services would be purchased from commerical firms.

The organization charts for these alternatives are attached. We emphasize that these charts are illustrative and intended to indicate the approximate eventual size of a mature organization. The organization will start small and evolve as its program grows. D. Appropriate Technology Liason Office: This will be a small office located in the Technical Assistance A.I.D. We currently estimate staff of two professionals for the office. However, we are planning to conduct a more detailed review of the functions and staff requirements for this office. This will include the expected workload for the office, current and prospective Agency involvement in appropriate

coud crryreponibiites i appropriate tcnlogy ay thea desirabiliy of oiliin e or rugete tis saf m rltie thalna turhe builrnal upi is tenra toffisceo


and bureau needs for assistance in appropriate technology. It should function as a link in a bottom-up chain which starts with appropriate

technology related problems emanating from Missions. It is only by

reflecting the real concerns of Missions and bureaus that it can best
represent the concerns of the Agency in dealing with the outside office.

For these reasons, we believe the internal office should be

quite small. It should develop and maintain strong links with

staff in the missions and the regional and central bureaus who are

concerned with appropriate technology. We believe the current A.I.D. Appropriate Technology Work Group might be continued as a means for funneling the concerns of regional and other bureaus into the internal

office and hence on to the new Appropriate Technology Fund.

E. Policy and Procedures: The policy and procedures adopted by the Board of Appropriate Technology Fund and by A.I.D. in its grant

agreement with the Fund will be critical in maintaining the proper

balance between operational independence and flexibility for the

new organization and close communication and complementarity with

A.I.D. Tension between these two operational principles is inherent in the Section 107-legislation.

20 not mean that the internal office will not be an active promoter of appropriate technology concepts within the Agency. We do believe that the office can best be an active promoter of appropriate technology by relating to real problems of Missions not by selling activities conceived in Washington.

On" the.. susatv eeScto 0 rae esio between

the ie o encograe th closest ps eib

a- e n the anqithe Appropatte

eleehenew organization shond devlop
serve~~~~se for apoore o ..,wt itsy anpogriam deed oeta whchos

OnAp thi ydmilear consnieusd a first tepn th s nee fo prcedralfleiiltrmethds shtould musina theftue

exeniD. persos p ae ef


on the board of the Fund, and that A.I.D. join in technical panels, advisory boards or planning conferences sponsored by the Fund. The basic principle to be followed between A.I.D. and the new Fund is close coordination in development of over-all policy and programs and maximum freedom in day to day operations.

(2) Procedures Governing Specific Sub-Grant and Contract Activities: Here the operating principle should be to provide flexibility for the outside entity to approve specific sub-grants and contracts without prior approval from A.I.D. This will require development of criteria and guidelines for the Fund's financial/accounting system, procurement system and programming and grant approval process. Once these guidelines have been mutually agreed upon, the Fund should have latitude to approve individual projects without prior A.I.D. approval.

(3) Operational Procedures: Again we believe that the operating principle should be to provide maximum flexibility to the new agency and to its grantees. As stated in Section 1, we recommend that the Fund have authority to approve grants for activities in non-A.I.D. countries subject to the existing statutory limitations on direct A.I.D. assistance. We recommend that grants and travel by the Fund staff require prior notification but not prior approval of Missions and Embassies.

We also recommend that a mutually agreed upon ceiling on

operating expenses be established in the grant agreement so as to maintain an appropriate balance between operating and program expenses.

optonaPrvisonswhih tem fro A, I. p, olicy and may be waived ,.b AI. Teseinlud p ovison suc as Buy Amria Fly Awdpia,

Th*grnt gremet i be the itrument for cosideritheseb

4olcie an wewil sek t flow a policy of minium restriction.

I~et Sep; Asuingaprovl.f thisreor by the Hos International .inths ppe. he ex stpstobe ta iclude:

fo theia Fuond.q7 .

FY 178 or he und;devlopentof a draft grantagemn

and oliies

--Review of current A4.D. fot napopittcnlg and considerationm of mans tobte-nereaporae

reconsiderationi of staffigadlcto fteitr appropriate technology offc as'ela ohrbra staff~.

Estimated Annual Costs for a
Proose Oraniation Within &.ID. for Appropriate Technology (Alternative A)

A CetaATEtitySlre Ienefit5

1.'ietr(GS-17) 37,800 3,533

2:DeuyDrector (G-16) 37,800 3,S33

3. tm srative Asistant 16,306 1,33

4.PormEooit (GS345) 34,441 3,237

6.GahsOfie, giulture 34,441 3,237

7.Jrhs Ofcr,Agr iuture 34,441 3,237

9. Crnt.Ofier Halh (CS-iS) 34,441 3,23

uins (CS-IS)

11 rant Officer Insuioa 3444 3,23

14.Ie'eayStengrapher 0G-) 1,S 1,142~

iskSecetry/Stengrape or -) 21O ,4

17.SeCe~trylStenographr (G-7) 1,10 1,4

B. O'f Auoenatons either AD entities, Sportiv of the

Grat dmiisraton2S,198 2,369

Grat Aatiistatin 2,198 2,369

-3-SertrySeogahr (CS-7) 12,150 1,4

Total 659i 5,U
11. verhad Fcto (caculaed s 251, of salariesan
tcvr travel consul tt, overtimee,
saoteehn, administrativee procurement, etc.)___Total

*Thre re owtwo positions established in the Bueufor Tec.)Assstace;thu, the net addit ional would he 21 po:;itiols.



16 4m



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O11 *1 J # 1P


I. Salaries and Benefits

1. Direct 5,00r0 5i7

2. Assistant Director/General Counsel 50,00. 4,700

3. Administrative Assistant 16, 1

4. Secretary 1,5 ,4

S. Program Coordia r/Economist 34,4416. Grant Officer,
7. Grant Ofieer, Small Business 34,441 3,23

8. Grant Officer,.Institutional 3,4

9. Grant Officer, health and 34,4

..10. Grant Oficer- Education 3,4 ,3
11. Grant Officer, Energy/Other 34,441 3,237

12. Evaluation Officer 29,S46 2,7

13. Communications Officer 29,546 2,7

174. Editorial Associate 1L6,306 1,3

15. Secretaries (4) 48,600

16. Executive Officer (Personnel, GS...... ,,54 2,7

17. Auditor 3,4 ,3

18. Budget and Fiscal Officer 2S,198 2,36

19. Accountant 2546

20. Financial Clerk 1 1S3

21. Secretaries (3) 3 3,4!

22. Contract/Grant Administrators (3)7 594 0

II. Overtime (500 hours @ $9.40) 4,7

III. Consultants (350 days @ $100) S,00

IV. Travel S0,00

V. Administrative Procurement/Extnal 12,0
Auditing services
VI. Rent, Equipment, Supplies, etc. 55




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(Suggested by Gaines B. Turner, Director of Operations, Pat nder (Al ternative C)

Salaries and Benefits

1. Executive Director $

2. Deputy Director ,

3. Admnistrative Assistant 16,30

4. Secretary 12,150

5. Program Coordinator/Econmist 34,41

6. Program Coordinator/Econo ist 16,306

7. Agriculture Specialist 34,43

8. Agriculture Specialist 16,3 1

9. Small Business Specialist 3,41

10. Small Business Specialist 16,306 1

11. Institutional Development Specialist 34,441

12. Institutional Development Specialist 16,306

13. Health Sanitation Specialist 34,41 ,237

14. Health Sanitation Specialist 1,0 ;3

15. Education Specialist 34,4

16. Education Specialist 1,306 1,533

17. Energy/Other Specialist 34,441 3,2

18. Energy/Other Specialist 1,0 ,3

19. Editorial Associate 16,306 1,533

20. Evaluation Officer 29,546 2,777

21. Contract/Grant Administrators (3) 75,594 7,107
22. Secretaries (7) 85,050 7,994

23. Controller 34,441 3,237

24. Accounting Clerk 12,15 1,

25. Bookkeeper 16,30 1,5

26. Personnel/Purchasing 25,19_2,36
Total $783,276 $73,627

II.Overtime II.Consultants. IV.Travel m

V.Administrative Procurement (e.g., audit services etc.) VI.Equpment and Supplies 5

Total $,2,3



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Ap appropriate technology is technology which enables developing

countries to provide goods and services for their people in a manner which is compatible with their economic and social conditions.

Appropriate technologies relate both to economic and noneconomic goals. They are applicable to employment, output, and equity objectives, as well as goals in population, health, nutrition and education.

Given typical LDC conditions of scarcities of capital and skilled labor with an abundance of unskilled and semi-skilled labor, and taking as objectives of development assistance:

growth of employment and output through more effective use
of resources,

while decreasing inequalities in income distribution,

emphasis on the basic needs of the poor, both economic and
non-economic, and

increased participation of the poor in all aspects of the
development process.

It is expected that technologies appropriate in production will generally have the following characteristics:

1) They will be intensive in the use of the abundant factor,
unskilled labor, and economical in the use of scarce factors,
capital and highly trained personnel.

In the provision of services, appropriate technology relies to the extent possible on less highly-skilled labor economizing
on human capital. Appropriate technologies do not demand
sophisticated skills of their users,


2),Appropriate technologies are primarily based on locally and
domestically-produced inputs, or on the use of national (not
expatriate) personnel.

3) Appropriate technologies in physical production are economically
efficient in small and medium-scale enterprises, replicable by
local entrepreneurs, and often produce primarily for a local or
regional market.

It is expected that goods appropriate to LDCs in consumption will eaphael" the needs of the poor: they will generally be

low cost,

accessible to low-income people,

individually or locally maintainable without extensive support
re qu i rewe u t s

compatible with local cultural patterns.

Appropriate service technologies are those designed to produce manpover and medical care relevant to the requirements of the poor. They, similarly, will be low-cost, accessible, and compatible with local cultural patterns.

gone of these characteristics are binding. That is, satisfaction of these criteria does not certify a technology as appropriate. They are merely 'a set of attributes set out in order to give substance to the definition set out in the first paragraph: technology which enables developing countries to provide goods and services in a manner compatible with their conditions.

What is appropriate in each country's development situation will be different in every case. For example, in a small country with a


limited internal market, production for export may be important, for which a different product may be appropriate than for domestic consumption.

While appropriate technology emphasizes small-scale production, in a number of circumstances, such as economies of scale, large-scale production may be appropriate.

Appropriate technologies are expected to contribute to employment, output, and equity objectives, meeting the needs of the poor, and increasing participation by the poor in a number of ways. Emphasizing labor-intensity and employment of relatively unskilled labor will cause additional broadly-based employment of-those at the bottom of society. ,Broad expansion of low but adequate income employment improves income distribution, contributing to a major social objective: equity. Encouraging the use of locally or domestically-prod uced inputs emphasizes the backward linkages of an appropriate technology: its downstream effect on domestic employment and output.

Small-scale production allows regional dispersal of enterprises, especially over rural areas, each satisfying a limited market. Some governments consider this an objective, as well as the regional selfsufficiency promoted by local industries using local inputs. Low-cost goods and services and compatibility with local culture emphasize that appropriate technologies are aimed toward the poor.


APRIL 4-5, 12-139 19-20, 26-27, A'M) MAY 10, 19716

Ross M. Clemenger, Institute for International Development, 8150 Leesburg Pike, Suite 504, Vienna, Virginia 22180.
Melvin B. Myers, Church World Service, 475 Riverside Drive, New York, New York 10027.
Rom Hammond, Economic Development Laboratory, Georgia Institute of Technology, Atlanta, Georgia 30332.
Martha Stuart, 66 Bank Street, New York, New York 10014.
-Thomas Fox, Executive Director, Volunteers In Technical Assistance, Inc., 3706
Rhode Island Avenue, Mt. Rainier,31aryland 20822.
William G. Hunter, Engineering Experiment Station, University of Wisconsin, 15WJohnson Drive, Madison, Wisconsin 53706.
John Hammock, Executive Director, AITEC, 10-C Mt. Auburn Street, Cambridge, Massachusetts 02138.
Roy E. Harrington. Deere and Company, John Deere Road, Moline, Illinois 61625. W1111am McCrea, Entrepreneurship Institute, Suite 1190, IBM Building, Town and 4th Streets, Columbus, Ohio 43215.
KTistin Shannon, Center for Policy Process, IL755 Massachusetts Avenue. N.W., Washington. D.C. 20036.
Fmnk Tan, Agribusiness Council, 20 East 46th Street, New York, New York ioft7.
George Goss, 7 Orchard Lane, Woodstock, New York 12498. Eugene Eccli, Cohsultant to National Center on Appropriate Technology, MERDI, Box 3809,. Butte, Montana 59701.
Donald R. Redden, Multinational Agribusiness Systems, Inc., 1725 K Street, N.W., Washington, D.C. 20006.
Dr. Norman Brown, ERDA, Office of International R&D Programs. 20 Massachusetts Avenue. N.W., Washington. D.C. 20545.
B. E. Ritzinger, Administration Centre, Deere and Company, Moline, Illinois 61625.
Grafton Trout, PASITAM, Universityof Indiana, 1005 East 10th Street. Bloomington, Indiana 47401.
Jack Sullivan, House International Relations Committee Staff, 2170 Rayburn Office Building, Washington, D.C. 92051-5.
Robert P. Morgan, Engineering Department, Box 1106, Washington University, St. Louis, Missouri 63130.
Theodore W. Seblie, Denver Research Institute, University of Denver, Denver. Colorado 80210.
Peter J. Davies, International Planned Parenthood Federation, 711 Ladd Road, Bronx, New York 10471.
Bi enda Gates, MSP/10, Room 700, 806 Connecticut Avenue, N.W.. Washington. D.C. 20066.
Mary Ami McKenzie, Office of Jolicy Development and Review, Community ServIt" Administration, 1200 19th Street, N.W.. Room B219E, Washington. D.C.
Clarence J. Mann, Assistant General Counsel, Sears. Roebuck and Company, Sears Tower, 45-49. Chicago, Illinois 60084.
Wallace W. Elton, Vice President, International Executive Service Corporation. 622 Third Avenue. New York, New York 10017.
'Robert M. Pierson, Chemical Research Division, Goodyear Tire and Rubber Com. pahy, Akron, Ohio 44316.
POter''N. Gillingham, Intermediate Technology, USA, 556 Santa Cruz Avenue, Menlo Park, California 94025.

74-665 0 76- 6


Richard Raymond, Portolo Institute, 541 Santa Crus Avenue, Menlo P
California 94025.
Scott Rutherford, EDA, Department of Commerce, Room 7842. Washington,
Frank J. Ahimaz, School of Engineering, Cornell University, Ithaea, New
H. E. Hoelseher, School of Engineering, Benedum Hall, University of Pittab
4200 5th Avenue. Pittsburgh, Pennsylvania 15261.
Michaela Walsh, Rockefeller Brothers Fund, 30 Rockefeller Plaa, New.
New York 10020.
David Eynon, The Koppers Company, Koppers Building, Pittsburgh, Per
vania 15219.
Mark Sterner, Executive Director, Meals for Millions Foundation. 1800.01) Boulevard, Santa Monica. California 90404. David H. Scull, Partnership for Productivity, P.O. Box 170, Annandale, it 22003.
Shafeek Nader. National Comnmisim on Cooperative Arrangements, Suite
1875 Connecticut Avenue. N. Washington. D.C. 20009.
Francis Method. Education Development (enter, 55 Chapel Stre, New
Massachusetts 02160.
Dean Phillips, Goodwill Industries of Amerlea, Inc., 92 Wisconsin Avenue, W
ington. D.C. 20014.
Surjit Mansinyh. Institute for International Policy, 122 Maryland Avein,
Washington. D.C. 20002.
Per Christiansen, Program Designs for Educators. 314 Faneuil Street, It
lassachusetts 02135.
Edward Bullard, Technoserve, Inc.. 6 Old Kings Highway South, DartenI
necticut 06820.
Ann Becker. Science. Technology and Public Policy. George Washington
versity, Washington, D.C. 20052.
Carol Vlinski Science. Technology and Publie Policy. George Washington
versity. Washington. D.C. 20052.
Dr. )onald Ritter. Whittaker Laboratory. Building No. 5, Iehigh Univt
Bethlehemu, Pennsylvania 18015.
Allie Felder. Cooperative League of the USA, 1928 L Street. N.W.. 11th 1
Washington, D.C. 20005.
Kermit Meier, Director. Goodwill Industries of America. Inc., 92 Wisconsin
nue. Washington, D.C., 20014.
June Turner. Overseas Education Fund. 1730 'M Street, N.W. Washington
Al Craig. Program Designs for Educators, 314 Faneiil Street. Boston,
chusetts 02135.
J.odie Levin-Epstein. The Children's Foundation. Suite 1112, 1028 Conne
Avenue, N.W., Washington, D.C. 20036.
Michael Miller. Vice President, Council of the Americas. 1700 Pennsylvania
nue. N.W., Washington. D.C. 20006.
Gornon Donald, 911 Swinks Mill Road. McLean, Virginia 2101. Jack Baranson-, Developing World Industry Technology. Inc., 919 19th S
N.W.. Suite 800. Washington. D.C. 20006.
Douglas Hellinger, Developing World Industry Technology, Inc., 919 1th Se
N.A.. Suite 800. Washington. D.C. 20006.
Steve Wilbur, Volunteer Development Corps, 1629 K Street. N.W. Washing
D.C. 20036.
George Ingram, Homwe International Relations Connittee Staff, Room 2170.R
burn Office Bnilding, Washington, D.C. 20515.
E. C. Grig. Community Development Foundation. 345 East 46th Street.
York. New York 10017.
Larry Ng, Wor'd Mlan Fund, Box 30341. Bethesda. Maryland 20014. Hernan Pollack, 714 Library. George Washington University, Washington
Howard Pack. Rwarthmore College. Swarthmore. Pennsylvania 1%081. Steve Hellinger. Developing World Industry Technology. Inc., 919 18th S
N.W.. Suite 800. Washington, D.C. 2-0006.
Jack Vanderryn. Office of International R&D Programs. ERDA. 90 MasSaeh
\vennie N.1.. Washington. D.C. 20.547.


Tim~~~~~~~~~ LycOfc fCnrsmnGog rw,242 Rayburn tc Bilildinig. Joh Bsly, esarh Couci for Sniall muinad Mhe Prfes0iis 2120 1,

10reptN.W.,WashigtonD.C. 0036

Daffe SntaPieto, ali Rlitfn Srice, 1011 in t Ave ue Ne w Yi., BillElli, Colitin foAp fort Techology, 740ron aSquaropen 1818ie

DnC. 17920510.odWslntnDC 209

Rayur Ofic Bilin, hntn ADenue 20W5515.ngon

Star. Slomo, IterntioalDvelpmet Rarch NatinlrAca028yoncincut

AvAeeue, N.W., Washington, D.C. 20036.

Av~~ueP de, Aashnuton Apt. 209-F Fr

Washigewn D.C.~ 20036.7



(A Report for the Agency for IntrainlDvlpet

This report has been prepared by PASITAM -- thePrgaofAvne Studies ine Institution-Building and Techicl AssistneMtoooy PASITAN is a component of NUCTA -- h iws nvriisCnotu for International Activities.

PASITM ws created with signifiat finanial assitnefo h

U.S. Agency for Internationl Deveopmnt, to help likaadmcexet and practical planners and maaesin identifying, and analyigceti key problems of deveopmntal assistac -- setal h rbeso

designing effective systems of practical action in such fed sarcl ture, rural develoment, health, andotes

A generic concern of PASIT is the effective useofrgnztn and maaeetin developental efforts. Private outayogniain

reresent one broad and certainly diverse ctgr fognztos number of them play intreting roles in deeopet "Aporat eh

nolog is the current catcphae for a set ofimotnaditesig concerns. which rqiesudanalysis andifetv rgnztoi

thesecocrsaetbetasomditprciarelte.Tilmited study identifies basic opo tunte for ehnigteepotto of appropriate tcnlog by POs. It alsoietfscranqutos wich lie outside the scope of this reot u whic aregraet h

broad issue at hand.


T $s,*td ean es the role which Private Voluntary Agencies (PVs
ay~i4 the itve ghomt f appropriate technology (AT). More than 3 ~s in od in AT-related activitiqs laer contributed to this study ah~td Is notP comprehensive nor can it be considered definitely
Ilt'deS litger, prhvide a set -of inforand answers to a set of .queio sedas he basis fo6 this report.
I1 ht a1e the PV(1 experiences and contributions to generatirgan
dsmiating AT?
Aprpriate technology' in essence means 'good' technology
-tehndogywhich-both works and serves desirable social and economic is "Os re sually action oriented groups concentrating in extensively progaft.This field experience presents them with unique opportunis
-to deni f and respond to local needs, including needs for AT.
Eah 0V works differently in identifying project needs and opsotu ,.etie. Sme develop extensive, long term programs which require cob !,sdefbleexternal technical assistance. Most PV~s, however, relyhevl

-tise an their own staff.
Atridentifying a need PV~s may respond in one of three ways: Te
I 'ise in the field, conduct in-house research and developmeteffort to ind or devise a promising solution, or conduct local and Itr Nutionilsarches for solutions involving the aDDlication of 19Chnols


Considerable technological adaptati innovation occurs

improvisation, especially, in small-scale resource-short projects. Relatively few PVOs have the technical resources to conduct in-h R &

PVOs generally obtain technological info thrg i

national searches. International agriculture ie a
used; other insttutes-are used infy.r qen
Few PVOs can undertake projects pr ily it

resources to establish specialized evaluate limited project information in newsletters There is little dissemination into mo f

(2) What weaknesses or limitationscan be isolate

in AT?

PVOs often lack the a a r
assess technical components in either p d gn o ln
Only a few technology centers cu offer

tancy services. PVOs need better a t ing and s sources of R &D.
PVOs are also n testing, ass

AT experience. Fe PO-AT projects are extensivey do fewer have been systematically analyzed. The agencies are generally action oriented, with minimum and analysis.
(3) What kJnds of su and ai woul best

PVO1nvolvementin generating an4d$ dismnatn T

If PVsare to play a lrger role in AT acivtis stogrlnae


&Technolog inttte n cenhouses could provde oisne angidnterings andiipadt-aextension Mos PVs o nt hvithe retsd ources i extrac t la isornt A estons

frkei pacialexerene.T fciittesuhdiseintin

* lasting developent-im1act.
(4) What specific types of assistance should AID
Amrove PYG use of AT?

As a goup, POs arew shaping appropriate technological in documennting and disseminating th results of their -w xeine USAID could provide assistance in these areas.
The Agency for International Dvelopmmnt might ehnetiefcie ness of PY~s in idetfig sesnaatnapyn n sesn
AT in several wys: by fusnding the esalishment or exaso ftcncal consultanq services available for field assistance to Vs(n possibly not limited to them); byunewingoe rmreaagmnt
for enhancing the dcmnainadaayi ucina tapist
PVO field experience withaprpittehooyanbyudtkngr undewiting the disseination of' selected adtse aeil napo
priate technology aong PY~s likely to find it of ue en ih ag
from field-oriented conferences andS seminars to a publicationsporm

in he eilopentaciviiesofPriat Vounty aiaton (PVO s)

The~~~first Sectiondmi of ths study:dfnstetm'prpit ehooy secodsetio decbthel fied opraingy chacterustiys tof Isayd
citw ~ ~ cae-lutaighwte ein dpass n ismnt AT.-Th-thrdsecionanayzs tepolm urnl aigP~ n
'ienifespoenialyrih res orthexaso asrnthnngo

AT ctviie. Te outhsetitn ofesrcmedtinmnwaid

addition, interviews ranging from one to hours re held with the
staffs of twenty organizations (see Appendix).
It should be apparent.that this study cannot be considqted reflect a wide range of AT activities. Any.comprehensive study.would require a much largersurvey of organizationsand a greater number of in-depth interviews.*

*The Techical'Assistance Information Clearing House provides brief'descriptions of 418 voluntary agencies, missions, and foundations in US Non-Profit Organizations in Development Assistance Abroad (1971).

is he ssuptin tat hee a sos wehoih wich ar inapprobithe


technology to the atm~ of the promotors. Readily transferable technology may be inappropriate to development needs in the target society. For instance. a particular project may have as ts goal the lowering of labor costs In a certain native industry through introduction of laborsaving technology. Such a project would beaporaein an area d eficient in labor resources, but in an overpopulated area, a labor Intensive technology might be more appropriate.
It should also be noted that the term 'technology' refers not merely to 'hard' machinery and technical skills. It also encompasses training program, organizationsmanagement and other 'soft' technology. Technology is not and cannot be abstracted from the situation in which it is to be used; it is the direct link connecting needs to organized and rationalized means of satisfying those needs.' Appropriate Technology considers the local, natural, and human resources and encourages indigenuss initiation and innovation.
There remains considerable disagreement about the import of the idea of AT, but it is generally agreed that the basic determination of appropriateness must come from the field. Moreover, the potential'technology must be tested in the field, in its intended use area. Finally, it is acknowledged that PYOs play important roles in developing, testing, applying and disseminating technologies.
PYOs are of distinctive importance because of their heavy involvement
in field programs. PYOs are usually action oriented groups concentrating upon field operations. Their orientation and their experience give them

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PVOs may be roughly categorized into three groups.

1) A small number of PVOs operate field projects and have internal

technical backup personnel (e.g., project analysis, engineering,

organizational training). Representative agencies include Catholic Relief Services, CARE, the American Friends Service Committee, and


2) The largest number of PVOs are field action-oriented and have thin internal backup capability. Representative agencies include

Foster Parents Plan, the Paul Carlson Foundation, Community Development Foundation, Partner-ship for Productivity, and the Mennonite

Central Committee.

3) A small number of PVOs usually do not operate direct field

projects but do provide specialized assistance (e.g., information

services, personnel) to other organizations. Representative agencies

include Volunteers in Technical Assistance (VITA), World Education, World Neighbors, Heifer Project International, and Credit Unions of

North America (CUNA).

Identifying Needs.

Crucial to the proper function of all three types of PVOs is the identification and specification of the technological needs and opportunities of the local environment. Beside the accurate assessment of technical needs, good project identification requires a careful assessment of the

sfUpAri whfc an spproprathe eutedchnologes. me.0te rai Suhyfl gQ work difee ty-protdet Pgproj p porng uitigesca

p ehical expeisne and mtei o ecnlg staff.rin

Aposto AT Needs. .

PP M tutue three modes of actionwhen they identify technical kabova>e pecifications:
)They may improvise in the field;
4They may conduct in-house research and development; or
3The~y may conduct local or international searches. Fied Iprovisation

1w tionu UL the field. One respondent stated, "We live on the edge of non-survival most of the time. -Maybe that is one reason why
'wet~rvise and come up with answers; we just have to survive." AMile asmall hospital and an associated agricultural proeahis
a i iles of. local innovation And


adaptation ranging from rbiding a dental Xayfor chst adpli examinations to designing and constructing, a bcceablne
One PVO made a placental extract foralnboiinaoclhstl adapted an autoclav, for charcoal, and bi aewelfo oa
To build local tools or intrdc e rocsefed okr n
proceed from a drawing or newsletterdecito.Treaenmou catalogs of simple ideas similar to VITAs Vilg1ecnlg1Hrbo available to draw information from. Many of~ ths atalospentipie, provocative technical ideas.
It is not surprising that small-scale eor-srtpjcspode
technological innovations that are consistent wth oa aeras kl
levels and custom. The Iinvators are familiarwihtescastin and this combined with ingenuity and local rpaerils prdcsm yue implements.

In-house R& D

Several PYOs have developed and aptdrelatively sophisiae technologies. ACCIOR Inten onal Tecnlca, and Heals for Mlin r
developing high poensyanfood forprdcinadosutonn Central America. CARE, assisted byotside~ expect and am AIran, has developed and is testing plastic-treted jute to poietpon resistantmaeiliBagdsh

in agricutr, creit, helth an4urto oprvd ehia


and AT development. Church World Services Is cooperating with 4ohn Dow* In Africa to develop a locally adapted plow.
International Planned Parenthood, and the Community 4)**vP*nt..f*undat1on have developed innovative techniques in family
abbit breeding, community organization, construction. sanitation, #W cospwtive organization. These technologies have been developed
fMrg*.,-cwWation among field representatives, local organizations,
and international experts. World Neighbors, for example,

Zlstedin tAe production of a multi-lingual filmstrip on rabbit farming
*t" SMIService de Developpement Agricole) in Zaire.

Information Searches

Information an most technologies is obtained through local and interaazional searA*es. Many PVO searches begin in an informal network at the Ifteld level. Failing there, a PVO search often extends to more distant itechoology centers via the PVO headquarters, VITA or other clearinghouses.
Se#rches- begin with a specific need and a rough idea similar to the '!product development" stage of a manufacturing process. Searches may occur d1iri:ng project design or during project implementation.

Field Level Searches. A typical informal search begins locally and, rdepending upon individual contacts and the nature and'scale of the probleffi, may end quickly and successfully. ACCION uses indigenous talent ad f inificial resources in its small commercial and industrial pi tion 'Orwects in Central and South America. -It draws heavily on the private

74-665 0 76- 7

sector and regional organizatiol ik IAfrtcnia die t

smaller PVOs also use this ap
Localized pe asced1

propose technologies jet anagers often miss lclyaalbe sucsbcueo ako
information. For exal, one rsodn a okn o ihlyiecr

that a locally adape hg-lysiaaeconwsbigtte80mlsfmhs project site.
The Christian Relief and Dent C

Ababa, Ethiopia provides search services t opi
needing technical assi stance. T are smlaru
This mor fr a aprahapast lggp nteifra dmr

PVOs have their cls fi
when planing~and imuplement$ing projet.~ Thesereainhpae ooften maintained on an on-go'ingbaibeus V clbotenth
basis of needs relIated tprojetntsmltoaian nac fr
their onsake. y
Many POs stress their rel e o c o
sources. Most report that field prsonnel orconeprogaitos make every.effort to resolve tec nical problemsintefo for external assistance. recommenthatloal
sources l1ke corporations, universities, appled reser clearinghouses, and goverment search strengthened as prospective AT sources.


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and local groups working on the re-development of the Corozo nut industry In La Caba lacked a high-pressure cracker for the exceptionally hard nut.. A headquarters-based search led from VITA to the California walnut industry to ITDG in London. Commercial nut-growers gave them more detailed specifications of what machinery would be needed. Simultaneously, ITDB learned that Unilever had absorbed two companies that had been part of the earlier Corozo-nut industry at the turn of the century. Technoserve found that the corporations and their technologies had literally vanished in corporate mergers. However, the required machinery specifications were clear enough to suggest a search of coal crushing technology. The search began anew in Thompson's Registry of Industrial Suppliers and ended with a small firm in Ohio which manufactured coal crushing machinery.
While this seems to be an idiosyncratic case, many other technology
searches are as complex. The difficulties of this search process include:
1) International searches require considerable skilled manpower.
2) They often require long lead times which can disrupt project

3) Linkages between AT sources and PVOs are often poor. PVOs are
hesitant to approach them for a variety of reasons including simply not knowing whom to approach. Linkages are primarily

initiated through intermediaries.
4) PVO field and headquarters linkages are occasionally insufficleht to adequately identify technical specifications.
Headquarters-based searches often ignore LDC technology sources. Some PVO-AT projects require access to American or western technologies, but