• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Front Matter
 Table of Contents
 Acronyms
 Summary and recommendations
 Program background
 Program description
 Program analysis
 Program evaluation and impleme...
 Annexes














Group Title: Project paper Agency for International Development
Title: Jamaica, integrated rural development
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00087319/00001
 Material Information
Title: Jamaica, integrated rural development proposal and recommendations for the review of the Development Loan Committee
Series Title: Project paper Agency for International Development
Alternate Title: Proposal and recommendations for the review of the Development Loan Committee Jamaica, integrated rural development
Physical Description: 1 v. (various pagings) : ; 28 cm.
Language: English
Creator: United States -- Agency for International Development
Publisher: Dept. of State, Agency for International Development
Place of Publication: Washington
Publication Date: 1977
 Subjects
Subject: Agricultural credit -- Jamaica   ( lcsh )
Loans, American -- Jamaica   ( lcsh )
Rural development -- Jamaica   ( lcsh )
Genre: federal government publication   ( marcgt )
non-fiction   ( marcgt )
Spatial Coverage: Jamaica
 Notes
Statement of Responsibility: Dept. of State, Agency for International Development.
General Note: "AID-DLC/P-2256."
General Note: "PD-AAB-457-A1."
 Record Information
Bibliographic ID: UF00087319
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 47173706

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Title Page 1
        Title Page 2
    Front Matter
        Front Matter 1
        Front Matter 2
    Table of Contents
        Page 1
        Page 2
        Page 3
    Acronyms
        Page 4
    Summary and recommendations
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
    Program background
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
    Program description
        Page 18
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    Program analysis
        Page 50
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    Program evaluation and implementation
        Page 63
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        Page 68
    Annexes
        Page 69
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Full Text









UNCLASI1.D ,... No


DPARWET OF STAX ,
AGENCY FOR INTERNATIONAL
Washington, D.C. 2 3


PROJECT PAPER


. *1* ,


Proposal and Reciendations
For the Review of the
Development Loan Comittee


JAMAICA INTEGRATED RURAL DEVELOPMENT


AID.-DLC/P-2a56


UNCLASSIFIED
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DEPARTMENT OF STATE
AGENCY FOR INTERNATIONAL DEVELOPMENT
WASHINGTON. O.C. 20523



UNCLASSIFIED

AID-DLC/P-2256

September 14, 1977
.i


MEMORANDUM FOR THE DEVELOPMENT LOAN COMMITTEE

SUBJECT: Jamaica Integrated Rural Development


Attached for your review are recommendations for author-
ization of a loan to the Government of Jamaica ("Borrower")
in an amount not to exceed Thirteen Million United States
Dollars ($13,000,000) to assist in financing United States
dollar and local currency costs of an Integrated Rural
Development Program ("Program"). The Program will carry
out activities in soil conservation, erosion control,
forestation, engineering works such as road building and
stream control in the Two Meetings and Pindars River
watershed areas; develop local and.national institutions
in order to increase agricultural production and increase
opportunities for employment in agriculture.

This loan is scheduled for consideration by the Development
Loan Staff Committee on Wednesday, September 21, 1977, at
2:30 p.m., in Room 5951 New State. If you are a voting
member a poll sheet has been enclosed for your response.



Development Loan Committee
Office of Development Program
Review and Evaluation


Attachments:
Summary and Recommendations
Program Analysis
Annexes A V


UNCLASSIFIED














.**** i I I *. Jl A r *A I. i . : *. *. .

PROJECT PAPER FACESHEET


4 '. O INT Y FN'tTY

Jamaica
P PROJFCI NUMRFR ', r,<,rs) 6 BUREAU OFFICE

[532-0046 S "PCL V CC5C

S''STIMATI6 0 FV OF PROJECT COMPLETION


'0. ESTIMATED COSTS 5000 01


TRANSACTION CODE
S-----, :::

L =EEIE


4 --


7 PROJECT TITLE (Maximum 40 -charcters)

'Integrated Rural Development I
9. ESTIMATED DATE OF OBLIGATION

A INITIAL NY ZI7.7 9 QUARTER T
C. FINAL 7Y I 01 rE, 1. 2. J. or 4)


EQUIVALENT SI -


FIRST Fv
A FIUNOIN(. 'OLIUCE --"- --- --"
0w x C C
kil APPROPRIATED TOTAL
r.l A1 r 1 I ,
o." 1,950 '11,.0 Q_



HOST COUNTRY
OTMER OONORESI
r- -- TALS 1,950 11,050
11. PROPOSED BUDGET AP

A. APPO. 9B. PRIMARY PRIMARY TECH. CODE E
PRIATICN P UIPOSE "
CODE C "G'qR ANT .C A 9
"PRIATICN CD .. 210A -AN

!' FN 213 210 210 .-
,, t _._t


22U .. 2 .


TOTALS
N 4ATI FY...

(,l. T ..*AN


LIFE OF PROJECT


- L ____________


0 TOTAL


-1 annni


FLC


I 1 olfn i


6 -- & __ _ _ ..... 4 -


S13,Q00-
'ROPRIATEO FUN

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?00_.


G LOAN


700 3,000
0. STH FY L


3 fncl I 1i fef


--3-,9.5005 ps) ,Q


IS ISOOO!


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1. 2ND FY Z


GRANT J .OAN


G. TOTA-


2A200


K. 3RD FYZ.9


I4 U


'L GRANT


M. LOAN


-L3QJ


IFE OF PROJECT


R GRANT S. LOAN T. GRANT U. LOAN


9 000


13 00


12. IN-DEPTH EVAL-
UATION SCHEDULE


SMM I YY


I' .. I01 71 t 9 1

TOTALS 2,000 1 0(
11 DATA i-MANrF INDICATOR WERE CHANGES MADE IN THE PIO FACESHEET DATA, BLOCKS 12, 13. 14. OR IS OR IN PRP
FAC'FSHF.ET OATA BLOCK 12' IF YES ATTACH CHANGED PID FACESHEET.


121 NO

S IORIFING OFFICE CLEARANCE



TTL O
TITLE e


AID 1 I Il 4 1 'ti


DATE SIGNED

IMM l 00 y1
0 n\7 17


15. DATE DOCUMENT RECEIVED
IN AIO/W. OR FOR AIO/W DOCU
MENTS, DATE OF DISTRIBUTIC



SMM I 00 1 Y |
0 1 q n 11 17 \ \


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9 P


I 11_200


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PROPOSED PROJECT FOR PINDARS RIVER
AND TWO MEETINGS WATERSHEDS
Integrated Rural Development



CONTENTS


I SUMMARY AND RECOMMENDATIONS

Recommendations . . ..

Program Description ..

Summary Findings . .. .

Issues . . . . . .
Project Committee . .

II PROGRAM BACKGROUND . . .

General Economic Overview .

Rural Jamaica . . .

Role of Agriculture .
The people . .. . .
The land . . . . .
Program Evolution . . .

Relationship to GOJ and AID R
Strategy . ,. . . .

Other Donor Programs . .

III PROGRAM DESCRIPTION . .
Rationale . . . . .
Strategy . . . .
Goal . . . . . .
Subgoal . . . . . .

Purpose . . . . . .
Program Components ..


Introduction


. .
. .

. .

. .
. .
. .
ural
. .

. .

. .
. .
. .

. .
. .

. .

. .


Development
. ". S .
. . . .

. . . .






Development
. . . .

. . . .


Erosion Control Activities . .
Soil Conservation Program . .
Forestation Program . ...
Engineering Works Program . .
Agricultural Extension.. ..
Farmer Organizations and Services
Demonstration and Training Centers
Technical Assistance and Training
Rural Infrastructure . . ..
Financial Plan . . . . . .


S5

5

5

7
7
9

. 10

. 10

Ji1

. 11
. 12
. 14
. i5


S16

I 17

. 18
. 18
. 19
S20
S20

. 20

21
21
S22
. 23
* 27
* 29
* 31
. 33
* 41
. 44
* 45
. 46


L-


















Contents, continued


IV PROGRAM ANALYSIS . . . . . . ... 50
Program Organization . . . . . . .. 50
Social Analysis . . .. .. . . . . 51
Micro-Economic Analysis of Agricultural Production 58
Policy Framework . . . .. . . . 60
Land Use and Tenure Policies . . . . 60
Agricultural Prices and Marketing Policies . 60
Policies on Agricultural Credit . . . .. 61
Financial and Budgetary.Analysis . . . . 62

V PROGRAM EVALUATION AND IMPLEMENTATION . . . 63
Evaluation Plan . . .. . . . .. 63
Implementation Plan . . . . . . .. 67
Disbursement Procedures . . . . . . 67
Contracting Plans . . . . . . . . 68
Procurement Plans . . . . . . . . 68
USAID Monitoring Plans . . . . . . . 68
Conditions, C6venants, and Negotiating Status .. 68














3


1







Contents, continued


ANNEXES

A GOJ Letter of Application

B Director's FAA 611(e) Certification

C Checklist of Statutory Criteria

D Draft Loan Authorization

E Logical Framework

F PRP Approval Cable

G Environmental Analysis----

H Project Execution Schedule

I Map of Project Area

J Economic Evaluation of Agricultural Production:
The Small-Farm Model

K The-Soil Conservation Program

L The Reforestation Program

M Engineering Works Program

N Construction Equipment and Machinery Requirements

0 Agricultural Credit and Farmer Organizations

P Agricultural Marketing Analysis

Q Crops Analysis

R Sociological Analysis

S Technical Assistance and Training Requirements

T Macro-Economic Survey

U Program Organization Chart

V Minor Equipment and Supplies

Supplemental Annex (on file in LA/DR and USAID/J):
UNDP/FAO report Forestry Development and Watershed Management
in the Upland Regions, Jamaica. Project for the Rehabilita-
tion and Development of the Pindars River and Two Meetings
Watersheds. FAO:DP/JAM/67/505 Technical Report i3/11. 19/7.








4





ACRONYMS


ACB Agricultural Credit Board

ADC Agricultural Development Corporation

AMC Agricultural Marketing Corporation

CDB Caribbean Development Bank

FAO Food Agriculture Organization

GOJ Government of Jamaica

IBRD International Bank for Reconstruction and
Development

IDB interamerican Development Bank

JAS Jamaican Agricultural Society

JDB Jamaica Development Bank

JSA Jamaica School of Agriculture

LLP Land Lease Project

Min Ag Ministry of Agriculture

Min PW Ministry of Public Works

PC Banks People's Cooperative Banks

SSFDP Self Supporting Farmer Development Program

UNDP United Nations Development Program












I SUMMARY AND RECOMMENDATIONS

RECOMMENDATIONS

Grant US$ 2,000,000

Loan 13,000,000

TOTAL US$ 15,000,000

Loan terms
Repayment in US dollars over 20 years, including a
7-year grace period. Interest in US dollars at %7 during the
grace period and 3% thereafter.


PROGRAM DESCRIPTION

Borrower and Implementing Agencies

The borrower will be the Government of Jamaica (GOJ). The
implementing agencies will be the Ministry of Agriculture
(Min Ag), the .Ministry of Public Works (Min PW), the Jamaica'
Agricultural Society (JAS), and the People's Cooperative
Banks (PC Banks).

Goal, Subgoal, Purposes

The overall goal of the program is to improve_the standard
of living of small hillside farmers in rural Jamaica......

The subgoal is to establish an agricultural production model
that can be replicated on small hillside farms throughout
Jamaica. This model will be based on continuous, multiple-
cropping techniques suitable for land that has been terraced
and otherwise treated with appropriate soil conservation
measures.

The specific purposes are (a) to increase agricultural production
on small hillside farms in the Pindars River and Two Meetings
watersheds; (b) -to control soil erosion in the watersheds,
thereby establishing an agricultural base for the future and
increasing the supply of water for both household and agricul-
tural purposes; and (c) to strengthen the capability of the
human resources in the Min Ag.


L












Program Components
This five-year program will establish erosion control measures
as a vehicle to introduce improved agricultural practices for
increased production in the Pindars River and Two Meetings
watersheds, comprising almost 30,000 acres and occupied by
25,000 persons. The project will be implemented principally
by the Southern Region of the Min Ag in conjunction with the
Forestry Department and the Min PW. The Agricultural Extension
Service, JAS, and PC Banks will play a major role in -educating
farmers and providing inputs credit, and marketing assistance.
Substantial long-term technical assistance'and training will
be provided to carry.out the major components summarized below.

Erosion control
Erosion control activities are subdivided into three
major categories: (a) soil conservation, including terracing,
ditching, waterways, and pastureland on about 17,700 acres;
(b) forestation on about 5,000 acres; and (c) engineering works,
including 22 miles of road construction/rehabilitation,
and river and stream control (check.dams and embankment
protection).

Demonstration and training centers
Five demonstration and training centers and 50 small-
farm subcenters will be established at the beginning' f the
program to promote the benefits of land terracing and of
multiple and continuous cropping techniques.
Farmer organizations and services
JAS organizations, PC Banks, and cooperatives in the
project area will be provided with training and seed capital
to insure that key credit, inputs, and marketing services are
made morelgenerally available and economically beneficial.

Agricultural extension
Agricultural extension agents will assist participating
farmers individually and as groups, developing farm plans,
selecting appropriate crops and cultivation techniques, and
optimizing the use of inputs and services. These agents will
promote the services of. the JAS, PC Banks, AMC, and other
Institutions of potential benefit to the farmers.

Rural infrastructure
The GOJ will be providing rural electricity, potable
water, and housing to a portion of the farmers in the project
area to improve the quality of rural life.













Financial Summary

AID and GOJ resources will be allocated as. follows:(all US$000):

GOJ AID' Total

Erosion control 3,840 9,600 13,440
Demonstration centers 30 450 480
Farmer organizations and services 400 400
Agricultural credit 1,280 1,280
Min Ag operating expenses 4,400 4,400
Evaluation and replication 320 320
Rural infrastructure 1,380 1,380
Equipment and vehicles 1,750 1,750
Technical assistance 1,530 1,530
Training 470 470

Contingency 270 480 750

TOTAL PROGRAM 11,200 15,000 26,200


SUMMARY FINDINGS

The project committee has reviewedtthe technical, economic,
social, and financial aspects of the project and concludes that
the program is feasible and relevant to Jamaica's rural develop-
ment needs.

The project meets all statutory criteria (see Annex C). The
AID Affairs Officer's FAA 611(e) certification is included
as Annex B.


ISSUES

The DAEC table on the results of the PRP review is included
as Annex F. Major issues addressed in that cable are listed
on the next page.


L












Issue

(1) Existing farm systems, tech-
nology level, and crop
mixes
(2) Availability and demand
for agricultural credit

(3) Agricultural marketing--
the problem, constraints,
pricing, and availability
of storage and processing
facilities
(4) Rationale for region-
specific approach
(5) Beneficiaries--the spread
effect, replicability,
employment generation
(6) Project design--refined .
objectives and need for
TA and training for
institutional development
(7) Ministry of Agriculture--
institutional and finan-
cial capacity and the
status of the reoggani-
zation


(8)
(9)


Agribusiness potential
Use of fixed-amount
reimbursement approach


(10) Agricultural education
needs and coordination


PP Reference

Part III: Farmer organizations
and services
Annexes J, 0, P, and Q
Part III: Farmer organizations
and services
Annexes J and 0
Part III: Farmer organizations
and services
Annex-P


Part III: Rationale

Part III: Rationale, Strategy,
Goal
Annex R
Part III: Project,gGeil, Subgoal,
Purpose; Technical Assistance
and Training components

Part IV: Program organization




Same as (1), (2), and (3) above
Part III: Erosion control: soil
conservation
Annex K
Part III: Technical assistance
and training components











9

PROJECT COMMITTEE

USAID/Jamaica

Charles P. Campbell, AID Affairs Officer

AID/W
Janet Ballentyne, Economist
William Baucom, Agricultural Economist
J. Peter Bittner, Capital Development Officer
Fred Welz, Agricultural Economist
Experience Incorporated

John M. Halpin, Team Leader
James M. McGrann, Agricultural Economist
Norman Ward, Agricultural Economist
Jorge Soria, Tropical Horticulturalist
Leeowen Tex Taylor, Equipment Consultant
Wallace J. Maddock, Agricultural Credit Consultant
Richard Warren, Rural Sociblogist
Henry Gembala, Soil Conservationist
T.C. Sheng, Soil Conservationist
Carl Smith, Engineer

Government of Jamaica

A.C. MacDonald, Director, Southern Region
Douglas Garel, Director of Planning
Roy Russel, Director of Data Bank and Evaluation
Leslie Blake, Statistician, Data Bank and Evaluation
Rutty Mitchell, Sociologist
Gloria Tapper, Sociologist'
Henry R. Stennet, Soil Conservationist
Eric Latibeaudiere, Farm Management Specialist
Keats Hall, Director of Forestry









10

II PROGRAM BACKGROUND

GENERAL ECONOMIC OVERVIEW

The Jamaican economy has long been. oriented towards
the export market. The "rum and molasses" trade
with the United Kingdom in the 18th and 19th centuries
became more diversified in the 20th century, both in
products and purchasers, but until the 1950s, Jamaica
relied almost exclusively on the export earnings from
its agricultural production (sugar, bananas, copra,
cocoa, coffee, etc.). In the 1950s two new industries -
were discovered--minerals and tourism--and the decade
of the 1960s saw massive investments in bauxite,
alumina, and tourist facilities. The mainstays of
the economy in the late 1960s and early 1970s became
(1) bauxite mining for export and local processing of
bauxite for alumina, gypsum mining, quarrying, and
cement production, and (2) the rapidly expanding tourist
complexes on the North Coast.

The development of these new industries and ancillary
services caused major dislocations in Jamaica's economy.
A major rural-urban migration pattern was established,
and as the urban areas became more crowded--accompanied
by social problems, given the lack of urban facilities--
the agricultural sector began declining in importance.
With inflation and new social welfare measures designed
to provide minimum wages to farm laborers, the traditional
plantation economy in the rural sector became increasingly
noneconomic, and large landholders began to abandon their
lands.

When major investments in mining and tourism were completed
in 1972-73, the country's balance of payments position
began to nosedive, while unemployment increased sharply
as a result of declining construction activities. To stem
the rise in unemployment, the GOJ resorted to an
expansionary fiscal policy, creating various youth and
agricultural work programs. Excess liquidity in the
economy, however, created a high import demand, which, left
relatively unchecked until 1976, contributed to an already
rapidly deteriorating balance of payments position. More-
over, foreign exchange "leaks"--Jamaican travel abroad,
foreign remittances, royalties and trademark payments--
sharply increased, causing an estimated $100 million a year
outflow.


Mh









11
At the end of 1976, the economy was generally characterized
by the following conditions:

(1) Deteriorating balance of payment position;
(2) Large fiscal deficits, offset by an inflationary
monetary policy;
(3) An unemployment rate estimated at between 22%
and 24%;
(4) Overconstruction of the tourist industry;
(5) Underatilized agricultural capacity, caused by
land abandonment and lack of investment;
(6) Declining productivity, caused by labor problems
and world commodity prices.

Jamaica is currently undergoing a severe economic crisis,
and short-run (two to three years) prospects for recovery
are not bright despite a strong package of economic
austerity measures instituted since January 1977 by the
GOJ. The major problems include (1) a worsening balance
of payments situation, accompanied by a rapidly growing
negative net reserve position (currently estimated at
-J$175 to -$200 million); (2) large fiscal deficits that
have mostly been masked by following an inflationary
monetary policy, which, in turn, has brought about excess
liquidity in the economy, causing a high demand for
imported goods, thereby aggravating the balance of payments
situation; (3) lowered agricultural and industrial produc-
tion, which has led some experts to estimate that GDP may
have dropped by as much as 5% to 10% in 1976; and (4) sharp
rises in unemployment, currently estimated to be as high
as 24% of the labor force.

RURAL JAMAICA

Role of Agriculture

Agricultural Sector Performance

The performance of the agricultural sector has been
disappointing in recent years. Basic infrastructure has
largely been ignored; credit channels are cumbersome and not
effective in reaching small farmers on a timely basis; and
the marketing system rests largely upon a disjointed system
of "higglers," commercial middlemen who reap much of the
profit. Few incentives have been provided for the farmer,
with the result that rural-urban migration has been accelerated
(especially among the younger rural inhabitants newly
entering the labor force), and idle land has been increasing
to the point that an estimated one-third of potentially
productive agricultural land is not under cultivation.


L




I


I 12
---12

The GOJ-'s attempting to revive the economy by
an immediate.stimulus in the form of an Emergency Produc-
tion Plan. A key element in the plan is the revitaliza-
tion of the agricultural sector, through the provision of
credit and reorganization of the marketing system. The
plan calls for a 30% increase in basic food production
during 1977. While it appears doubtful that this goal
can be reached in the time frame originally established,
given capital and manpower limitations at the planning
level, its ambitiousness is nonetheless indicative of
the growing belief among GOJ officials that Jamaica must
act quickly to reverse the declining trends in the
agricultural sector.

Contribution to the Economy

Since 1966, Jamaica has been a net importer of
agricultural goods. In 1974, food related imports were
valued at J$193.3 million, compared to exports of J$121.7
million. A deteriorating balance of trade for agricultural
commodities over the period 1966 to 1973, which reflected
to some extent changes in the relative prices of imported
and exported goods, was partially redressed by the rise in
prices for export crops in 1974/75. However, production
of the major export crops--sugar, banana, coffee and
citrus--has stagnated.

SAgriculture remains the principal employer in
Jamaica. About 30% of the labor force is principally
dependent on agriculture and related industries for a living.
However, because of the low productivity of the agriculture
sector, the average annual GDP per person employed in
agriculture in 1974 was as low as J$670, compared to an
average of J$3,400 for the country as a whole.

The People

About 65% of Jamaica's population lives in rural areas. Of
the total number of farm families, the rural poor of Jamaica
make up at least 80%. The 1968 census indicated that there
were 193,400 total farms, with 151,700 in the 0-5 acre
category. AID's target group in Jamaica is the 150,000
smallest farmers. Some of the farmers in the 5-10 acre
group, based upon their per capital income, also fall into
the target group. The 1968 census gave the GDP per farm as
$287. It is estimated that with 1976 prices the target group
has a per capital income of less than $200.


L----------------------




t




13
The traditional farmer owns 2 to 3 acres of land, usually
on a moderate to steep slope. He will grow food for his
family both from annual crops--yams, red peas, sweet
potatoes, cassava, Irish potatoes, dasheen, pumpkins--
and from food trees such as breadfruit, plantain, ackee,
mango, and citrus. He will plant a cash crop either as
a pure crop or in mixed stands with other crops. This
may be sugar cane, banana, coffee, cocoa, citrus, or
vegetables, depending on his location and soil characteristics.
In addition, some of the food crops surplus to the family's
needs will be sold. He might own a pig or two and several
chickens. Some goats are kept; the lucky farmer has a cow
that he tethers along the road, on a stream bank, or on
land in fallow. The typical farmer has one-third of his
land in fallow at any one time. He might own a donkey or
a mule to carry produce to the road where it can be loaded
on a truck. His principal tools are the machete and hoe.

In addition to his own land he might cash-rent some land
within a mile or two of his home, and if there were some
idle government land within walking distance he might farm
a small patch of that. He might supplement his family
income with off-farm labor for a larger farmer in the
neighborhood. This practice is usually restricted to land-
less or near-landless rural workers, since the very labor-
intensive activities of planting and harvesting do not
leave idle time.

The typical traditional farmer is 48.6 years of age and
supports a family of five, one or two of them grandchildren
or other relatives under five years of age. His-wife works
with him; labor from other family members is less common
because when children reach a productive age they leave the
farm for employment in an urban area. Surveys indicate
that as many as 407 of farmers are functionally illiterate.

He usually sells his vegetables and fruit to the wife of
a neighbor, who takes them to the local market in her
capacity as a "higgler". The average net cash income might
be as high as $727 for a family of six, or a per capital
income of about $120.

Women have traditionally played an important role on the
small farms in Jamaica and are an important factor in
the output of a typical farm. She not only bears the
children, cooks the meals, and does general house work,
she also works with her husband on the land. Under the
traditional labor-intensive system, the labor available for
planting and harvest is a factor limiting the amount of







i /
14


land that can be cultivated--so a strong, healthy woman is
a real asset. Women tend to be about the same age as their
husbands, or a little older. The younger farm family--the
wife usually occupied with bearing and looking after small
children--has less available labor than the older family.
The Land
Land in farms
During the period 1954 to 1968 there was a continuous
decline in the area of land in farbs. Of a total land area
of 2,715,829 acres, 1,914,375 in farm lands in 1954 decreased
to 1,489,188 in 1968 as shown by the 1968/69 Census of
Agriculture.
About 24% or 357,412 acres in'farms were crops in
pure stand. Grassland occupied 321,459 acres or 21.59%;
200,478 acres or 13.46% were mixed stand (all herbaceous
crops or tree crops interplanted or mixed), and 23,490 acres
or 1.58% were in food forest. Scattered tree crops were not
included in the area of food forest. Thus 60.63%.of the land
in farms,was in active use; of the remaining 39.37%, 221,613
acres or 14.88% was in ruinate, 200,652 acres or 13.47% in
woodland, 34,377 acres or 2.31% in fallow, and 129,709 acres
or 8.71% in other types of land. Somewhat less than half
the acreage making up the 14.88% in ruinate was used for
pasture.
The main crops in pure stand were sugar cane,
157,386 acres; citrus, 18,188; yams, 25,851; banana, 41,447;
Irish potato, 1,920; coconut, 39,291; cocoa, 7,419; coffee,
7,003; and other crops, 58,907.
The census reported 278,710 cattle, of which
S34,898 were dairy cattle,.183,654 beef cattle, and 60,158
dual purpose cattle; 40,686 farm animals, of which 37,083
were mules and donkeys and 3,603 were horses; 24,869 breeding
sows, 182,024 other pigs, 6,214 sheep, 208,106 goats,
24,383 other animals (rabbits, guinea pigs, etc.); and
4,004,564 poultry, of which 3,727,168 were chickens and
277,416 other poultry.


I _










15

The pattern of land ownership in Jamaica is highly
imbalanced, as the data below show:

Number of farms Farm land
Farm size (acres) (000) 7 of total (000) 7 of total

0-5 151.7 78.4 229 15.4
5-25 37.6 19.5 341 22.9
25-100 3.1 1.6 127 8.5
100-500 0.7 0.4 148 9.9
over 500 0.3 0.1 644 43.3
TOTALS 193.4 100.0 1489 100.0

PROGRAM EVOLUTION

This Integrated Rural Development Program evolved from the
UNDP/FAO project, 1967 to 1975. During that time UNDP/FAO
personnel identified 33_major watersheds in Jamaica, containing
about 400,000 acres. Five of these watersheds were later
identified as first priority for rehabilitation based on the
degree of soil erosion, potential for agricultural development,
and downstream potential for irrigation, water supply, and
hydroelectric power. The Pindars River is associated with
longer-term plans for irrigating the Clarendon Plains and
Upper Clarendon, including a proposed dam at Lucky Valley.
The Two Meetings watershed is the source of municipal water
for the important rural villages in the townships of
Christiana and Spaldings.

The program proposed by UNDP/FAO is the result of thousands
of hours of staff work: extensive analyses of the soil
erosion problem, existing rainfall and soil conditions,
cropping patterns, and socioeconomic situation. A pilot
demonstration center of 100 acres was established at Smithfield
and a survey.of participating farmers was conducted. The
conclusions were that extensive soil conservation work can
provide a sound base for increased agricultural production
and preservation of the soil resources.
UNDP/FAO recommended a ten-year project to rehabilitate the
entire two watersheds, beginning with a three-year pilot
project on two subwatershed areas (one each in Pindars and
Two Meetings). This proposal was based on an assumption












that very few increases in GOJ staff would be required and
that further pilot work would be desirable.to obtain farmer
acceptance. However, since the UNDP/FAO made their
recommendations in 1975, the GOJ has carried out additional
pilot activities with its own resources and has decided the
project should be accelerated to a five-year program (four-
year implementation period). The GOJ is thus prepared to
increase or reallocate the human and financial resources
needed to carry out the program in a shorter time frame.

RELATIONSHIP TO GOJ AND AID RURAL DEVELOPMENT STRATEGY

In 1973 the GOJ established several rural development goals,
summarized as follows:
Increase rural incomes, and improve rural amenities
and social infrastructure as a basis for raising the standard
of living of the rural population;

Ensure that all agricultural land is retained and
utilized in as efficient a manner as possible;

Create agroindustrial and small-enterprise
opportunities in rural areas to reduce the unequal distri-
bution of capital and economic activity between rural and
urban areas;

Produce as much of the food and raw materials as is
economically feasible to meet domestic food and nutrient
requirements to increase exports of traditional crops, and
to develop new crop exports;

Structure agricultural.production to reverse the
growing reliance on imported agricultural commodities.

These goals are still valid today, and have been re-emphasized
recently in the Emergency Production Plan announced in March
1977. AID supports these goals and Jamaica's other long-run
objectives of reducing rural-to-urban migration and creating
additional employment opportunities in rural areas.
The Integrated Rural Development Program is focused directly
on low-income farmers with its objective of increasing
agricultural production within the life of the project, and
is fully supportive of the GOJ's strategy of import
substitution.










17


OTHER DONOR PROGRAMS

Major projects presently ongoing or anticipated by other
agencies are:

(1) Interamerican Development Bank: Self Supporting
Farmers Development Program (SSFDP). The third tranche of
this loan disbursed approximately $20 million. An applica-
tion for a fourth tranche is now pending final IDB approval
at about the $8 million level.
(2) IDB: Jamaica AgriculturaliResearch. This project
has been developed to provide Min Ag with greater research
capability.. It has been temporarily delayed pending building
design approval and organizational changes in .the Min Ag.
The total program is approximately $10 million.

(3) IDB: Agricultural Marketing. This project is
designed to improve and build new parish markets. Final
approval of the $15 million loan is pending.

(4) World Bank (IBRD): Rural Development I. This
project with a bank input of about $15 million has been
approved; it was reported in June 1977 that the conditions
precedent had been met.
Several technical assistance projects by various organiza-
tions are being conducted by the UNDP/FAO group in such
areas as animal health, forestry development,and commercial
fisheries training. Canadian International Development
Agency (CIDA) has an ongoing project for the development of
the swine industry. The United Kingdom Overseas Development
Agency with AID assistance is carrying out a six-year
program.on coconut lethal yellowing disease.









III PROGRAM DESCRIPTION


- RATIONALE
As previously indicated, the small Jamaican farmer has been
given sporadic, cursory assistance in terms of subsidies and
emergency aid--probably designed for political reasons, and
not necessarily for increasing production. The target group
in this program is the small, hillside farmer who is character-
ized by an average per capital income of $J265 per year, and
land holdings of 2.9 acres, of which nearly all is on slopes
between 5 and 30 degrees. There are 150,000 of these farmers
in Jamaica and 4,000 in the Two Meetings/Pindars River project
area. These watersheds are two of the most important of
Jamaica's 18 severely eroded watersheds, preservation and
development of which is regarded by the GOJ and UNDP/FAO
advisors as essential to the long-term future of Jamaican
agriculture. The 4,000 farmers and their families, plus an
additional 1,000 landless laborers or rural dwellers and their
families, derive their livelihood from farming and related
industries in the watershed area.
Nearly all of Jamaica's domestic food is produced by farmers
occupying small,.hillside plots. Further, 287 of all land in
Jamaica suitable for agricultural production is on slopes from
10 to 20 degrees. The flat land is often owned by larger
farmers, and is principally suitable for large-scale farming
operations, producing such crops as sugar cane, bananas, and
coconuts. .Land that is not being used productively is gradually
being purchased by the GOJ and resettled with landless small
farmers. This is a long-term proposition, however,-and one
which addresses neither the plight nor the productive potential
of hillside farmers.
The long-run rationale for this proposed five-year program is
based on the need to increase agricultural production on small
hillside plots, on the need to protect Jamaica's important
watersheds from further erosion, and on the need to strengthen
the capabilities of the Min Ag's human resources. The project
will aim at developing an agricultural production model that
can be replicated on small hillside farms in Jamaica's other
watersheds. Soil conservation activities and proper farming
methods are essential ingredients to sustaining a base for
agriculture and increasing agricultural production. Soil
conservation activities facilitate control over water resources,
both on the small farm and downstream in the river valley, and
are a precondition for effectivevater resource management,
irrigation schemes, and dam construction at a later date.
Early benefits from soil conservation measures are increased
yields and production when farmers are able to use multiple-
cropping, intensified farming techniques, with higher-value
crops on land that has been terraced,.will not wash away with heavy












rains, and will allow the moisture to soak in rather than
run off.

The soil conservation measures are expensive. However, without
attempting to quantify downstream benefits in dollar terms,
the program has sufficient merit judged only by production
increases on land treated by soil conservation measures.
Through innovative yet modest approaches in agricultural ex-
tension, marketing, and input supply systems, the small farmer
should be able to more than double his average yearly income.

The rationale for an integrated rural development approach is
based on indications that rural living is not attractive to the
younger population. Employment opportunities are limited;
the work is hard and the pay low: housing is often substandard;
amenities such as water and electricity are often unavailable;
and social services are poor. Thus, rural-to-urban migration
increased significantly during the 1960s and 1970s, adding
to population and employment pressures in Kingston and other
metropolitan areas. This program will attempt to improve
the standard of living of a relatively homogeneous and discrete
population of 30,000 persons in two specific watersheds,
thereby setting the stage for replication throughout Jamaica.

STRATEGY

The overall strategy of this program is embodied in its
major objectives, which include an improved standard of
living, increased ruraTl ncomes, increased long- and short-term
employment opportunities, increased agricultural production,
erosion control, and a replicable model. These objectives
will -e achieved by carrying out soil conservation activities
on a major portion of the land in the project area, and by
strengthening local and national institutions to provide
credit, marketing, and agricultural extension services to
the small farmer, thereby increasing agricultural production.
Employment opportunities will be increased in the short run
by providing nearly 600,000 man days of employment through
the soil conservation activities alone. Longsterm employment
opportunities will be created by the increased need for labor
generated by establishing continuous and intensified cropping
techniques. Other short-term employment opportunities will
be created by constructing or rebuilding rural roads, and
applying erosion control measures on river and stream banks
(300,000 man days); and through reforestation activities
(200,000 man days).


I












GOAL

The goal of this program is to improve the standard of living
of small hillside farmers in rural Jamaica. Accomplishment
of this goal will be measured by an average increase in rural
incomes of 250% to participating farmers. Reduced rural-to-
urbai4igration is a long-term goal of this program, but it
may not be achieved within the lifetime of the program.
Program beneficiaries will also have access to improved
housing, potable-water, and electricity.

SUBGOAL

The subgoal is to establish an agricultural production model
that can be replicated on small hillside farms in Jamaica's
watersheds. This model will be based on continuous multiple-
cropping techniques suitable for land that has been appro-
priately treated with soil conservation measures. Replication
will begin during the program's lifetime through extension
work with some farmers outside the project area. The project
will also .train GOJ staff to provide guidance to individual
farmers who in turn may be able to undertake soil conservation
measures with their own resources, not depending on the Govern-.
ment for replication. The subgoal will be achieved if 75%
of the farmers in Pindars and Two Meetings are maintaining
the treated land two years after the project's end and are
practicing multiple-cropping, intensified farming techniques
using higher-value crops appropriate to their own circum-
stances.

PURPOSE

The project has three purposes:
(a) Increase agricultural production on small hillside
farms in the Pindars/Two Meetings watersheds;
(b) Control soil erosion in the watersheds;
(c) Strengthen the capability of the Min Ag's human
resources.
Success will be achieved if agricultural production of the
region's major crops increases as forecast in the Small-Farm
Model, Annex J; if soil erosion is reduced from an average of
53 tons per acre per year in 1977 to 7 tons two years after
the end of the project (as explained in Annex K); and if the
Min Ag can carry out a similar program in other watersheds.









21

Principal outputs include:
Soil conservation activities carried out on 17,700 acres;
Reforestation of 5,000 acres;
Construction and rehabilitation of about 22 miles of
access roads;
1.1 million man days of short-term employment generated;
Increased and intensified land use by multiple and
continuous cropping on 10,000 acres of highly productive land;
Thirty technicians receive advanced training of from
6 to 24 months;
Five Demonstration and Training Centers and 50 sub-
centers operational in the project area;
33 JAS organizations providing improved input, market-
ing, and extension services to their membership in the region;
4 PC Banks disbursing about J$1.6 million ii agriculture
credit to their membership in the region;
Water systems installed and servicing 25,000 people in-
the two watersheds plus adjacent communities by the project's end;
Rural electrification program serving 15,000 people in
the two watersheds plus adjacent communities by the end of 1978;
235 houses constructed or refurbished by the end of the
project~.

PROGRAM COMPONENTS

Introduction

This five-year program is designed as an integrated rural
development scheme, with a focus on agricultural production
as well as on social services and rural infrastructure to
improve the standard of living in rural areas. The erosion
control activities and subsequent credit, marketing, and
agricultural extension services must be carefully orchestrated
to phase back into production after the farmers' land is
treated. The Agricultural Extension Service will play a
major role, particularly in the early years of the program.
Five demonstration centers will be established to show the
farmers the benefits of terracing and the possibilities of
increased production when new cropping patterns are followed.
Local farmers' organizations such as the Jamaica Agricultural'
Society (JAS) and the People's Cooperative Banks (PC Banks)
will be strengthened to provide increased and more relevant











services to the small farmer. All the components discussed
below are essential, and aimed at three principal objectives--
increasing agricultural production, controlling soil erosion,
and strengthening the human resourcescapabilities of the Min
Ag.
Substantial technical assistance is necessary to assure success
of this program; even more important, technical assistance will
set the stage for follow-on watershed development by estab-
lishing a model that can be replicated in other valleys.
Also, the GOJ will have to devote substantial human and
financial resources to the program. Considerable enthusiasm
has already been generated by the collaborative approach to
developing this program. By harnessing that enthusiasm and
directing people s energies to the task at hand, the GOJ
should be able to sustain a dynamic and viable program.
Ultimately, success will be determined by the farmers them-
selves--by their willingness to participate in a program
that can substantially change their farming practices.,-iaking
it easier to work the land and obtain increased production;


.Erosion Control .Activities

Erosion control activities are subdivided into three major
categories: (1) soil conservation, including terracing,
ditching, waterways, and pastureland; (2) reforestation; and
(3) engineering works, including road and track construction
or rehabilitation and river and stream control (check dams,
embankments). These activities account for about 50% of
the total program cost, of which soil conservation activities.
cost 75% and will be carried out over a four-year period.
Annex K presents a detailed description of these activities
and includes cost calculations.

The Min Ag's Southern Region will have overall responsibility
for erosion control activities. The soil conservation acti-
vities will be carried out by a soil conservation unit res-
ponsible to the Southern Region, and the reforestation acti-
vities by the Forestry Department. The Ministry of Public
Works (Min PW) will construct and rehabilitate feeder roads
and tracks and, together with the soil conservation unit,
will also construct check dams and rehabilitate stream and
river banks.

The following section.outlines the broad scope of the erosion
control required and summarizes the cost estimates.













Soil Conservation Program

Of the 29,189 acres in the two watershed areas,
17,718 require terracing, ditching, or pastureland treatment,
and 7,042 require reforestation. The remaining acreage
either does not require treatment because it is sloped less
than 5 degrees or is in roads, housing, commercial establish-
ments, and the like. Approximately 4,000 landowners occupy
the total 24,760 acres requiring treatment. While it could
be argued that not all these farmers will participate in
the program, and therefore not all the 24,760 acres will
have to be treated, the costs of treatment are based on
100% participation of these farmers, for these reasons:
75% of the 500 farmers surveyed ;indicated a willing-
ness to terrace their land, even before a major educational
effort was undertaken;
The GOJ wants to offer each farmer the opportunity
to have his land treated;
Over the project period, farmers who were originally
reluctant may change their minds and wish to participate when
they see the benefits;
From the standpoint of cost and efficiency it is more
economical to terrace contiguous pieces of property'to avoid
excess ditching and waterway construction.
The soil conservation program will begin in two subwatersheds:
at Sandy River in Pindars (where work has already started) and
at Silent Hill in Two Meetings. As previously discussed,
this work will begin only after the Agricultural Extension
Service undertakes a comprehensive publicity campaign aimed
at enlisting 100% participation of farmers in the two sub-
watersheds. Following the campaign, the soil conservation
teams will conduct a pre-implementation survey to determine
priority areas, sequence of work, and a schedule for the
first-year plan of operations. The actual implementation
period of four years will begin shortly after the pre-imple-
mentation work when the supervisory personnel have been
trained and the labor force has been mobilized. Min Ag will
rent equipment until new equipment to be purchased by loan
funds arrives.

The soil conservation (earth moving) activities consist of
constructing bench terraces, orchard terraces, hillside
ditches, and waterways by machinery and manual labor. Esti-
mates at this time indicate a total of 9.1 million cubic
yards of earth will be moved by machine and 2.2 million cubic
yards by hand. The criteria for determining (a) whether
hana labor or machinery should be used for the earth moving







i .1 24



activities, and (b) the trade-offs between the two methods,
are primarily based on soil depth, slope, cost, availability
of labor, and time. Initial calculations of the appropriate
mix were based on a desire to maximize employment and thus
use asmuch hand labor as possible. The final mix suggested
in Annex K takes into account several problems with a more
extensive use of hand labor and concludes that the mix pro-
posed is both reasonable (considering the interest in
maximizing employment).and realistic (considering the avail-
ability of labor in the region, the management aspects of
adding additional laborers, the high cost of .labor and low
productivity and the individual farmers interest in treating
his land and returning it to production so as not to miss
the next growing season). The final determinant of whether
to use machinery or hand labor on a particular tract of land
will be the farmer himself, who can elect to carry out land
treatment by hand, by machine or by some combination of both.

From the MinAg's point of view, the 600,000 work force of about
600 persons at any one time will be one of the most difficult
management tasks. Additional laborers would have required
even more supervisory personnel. For example, for every 100
additional laborers, the MinAg.would also have to employ
3 more. soil conservation field assistants, 6 more headman
and 14 more senior laborers. As the program begins operat-
ing it may well be that these additional skilled personnel
will become available; however, even with training pro-
grams, the'MinAg could not foresee the availability of
skilled, labor management personnel at the headman or
field assistant level.

A four-year implementation period is planned for several
reasons, principally because the GOJ is interested in com-
pleting the task and replicating the model in other water-
sheds. This level of effort will require the soil conser-
vation unit, including supervisory personnel, headmen,
survey crews, and laborers, to work a 12-hour day, 5 days
per week. Machine operators and a skeleton staff of super-
visory personnel will work a 6-day week; in some instances
manual laborers may have the option of working 6 days per
week. The long days and 6-day work week are necessary to
make optimum use of the machinery, and to compensate for
the rainy season when crops are growing and the ground is
too wet to work. Also, from the standpoint of overall
expenses (cash outlays for personnel and idle land) it will
be less expensive to complete the soil conservation work as
quickly as possible--this despite the fact that overtime
pay and compensatory time off will be required.


1








\ .
'25




The average per-acre cost of treatment for 17,700 acres is
J$690, including all terracing, ditching, and waterway costs.
The GOJ has proposed to absorb 75% of the cost of treatment
and to charge the farmer 25%. This is exclusive of water-
ways, which will often be shared with an adjacent farmer;
the GOJ will absorb 100% of waterway costs. Thus, an average
farmer is likely to be charged about J$300 for a 2.9-acre
farm. Since the farmer is unlikely to have sufficient
cash available to repay his 25% share, two options are
Available: (1) he can work on the terracing activities,
using his'salary to repay the cost of treatment, or (2) he
can repay through the PC Banks. For the latter, the GOJ
has proposed repayment over 5 to 10 years at 8% interest,
with a l-to-5-year grace period on repayment of principle.
The repayment period would vary depending on the nature
of the treatment applied. Bench terraces and hillside
ditching will be used for vegetable crops, which will
return an income in 6 to 18 months; orchard terraces-will
be used for food trees and will require a longer payoff time.
The farmer will be expected to maintain his treated land; if
necessary, the PC Banks will lend him money to perform the
maintenance. For common waterways, and in the event.of
catastrophes, the Min Ag will. absorb the cost of maintenance.
Experience at the pilot activities thus far indicates that
maintenance costs are very low.






















______________________i






I


All repayments to the PC Banks will in turn be deposited in
a soil conservation fund established in the name of the
Min Ag, to be used only for soil conservation works in other
watersheds.

From.-the viewpoint of.the individual farmer the program would
flow as follows:
Extension agents and soil conservation agents would
educate the farmer to the advantages of terracing his land.
(This would include the follow-up activities needed to
determine continuous cropping patterns and choice of crops
optimal for his situation after treatment is applied.)
The surveying crew would survey his land and stake it
according to preferred soil conservation patterns (i.e.,
terraces or ditches). This crew would also estimate the
volume of earth to be moved.
The soil conservation -officer would give the farmer
the option of treating his own land and being paid a pre-
determined amount of money based on the number of cubic yards
of earth moved. (This in effect is a fixed amount reimburse-
ment methods) Alternatively, the farmer may choose to do
a portion of the work himself (or no work-at all), relying
on Min Ag machinery and manual labor supplied by other
farmers or casual labor. In any case the farmer and the
casual laborers would only be paid on a task work basis per
volume of earth moved.
The soil conservation officer would calculate the
total cost of treating the farmer's land and, in conjunction
with the extension officer who develops an individual farm
plan, would agree to the repayment period for the farmer's
25% share of the cost of treatment.

COST SUMMARY (J$000)
Soil Conservation Total Weighted Total
Activities Acreage Av. Cost/ac Cost

Bench terraces 4,600 J$ 820 J$ 3,722
Orchard terraces 1,005 600 600
Hillside ditches
and basins 10,763 490 5,274
Pasture and
hillside ditches 1:350 340 460
Water catchments
(200 @ J$375) 75

Subtotal J$ 10,181
Inflation factor (20% for 5 years) 2,036


inL


J$ 12,217


TOTAL








27


Forestation Program

The UNDP/FAO report recommends that 7,042 acres in
the project area be reforested; 5,740 acres of this land is
in Pindars and 1,302 acres in Two Meetings. Based on recent
experience under AID's Forestry Development Loan, the Forestry
Department will be able to reforest the necessary acreage
with Caribbean Pine seedlings at about J$250 per acre, which
includes the costs of seedlings, clearing the land, and
replanting. Maintenance costs each year for two years
afterwards average J$55 per acre per year.

Of the 5,740 acres in Pindars, approximately 5,000 acres
owned by about 500 farmers are in one subwatershed in
contiguous holdings; 3,000 of these acres are sparsely
populated and it is expected that they will be acquired by
the GOJ in the early stages of the program. Over the long
term and perhaps beyond the life of this project the GOJ
should.relocate the farmers living on the remaining 2,000
acres.

The remaining acreage in both watersheds (about 2,000 acres)
is for the most part held by smaller farmers and is partly
in crop production. Presently, the GOJ does not have the
legal authority to dedicate and purchase..this land for
forestry if the private owner does not want to sell. Thus,
land ownership laws will need revision. In the interim,
two alternatives are possible. The GOJ can offer a subsidy
to farmers to encourage them to plant small stands of trees
on their plots. The GOJ could also offer to resettle the
affected farmers on other lands more suited to higher-value
crop production. One large tract of about 1,100 acres now
owned by an absentee landlord is presently being acquired by
the GOJ and will be available for resettlement. Another
large tract will eventually be purchased by the GOJ in
conjunction with the construction of a dam on the Pindars
River. A portion of this land could also be made available
for resettlement, at no real additional cost to the GOJ,
on the understanding that farmers involved in a resettlement
would receive land at least equal in value to that which was
surrendered.

Annex L discusses one proposed subsidy scheme; however, the
GOJ is undecided on the final scheme and in fact it seems
likely that several alternative schemes will eventually be
agreed upon. At this time it is reasonable to budget for
reforestgtion_costsonabout 2,000 acres of privately held









28



land. Annex L alsoppresentsthe per-acre costs
of reforestation.

AID's Forestry Development Loan established an institutional
capability to carry out forestation activities in Jamaica.
The human resources are in place and the Forestry Department
has the nursery and logistical capability to reforest the
necessary acreage in the Pindars/Two Meetings area. The
reforestation activities proposed in this program will be
based on the previous forestry loan program. Assuming that
5,000 acres will be reforested over a five-year period, about
200,000 man days of employment will be-generated.

COST SUMMARY (J$000)

Acres Cost
Land survey and studies -- J$ 50
Land acquisition 3,000 300
Private subsidies 2,000 400
Maintenance of public lands -- 330
Reforestation: public land 3,000 750
Reforestation: private land 2,000 500

SSubtotal J$ 2,300
Inflation factor (20% for 5 years) 460


TOTAL


J$ 2,760












Engineering Works
The UNDP/FAO report concludes that civil engineering
work requirements in both watersheds are similar. Thus, in
accordance with GOJ specifications, which are based on practical
experience in Jamaica, they recommend standard designs as
explained in detail in Annex M.

Three general categories of engineering works have been
identified: (1) 22 miles of road construction/rehabilitation.
(2) stream control (waterway and check dam construction, and
(3) river control (embankment protection). These activities
will be undertaken to prevent further erosion from roads,
tracks, and river or stream banks and, in the case of road
and track construction or reconstruction, to provide farmers
better access to markets.

Road construction and rehabilitation and bridge building will
be carried out by the Min PW, and the remainder of the acti4
vities by the Soil Conservation Unit of the Min Ag.

Based on the road building experience of AID's Rural Feeder
Roads Loan and the Forestry Development Loan, the GOJ has
sufficient in-house and force account expertise to design,
engineer, and implement the project's modest road work effort.
In the case.of the waterway and check dam construction and
the river control works, long-term technical advisors will
be provided to the Min Ag.

The UNDP/FAO report recommended an initial level of engineering
works in two subwatersheds where soil conservation activities
will begin, and engineering works in other areas of the
watershed where requirements are most urgent. Most of the
UNDP/FAO initial survey work was carried out between 1973 and
1975, with cost estimates updated in early 1977 and again
for this PP. However, final location surveys will have to be
conducted by joint Min Ag/Min PW teams, with the assistance
of the soil conservation advisor.


j





3'


COST SUMMARY


Road construction or rehabilitation*
Retaining walls and drains
Bridges

Track construction or relocation


River control

Stream control


Subtotal

Inflation

TOTAL


J$ 1,242,000
106,000
60,000

98,000


24?000

110,000


J$ 1,640o000

160,000

J$ 1,800,000


Detailed cost estimates on engineering works are in Annex'M.


*AID's contribution to road reconstruction will be limited
by a fixed amount reimbursement (FAR) not to exceed
$US40,000 per mile for the 22 miles effected. This
amount may be adjusted to account for inflation,


c









3L


Agricultural Extension

To a large extent, this project will depend upon the
effectiveness of the agricultural extension program. The
*P concept of extension as it is presently practiced in Jamaica
will have to be modified in accordance with the decentraliza-
tion of the recent reorganization if the project is to meet
Sits objectives. Efforts will have to be made from the beginning
to educate the farmers involved, preferably through groups
such as the JAS. Extensive use of visual aids, visits to
demonstration areas, and discussion groups presented by
various specialists as well as by the extension agents them-
selves will be employed. Since this program is based on an
integrated agricultural development approach, it follows
that the Agricultural Extension Service will have to.promote
the total program rather than only certain elements.

The Min Ag under its ongoing reorganization plan has announced
the goal of one extension agent for every 500 farmers. In
the project area, due to the intensive and multifaceted work
that is to be conducted, the ratio will be reduced to one
agent for approximately 200 farmers. The Ministry will
assign at least 20 extension officers to work in the project
area (8 in Two Meetings and 12 in Pindars) under the direct
control of the project.director. They will be trained by
the TA advisors and Min Ag staff to carry out the phases of
the project. As the project draws to a conclusion the agents
will be transferred out of the project area and reassigned
as appropriate.

The present extension system is designed to work closely
with the JAS. The JAS has paid and volunteer organizers
who will organize group meetings--focal points for special
campaigns and promotions. Special emphasis will. be given to
creating local "grassroots" organizations that can "become
the action and information groups necessary to the project's
success.

Two specific subwatersheds have been chosen to begin the soil
conservation work: the Silent Hill watershed in Two Meetings,
and the Sandy River area in the Pindars. The extension workers
will concentrate on working with these farmers during the
early stages of the project. They will coordinate closely
with the people assigned to the soil conservation work to
supplement one another's activities.












The technological package to be introduced to the farmers
will be developed by the extension agents in cooperation
with the specialist provided under the technical assistance
portion of this project. The agents will have the overall
responsibility of not only program development but also
creation of a delivery system that will assure the target
group is properly informed.

The horticultural advisor will provide information on new
varieties, new crops, new planting methods, depths, spacing,
cultivation and timing, and disease problems. The extension
agents will assist him in carrying out farm demonstrations
and advise him of any new or existing problems that should
be investigated.

The extension agents will also work closely with the
farming systems specialist to develop the best technological
package for introduction to .the target group. Special
attention will be placed on greatest economic return through
improved cropping patterns and rational use of fertilizer.
They will help the farming systems specialist implement -
simple cost accounting systems that will provide accurate
information on yields and returns.

In addition, the agents will work closely with the marketing/
agroindustry specialist in helping the farmers market their
produce more effectively. An informal training program
will be developed by the extension personnel with the
assistance.of the marketing specialist to inform the farmers
about the preparation and preliminary package for the first-
stage marketing program to be developed between the AMC and
JAS. They will help this specialist identify potential and
actual surplus situations that might lend themselves to
processing in existing facilities. The extension agents will
also work with the marketing/agroindustry specialist as well
as the horticulturalist and the farming systems specialist
Sto determine what crops may be suited to advanced contracting.

Under the present agricultural credit system, extension
personnel plan a key role in formulating farm plans and
recommending loans. It is hoped that their role in the
credit system will become more advisory and less direct.
In any event they-will work closely with the agricultural
credit/farm organization specialist to develop an equitable
system of granting credit and collecting repayments based












on crop liens whereby production loans are paid off at
harvest time. They will work closely with the supervised
credit personnel from the PC Banks.

In addition, agents will cooperate with the agricultural
credit/farm organization specialist in developing the local
groups necessary to implement the project--mainly local
organizations of the JAS. Some local cooperatives may also
be formed. These groups will attempt to concentrate
products during the first stage of the marketing process;
they will supply the necessary inputs such as fertilizer,
planting materials, and pesticides; and may become the core
for further development of.agroindustries. In any and all
of these activities, the extension agents will play a
critical role.

It is expected that by the end of the project the-extension
program developed in the project area will serve as a model
for the rest of the country. Min Ag personnel will be
trained in such fields as horticulture, soil conservation,
farming systems, and cooperative development. These personnel
would.then be available to work as specialists in these fields
as the soil conservation program is expanded to other water-
sheds in the country. The concept .of program planning with
local participation-will have been clearly demonstrated and
accept-e& as the normal approach for extension throughout
the-countr-y. Audiovisual and other teaching aids developed
for -iue in the project area will be easily transferable for
use throughout the entire extension system.

Farmer Organizations and Services

If target area farmers are to benefit fully from the
establishment of more intensive cultivation on land modified
with bench terraces and other soil conservation measures,
increased use of inputs will be necessary--implying the
increased use of credit--and current marketing behavior will
need modification. The shortcomings and weaknesses of the
systems supplying credit, inputs, and marketing services in
the project areas--beyond their many symptoms--are rooted
in the problematic structure of the farming pattern, which
requires farmers' needs be attended to via a large number
of low-volume and geographically dispersed transactions.
This fundamental problem is the factor contributing most to
the high cost, poor reliability, and difficult management
observed in the credit, input, and marketing systems serving
farmers in the two watersheds.


L








34



The project will address this problem in two basic and simultaneous
ways. First, groups of small farmers will be helped to achieve
economies of scale by planning, borrowing, buying, and selling
in a more concerted manner. Second, credit, supply, and
marketing institutions and firms will be encouraged and
assisted to modify rules and procedures to better accommodate
the individual and collective needs of small farmers. This
approach will not require the creation of any new organizations
or institutions, nor are any planned in the project activity.
What will be required are incremental changes in behavior on
the part of farmers and managers of institutions to undertake
innovations that may initially be perceived as representing
higher risk when compared to traditional practices. The
project activities are precisely designed to stimulate needed
innovations by reducing the perceived risks of the target
group and ancilliary institutions.

Farmer groups and organizations

Groups of farmers associated for the purpose of
coordinating their plans and sometimes engaging in unified
action represent the best alternative to improve the
credit, inputs, and marketing services available in the
project area. The project proposes no preconceived "best"
structure of group activity., and will attempt to assist
and develop groups of farmers organized as cooperatives,
associations, or societies.

The Jamaica Agricultural Society (JAS) is the organization
in the two project areas to which target farmers are mostly
likely to be affiliated. A survey indicated more than
one-third of the target farmers are members of one of the 33
local JAS groups in the two project areas. For this reason
it is proposed initially to concentrate organizational
assistance on these groups; they have the potential of
playing fundamental and important roles in the eventual
success of the project.

The role envisioned for local JAS groups has several facets:
conduit through which information, advice, and technical
assistance may be disseminated; a forum for discussion among
farmers, where local leaders can encourage others to adopt
new behavior; a structure wherein coordinated activity will
afford local farmers economies of scale in buying and selling;
and a vehicle to community and political participation.












Specifically, the project staff with the assistance of the
technical advisors will attempt to establish the interrelation-
ships of farm production and ancilliary services, and
persuade farmer groups of the economic advantages of concen-
trated areas of production. The shift to concentrated
production areas within the constraints of sound agronomic
possibilities is a fundamental first step in subsequent
activity to improve delivery of credit,, inputs, and marketing
services. Such a shift in basic land use and cropping
patterns is believed feasible because of the radical modifica-
tion of-the land by soil conservation treatments; this will
leave farmers more open to reasoned arguments about changing
their traditional farm plans to collectively establish areas
of more homogeneous production.

Local JAS groups will also be assisted to understand the
various institutions upon which they depend, and encouraged
to adopt methods that reduce the cost and facilitate the
use of credit, inputs, and marketing services. Toward
this end the operations of the PC Banks, farm supply firms,
co-ops, the AMC, higglers, and food processors will be
discussed with local JAS groups to identify ways small
farmers can establish better links with more economically
beneficial outcomes. Improved linkages will most often
-require coordinated group action--simultaneously soliciting
credit, pooling input requirements into a single order, or
jointly assembling marketable produce. In turn, pressure
from local farmer groups may bring changes in the policies of
institutions to better accommodate the requirements of
farmers.

To harness the potential of small farmer groups to improve
the credit, inputs, and marketing systems in the target
areas, the key project activities will be technical assistance,
training, and promotion. In addition,.loan funds will be avail-
able for modest grants (seed capital) to local groups. These
funds may be used for any purpose that would encourage small
farmer groups to undertake innovations to establish better
linkages with the credit, inputs, and marketing systems
servicing the target area. Seed capital might.be used for:
partial cost of simple storage buildings for fertilizers
ordered jointly and delivered in quantity; partial cost of
selected tools and equipment (e.g., backpack sprayers) to
be used among local JAS group members; partial cost of
establishing simple assembly centers for marketable produce












including appropriate techniques to preserve quality by
removing field heat through aeration and water evaporation;
the initial cost of appropriate and standardized crates and
packing containers; partial.cost of prefeasibility studies
and design sketches for larger projects (e.g., agroindustries)
for which local groups are willing to accept long-term loan
financing.

Seed capital grants solicited by local groups shall be
approved at the option of the Min Ag Permanent Secretary,
upon the request-of the Southern Region director, and with
the advice of the Project Advisory Committee. Grants shall
be made for discrete and specific purposes. A total of
J$500,000 shall be available for such grants, but in no
event shall the cumulative grants to any single group be
in excess of J$250 per member over the life of the project.
Credit

The PC Banks, four of which are located in the two
project areas, are the best suited sources for institution
credit forsmall farmers because.of their structure, community-
based responsibility, and modest eligibility requirements
for borrowers. The project will therefore increase the
amount of loan capital and managerial capacity of the PC Banks
to a level consistent with projected small farmer credit
requirements. The GOJ will provide a total of J$1.6 million
to the four PC Banks in the project area, specifically for
production credit for periods coinciding with crop growing
and harvest cycles. Professionally trained managers will be
hired by each of the banks; their salaries will be subsidized
by the Min Ag over four years of the project. Present staff
and directors of the banks will be given training in operational
skills and concepts of lending money for agriculture, .provided
in part by the project's credit/organizations advisor. The
PC Banks' directors will.be encouraged to modify their usual
practice of insisting that production loans be secured by
land mortgages, accepting instead crop liens or attachments
of sales. Moreover, the banks' directors will be asked to
change policies and procedures as necessary to make loans to
groups and associations as well as individuals. Procedures
should be modified to .allow at least the simultaneous
application, review, and disbursement of loans to any group
of individual farmers engaged in jointly planned agricultural
activity.












On the other side of the credit equation, the small farmers
in the project areas will require training in the use and
management of production credit. While only one-fourth of
the farmers currently borrow money for production, the concept
is not new to most of the target group.. Training will be
focused on how to determine credit needs, how to anticipate
and arrange credit in advance of need, and how to understand
the terms of loans provided by PC Banks. This training will
be conducted through local JAS groups, by bank staff, agricul-
tural credit field officers, and extension agents with the
advice and assistance of the credit/organization advisor.

Inputs

More intensive.cultivation practices and improved
technology will demand more varieties and larger quantities
of commercial inputs be available to small farmers. While
knowledge of appropriate inputs is a problem addressed by
the agricultural extension activities of the project, the
unreliable availability and high cost of most inputs is a
major constraint to widespread use by small-farmers.
Privately owned farm supply stores that sell fertilizers,
tools, insecticides, and improved seeds are limited to
larger towns, are said to be often short stocked, and are
known invariably to charge premium prices for small orders.
This supply structure may at length be modified for farmers
in the project area by an expanded private sector role if
sufficient geographic crop specialization is successfully
established. The project, however, intends to address
this problem immediately by assisting JAS local groups to
pool their requirements for inputs and place single orders
with major supply firms or cooperatives for delivery to a
convenient community location. Local JAS groups will also
be encouraged to adopt other formal and informal procedures
to ensure themselves of key input supplies, tools, and
services. For example, one or two members of a JAS group
may elect to purchase specialized equipment (e.g., backpack
sprayer) and perform work for neighbors for a fee.

Direct project assistance will be mostly in the form of
training and organization by project staff and advisors to
the JAS groups. In addition, grant funds will be available
to facilitate or initiate improved input availability.
Grants will almost always be directed at giving farmers,
acting together, the tangible assets necessary to take












advantage of economies of scale when purchasing inputs. It
is not anticipated that grant funds will be used directly to
subsidize costs of fertilizer, insecticides, or other
purchases.

One cooperative in the project area, the Christiana Potato
Growers Association, is the only significant farmer-owned
organization already handling an assortment of farm inputs.
It is believed that this cooperatives activity can be
expanded with current management and facilities. Therefore,
the project proposes to offer a grant to this co-op with the
condition that it expand its inventory.of inputs to better
serve more small farmers. The inventory requirements will
be determined by the project director and his staff. The
amount of the grant would not exceed J$50,000.

Marketing

The availability of market outlets for farm produce
is not judged to be a major constraint to increased production,
since both higglers and the AMC are active in the project
area. However, the performance of the marketing system is
a constraint to farm income, and project activities are
intended to improve that performance. -As with input supply,
opportunities for improved marketing will be greatly improved
by establishing more geographically concentrated production
patterns of selected crops. This is true because sufficient
volume of produce in a given place is a precondition to
establishing affordable methods to preserve quality and
reduce handling cost, and attracting a wider range of buyers.
Therefore, project activity to improve marketing will begin
with training farmer groups like the JAS to increase their
knowledge of marketing costs between farmgate and final
consumer. The purpose of this training will be to stimulate
local farm groups to identify ways to perform selected
market-related services for their produce for which they can
capture economic benefits. Improving quality for which
buyers are able to pay premium prices is one possibility;
improving preservation for longer shelf life is another.
Reduced market risk may be desirable: forward contracting
could be appropriate, and storage facilities for some
commodities. The point is, most marketing improvements will
require mutually agreed objectives and jointly executed
activities. One example of cooperative linkage between
local JAS groups and the AMC to improve market coordination












in a mutually beneficial way is described in Annex P:
cleaning, sorting, and packing of set-volumes of produce is
performed by JAS groups according to AMC specifications and
is picked up at predetermined dates and locations. In
return, participating JAS farmers receive a price premium
for their additional work and for their willingness to
contract forward of delivery. The AMC is on record as
wanting to expand this type of arrangement, and private
processors are apparently eager to establish linkages with
groups capable of assuring sufficient volumes in-a contractual
manner.

In addition to training and technical assistance in
marketing, the project staff will use its best efforts to
provide the catalyst sometimes needed to establish more
beneficial linkages between farmers and market buyers.
Particularly important will be the work of the marketing/
agroindustry advisor in rendering fair and experienced
judgment to all parties and helping to anticipate problems
before they arise.

When deemed necessary, groups will be encouraged to solicit
seed-capital grants from the Min Ag to initiate marketing-
improvements. Examples that come to mind are' small assembly
sheds, crates, and sorting tables as previously discussed.
It should be noted that improved marketing activities of
the kind envisioned in this project should require only
modest capital investments. No construction of elaborate
physical facilities, no sophisticated mechanical equipment,
and no advanced technology are desirable or needed. Rather,
what the project will seek to accomplish are simple but
important changes in marketing behavior that will result in
higher prices for farmers. Seed-capital grants should be
used judiciously to provide low-cost tangible facilities to
elicit changes in the intangible attributes of market
performance.












COST SUMMARY


Each of 4 PC Banks will have a full-time
professionally trained manager
4 x J$10,000 x 4 Years


J$160,000


Input Supply


Input reception sheds
20 JAS groups @ J$1,500
Special tools and equipment
25 JAS groups @ J$1,500

Existing co-op inventory expansion
1 co-op @ J$50,000


J$ 50,000

J$ 37,500

J$ 50,000


Marketing


SAssembly/packing sheds
15 JAS groups @ J$2,500

Special handling/sorting equipment
15 JAS groups @ J$500

Crates/packing boxes
33 JAS groups @J$2,000

Appropriate tech. for cooling
5 JAS groups @ J$5,000


Contingency

TOTAL


J$ 37,500

J$ 7,500

J$ 66,000

J$ 25,000

J$ 66,500

J$500,000


fq












Demonstration and Training Centers

The Institute of Interamerican Sciences, in cooperation with
the Min Ag, is developing a research, training, and demonstra-
tion station at Allsides in the parish of Trelawny. Though
this is outside the project area, experiments carried out
at this location will be relevant for both watersheds,
particularly so for Two Meetings. Close cooperation is
anticipated between that station and project activities.

The major effort at Allsides, in addition to bench terracing
and other soil conservation-measures, is the development of
multiple cropping systems with major emphasis on Irish
potatoes and yams interplanted with red peas. They are also
utilizing various fertilizer treatments to measure response
both in terms of total quantities and trace element require-
ments.

Because of varying soil conditions and some critical micro-
climate differences the project will develop five replica--
tions of the Allsides station within the project area.
These centers will be located on typical land either presently
owned or to be obtained by the GOJ in plots of from 5 to
10 acres. The land will be treated with the necessary
conservation measures and cultivated by resident farm
operators with assistance from local laborers. An effort
will be made to develop a farming system at each center
that can be duplicated by the farmers in the surrounding
area. These centers will practice innovative methods, how-
ever, and will try out various systems and technologies
before they are recommended for individual farm adoption.
The centers will be the-proving grounds for new crops and
varieties to be tested by the horticulturist and the farming
systems specialist. The production economist will analyze
the cost/benefit ratio of the various technological packages
that are tested and develop recommendations for the individual
farmers to maximize their returns.

Each center will be directly supervised by a technician with
the equivalent of a Jamaica School of Agriculture (JSA)
degree. No large or expensive installations will be
required. A simple building for office, storage, and living
quarters will be adequate.

In addition, these centers will become the initial source of
planting materials for the surrounding farms. The innovative
development of planting material for yams begun at the Smith-


I









42


field station in Hanover will be duplicated at each center.
In addition, elephant grass and other pasture grasses will
be grown to provide planting material for the risers of
bench terraces on individual farms.
4
Basic meteorological information such as rainfall, temperature,
and wind velocity will be obtained. Small hand-operated
tractors will be tried out at these centers.
The centers will only operate during the life of the project
and, if the government chooses, the land can be used for
resettlement purposes.

Within six months after the demonstration centers are
established, the agricultural extension agents and farm
operators of the centers will enlist willing farmers nearby
to establish subcenters. These subcenters will be privately
owned farms typical of those in the region and will function
as practical applications of the model demonstration centers.
The owner of the farm will continue to operate it, but will
receive specialized attention in the use of fertilizer,
cropping patterns, and land maintenance. -Te encourage
these farmers to participate, the GOJ will provide all the
necessary inputs for an average two-year period, and will
guarantee him an income in the event crops fail. He will
provide the labor and, it is hoped, will become promoter of
the benefits of treated land and new cropping patterns. The
GOJ will have to obtain an understanding from the farmer
that the in-kind inputs will be provided free for a two-
year period only.












SUMMARY OF ESTIMATED COSTS

Cost per demonstration center

Land acquisition (5-10 ac)-
Soil conservation treatment
Living, storage, and office quarters
Input supplies
Staffing costs @ $10,000/year
Casual labor

Subtotal
Total cost (5 centers for
4 years)


-J$--77-00--
7,000
10,000
10,000
40,000
10,000

84,000

J$420,000


Cost per-Subcenter


Soil conservation treatment
Inputs ($400/year for 2 years)


Subtotal
Total cost of 50 subcenters


TOTAL


J$ 2,100
800

2,900
J$180,000

J$600,000


a/ GOJ share: Land J$7,000 x 5 centers = J1$35,000.
All the rest is AID share: J$565,000












Technical Assistance and Training

The technical assistance and training requirements were
analyzed, keeping in mind the immediate needs in the project-
area but also with a view toward the future. The objective
was to set the stage for replication beyond the lifetime of
the proposed project, for future GOJ and AID plans in rural
development in Jamaica.

The technical assistance portion of the project will be
extremely important to the success of the activities to
be carried out. The available manpower in the Min-Ag must
be reinforced. There are some well-trained extension
officers, but their concept of program development and
implementation has been conditioned to responding to crisis
and providing Government subsidies. Little work has been
done to organize group action or to determine the needs of
the people. The current reorganization of the Min Ag
provides a structure that can be utilized, but outside
assistance will be required to develop an effective organi-
zation in the project area.

With the exception of a few export crops, Jamaica has done
very little work in the field of applied agricultural
research. There are few trained agricultural research people
in the country and little organization in the Min Ag to
carry out work on such things as crop introduction trials.
The status of research workers compared to extension
personnel is low; consequently, the better people,_unlike
those in most countries, Are usually not attracted_ to_this_
area of work.

Seven long-term technicians have been identified as being
required for a total of 21 man years-during the life of
the project (see Annex S for details). Assistance will be
required in the fields of horticulture, farming systems, soil
conservation, agricultural extension, marketing/agroindustry,
agricultural credit/farmers organizations, and agricultural
production. Short-term assistance will be required in
such fields as heavy machinery maintenance and operation,
specialized horticulture, entomology, plant pathology,
animal husbandry, rural housing, agroindustrial development,
food storage and processing, home economics and nutrition,
soil conservation, forestry, and watershed management. It is
estimated that 60 man months of this type of assistance will
be required during the life of the project.






r/ ,
/"*










45-


TA costs are estimated at US$1.53 million.

The shortage of properly trained people to work in the
agricultural development process is a serious handicap
Sto progress in the agricultural sector in Jamaica. The
most recent figures from the Statistical Yearbook of Jamaica
1976 are indicative. In 1974-75 there were 47 students
S. studying agriculture at the University of the West Indies.
The same year 12 students were graduated; in the total
period 1952-1975 there were only 93 graduates in agriculture.
The same source indicates that in 1974-75 there were 271 students
enrolled at the Jamaica School of Agriculture (JSA)--a
post-secondary educational institution whose graduates are
insufficently prepared to solve the problems of developing
improved agricultural technology for the small farmers in
Jamaica.' Training at all levels will need to be an integral
part of this project.

It is estimated that 40 man years of training (See Annex S
for details) will be provided under the project. This will
be long-term academic training both at undergraduate and
graduate levels. The training will be in various fields but
important consideration will be given to training specialists
to replace those who will be provided under the TA grant
portion of the project. There will also be specialized
in-country training carried out by the various specialists
assigned to the project. Training costs are estimated at
US$470,000.

Rural Infrastructure

"The housing, electricity and water components discussed
below are part of a modest, ongoing effort to improve rural
infrastructure.'

Housing

The GOJ recognizes the importance of improved
housing to rural dwellers. The social survey of the project
area indicated that good housing is at least as important to
small farmers as improved roads, access to credit, and
higher farm prices.
The Min Ag has plans to construct 35 houses in the project
area during their 1977/78 financial year at a cost of
J$1,100 each (total cost J$38,500). Based on current pro-
jections it is expected that at least another 35 units will
be built in each of the four years of the project (an
additional $185,000 with a 20% inflation factor). These
units are small two-bay houses (16' x 12') constructed of
concrete blocks, wooden supports, and a metal roof. The


I













Min Ag is interested in broadening the participation of
this program and also exploring the possibilities of alterna-
tive materials and construction methodologies. The Min Ag
has requested that a specialist on rural housing be provided Ls
with TA funds on a short-term basis to analyze the rural
housing needs in the project area and to investigate
appropriate housing technologies for possible application
throughout rural Jamaica.

* .As _part of the Land Lease Program, the Min Ag and Min of
Housing during 1977/78 are also constructing a housing
scheme at Crofts Hill. A portion of this land lies in
the watershed area and will be terraced under program
activities. The scheme will cost J$730,000 for 80 units
including a sewer system.

Rural Electrification

With assistance from the IDB, the GOJ Public
Service Company is providing electricity to a total of
almost 15,000 people in the two watershed areas. When the
project is completed in mid-1978, approximately 95 miles of
line will be in place at a cost of J$1.2 million.

Rural-water

The major water need in the project area is
expansion of central pumping facilities at Moravia and
Two Meetings. The existing plants are now serving 25,000
persons throughout the watershed area, including villages
and isolated communities with a central water line near
roadways. During the current GOJ fiscal year J$285,000 is
earmarked for increasing the capacity of the Moravia plant.
Another J$3 million has been requested for the next fiscal
year to construct a second treatment plant at Two Meetings.
When both projects are completed an additional 25,000
persons will be served.


FINANCIAL PLAN

This five-year program will incur nearly all its expenditures
during the four-year implementation period of the erosion
control activities. A preimplementation period of six to










47


nine months beginning as soon as the program is authorized,
will be required to mobilize GOJ resources, educate farmers
in the watersheds., and recruit TA advisors. Actual earth-
moving activities should begin with rental equipment in
April 1978.

A fixed amount reimbursement (FAR) approach will be used for
payment to day laborers--many will be farmers--employed in
the program. As explained in the description of the soil
conservation program, they will be paid on a task-work basis
for the amount of earth moved, or for the number of ditches
cleaned or terraces established.

Approximately US$1,950,000 of loan monies will be foreign
exchange costs of equipment, vehicles, and materials; the.
remaining US$11,050,000 are local currency costs.

Financial summaries follow.

FAR will also be used to reimburse the GOJ for the cost of
road reconstruction.


L













48*
SUMMARY FINANCIAL PLAN

J$000 US$000
GOJ AID TOTAL GOJ AID TOTAL


Soil Conservation
Bench Terraces
Orchard Terraces
Hillside Ditches & Basins
Pasture with Ditches
Water Catchments
Subtotal


Forestation

Engineering Works
Road Construction and
Rehabilitation
River and Stream Control
Subtotal
Demonstration and Training
Centers
Farmer Organizations and
Services
Agricultural Production
Credit
Commodities
Heavy equipment
Vehicles
Light equipment and
supplies
Subtotal
Salaries of Min Ag personnel

Other operating expenses
of Min Ag

Water Systems
Rural Electrification
'Program
Rural Housing
Evaluation and Replication
Technical Assistance

Training
Contingency


1131
175
1588
131
25
3050


1300


3394
525
4762
394
75
9150

1500


385 1155
65 195
450 1350


4525
700
6350
525
100
12200
2800


1540
260
1800


35 565 600

500 500


1600


1625
325

235
2185


5000


500

300

1200

225

400
1900
600

340 600
14000 18750


905
140
1270
105
20
2440

1040


2715
420
3810
315
60
7320

1200


310 920
50 160
360 1080


3620
560
5080
420
80
9760
2240


12-30
210
1440


30 450 480

400 400


1600 1280


1625
325

235
2185

5000

500

300

1200

225
400
1900
600
940
32750


1300
250

200
1750
4000

400

240

960

180

320

1530
470
270 480


1280

1300
.250
200
1750

4000

400

240

960

180
320
1530
470

750


11200 .15000 26200


Note: US$ 1.00 J$ 1.25





















SUMMARY FINANCIAL PLAN BY YEAR

(J$000)


Soil Conservation
Forestation
Engineering Works
Demonstration & Training
Centers
Small Farmer Services
Agricultural Credit
Commodities
Min Ag personnel expenses
Min Ag operating expenses
Water Systems
Rural Electrification Program
Rural Housing
Evaluation and Replication
Technical Assistance
Training

Subtotal


Year la/
GOJ AID

500 1000
200 200
100 375

10 300
50

1700
800
50
300
1200
35
25
300
50

3195 4000


Year 2


Year 3 Year 4 Year 5


Total


GOJ AID GOJ AID GOJ AID GOJ AID GOJ AID


750 2250.
300 300
200 425

25 265
150


1200
100


25
450
150

2920 4315


1000
350
150


3000
350
550


1250
100



45
100
475
"150

3295 5010


750 2350
300 300


1300,
125



50
150
450
150

2975 3500


50 550 3050
150 350 1300
450


450
125



50
100
225
100

1275 1325

Contingency

TOTAL


9150
1500
1350


35 565
500
1600
.2185
5000
500
300
1200
225
400
1900
600

13660 18150


340

14000


600

18750


a/ Project year begins 1/78; GOJ fiscal year begins 4/78








50


IV PROGRAM ANALYSIS


PROGRAM ORGANIZATION

In 1975 the Management Services Division of the Ministry of
Public Service reviewed the structure of the Min Ag and recom-
mended major organizational changes. The report found that the
planning, staffing, and control functions of the Ministry
needed strengthening, and that.program implementation was
ineffective because it did not have organizational control over
major services such as irrigation, drainage, and extension.
Most important, the farmer was not being reached.

Most of these recommendations were accepted and the formal
reorganization became effective in April 1977. Essentially,
the reorganization placed the planning, data storage, and
overall control in headquarters, while implementation of
agricultural production and rural development programs was
decentralized under three regional directors.

This program will be under the overall direction of the Southern
Region's director, who will have the necessary resources at his
disposal to achieve timely and efficient implementation. An
organization chart for the project structure is presented in
Annex U.

TA advisors will be assigned a full-time GOJ counterpart and
will work in both watersheds. They will be expected to live
in the project area, probably in Mandeville or Christiana,
As part of their scope of work, the advisors will conduct
training courses and seminars throughout the project's life.
The principal Min Ag divisions.to participate in the program
will be the Agricultural Extension Service and the Soil
Conservation Unit, which will be reformulated slightly to
focus its efforts almost entirely in the project area. The
Forestry Department, which operates somewhat independently,
but under the overall direction of the Min Ag, will carry out
the forestation activities and the Ministry of Public Works
will- carry out the road construction and rehabilitation.

The Agricultural Extension Service will play a major role in
project promotion. The present system of agricultural extension
has grown out of many changing programs during the last two
or three decades. Until 1952 JAS was responsible for extension
activities; then the program was placed in the Min Ag. The
land authorities were then organized and the extension program
was changed to conform to this type of geographical division









51


rather than to the normal political boundaries. When the Min
Ag began its reorganization in April 1977 the extension agents
were decentralized. They are now assigned to the respective
parish manager's office.. Their major activities consist of
distributing seed and fertilizer to farmers, making out farm
plans and approving loans, and reporting to Min Ag on acreage
planted and crop projections. They do hold some community
Meetings to discuss such things as emergency production plans.
It would appear, however, that meetings to discuss improved
technology are rarely held.

It is difficult to speculate on the strengths and weaknesses
of a recently reorganized Min Ag. The Min Ag believes this
program will enable them to carry out the reorganization as it
was intended--that is, to decentralize operations. Certain
bottlenecks will no doubt be encountered as lines of authority
and responsibility are clarified and strengthened. However,
the Min Ag is fully behind this program and views it as one
of the most relevant projects for Jamaica today.

SOCIAL ANALYSIS


The following social soundness analysis is based in part on
a survey conducted in March and April 1977, Annex R pro-
vides supplemental information on the role of women in the
project area.












I. Beneficiaries:

The beneficiaries are the approximately. 20,000 people living on 3,983
small farming units in the Pindars and Two Meetings watershed areas..
Because they are drawn from a relatively homogenous social and economic
strata, the target population is identifiable by the following .generally
shared social and economic characteristics.

In the first instance the historical and social realities of the planta-
tion economy and related latifundia-minifundia land division system are
responsible for current tenure condition of the target group. Farm
sizes are small (survey data for the entire country, of which Two Meetings
and Pindars are representative samples, indicate that almost 80% are
five acres or less), and they are located on marginally arable steep
mountain slopes. Production practices are rudimentary, the typical tool
kit is limited to hand implements (machete, hoe, etc.), and there is
scattered use only of modern technological inputs; Available evidence
suggests that the overwhelming majority (78%) of the landholding units
in the target areas are privately owned. However, the precise meaning
of this ownership includes a strong element of familial "corporateness"
which, as will be discussed below, has serious implications in relation
to farmer participation in the project.

The main source of income for the target population is derived from the
production of agricultural goods which are directed toward both sub-
sistence and marketing ends. Principal crops include sugar cane, banana,
yams, coconut and Irish potato. Due to the poor quality of the soil,
small size of the holdings, and traditional farming techniques, yields
and resultant farm incomes are low. Best estimates place the per capital
income of the target population at approximately $200 U.S.

In terms of health status and education small farmers rank at the lowest
end of the Jamaican socioeconomic scale. On the basis of 1974 statistics
a still-born death rate of 7.2/1000* was recorded among small scale
farming households. .In addition the mortality rate among pre-school
children (1-4) is 4.5/1000, which is almost double the rates for other
West Indies territories such as Barbados, Puerto Rico, and Trinidad.
Further, 45% of women in the pregnant and lactating sub-group suffer
from dietary deficient related anemic conditions. Overall, approxi-
mately 70% of the small farmer population exhibit energy intake levels
which are below recommended minimums by an average of 27%. Concerning
education, nearly 80% of the expected beneficiaries have completed six
years of primary school. However, project related survey results reveal
that nearly 40% of the farmers in the target areas are functionally
illiterate. This indicates the existence of a rather strong regressive
trend caused by living in a cultural environment which places only
limited emphasis on reading and writing skills.


*Jamaican Agriculture Sector Assessment 1976: 9, 10.











II. Sociocultural Feasibility

The sociocultural feasibility of the project hinges upon a series of
related items: (1) family decision making process with regard to land
use; (2) migration patterns and perception of agricultural labor;
(3) cooperation among neighbors; and (4) institutional structure. With
all of these matters there are serious but manageable constraints.

A. Decision-making Process

To properly understand.the decision-making process among the small
farmers attention must be given to the organization of the household
and the corporate character of the family. In Jamaica there are three
basic types of mating arrangements which are generally accepted the
*visiting union, the common law union, and marriage. According to 1960
census data, the visiting union was the most common form 45% of all
mothers were not living permanently with a partner; common law unions
accounted for 22% of the pairings, and marriage 33% of the unions. The
importance of these types of unions is that in visiting and common law
cases the partners are not expected to have much responsibility for
each other in terms of sharing economic resources such as money or
property. Moreover, these types of unions are reported to have a
rather short life span three years is the average and the children
typically remain with the mother after the father leaves the household.
The upshot of these factors is that (1) generally households consist
of more people than are found in a typical nuclear family and (2) the
role of the women in managing household affairs is'significant in that
in nearly 70% of the households there are children whose father is
present for only a limited amount of time.

Compounding the issue is the corporate nature of the families.
The marginal character of the land makes it impossible for the small
farmer households to survive from agriculture alone. As a coping
strategy some members of each family are forced to seek wage laboring
positions in agricultural, commercial, or tourist related sectors. How-
ever, given the general state of the Jamaican economy and the increasing
difficulty of overseas migration, there is a considerable amount of
uncertainty in securing and maintaining off-farm employment. The risk
involved causes those who must leave the land to seek a fall-back position
- return to the farm if they encounter economic difficulties. To
maintain their right to return to the holding, the absentee members,
when employed, send remittances back to the household in order to help
support it. Through this process families, as individual entities,
participate in a dual economy and the mutual support of the two sectors
establishes their corporate'character.

The relevance of these two factors to the project is that they
affect decisions concerning the productive use to which land is put.
Farm managers include the absentees as resident members of the family
when making calculations of the benefit incidence of changing their


L








U54
production system; the result is a tendency to drive the expected
benefits upward. In addition, absentee members must be consulted
which increases the time required to make a decision.

To overlook these factors and consider each family as an autonomous
nuclear unit is likely to result in limited farmer participation.
Rather, the first difficulty can be turned to an advantage by empha-
sizing the employment generation aspect of the project. The creation
of work on- the homestead will not only create more income for each
family, but also will reduce the need for members to migrate. The
second matter can be dealt with successfully by moving forward the
starting date of promotional activities to offset the almost certain
slippage which will occur from deliberations among family members.

B. Migration Patterns and Perception of Agricultural Labor

It is a relatively well-known fact that migration, both rural to
urban and country to country, has been a means of reducing the high
population density found in farming areas of Jamaica. It is also
well known that the migration is most prominent among the young adults;
a fact which was born out by a field survey of the target area which
revealed that a significant portion (50%) of the farm managers are
over 50 years of age. Further it has been asserted (IDB:6) that a
prime reason for this outmigration is an aversion to the agricultural
field labor which is associated with a heritage of slavery.

If accurate, the assertion concerning an aversion to farm labor
could present serious difficulties for the project. In the first
instance it would limit the recipients of training and technical
assistance to an older group of farmers, thereby diminishing future
replication-probabilities. Secondly, it would nullify the work genera-
tion component of the project. Creation of employment niches serves
little purpose unless there are people willing to fill them.

Based on the foregoing presentation it should be apparent that
most of the migration which is taking place, particularly among young
males, does not involve a total separation from the land even though
they may be physically absent for extended periods of time. The move
from the countryside is not the result of a "built in" aversion to
participating in the agricultural sector. Rather, it is the upshot
of economic pressures placed on the entire household. As noted above,
young adults migrate to find employment in the wage earning sector of
the economy, both for their own benefit and for the benefit of those
remaining on the land. To be sure, farming, under the conditions it
is practiced by target group members, is physically exhausting and
promises little renumeration. But it seems likely that a sufficient
number of the younger males could be attracted to stay in the country-
side, both in terms of farming and day laboring, if there are reasonable
prospects of economic rewards which were on a par with those of the
other sectors.








i '55

C. Cooperation

Cooperation among recipient group households, particularly in
regard to the matter of land terracing, is critical for project success.
Land tenure follows a dispersed miniplot pattern, with few households
owning contiguous parcels. If the terracing were to follow the tenure
patterns, that is a dispersed patchwork fashion coinciding with the
physical location of the plots of only those families who agreed to
participate in the project, the scheme would fail. To be technically
and economically feasible it must be carried out over the entire area.
This in turn requires the participation and cooperation of all farmers.

Outside of kin group allegiance there is very -little indication
of cooperation among neighboring households. In the past there was a
practice of mutual work exchanges among neighbors, but this has fallen
into disuse. The most reasonable approach to enlist cooperation would
be to start with neighboring holdings which are bound to each other
through kinship. The strong allegiance to the family group demonstrated
among the recipients will facilitate cooperation in these instances.

Failing familiar ties, promotional efforts should emphasize the
potential for economic gain to secure cooperation. The fact that
most households participate in a dual economy underscores their desire
to improve their financial position. A promotional campaign which
stresses the potential monetary benefits of the project could be a
strong inducement for gaining cooperation and participation of the
farmers.

D. Institutional Structure

As described in an earlier section, an institution which has
strong farmer participation is a key element of the project insofar
as a reliable channel is needed for the transfer of credit, training,
and technological inputs. The projected related field survey yielded
mixed results with respect to this matter. Although farmers interviewed
said they belonged to a number of different types of organizations
(church groups, Jamaican Agricultural Society, day for day cooperatives,
and the Farmers Bank), no one group stood out as a clearly dominant
structure upon which to build the project. The situation is further
complicated by the fact that current extension services are far below
par. Considerable strengthening is needed in the technical and
administrative areas if the extension services are to perform adequately.
Moreover, there has been limited contact between extensionists and
target group members in the past. This means that a concerted effort
in establishing a positive rapport between agents and farmers is like-
wise necessary.

The organization which appears to present the best alternative is
the JAS. Throughout the country the JAS has approximately 800,000
members distributed among 900 local chapters. Survey data demonstrate







S56

that about 35% of the farmers in the target areas are members. The JAS
has traditionally been open to any farmer interested in agriculture and
animal husbandry and in this capacity contributes to the general welfare
of farming and rural life. It is especially active in the dissemination
of knowledge among farmers. Although small farmer participation within
the JAS is generally nominal and passive, there are indications (local
chapter officials elected from among the rank-and file) of active
participation. At a minimum the JAS is well known in the countryside
and will provide a vehicle through which project activities can be
carried out.

III. Benefit Incidence and Spread Effect

Because of its experimental, pilot nature the project will be of direct
benefit to a rather limited number of people approximately 20,000.
Yet, it is believed that it will make a substantial contribution toward
improving the standard of living of the small farmers in the target
area. The terraciig aspect will reclaim and increase the productive
potential of land to a point not heretofore possible. Timely production
credit will enable the farmers to purchase fertilizers and other chemical
products to further improve yields. The training provided for the exten-
sion agents will be beneficial for the recipients in the form of improved
technical assistance., The employment generation component will augment
household income and stem the flow of out-migration. Finally, the realign-
ment of marketing facilities to coincide more closely with geographic
production patterns of selected crops will remove a major constraint to
.improve farm income.

The project will have significant spread effects on two different levels.
It will provide a model for reclaiming marginal hill land and providing
needed technical services to small farmers which could be replicated in
the other 31 watershed areas, thereby impacting on approximately 750,000
rural poor. Moreover, it will provide the basis for extension agent
training which could be replicated throughout the country.

IV. Impact on Women

An important factor in the speed and intensity of socioeconomic develop-
ment is the participation of women in this process. To plan and implement
change through integrated development in the rural sector, close attention
must be given to the role played by women in the operation of the farm and
the management of the household.

From the foregoing discussion it is evident that throughout the Jamaican
countryside women play an active role in operation of the farm. Survey
data from the two watersheds upon which the project is targeted confirmed
this assertion. In the first instance 22% of the holdings are managed
principally by women. In addition, 40% of the males who are operators
felt the management of their holding to be a partnership arrangement
among co-equals husband and wife. The important role played by women








57


is also noticed in the production activities 47% of the women inter-
viewed claimed they participated regularly in plowing, weeding, and
harvesting), in marketing (46% said they were the principal sellers),
and management of family financial where the co-equal partnership
arrangement prevails.

Although women are active and responsible participants in most of the
key operations of the farm and the importance of the role of women has
been recognized by the GOJ, little has been done to draw them more
directly into the actual change process. Of those extension activities
which do exist the wide majority are directed toward the men. Only
occasionally is assistance designed for women and that which is con-
structed usually deals with home economic topics.

A concerted effort will be made in this project involving women more
directly in the change process. Current plans call for the recruitment
and training of at least two wo=en agricultural extension agents in
each sub-project area. In addition a minimum of two women will be
trained at the M.S. level in rural sociology and work in the planning
department of the extension service. Moreover, farm household women
will be included among the recipients of credit, production, and
marketing technical assistance undertaken under the auspices of this
project.









58


iF







MICRO-ECONOMIC ANALYSIS OF AGRICULTURAL PRODUCTION

The sociological survey discussed above also obtained detailed
information on farm income, land holdings, cropping patterns,
and production yields. The results of the survey indicated
that 71% of the total farms had less than 5 acres of land
and that 42% of the farms are between 2 and 5 acres. A typical
farm has 2.9, acres, with 1.7 acres actually being farmed, 0.4
acres in food/forest, and the balance of 0.8 acres in fallow
or unusable land.

Annex J presents an economic analysis of present and potential
production based on the survey data and on average farmgate price
information estimated after discussions with farmers, higglers
and other middlemen, agricultural, extension officers, and AMC
- officials.

In order to determine the microeconomic impact of the proposed program on
small farmers in the Two Meetings and Pindars River project areas, proto-
type farm models were constructed, based on actual and anticipated on-
farm conditions. The prototypes were derived from survey data on actual
cropping conditions, yields and expenditures, using best agronomic and
agro-economic information available to project future on-farm benefits.

In each area, a typical farm is composed of 2,9 acres, with approximately
1.7 actually being farmed, 0,4 acres in food/forest and the balance of
0.8 acres in fallow or unuseable land. Actual conditions, of course, vary
from farm to farm, and the prototypes are designed to demonstrate "average"
conditions, Annex J, Table 9 shows the typical existing cropping pattern
in each of the two areas.

In comparing the "without project" cashflow to the "with project" antici-
pated conditions, the following assumptions were made:

1. All new perennial crops will be planted in the year of treatment (year
one of the "with project" cashflow),











2. "Without project" incomes could be maintained at present levels, because
fallow land and land in rotation will be brought in and out of.produc-
tion as perennial crops are replaced,

3. The prototype farms land use was set up on the basis of the entire
watershed area, and cropping pattern differences reflect the difference
between the Pindars and Two Meetings areas,

For aggregate analysis and summary, the increase in income after treat-
ment was weighted two-thirds Pindars, one-third Two Meetings, to reflect
the approximate areas in the two watersheds,

4. A 15-year analysis period was used in estimating returns; this closely
approximates the productive life of perennial crops which will be cul-
tivated.

Tables 16 through 20 of Annex J show the derivation of new income increases
for the two farm models. The bottom line in Tables 19 and 20 show incre-
mental cash flow after treatment, including costs of on-farm investment
and maintenance as well as cost of soil conservation, A calculation of the
present worth of the final stream of benefits results in an internal rate of
return of over 50% for each of the prototype farm models,

Table 21 of Annex J presents the weighted average of net income increases
for the two farm models. Again, the internal rate of return is over .50%.

This small-fazrm model shows the annual expected
income in the Pindars area could be raised from J$732 to J$1757,
and in Two Meetings from J$978 to J$2671 on the typical 2.9-acre
farm. Agricultural production increases and resultant income
gains were conservatively estimated; they will derive principally
from more intensive land use after suitable soil conservation
treatments are applied. No major changes in crop mix are
necessary: the major crops will continue to be yams, red peas,
bananas, coffee, sugar cane, and Irish potatoes. However,
changed will be needed in farming techniques, with farmers
practicing multiple and continuous cropping.

These large increases in income, as forecast by the model,
compare favorably to experiencesof farmers in the region
who have had their land terraced, and are less than half
the income gains from experimental results obtained at the
Smithfield research station..











POLICY FRAMEWORK

Land Use and Tenure Policies

The GOJ's announced policy is to maximize the use of all
land suitable for agricultural production. To carry out
this policy and encourage increased production,' GOJ strategy-
has been to take over idle or unproductive agricultural lands
under a long-term lease or through outright purchase at
assessed valuation. Payment can be in cash or land bonds.
The land is then subdivided and leased or sold to individual
farmers or developed as worker cooperatives; the ongoing
Land Lease Program is an example of these procedures.
Until very recently the owner of idle or unproductive land
was granted a period of up to two years to present an
approved land utilization program in lieu of actual GOJ
purchase. In 1976, the Government announced it may now take
over underutilized land simply by notification, on the
theory that owners have been given ample time to put their
land into productive use. There is no announced intention'
of widescale Government land takeover. The small farmers
of the country place a high value on private ownership of
their property and there are no existing laws that would
allow the Government to take over land being properly utilized.
In particular, the GOJ has announced it will give no support
to illegal "land capture" by individuals.
Agricultural Prices and Marketing Policies
The GOJ policy is to maintain a freely competitive market
for the production and distribution of domestic food crops--
a market dominated by private-sector firms--while the Govern-
ment maintains control over imported commodities by administra-
tively determined volumes, prices, and distribution channels.
The dual objectives of this mixed policy are to give incentives
for domestic production and at the same time keep the price
for the consumer market basket low.

Within this general policy, the GOJ attempts to influence
the prices and distribution of domestic food by open-market
operations carried out by the Government-owned Agricultural
Marketing Corporation (AMC). In addition to trading actively
in almost all commodities produced in the island, at all
stages of distribution from farmgate to consumer, the AMC
maintains guaranteed minimum prices for 17 priority crops.
The AMC has been a moderately effective policy tool.











The import control policy is implemented by granting exclusive
privileges to the AMC and other Government-owned trading
corporations for selected commodities considered essential--
most cereal grains, fish, meat, and pulses. Volumes and
price ceilings for nonessential commodities imported by
private traders are set and policed by designated Government
ministries.

The GOJ policy toward major export commodities is to maintain
a single market channel for each crop. This policy facilitates
the capture of foreign exchange earnings and maintenance of
Jamaica's produce image in world markets, an extremely
important consideration in the case of coffee. Export policy
is implemented through seven crop-specific semiautonomous
commodity boards, whose members are appointed by the Minister
of Agriculture; these boards determine the rules and regulations
governing export of major commodities.

Policies on Agricultural Credit

The GOJ has apparently failed to adopt a clearly defined
general policy on agricultural credit and has fostered a
maze of different credit programs. Production credit for
agriculture is particularly fragmented even though the
Government attaches high priority to this key service and
continues to support programs that make'money available at
6% interest. The most recent action was the establishment
of a J$20 million credit fund for food crops as part of the
Emergency Production Plan announced in June 1977. This
credit is to be disbursed through PC Banks with the new and
additional requirement of Min Ag parish manager approval.
Thus, yet another credit procedure has been added to the
already numerous credit schemes in Jamaica. At least it
is a real attempt to serve the credit needs of the small
farmer.

Policymakers are aware of the shortcomings of the present'
structure and performance of credit sources. The GOJ is
apparently moving toward the consolidation of credit
institutions whereby a more coordinated and less duplicative
policy can be developed and administered.












FINANCIAL AND BUDGETARY ANALYSIS

In recent years the Jamaican economy has suffered from
severe internal and external disequilibria, as manifested
in a chronic and worsening balance of payments gap, a large
and growing fiscal gap, a rate of unemployment and under-
employment, and declining rates of growth in all sectors
except the Government sector. Highly dependent upon foreign
financing and the import sector, Jamaica s increasing isola-
tion from traditional sources of foreign credit has--by mid-
1977--placed the island's economy in a position where even
short-run survival is questionable unless international
support becomes available almost immediately. Annex T
presents a more complete macro-economic survey of Jamaica.

The GOJ recognizes the need for long-term investments in
the agricultural sector and is beginning those investments
with programs such as the one presented in this PP. The
GOJ is committed to channeling more money into this sector
to boost domestic food consumption and,reduce food inports.
This will require an increase in the present 1977/78 Min Ag
budget of J$118 million, which is 9% of.the GOJ budget.
A five-year plan for agricultural investment is expected
in December 1977, thus no future forecasts are attempted
at this time.








63

V PROGRAM EVALUATION AND IMPLEMENTATION

EVALUATION PLAN

The sample survey conducted under the supervision of the
Data Bank and Evaluation section of the Min Ag established
the baseline data needed to measure project progress. The
total information gathered has not been properly analysed
and will require short-term technical assistance during the
.. early stages of project implementation. At the same time,
these specialists, in collaboration with the Min Ag Data
Bank and Evaluation team, will work out the details of a
system for future monitoring and evaluation.
In addition to monitoring physical deliveries and financial
flows and evaluating the effects of the project on the target
population, the system will have several other important
features:

It will permit project.decisionmakers to spot
upcoming problems, diagnose their causes, and prescribe
what might be done to alleviate them;

It will provide for two-way information flows, so
that the results of monitoring and.evaluation can be used
by lower as well as upper echelons;

Beyond the immediate needs of project staff, the
system will also provide information on whether and how to
replicate project activities elsewhere.
Adopting a comprehensive approach will not burden the project
with a costly and difficult-to-operate system. Skilled
specialists will be needed during the detailed design phase
for the precise purpose of developing a simple system--one
that is selective and sparing in its data requirements, with
modest low-cost survey and reporting techniques that do not
strive for unnecessary statistical elegance.

Special Information Needs

This project has special requirements for monitoring and
evaluation. First, there are uncertainties, as with any
project, however excellent its planning and preparation.
There is uncertainty about yields under'new technology, about
the performance of soil conservation works, about the best
methods of assisting local organizations at the community
level, and about who will participate readily in project
activities.


I





70



64

Second, some components of the project will be quasi-
experimental, or initiated on a pilot basis, to learn what
processes of development are most effective, and to avoid
expensive setbacks. The information requirements of such a
project, particularly when it also involves the integration
of institution-building, research, production, and engineering
activities, are far more complex than for routine, single-
function projects.

Data Required

It is not obvious in the beginning of data collection which
variables should be recorded and which can be ignored.
Determining the optimal data set prior to the project is
impossible; a generous amount must be collected in the initial
phase, and then pared down to the essential items as actual
experience with the project dictates. Time is also required
to permit decisionmakers to play a role in the design and
refining of the monitoring/evaluation system, which must
suit their needs rather than the interests and capabilities
of the information specialists.

(1) Baseline

Baseline data .permits changes brought about by the
project to be measured in relation to the pre-project state.
Unfortunately, baseline data are often wasted when subsequent
data collection uses different data points and collection
techniques. Baseline data collection should, therefore,
be tightly focused, interviewing farmers combined with
occasional small-sample surveys as a cross-check on accuracy.

(2) Monitoring

The physical and financial data are relatively
easy to identify and collect; they can be drawn from detailed
implementation plans that will be prepared on an annual
basis. Adoption of improved cropping systems, water use,
and soil conservation practices, and membership or participa-
tion in community organizations are examples of key behavior
changes that must be monitored and verified.

(3) Evaluation

Data are required to measure the project's impact
on small-farmer productivity, output, and income; small-
farmer and group self-help capacity; and reduction in soil












erosion. At the same time, it is essential to identify the
types of data needed to analyze why events happened as they
did. Why did some farmers adopt improved practices and
others not? Why did some participate in community organiza-
tions and others not? Why were soil conservation programs
more successful in one area than another?

Timing of Monitoring/Evaluation

In general, the system will provide a continuous source of
information for both monitoring and evaluation, though not
all the necessary evaluative data can be collected in this
regularized fashion. Subject to possible revision by the
detailed design team, the following timing categories will
be observed:

(1) Daily records, with monthly and annual summaries

Activities of field extension staff
All financial transactions, including credit
All movement of personnel, equipment, and supplies,
including agricultural inputs
Meetings and other activities of farmer and
community groups

(2) Monthly records with annual summaries
Progress of soil conservation work in relation
to target
Progress of research programs in relation to target
Progress of training programs
Reports on crop conditions, rainfall, etc.
(3) Other annual reporting

Crop acreages, yields, production
Farmer incomes
Loan repayment
Improved agricultural package: adoption rates
Self-help capacity, indicators
At the end of the second full year of project implementation,
a team should be brought in to perform an objective evaluation
of the progress of the project.









66


During the final six months of the project implementation,
aerial photos will be taken of the project area and compared
with photos presently available, to determine the following:

(1). Soil conservation practices that have been initiated;
(2) Changes in gully patterns and visible signs of erosion;

(3) Changes in cropping systems;

(4) Intensity of land use;

(5) Progress of reforestation.

Budget
US$160,000 has been budgeted for evaluation as follows:


Consultants for
Further analysis of baseline data and
training of Jamaican staff at beginning
of project.
First major evaluation (year 2-3).
End of project evaluation (year 5)

Aerial photos and interpretation at end of
project

Additional local survey work during project
period (including transportation costs,
employment of interviewers, and analysis of
data

In-country training courses

Miscellaneous materials and supplies

Contingency


US$ 25,000
US$ 40,000
US$ 60,000

US$ 25,000



US$ 25,000

US$ 10,000

US$ 5,000

US$ 10,000


An additional US$160,000 has been budgeted for ._
replication activities in other watersheds, to US$160,000
include cost of additional aerial photos, model
demonstration centers and subcenters, survey.
work and local transportation and training costs


US$320,000


TOTAL









67


IMPLEMENTATION PLAN

Conditions precedent to disbursement will require that the
GOJ develop implementation plans for the soil conservation,
forestation, and engineering works activities. The plans
will be updated yearly and will form the basis of forecasting
expenditures throughout the project's life. A preliminary
implementation schedule is included as Annex H.

DISBURSEMENT PROCEDURES

US Dollar Costs

US dollar costs of the loan will be disbursed for commodities.
Participant training and technical assistance will be paid
for under a grant to the GOJ.

US dollar disbursements will be made using standard AID
procedures by issuance of Letters of Commitment and Letters
of Credit in accordance with the terms of the Loan Agreement.
Disbursement of dollar costs will be made exclusively to
finance the procurement for the program of services having
both their source and origin in countries in Code 941 of the
AID Geographic Code Book as in effect at the time orders
are.placed or contracts are entered into for such services.
All transportation financed by dollar costs under the Loan
shall have its source and origin in countries included in
Code 941 of the AID Geographic Code Book as in effect at the
time transportation is initiated.

Local Currency Costs

_An advance of local currency equivalent to three months
expenditures is anticipated for the soil conservation,
reforestation and engineering works activities. Upon AID
approval of the request for advance, USAID/J will request
the US Treasury to purchase the appropriate amount of
Jamaican dollars and deposit them in the Government of
Jamaica's account at the Federal Reserve Bank of New York.
The Federal Reserve Bank will in turn notify the Bank of
Jamaica in Kingston and the Min Ag's account will be credited.
To replenish or increase the advance, the GOJ will submit
documentation satisfactory to AID which supports the amount








68



of expenditures over the previous period, and the AID and
GOJ share of those expenditures, and estimates the
requirements for the next period. The total advance out-
standing at any one time will not total more than an
estimated three months expenditures.

The GOJ will be reimbursed for other than soil conservation,
forestation, or engineering works expenses only after actual r
payment by the GOJ. That is, AID will not issue an advance
for these expenses.

CONTRACTING PLANS

TA and training funds will be granted to the GOJ. The Pro-
ject Committee recommends an institutional contract for the
long-term advisors, and personal services contracts for
short-term advisors. Contracting procedures for the
institutional contract will include prequalifying 5 to 10
institutions most qualified to advise on soil conservation
projects in tropical lands; requesting technical proposals;
ranking the respondents; and ultimately negotiating a con-
tract.

PROCUREMENT PLANS

Procurement of the equipment and supplies will be made in
accordance with normal AID procurement regulations.

SAID MONITORING PLANS

The Project Committee recommends that an AID direct-hire
project officer be assigned full-time responsibilities for
this project. The long-term advisory team will nominate a
team leader who will have day-to-day responsibilities to
the AID project officer and the GOJ Southern Region director.

CONDITIONS, COVENANTS, AND NEGOTIATING STATUS-

The program has been thoroughly discussed with the GOJ. No
major problems are anticipated during negotiations of the
project agreement. Proposed conditions precedent to dis-
bursements are included in the draft Loan Authorization,
Annex D.















AIEXM A



OFFICE OF THE DEPUTY PRIME MINISTER
... " lw....n -a"., AND MINISTER OF FINANCE
S..I..Sws. S I l*IL 30 NATIONAL HEROES CIRCLE.
a SS 5 "" """ P.O. BOX 512.
Si 3 KINGSTON.
n. *64 JAMAICA
?auu-a NL. 2.21Zs00.1*
.ulth Aua.u.+ 19-7..





Mr. Charles P. Campbell,
AID Affairs Officer
US/AID Mission to Jamaica
2 Oxford Road
Kingston 5.

Dear Mr. Campbell,

On behalf of the Government of Jamaica I request a loan of
US$13 million and a grant of US$2 million from the Government of the
United States of America. This money will be used, together with a
counterpart contribution from the Government of Jamaica in the amount
of about J14 million to chrry out an Integrated Rural Developrent
Programme in the Pindars and Two Meetings Watersheds over a four
year period.

The major components of this project are summarized as
follows

Appropriate soil conservation activities including
bench and orchard terraces, hillside ditches and
permanent pastures on about 17,700 acres.

Reforestation activities on about 7,000 acres.

Road and track construction and rehabilitation and
stream and river control measures to further pro-
tect the watershed and to provide small farmers
better access to markets.

In order to develop the agricultural production in the
areas to its fullest extent, farmer organizations will be formed in
collaboration with the Jamaica Agricultural Society and the People's
Co-operative Banks. These organizations, in conjunction with the
Extension Service of the Ministry of Agriculture will provide advice
to the small farmer on the appropriate cropping patterns and tech-
niques for his land and on the use of fertilizer and improved sced
varieties. Agricultural credit will be provided to enable the farmer
to purchase the necessary inputs to increase his production. Sound
marketing principles will be fostered to improve the quantity and
quality of produce marketed and to return a greater share of the pro-
fits to the producer.

In order to improve the overall standard of living in the
watershed, housing, electrification and potable water projects will
be carried out through the appropriate agencies.

Government recognizes that certain conditions should be
met to maximize the effectiveness of this programme. In this re-
gard the Government plans to:
















Mr. Charles P. Campbell 2. .11th August, 1977





(a) declare the Pindars and Tw Meetings legal
watershed areas A

(b) require that farmers repay a portion of the
cost of the soil conservation activities,
amounting to about 25%, exclusive of water-
ways; and that these funds will be earmarked
for a special Soil Conservation Fund.to be
used in carrying out soil conservation measures
on lands occupied by small farmers in other
watersheds. Further, the Government agrees to
make up any short-falls to the fund in the event
the farmers default on their repayments;

(c) make maximum efforts to employ a sufficient
nu:m.,r o' eoil conservation and agricultural
officers in this programme on a permanent basis
so as to develop a cadre of officers capable of
spreading the effects of a successful integrated
development programme to other watersheds after
the proposed programme terminates.

(d) Appoint a full-time project ulariger for the
duration of the project.

The Government's major implementing agencies for the
programme will be the Southern Region of the Ministry of Agriculture
for Soil Conservation; the Forest Department of the Ministry of
Agriculture for the Reforestation Activities and the Ministry of
Works for most of the Engineering Works; the Ministry of Local
Government through the National Water Authority for the potable water
systems; and the Jamaica Public Sorvir.o for the r.urvl Elcctri'fic-tion
Frojramme.

The loan funds from the United Stctes will be userd for the
c-pit l expenses and certain operating costs of the progrv_.n:c, ::'ir.
the -,:.nt fundc will be used for Jm.-ic-n, U.S. or ;tird count.-:-
training cost-s ain tochnric.l assistance advi-e-s.

Yours sincerely,







A.C. Eil tt
f,.*r Financia Secretary




c.c. Permanent Secretary-
Ministry of Agriculture
Chief Technical Director
National Planning Agency










ANNEX B

CERTIFICATION PURSUANT TO
SECTION 611(e) OF THE
FOREIGN ASSISTANCE ACT
AS AMENDED


I, Charles P. Campbell, the principal officer of
the Agency for International Development in Jamaica, do
herewith certify that in my judgment, Jamaica has both the
financial capability and human resources to maintain and
effectively utilize the goods and services procured under
the capital assistance project entitled: Integrated Rural
Development I.

This judgment is based upon the record of
implementation of AID-financed projects in Jamaica and
the results of the consultations undertaken during the
intensive review of this new project.


~L4~


>2 At4/~t2&


Charles P. Campbell
AID Affairs Officer
Jamaica


Date: 61 A








ANNEX C
SI rY*ahnso flfl FFElC.I. D IAanyn


I DHANU000K 3, App 6C


I November 1. 1976


6CC() COUNTRY CHECKLIST
Listed below are, first, statutory criteria applicable generally to FAA funds, and then criteria
applicable to individual fund sources: Development Assistance.and Security Supporting Assistance
funds.

A. GENERAL CRITERIA FOR COUNTRY


1. FAA Sec. 116. Can it be demonstrated
that contemplated assistance will directly
benefit the needy? rf not, has the
Department of State'determined that this
government has engagedlin consistent
pattern of gross violations of inter-
nationally recognized human rights?
2. FAA Sec. 481. Has it been determined that,
the government of recipient country has
failed to take adequate steps to prevent
narcotics drugs and other controlled
substances (as defined by the Compre-
hensive Drug Abuse Prevention and Control
Act of 1970) produced or processed, in
whole or in part, in such country, or
transported through such country, from
being sold illegally within the juris-
diction of such country to U.S. Government
personnel or their dependents, or from
entering the U.S. unlawfully?
3. FAA Sec. 620(a). Does reciDient country
furnish assistance to Cuba or fail to.
take appropriate steps to prevent ships
or aircraft under its flag from carrying
cargoes to or from Cuba?


Assistance
people.


will directly benefit needy


No.


No.


4. FAA Sec. 620(b). If assistance is to a
government, has the Secretary of State
determined that it is not controlled by
the international Communist movement?
5. FAA Sec. 620(c). If assistance is to
government, is the government liable as
debtor or unconditional guarantor on any
debt to a U.S. citizen for goods or
services furnished or ordered where (a)
such citizen has exhausted available
legal remedies and (b) debt is not denied
or contested by such government?
6. FAA Sec. 620(e) (1). If assistance is to
a government, has t (including government
agencies or subdivisions) taken any action
which has the effect of nationalizing,
expropriating, or otherwise seizing
ownership or control of property of U.S.
citizens or entities beneficially owned
by them without taking steps to discharge
its obligations toward such citizens or
entities?


Jamaica's government is not controlled
by an international Communist movement.


No.







No.


I 6C(l)-l I


A I m I


\.







SPA NO. EFFE ACTIVE DATE .
6C(1)-2 November 10, 1976


TIf I S. M9"E OQ.
3:11


AID HANDBOOK


3, App. 6C


7. -FAA Sec. 620(f); App. Sec. 108. Is
recipient country a Communist country?
Will assistance be provided to the
Democratic Republic of Vietnam (North
Vietnam), South Vietnam, Cambodia or Laos?

8. FAA Sec. 620(i). Is recipient country in
any way involved in (a) subversion of, or
military aggression against, the United
States or any country receiving U.S.
assistance, or (b) the planning of such
subversion or aggression?

9. FAA Sec. 620(j). Has the country per-
mitted, or failed to take adequate
measures to prevent, the damage or
destruction, by mob action, of U.S.
property?

10. FAA Sec. 620(1). If the country has
failed to institute the investment
guaranty program for the specific risks
of expropriation, inconvertibility or
confiscation, has the AID Administrator
within the past year considered denying
assistance to such government for this
reason?

11. FAA Sec. 620(o); Fishermen's Protective


Act, ec. 5. IT country nas seized, or
imposed any penalty or sanction against,
any U.S. fishing activities in inter-
national waters,

a. has any deduction required by Fisher-
men's Protective Act been made?

b. has complete denial of assistance
been considered by AID Administrator?

12. FAA Sec. 620(g); App. Sec. 504. (a) Is
the government of the recipient country
in default on interest or principal of
any AID loan to the country? (b) Is
country in default exceeding one year on
interest or principal on U.S. loan under
program for which App. Act appropriates
funds, unless debt was earlier disputed,
or appropriate steps taken to cure default?

13. FAA Sec. 620(s). What percentage of
country budget is for military expendi-
tures? How much of foreign exchange
resources spent on military equipment?
How much spent for the purchase of
sophisticated weapons systems? (Considera-
tion of these points is to be coordinated
with the Bureau for Program and Policy
Coordination, Regional Coordinators and
Military Assistance Staff (PPC/RC).)


No.


No.




No.


An investment guaranty agreement with
Jamaica is in effect.






No.-


No.

No.


(a) No.

(b) No.


The GOJ's consolidated budget estimate
for FY1977/78 is J$1.3 billion. Funds
apportioned to the Ministry of National
Security, which includes budgets for
Jamaica Defense Force and Jamaica Constabu-
lary, are J$88 million or 7% of national
budget. There is no evidence that Jamaica
plans to procure sophisticated weapons
systems.


"'~I- ""'^"-


I





'1








A wN NO" N Crrcnv AT A Ho.
AMO unoeooK 3, App 6C I 3:11 Hovember 10, 1976 6C(1 -3


14. FAA Sec. 620(t). Has the country severed
diplomatic relations with the United
States? If so, have they been resumed-.
and have new bilateral assistance agree--
ments been negotiated, and entered into
since such resumption?
15; FAA Sec. 620(u). What is the payment
status of the country's U.N. obligations?
If the country is in arrears,.were such
arrearages taken into account by the AID
Administrator in determining the current
/ AID Operational Year Budget?

\ 16. FAA Sec. 620A. Has the country granted
sanctuary from prosecution to any indivi-
dual or group which has committed an act
of international terrorism?.
17. FAA Sec. 666. Does the country object,.
on basis of race,'religion, national
origin or sex, to the presence of any
officer or employee of the U.S. there
to carry out economic development program
under FAA?
18.' FAA Sec. 669. Has the country delivered.
or received nuclear reprocessing or
enrichment equipment, materials or
ments on safeguards, etc.?
19.. FAA Sec. 901. Has the country denied its;
citizens the right or opportunity to
emigrate?
B. FUNDING CRITERIA FOR COUNTRY
1.. Development Assistance Country Criteria.
a. FAA Sec. 102(c), (d). Have criteria
been established, and taken into account,
to assess commitment and progress of
country in effectively involving the
poor in development, on such indexes as:
(1) small-farm labor intensive agri-
\ culture, (2) reduced infant mortality,
(3) population growth, (4) equality of
income distribution, and (5) unemployment.
b. FAA Sec. 201(b)(5), (7) & (8); Sec.
208; 211(a4); (7). Describe extent to
which country is:
(1) Making appropriate efforts to increase
food production and improve means for
food storage and distribution.
(2) Creating a favorable climate for
foreign' and domestic private enter-
prise and investment.


Jamaica is current on


U.N. obligations.


,. .



NO.
No *


No.


No.
No.


In all 5 cases, Jamaica has developed
criteria to measure progress and assess
problems in each important indicator
'of social and economic development.




Jamaica currently has an Emergency Pro-
duction Plan in effect to encourage in-
creased self-sufficiency in food produc-
tion. This Plan also attempts to estab-
lish a more favorable climate for invest-
ment, with the intention of reducing
imported commodities which can be more
economically produced in country.







PA NOg. VFFECTIVC OATAL. .
6C(1)-4 November 10, 1976


TRANS. MO N. ... .
3:11


ApuANepOOK 3, App. 6C


(3) Increasing the public's role in th
developmental process.

(4) (a) Allocating available budgetary
resources to development.
(b) Diverting such resources for
unnecessary military expenditure at
intervention in affairs of other ft
: and independent nations.


e The Production Plan devotes significant
GOJ resources to small farmer development
and is attempting to encourage large
numbers of small coop/private enterprise
formation.
nd Jamaica's military- budget is very small.
ree


(5) Making economic, social, and political
reforms such as tax collection improve -
ments and changes in land tenure
arrangements, and making progress
toward respect for the rule of law, Jamaica's history of social and
freedom of expression and of the press political reforms and freedom of the
and recognizing the importance of press has been very good since
individual freedom, initiative, and independence.
private enterprise.

(6) Otherwise responding to the vital
economic, political, and social con-
cerns of its people, and demonstrating
a clear determination to take effective
self-help measures.


c. FAA Sec. 201(b), 211(al. Is the
country among the ZO countries in which
development assistance loans may be made
in this fiscal year, or among the 40 in
which development assistance grants
(other than for self-help projects) may
be made?
d. FAA Sec. 115. Will country be
furnished, in same fiscal year, either
security supporting assistance, or
Middle East peace funds? If so, is
assistance for population programs,
humanitarian aid through' international
organizations, or regional programs?
2. Security Supporting Assistance Country
Criteria


Development assistance
will be made.


loans and grants


Not applicable.


a. FAA Sec. 502B. Has the country
engaged in a consistent pattern of gross
violations of internationally recognized
human rights? Is program in accordance
with policy of this Section?
b. FAA Sec. 531. Is the Assistance to
be furnished to a friendly country,
organization, or body eligible to
receive assistance?
c. FAA Sec. 609. If commodities are to
be granted so that sale proceeds will accrue
to the recipient country, have Special
Account (counterpart) arrangements been
made?


1


I I i


. I









--AN& NiOWCV9OT9 I, A FAGE2 NO.
MDHANoeooK 3, App. 'A .- 3:11'I November 10, 1976 6C(2)-1




6C(2) PROJECT CHECKLIST
Listed. below are, first, statutory criteria applicable generally to projects. with.FAA funds, and
then project criteria applicable to individual fund sources: Development Assistance (with a sub-
category for criteria applicable only to loans); and Security Supporting Assistance funds.

CROSS REFERENCES: IS COUNTRY CHECKLIST UP TO DATE? IDENTIFY. HAS STANDARD ITEM CHECKLIST BEEN
REVIEWEILFOR THIS PROJECT?


A. GENERAL CRITERIA FOR PROJECT.


1. App. Unnumbered; FAA Sec. 653(b)
(a) Describe how Committees on Appropria-
tions of Senate and House have been or
will be notified concerning. the project;
(b) is assistance within (Operational
Year Budget) country or international
organization allocation reported to
Congress (or not more than $1 million
over that figure plus 10%)?
2. FAA Sec. 611(a)(1 Prior to obligation
n excess of $100,000, will there be (a)
engineering, financial, and other plans
necessary to carry out the assistance and
(b) a reasonably firm estimate of the
cost to the U.S. of the assistance?
3. aAA Sec. 611(a)(2). If further legis-
lative action is required within recipient
country, what is basis.for reasonable
expectation that such action will be
completed in time to permit orderly
accomplishment of purpose of the assis-
tance?
4. FAA Sec. 611(b); App. Sec. 101. If for
water or water-related land resource
construction, has project met the stan-
dards and criteria as per Memorandum of
the President dated Sept. 5, 1973
(replaces Memorandum of May 15, 1962;
see Fed. Register, Vol 38, No. 174, Part
III, Sept. 10, 1973)?
5. FAA Sec. 611(e). If project is capital
assistance (e.g., construction), and all
U.S. assistance for it will exceed
$1 million, has Mission Director certified
the country's capability effectively to
maintain and utilize the project?


Project is not included in FY77 Con-
gressional Presentation; thus an
Advice of Program Change will be made
to the Congress.





Firm cost estimates for all aspects of
the project, have been made..



No such legislation is required.





'Ben-ef i-Tcosit- calcIulations
.indicate a favorable ratio and a favorable
internal rate of return.




Certification has been made.


j






PAGE NO. I PZFFCTIV -DATK : '
6C(2)-2 November 10,. 1976


1 AN:. :U l .
3:11 .


AI J Au gO 3. App. 6C


A,
6. FAA Sec. 209, 619. Is project susceptible No. Project is region-specific in two
of execution as part of regional pr iulti- watershed areas of the Two Meetings and
lateral project? If so why is project not
so executed? .Informati.on and conclusion .Pindars rivers. Project will build
.whether assistance will encourage 'institutional base for replication to
regional development programs..' If "'other watersheds.
assistance is for newly independent
country, is it furnished through multi-
..lateral organizations-"or plans to the
maximum extent appropriate?


S7. FAA Sec. 601(a); (and Sec. 201(f) for
development oans). Information and
conclusions whether project will encourage
efforts of the country to: (a) increase
the flow of international trade; (b) fos-
ter private initiative and competition;
(c) encourage development and use of
cooperatives, credit unions, and savings
and loan associations; (d) discourage
monopolistic practices; (e) improve
technical efficiency of industry, agri-
culture and commerce; and (f) strengthen
free labor unions.
8. FAA Sec. 601(b). Information and con-
clusion on how project will encourage
U.S. private trade and investment abroad
and encourage private U.S. participation
in foreign assistance programs (including
use of private trade channels and the
services of U.S. private enterprise).
9. FAA Sec. 612(b); Sec. 636(h). Describe
steps taken to assure that, to the -
maximum extent possible, the country is
contributing local currencies to meet
the cost of contractual and other
services, and foreign currencies owned
by the U.S. are utilized to meet the cost
of contractual and other services.
10. FAA Sec. 612(d). Does the U.S. own excess
foreign currency.and, if so, what arrange-
ments have been made for its release?
1. FUNDING CRITERIA FOR PROJECT
1. Development Assistance Project Criteria
a. FAA Sec. 102(c)i Sec. 111; Sec. 281a.
Extent to which activity will (a) effec-
tively involve the poor in development,
by extending access to economy at local
Level, increasing labor-intensive pro-
duction, spreading investment out from
cities to small towns and rural areas;
and (b) help develop cooperatives,
especially by technical assistance, to
assist rural and urban poor to help
themselves toward better life, and other-
wise encourage democratic private and
local governmental institutions?


(a) Project unlikely to directly
affect international trade; (b)and(c)
Private sector initiative and coops/
credit unions will be fostered through
training and technical assistance;
(d)and(e) Increased competition by
strengthening private marketing channels
will be developed.



Contract for technical advisory services
will be needed with U.S. Institution
to strengthen Jamaica's Ministry of
Agriculture.


Jamaica will be contributing a major
share of the local project costs. All
foreign currency will be contributed by
U.S.



No.


Project is aimed directly at rural poor
farmers in two river valleys. Objectives
include rehabilitating farmers' land through
soil conservation measures, thereby facili-
tating more productive use of hillside
land. Local cooperative movement (Jamaica
Agricultural Society) will be strengthened.
Project goal is increased rural incomes
and decreased urban migration.


--


--- ------------- I----------









TRM. Maa OFECTIV &YK i M
AIDoHANMOOK 3, App 6C0 .3:11 November 19, 197S 6Ct2).3
.-1 Kir ac


b. FAA Sec. 103. 103A. 104. 105, 106,
107. Is assistance being made available:
( clude only applicable paragraph --
.g.,a, b, etc. -- which corresponds to
source of funds used. If more than one
fund source is used for project, include
relevant paragraph for each fund source.]

(1) [103] for agriculture, rural develop-
ment or nutrition; if so, extent to
which activity is specifically
designed to increase productivity
and income of rural poor; [103A]
if for agricultural research, is
full account taken of needs of small.
farmers;
(2) [104] for population planning or
health; if so, extent to which
activity extends low-cost, integrated
delivery systems to provide health
and family planning services,
especially to rural areas and poor;

(3) [105] for education, public admin-
tstration, or human resources
development; if so, extent to which
.activity strengthens nonformal
education, makes formal education
more relevant,.especially -for rural
families and urban poor, or
strengthens management.capability
.of institutions enabling the poor to
participate in development;


Yes. As stated in B.l.a., project is
designed to directly benefit poor, rural
farmers (generally owning about 5- acres-
of land) in two watershed areas of
Jamaica. By terracing hilly land, more
effective use of the land can be made and
greater food production will result.
Project will also supply the necessary
credit, marketing, and extension services
to permit farmers to take maximum advan-
tage of rehabilitated lands. Increased-,
food or cash crop production will result
in increased incomes to the participating
farmers.


- (4) [106] for technical assistance,
energy, research, reconstruction,.
and selected development problems;
if so, extent activity is:
(a) technical cooperation and develop-
ment, especially with U.S. private
and voluntary, or regional and inter-
national development, organizations;
-. ..T Z .
(b) to help alleviate energy problem;
(c) research into, and evaluation of,
economic development processes and
-' techniques;
(d) reconstruction after natural.or
S manmade disaster;
(e) for speciaT-'ievelopment problem,
and to enable proper utilization of
Earlier U.S. infrastructure, etc.,
assistance;
(f) for programs of urban development,
especially small labor-intensive
enterprises, marketing systems, and
financial or other institutions to
help urban poor participate in
economic and social develoDment.


T-







I PAGE MO. j. 5FPECTW.OAU


IPAGE O. HFECT-AT -' -0 -
rI f7*-. November 10, 1976


TRANS. MEMO NO.
7 1 3:11


AID HANDmOK 3, App. 6C


(5) [107] by grants for coordinated
private effort to develop and
disseminate intermediate technologies
appropriate for developing countries.
c. FAA Sec. 110(a); Sec. 208(e). Is the
recipient country willing to contribute
funds to the project, and in what manner
has or will it provide assurances that it
will provide at least 25% of the Costs of
the program, project, or activity with
respect to which the assistance is to be
furnished (or has the latter cost-sharing
requirement been waived for a "relatively
-least-developed" country)?
d. FAA Sec. 110(b). Will grant capital
assistance be disbursed for project over
more than 3 years? If so, has justifi-
cation satisfactory to Congress been made,
and efforts for other financing?
e. FAA Sec. 207; Sec. 113. Extent to: -
which assistance reflects appropriate
emphasis on; (1) encouraging development
of democratic, economic political, and
social institutions; (2) self-help in
meeting the country's food needs; (3)
improving availability of trained worker-
power in the country; (4) programs
designed to meet the country's health
needs; (5) other important areas of
economic; political, and social develop-
ment, including industry; free labor
unions, cooperatives, and Voluntary
Agencies; transportation and communica-
tion; planning and public administration;
urban development, and modernization of
existing laws; or (6) integrating women
into the recipient country's national
economy.

f. FAA Sec. 281(b). Describe extent to
which program recognizes the particular
needs, desires, and capacities of the
people of the country; utilizes the
country's intellectual resources to
encourage institutional development;
and supports civic education and training
in skills required for effective partici-
pation in governmental and political
processes essential to self-government.


Jamaica is contributing over 25% of total
*project costs.







Not applicable.




U.S...assistance to Jamaica places emphasis
on encouraging economic, social, and
political institutions required for a
democratic society. A major objective
of this project is to strengthen GOJ
institutions. Emphasis is also to be
placed .on development of local commu-
nity. organizations and replicability of
the program after AID funding ceases.
Additional cash income to farm owners and
their spouses should enable them to upgrade
their standard of living.


Our aspect of this program is to increase
the flow of resources to rural areas
concerned for increased economic and
social benefits. This program provides
inputs and service relying on technical
assistance for development of local
leadership and community action, for
major responsibility. It is also look-
ing to appropriate governmental agencies
to provide trained personnel and essen-
tial services. Women share a large
portion and participate actively in the
country's national economy, especially
in agricultural production and marketing
of crops. Women will also be actively
engaged in and working on community
councils for the self-help aspects of
this project.


1


~--.


----;-.- ---' .--








( I v..........ol arracrave ears 1*--- I


1 3:11


g. FAA Sec. 201 b)(2)-(4 and -(8); Sec.
201(e); Sec. 211 a)(i)-(3) and -(8). Does
the activity give reasonable promise of
contributing to the development: of
economic resources, or to the increase of
productive capacities and self-sustaining
economic growth; or of educational or
other institutions directed toward social
progress? Is it related to and consis-
tent with other development activities,
and will It contribute to realizable
long-range objectives? And does project
-paper provide information and conclusion
on an activity's economic and technical
soundness?

h. FAA Sec. 201(b)(6); Sec. 211(a)(5); (6).
Information and conclusion on possible
effects of the assistance on U.S. economy,
with special reference to areas of sub-
stantial labor surplus, and extent to
which U.S. commodities and assistance
are furnished in a manner consistent with
improving or safeguarding the U.S. balance.
.of-payments position.


NvI aober 1ag,-T97


I6c~.a~:5 I


Project is aimed at establishing a model
watershed development program capable of
being replicated across the island. Be-
cause nearly all Jamaica's small farmers
live on hilly land, and because of the
scarcity of flat farmland, the long-term
development of Jamaican agriculture
depends on utilizing small farms more
effectively. PP concludes that project
is technically and economically sound.


Project will have negligible
U.S. balance of payments.


effect on


2. Development Assistance Project Criteria
(Loans only)

a. FAA Sec. 201(b)1). Information
and conclusion'on availability of financ-
ing from other free-world sources, ....
including private sources within U.S.
b. FAA Sec. 201(b)(2); 201(d). Infor-
mation and conclusion on (1) capacity of
the country to repay the loan, including
reasonableness of repayment prospects,
and (2) reasonableness and legality
(under laws.of country and U.S.) of
lending.and relending terms of the loan.
c. FAA Sec. 201(e). If loan is not
made pursuant to a multilateral plan,
and the amount of the loan exceeds
$100,000, has country submitted to AID
an application for such funds together
with assurances to indicate that funds
will be used in an economically and
technically sound manner?
d. FAA Sec. 201(f). Does project paper
describe how project will promote the
country's economic development taking
into account the country's human and
material resources requirements and
relationship between ultimate objectives
of the project and overall economic
development?


Other donors are not interested in
financing this project.


(1) Despite short-term financial problems,
Jamaica's long-term economic prospects
remain healthy and repayment prospects
are-good. (2) Lending terms are
reasonable and legal. No relending
anticipated in this project.
Letter of Application has been received
from GOJ..





Yes. Project is directly in support of
long-term agricultural strategy of
Jamaica.


f


J AIDHANDOOOK 3, App 6C


I I I







PAGE NO. 1 EP"FCTIVTC V -- - I
6C(2)-6 ] November. 10.1976..


. TRAMII. ME MNO.
3:11


I D HANDBOOK


3, App. C 1


e. FAA Sec. 202(a). Total amount of
money under loan which is going directly
to private enterprise, is going to
intermediate credit institutions or
other borrowers for use by private
enterprise, is being used to finance
imports from private sources, or is
otherwise being used to finance procure-
ments from private sources?

f. FAA Sec. 620(d). If assistance is
for any productive enterprise which will
compete in the U.S. with U.S. enterprise,
Sis there an agreement by the recipient
country to prevent export to the U.S. of
more than 20% of the enterprise's annual
production during the life of the loan?
3. Project Criteria Solely for Security
Supporting Assistance

FAA Sec. 531. How will this assistance
support promote economic or political
stability?

4. Additional Criteria for Alliance for
Progress

[Note: Alliance for Progress projects
should add the following two items to a
project checklist.]

a. FAA Sec. 251(b)(), -(8). Does
assistance take into account principles
6f the Act of Bogota and the Charter of
Punta del Este; and to what extent will
the activity contribute to the economic
or political integration of Latin
America?

b. FAA Sec. 251(b)(8); 251(h). For
loans, has there been taken into account
the effort made by recipient nation to
repatriate capital invested in other
countries by their own citizens? Is
loan consistent with the findings and
recommendations of the Inter-American
Committee for the Alliance for Progress
(now "CEPCIES," the Permanent Executive
Committee of the OAS) in its annual
review of national development activities?


$2.5 million


Not applicable.


Not applicable.


Project will take into account-the
principles of the Act of Bogota and
the Charter of Punta del Este.


Jamaica is taking steps to repatriate
capital invested in other countries by
their own citizens. Loan is consistent
with findings and recommendations
of CEPCIES and the Permanent Executive
Committee of the OAS.


----i-- --- - --









(uOHANOUBOK 3, App 6C


TRANS. MEMO NO.
3:11


IEFEGTIVe DATC
.November 10, 1976


6C(3) STANDARD ITEM CHECKLIST


Listed below are statutory items which normally will be covered routinely in those provisions of an
assistance agreement dealing with its implementation, or covered in the agreement by exclusion (as
where certain uses of funds are permitted, but other uses not).

These items are arranged under the general headings of (A) Procurement, (B) Construction, and
(C) Other Restrictions.


A. Procurement


1. FAA Sec. 602. Are there arrangements to
permit U.S. small business to participate
equitably in the furnishing of goods and
services financed?

2. FAA Sec. 604(a). Will all commodity
procurement financed be from the U.S.
except as otherwise determined by the
President or under delegation from him?

3. FAA Sec. 604(d). If the cooperating
country discriminates against U.S.
marine insurance companies, will agree-
ment require that marine insurance be
placed in the U.S. on commodities
financed?

4. FAA Sec. 604(e). If offshore procure-
ment of agricultural commodity or
Product is to be financed, is there
provision against such procurement when
the domestic price of such commodity is
less than parity?

5. FAA Sec. 608(a). Will U.S. Government
excess personal property be utilized
wherever practicable in lieu of the
procurement of new. items?

6. MMA Sec. 901(b). (a) Compliance with
requirement that at least 50 per ceqtum
of the gross tonnage of commodities
(computed separately for dry bulk
carriers, dry cargo liners, and tankers)
financed shall be transported on privately
owned U.S.-flag commercial vessels to the
extent that such vessels are available
at fair and reasonable rates.

7. FAA Sec. 621. If technical assistance
is financed, will such assistance be fur-
nished to the fullest extent practicable
as goods and professional and other
services from private enterprise on a
contract basis? If the facilities of
other Federal agencies will be utilized,


Yes,
will


normal AID procurement regulations
be required.


Yes.



Yes.


-


Yes.





Yes.



Yes.








Yes. Federal agency services not
anticipated.


-6PAC M.
6C(3)-1


E


---


m


I I .. I ,3







SAID HANr


PAGE NO ~ r LFECTlIV A~eI-r lY Iu


are they particularly suitable, not
competitive with private enterprise,
and made available without undue inter-
ference with domestic programs?

8. International Air Transport. Fair
Competitive Practices Act, 1974

If air transportation of persons or
property is financed on grant basis, will
provision be made that U.S.-flag carriers
will be utilized to the extent such
service is available?

B. Construction

1. FAA Sec. 601(d). If a capital (e.g.,
construction) project, are engineering
and professional services of U.S. firms
and their affiliates to be used to the
maximum extent consistent with the
national interest?

2. FAA Sec. 611(c). If contracts for
construction are to be financed, will
they be let on a competitive basis to
maximum. extent practicable?

3. FAA Sec. 620(k). If for construction
of productive enterprise, will aggregate
value of assistance to be furnished by
the U.S. not exceed $100 million?

C. Other Restrictions

1. FAA Sec. 201(d). If development loan,
is interest rate at least 2% per annum
during grace period and at least 3% per
annum thereafter?

2. FAA Sec. 301(d). If fund is established
solely by U.S. contributions and adminis-
tered by an international organization,
does Comptroller General have audit
rights?

3. FAA Sec. 620(h). Do arrangements
preclude promoting or assisting the
foreign aid projects or activities of
Communist-Bloc countries, contrary to
the best interests of the U.S.?

4. FAA Sec. 636(1). Is financing not per-
mitted to be used, without waiver, for
purchase, long-term lease, or exchange
of motor vehicle manufactured outside
the U.S. or guaranty of such transaction?


Yes.


Not applicable.





Not applicable.



Not applicable.


Yes.


Not applicable.




Yes.




Yes.


6C(3)-2 '1 November 10, 1971


I I


KX 3, App. 6C


Pt Na. MEMO No.
3:11








TRANS. Now "O. IIreCTIVE DATB PAG. MO.-*?
AIDHANoaooK 3, App 6C 3:11 ftovember 10, 1976 6C(3)-3




5. Will arrangements preclude use of
financing:

a. FAA Sec. 114. to pay for performance Yes.
of abortions or to motivate or coerce
persons to practice abortions?

b. FAA Sec. 620(q). to compensate Yes.
owners or expropriated nationalized
property?
c. FAA Sec. 660. to finance police Yes.
( training or other law enforcement
assistance, except for narcotics
programs?

d. FAA Sec. 662. for CIA activities? Yes.

e. App. Sec. 103. to pay pensions, etc., Yes.
for military personnel?.

f. App. Sec. 106. to pay U.N. assess- Yes.
ments? .

g. App. Sec. 107. to carry out.provi- Yes.
sons f FAA Sections 209(d) and 251(h)?
(transfer to multilateral organization
for lending).
h. App. Sec. 501. to be used for Yes.
L publicity or propaganda purposes
within U.S. not authorized by Congress?








PROPOSED PROJECT FOR PINDARS RIVER ANNEX D
AND TWO MEETINGS WATERSHEDS
Integrated Rural Development

DRAFT LOAN AUTHORIZATION

Provided From: FAA Section 103 Funds (Food and Nutrition)

Jamaica: Integrated Rural Development Program

Pursuant to the authority vested in the Administrator,
Agency for International Development (AID) by the Foreign
Assistance Act of 1961, as amended ("The Act"), and the
delegations of authority thereunder, I hereby authorize the
establishment of a Loan pursuant to Section 103 of said Act
and in furtherance of the Alliance for Progress to the
Government of Jamaica ("Borrower") of not to exceed thirteen
million United States dollars ($13,000,000) to assist in
financing United States dollar and local currency costs
of an Integrated Rural Development Program ("Program")
described in the following sentence. The Program will carry
out activities in soil conservation, erosion control,
forestation, engineering works such as road building and
stream control in the Two Meetings and Pindars River
watershed areas; develop local and national institutions in
order to increase agricultural production and increase
opportunities for employment in agriculture.-

The Loan-shail be subject to the following terms
and conditions:

1. Interest and Terms of Repayment
Borrower shall repay the Loan to AID in United
.States dollars within twenty (20) years from the date of
the first-disbursement under the loan, including a grace
period of not to exceed five (5) years. Borrower shall pay
to AID in United States dollars interest at the rate of
two percent (2%) per annum during the grace period and three
percent (3%) thereafter on the outstanding balance of the Loan
and unpaid interest.

2. Other Terms and Conditions

Goods, services (except for ocean shipping) and
marine insurance shall have their source and origin in
countries included in Code 941 of the AID Geographic Code


I~








Book. Marine insurance may be financed under the Loan only
if it is obtained on a competitive basis. Ocean shipping
shall be procured in any country included in AID Geographic
Code 941.

3. Conditions Precedent to Initial Disbursement

Prior to the first disbursement the GOJ shall:

(a) Appoint a full-time project manager;
(b) Declare the. Pindars and Two Meetings Valleys
legal watershed areas;

(c) Designate a Project Advisory Committee composed
of representatives of the major implementating organizations.

4. Conditions Precedent to Disbursements for the
Soil Conservation Activities

Prior to disbursement of funds for soil conservation
activities the GOJ shall:

(a) Establish a Soil Conservation Fund. This Fund
will be earmarked for carrying out soil conservation measures
on small private farms in other'than Pindars and Two Meetings
watersheds; and will be initially 'capitalized by requiring
farmers participating in the subject AID/GOJ Program to pay
for twenty-five percent (25%) of the.cost of soil conservation
measures undertaken-on their land, exclusive of waterways.

(b) Prepare a time-phased implementation plan for
the life of project, with emphasis on activities to be
carried out during the first year.

5. Conditions Precedent to Disbursements for the
Reforestation Activities

Prior to any disbursement of funds for reforestation
activities on public or private land, the GOJ shall prepare
an implementation plan for the life of project with emphasis
on activities to be carried out during the first year.

6. Conditions Precedent. to Disbursements for
Engineering Works

Prior to disbursement of funds for engineering
activities, the GOJ shall:






D 3


(a) Prepare an implementation plan for the life of
the project with emphasis on the activities to be carried
out during the first year.

(b) Finalize all survey work showing the location
of engineering works to be carried out under the program.

7. In addition to the. standard AID covenants, the
GOJ shall covenant that: 'the Min Ag will make maximum efforts
to employ a sufficient number of soil conservation and
agricultural extension officers in the program on a permanent
basis.




ANNEX E LOGICAL FRAMEWORK


NARRATIVE SUMMARY OBJECTIVELY VERIFIABLE INDICATORS MEANS OF VERIFICATION IMPORTANT ASSUMPTIONS
Program or Sector Goal: The broader Measures of Goal Achievement Assumptions for achieving goal targets
jective to which this project contributes __ ___________Asumtin f _____g____
To improve standard of living of farmers The increase in average income by ;50% Future sample survey High priority to increased agricultural
in Jamaica by increasing income and and improved amenities, compared to avail- production by GOQ and small' farmers
providing improved roads, housing, elec- able benchmark data
tricity, water.

Subgoal: To establish an agricultural The acceptance of soil conservation -Aerial photo recon- Use of soil conservation measures and
production model that can be replicated practices and adoption of improved naissance improved cropping methods will bring
on small hillside farms, production techniques by 751 of par- -In-depth interviews about significant increase in production
ticipating farmers. -feriodc sampling of
-Replication in other
areas

Project purpose End-of-project status Assumptions for achieving purpose
(a) Increase agricultural production on Increased agricultural production of Farmer surveys of AMC continues to offer guaranteed floor
small hillside farms in the Pindars/Two major crops as indicated in Small-Farm future production prices to farmers
Meetings watersheds Model (Annex J) compared to present Casual labor available for employment on
(b) Control soil erosion in the water- Soil erosion reduced from 53 tons/ac/yr Visible inspection small farms
sheds in 1977 to 7 tons/ac/yr two years after of project area Farmers maintain their treated land
end of project Aerial photo recon-
(c) Strengthen the human resource capa- -bility to carry out similar projects naissance
ability of the Min Ag. n OrDer areas
ability of the Mn Ag. -Traned manpower in place Project evaluation
-Improved extension program system
-Viable credit program
-Developmnt of farmers' groups and
assoc atlons

Project Outputs Magnitude of outputs Assumptions for achieving outputs
(1) Development of the soil conservation 17,700 acres of land treated Aerial photos Farmers' willingness to have land
measures in project area Project evaluation terraced
(2) Reforestation of land in project area Trees planted on 5,000 acres of public 'GJ will develop a program of refores-
not suitable for agricultural use and private land station of lands now in private ownership
(3) Construction and rehabilitation of 22 miles to be constructed or rehabili- Engineering control
access roads stated
(4) Employment generation 1.1 million asd of short-term employment Unemployed manpower available in the area
(5) Intehsified land use Introduction of improved farming system
on 10,000 acres of productive land
(6) Advanced training of technicians 30 participants to receive training
(7) Development of training and demon- 5 stations and 50 subcenters to be estab-
stration centers lished by end of 1978-79
(B) Development of small-farmer organi- 33 JAS and 4 PC Banks providing improved
nations services to their memberships
(9) Credit system for small farmers PCBanks disbursing $1.6 million in agri- .GO makes necessary decisions to allow
cultural credit to target group PC Banks greater freedom in making loans
(10) Improved potable water supply system 25,000 people to be assured of adequate
domestic water supply
(11) Rural electrification 15,000 people to be served by and of 1978
(12) Rural housing 235 houses to be constructed or refurbished


Project Inputs

See Financial Plan.









PROPOSED PROJECT FOR PINDARS RIVER ANNEX F
AND TWO MEETINGS WATERSHEDS
Integrated Rural Development


PRP APPROVAL CABLE



DL
AIDAC

'. E.O. 11652: N/A

TAGS: CU -

SUBJECT: DAEC REVIEW INTEGRATED RURAL DEVELOPMENT rB
C532-0046} s

1. THE DAEC REVIEWED AND APPROVED THE SUBJECT PRP AND AG
SECTOR ASSESSMENT ON NOVEMBER 3, 1976. THE DAEC WAS UNABLE
TO APPROVE THE 8 MILLION DOLS LEVEL REQUESTED AT THIS TIME.
HOWEVER, THE MISSION SHOULD PROCEED WITH THE INTENSIVE RE-
VIEW AND PP SUMtBnISSION IN EARLY FY 1978 ON THE ASSUMPTION
THAT AN 8 MILLION DOLS LOAN WILL BE BUDGETED IN THE CON-
GRESSIONAL PRESENTATION. THE MISSION WILL BE NOTIFIED BY
FEBRUARY I1 1977 AS.TO THE FINAL CONGRESSIONAL LEVELS
ESTABLISHED.

2. IN CONJUNCTION WITH THE PREPARATION OF THE PP, THE
MISSION SHOULD OBTAIN PROJECT SPECIFIC INFORMATION RELATED
TO THE FOLLOWING CONSTRAINTS IN*DENTIFIED IN THE SECTOR
ASSESSMENT:

A. EXISTING FARM SYSTEMS AND TECHNOLOGY LEVEL AND CROP
.MIXES SHOULD BE DISCUSSED IN PP BASED ON EXISTING FAO
STUDIES.

B. 'AG CREDIT AN ANALYSIS OF THE PRESENT AVAILABILITY
SUPPrtLV AND USE C"EMAND} OF CREDIT BY THE-:ARGET GROUP AND-

I UNCLASSIFIED |










F 2
UNCLASSIFIED I .

SUPPLY> AND USE DEMANDD) OF CREDIT BY THE TARGET GROUP
SHOULD BE MADE; AND. THE STATEMENT IN THE ASSESSMENT THAT
LACK OF CREDIT IS NOT A SERIOUS CONSTRAINING PRODUCTION
FACTOR TO THE SHALL FARMER SHOULD BE CLARIFIED. FARMER
PARTICIPATION THROUGH THE JAS AND THE LIKELIHOOD OF THEIR
USE OF CREDIT SHOULD BE ASSESSED THROUGH FARM SURVEYS.

C. AG MARKETING THE PP SHOULD CLARIFY A STATEMENT IN THE
ASSESSMENT THAT THE MARKETING SYSTEM DOES NOT OFFER MAJOR
PRODUCTION CONSTRAINTS TO THE SHALL FARMER. FURTHER,
CLARIFICATION SHOULD BE GIVEN TO THE STATEMENT THAT FLOOR
.PRICES OF THE AMC HAVE ASSURED SELF SUFFICIENCY IN 35
CROPS. MILL THESE CROPS BE GROWN IN THE PROJECT AREA?
BILL THERE BE SUFFICIENT DEMAND FOR THESE CROPS? THE RE-
CENT IDB MARKETING STUDY IN JAMAICA SHOULD SHED LIGHT ON
OTHER QUESTIONS OF SURPLUS AGRICULTURAL SUPPLIES IN
CERTAIN CROPS, THE AVAILABILITY OF STORAGE AND PROCESSING
FACILITIES, POLICIES AND EFFECTIVENESS OF ANMC PROFIT
MARGINS IN THE PRIVATE SECTOR {HIGGLER SYSTEMS ETC.

3. IN LIGHT OF THE INCREASED EMPHASIS THE GOJ IS PLACING
ON DEVELOPMENT OF THE SECTOR, AND CONSIDERING THE MAGNITUDE
OF THE PROGRAMS OTHER DONORS ARE PLANNING FOR THE NEAR
FUTURES THE MISSION'S RURAL SECTOR STRATEGY AND RATIONALE
FOR A REGION SPECIFIC APPROACH SHOULD BE FURTHER DELINEAT-
ED. ALTHOUGH BRIEFLY DISCUSSED IN THE PRP- THIS ISSUE IS
ESPECIALLY IMPORTANT AT THE PP STAGE BECAUSE THE REORGANI-
ZT*ATION OF THE HA WILL BE FURTHER ALONG AND OTHER DONOR
PLANS SHOULD BE MORE CLEARLY DEFINED. WHERE POSSIBLE,
DEVELOPMENT OF THE.AID/GOJ SOIL CONSERVATION BASED INTE-
GRATED RURAL DEVELOPMENT PROGRAn SHOULD TAKE ADVANTAGE OF
RESOURCES AVAILABLE THROUGH ONGOING GOJ OR OTHER DONOR
PROGRAMS {ESPECIALLY CREDIT, MARKETING, HOUSING. MATER AND
ELECTRIFICATION PROGRAMS). THIS NIGHT PERMIT EXPANSION OF
THE SOIL CONSERVATION APPROACH. TO ORE THAN TWO WATERSHEDS
WITHOUT INCREASING THE AMOUNT OF AID FUNDIN-G
4. THE FOLLOWING ADDITIONAL POINTS SHOULD BE CONSIDERED IN
DEVELOPING THE PP.

A. BENEFICIARIES AND SPREAD EFFECT CONSIDERING THE HIGH
PER CAPITAL COST OF THIS REGION SPECIFIC PROJECT% THE
MISSION SHOULD CONSIDER WAYS TO REDUCE THE COST PER
BENEFICIARY _OR SPREAD THE BENEFITS OVER A LARGER NUMBER OF
RECRPENIMs. FOR EXAMPLE-, WORKING THROUGH A SOIL CONSERVA-
TION RURAL DEVELOPMENT APPROACH TO REDUCE UNEMPLOYMENT AND
INCREASE AG PRODUCTION. OR STRENGTHENING INSTITUTIONS SUCH
AS THE MA. THE JAS, LAND AUTHORITIES AND PARISH COUNCILS
BEYOND THE PROJECT AREA SHOULD BE EXPLORED. THE PP SHOULD


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F 3
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ALSO CLARIFY THE PRODUCTION AND EMPLOYMENT BENEFITS EX-
PECTED TO BE ACCRUED BY INDIRECT {E.G. DOWNSTREAMl BENE-
FICIARIES BOTH WITHIN AND OUTSIDE OF THE PROJECT AREA. F'
FARM SURVEYS.MILL PROBABLY HAVE TO BE UNDERTAKEN TO DETER-
NINE POTENTIAL FARMER PARTICIPATION AS WELL AS FAMILY SIZE
AND INCOME, OWNERSHIP AND SIZE OF LANDHOLDING {BOTH LARGE
AND SHALL; OWNED AND RENTED> HEALTH AND NUTRITIONAL STATUS
ETC.

. B PROJECT DESIGN AS THE PROJECT DEVELOPS THE PROJECT
OBJECTIVES AND LOGICAL FRAMEWORK NAY NEED TO BE REFINED TO
INDICATE THE TnPORTANCE OF INSTITUTIONAL AND PERSONNEL
_. DEVELOPMENT IN A NEWLY REOGIRGANIZED MINISTRY TO HELP IN-
SURE REPLICATION OF A SOIL CONSERVATION PROGRAM. TECHNICAL
ASSISTANCE AND TRAINING TO DEVELOP GOJ FIELD SUPERVISORS
SAND EXTENSION AGENTS IN CONJUNCTION WITH OTHER DONOR PRO-
GRAMS WOULD SEEN TO BE TUO OF THE HOST IMPORTANT PERSONNEL
CONSIDERATIONS.

C. hA THE INSTITUTIONAL AND FINANCIAL CAPACITY OF THE MA
SHOULD BE EXAMINED IN VIEW OF AtHAJOR EMPHASIS THE GOJ AND
OTHER DONORS ARE PLACING ON AGRICULTURE- CAPITAL AND HUMAN
RESOURCE REQUIREMENTS AND THE ABILITY OF THE MA TO MEET ITS
ONGOING AND PLANNED PROJECT COnMITMENTS AND ALSO REPLICATE
A SOIL CONSERVATION PROGRAM SHOULD BE ANALYZED. HA
OPERATING EXPENSE PROJECTIONS SHOULD BE MADE FOR AID AND
OTHER DONOR PROJECTS. THE STATUS OF THE REORGANIZATION AND
HOW AID'S PROJECT HILL IMPACT ON THE NEW NA STRUCTURE
SHOULD BE DISCUSSED.
D. AGRI-BUSINESS THE POTENTIAL ROLE OF JIDC AND THE AG
DEVELOPMENT CORP SHOULD BE CONSIDERED IN DEVELOPING THE
AGRI-BUSINESS ELEMENT OF THE PROJECT.,

E. RURAL INFRASTRUCTURE THE USE OF A FIXED AMOUNT REIM-
BURSEMENT APPROACH FOR RURAL ROADS AND POSSIBLY
WATER AND HOUSING CONSTRUCTION SHOULD BE EXAMINED.
F. MA AND HIN ED COORDINATION THE PP SHOULD DISCUSS THE
AGRICULTURALLY RELATED CONTINUING EDUCATION ACTIVITIES
UNDERTAKEN BY THE nIN ED IN THE PROJECT AREA AND HOM THESE
PROGRAMS WILL BE COORDINATED HITH THE PROPOSED PROJECT.
THE IMPACT OF THE AGRICULTURAL ELEMENT IN AID'S ONGOING
RURAL EDUCATION LOAN {0091 SHOULD ALSO BE CLARIFIED-

G. CONTRACTING PROCUREMENT PLANS DURING THE DAEC,
SER/CM AGREED TO PARTICIPATE IN DRAWING UP CONTRACTING AND
PROCUREMENT PLANS FOR INCLUSION IN THE PP. SUCH PLANS
SHOULD BE ESPECIALLY USEFUL SINCE THIS WOULD BE AID'S
FIRST LOAN THROUGH THE MA. VY


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