ABSTRACT

Assessments of the perfonnance of developing economies undertaken in the early 1970s reinforced emerging arguments that aid must be channeled to the poorest groups in developing societies if they were to benefit from and contribute to economic development. International assistance agencies initially faced the problem of identifying and defining the beneficiaries and then of finding means of channeling aid to them. Much like the World Bank's lending strategy, US Agency for International Development's program of assistance sought to increase the productivity and income of the rural poor, and to extend access to services and facilities to rural families Project managers in remote rural areas frequently had problems obtaining supplies, equipment, and personnel in a timely manner to carry out the project on schedule, resulting in delays and cost overruns and the diversion of resources intended for integrated rural development projects to other activities. Negotiated agreements could be quite detailed.