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Mid-Term Impact 6fPhase 11
NGO Sector Initiative Project
in Ethiopia
Implemented by Pact
Under a Cooperative Agreement with USAID
February 2000
Pact
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Table ofContents
Executive Summary-iloilo •••••iloilo •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••1
Introduction iloilo" ••••••••••••••••iloilo ••iloilo •••••••••••••••••••••••iloilo ••••••••••iloilo •••••••••••••••••••••••••••••••••••••••••••••••••••••2
The Project: Its Components, Status and Impact 3
Objective One ....•..•••....•....•.•••......••••.•.....••.•...••..••.••.•..•..•....•.•.•••.••••.•.••••••..••...•.•• 3
Objective Two............•..••••••..••.••.•••••••.•.........•....•.....................•.•......•••...•....••..... 5
Objective Three..••••••.••••....•...••.•...••.•.......••....•.........•.....•.••....•......•.•..•...•...•.•••••.•. 8
Broad. Concerns an.d Specific Questions.••.•••.•.••..•••.•••..•••.•••...••••••••••...•.•••...••.••..•.••.•.••• 10
Development .Assistan.ce Concerns.•.........•••..•••......•............•.........•........•.........•. 10
Specific Questions an.d Issues•..••.....•••...•.•••..•..•.....•••••....•••.•.•.•...•••.••••.•....••••....• 12
Project Objective Components ......••...•.•.•......................................•.................. 16
Issues and Recommendations•..•...•.......•.........•..............................•.........•..•.......•.•......• 19
Executive Summary
Since the evaluator's mid-term evaluation ofPhase One ofthis project three years ago, much has
been achieved and impacts have been felt as a direct and documentable consequence ofits
interventions, as well as by the generally improving Ethiopian NGO environment. Without doubt,
however, Pact has served as a catalyst for much ofthat improvement and the more clearly delineated
future direction ofNGOs in Ethiopia.
Where before there was no primary education being offered by the government, there is now a Pact
"parmer" NGO that is providing basic non-formal education in a community-provided building.
Where there were once annual shortages ofgrain, there is now a grain bank being operated by a
partner NGO that now assures food security throughout the year.
The majority ofthis is due to the capacity building and support effortS of Pact, and the obvious
commitment ofits NGO partners. Indeed, therein is the key point: The Pact project has enabled its
current 82 partner NGOs to develop the organizational, managerial and financial capacities to more
effectively and efficiently deliver services to their ultimate beneficiaries-the largely poor, rural and
underserved Ethiopians most in need ofsuch support. And Pact's partner NGOs' assistance is
specifically targeted at those sectors ofmost importance to USAID, Pact and the greater Ethiopian
community, i.e., food security/rural development, educa'tion. health, orphans/child welfare, and
democracy and governance.
As fully described herein, this evaluation has taken a prospective ofthe project in two principal ways.
First, from the vantage ofits direct and indirect impacts as related to Pact's three stated objectives.
And, second, from the structural and operational angle ofthe project-the traditional development
assistance concerns ofUSAID and Pact, project management and specific objectives, and issues and
recommendations.
While there was insufficient time for the one-person evaluation team to thoroughly examine all
aspects ofthe project during the four weeks. it is hoped chat this document provides a sufficient
amount ofdetails and examples to enable its readers to draw the same conclusions as the evaluator. In
summary, Pact and USAID should be pleased with the achievements and impacts ofthe project, and
hopefully utilize this evaluation as the basis for discussions related to the full funding ofPhase Two
and the envisioned Phase Three.
Introduction
This mid-term impact evaluation comes at a rime when the NGO Sector Enhancement Initiative
Project (the "Project") is in full swing in terms ofimplementation and significant ongoing results.
This evaluation, therefore, will address the Status ofthe Project in both ofthose terms as well as focus
on the overall documentable impaCts ofthe Project. However, in light ofthis evaluator's scope of
work (SOW), the evaluation will be divided into twO sections: 1) in a summary fashion, report on
the broad impacts achieved within each ofthe three principal components ofthe Pact program; and
2) address the lengthy operational types ofquestions contained in the SOW (see Annex 6). Given the
nature ofthose questions, however, additional and sometimes more specific examples ofthe Project's
impacts also will be discussed in that seccion.
Consequently, it is hoped that this document will serve, firstly, as the sound basis for Pact's and
USAID's future discussions and agreements regarding the annual workplans, full funding ofthe
Project's current Phase II, and the commencement ofthe envisioned Phase III. Secondly, in the spirit
ofthe "substantial involvement" clause ofthe Cooperative Agreement, this evaluation should serve as
a guide for both parties with respect to outstanding issues, areas for improvement, and general
recommendations.
The findings of this evaluation were formed through cwoprincipal means. The evaluator has
expended considerable time interviewing a very wide array ofNGO, GOE (Government of
Ethiopia), private sector, USAID and Pact representatives at their respective offices andlor project
sites, both in Addis Ababa and in various rural locations (see Annex 2; please note that the author
regrets ifany names and organizations were accidentally omitted).
In addition, he has reviewed an extremely large quantity ofreports, handbooks, letters of exchange,
promotional literature, etc., which have been synthesized and, at times, substantially quoted herein
because ofthe extensive depth and quality ofthe material (e.g., the draft "Review ofEnabling
Environment for Ethiopian NGO Sector, December 1999"). However, with the time available and
the number of documents and interviews to be considered, this evaluation represents an attempt to
capture the consensus ofthe myriad ofopinions regarding the Project's "impact", and, secondarily,
provides responses to specific questions.
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The Project:
Its Components, Status and Impacts
As moroughly described in me evaluator's "Mid-term Evaluation ofthe Ethiopian NGO Sector
Enhancement Initiative Project, February 1997" and other subsequent documents, me Project
effectively began in May 1996 wim me formal registration ofPactlEthiopia by me GOE. Since that
time, Pact has concluded Phase I ofme Project (which included a "bridge extension" to Phase II) and
is now fully engaged in me implementation ofPhase II, currently anticipated to conclude on
September 30, 2002.
The Project is comprised ofthree distinct components, i.e. "Objectives", as presented below. While
all three are closely interrelated and supportive of one and another, it can be said mat the results
achieved under Objectives Two and Three have served as the basis for me achievement of Objective
One-this will become evident mrough the following preseiltation.
Objective One:
"An mabling mvironmmt in which NGOs work with govmzmmt on policy and
In accordance with Pact's June 1997 Technical Proposal for Phase II of me Project, the following are
the principal elements ofthe Objective:
• Public information and communications comprised of a press kit project, communications
activities, and communications channels;
• GovernmentiNGO collaboration comprised oflegislation, exposure to best practices, improved
capacity oflocal government to collaborate with NGOs, model development projects,
governmentiNGO fora, NGO sector, and annual enabling environment review; and
• Public/private initiatives comprised ofawareness creation, public information, and model
collaborative projects.
Before addressing me broader impacts ofthe various interventions under this objective, it is first
necessary to give a summary overview ofme significant achievements during bom Phase I and II of
me Project:
• Direct support of a coalition within me NGO sector resulting in me formulation of me "Code
ofConduct for NGOs in Emiopia, March 1999" that has been accepted and is now operational.
The NGO, InterAfrica Group (rAG), was contracted by Pact to carryout a series ofworkshops
mat led to the promulgation of the Code. (Note: Unfortunately, rAG did not grant the evaluator
a meeting to furmer discuss me Code and its impacts.);
• In an effort to change public and private sector perceptions ofme NGO community, a media
guidebook, a press kit, and two videos on local NGOs were produced. Also, a panel comprised
ofjournalists from me private and GOE media and NGO representatives was convened to
promote me many successes and human-interest aspects ofNGO programs in me local media.
Consequently, and with complementary training for GOE representatives, an ad hoc committee
was formed to explore me collaboration between public sector and NGO experts and
implementers in a range ofsocial service fields;
• While me GOE's public review and promulgation of the long-anticipated new NGO legislation
is still awaited, Pact has provided me GOE wim substantial documentation on NGO legislation
elsewhere in the world, and has financed exposure tours for GOE officials on best practices in
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government/non-government relations and NGO legislation in other parts ofMrica and Asia (a
good example of achievements under Objective Two directly impacting this objective);
• Changed perception ofthe NGOs' positive roles and activities among GOE representatives and
the Ethiopian community at large;
• Substantial increase in the number and quality of exchanges between local and central GOE
officials and NGOs regarding the desired new NGO legislation, as well as in the contribution
and participation ofNGOs in national development policy formulation and implementation;
• Substantial improvement in the NGO registration process as reflected by the increases in the
number ofNGOs registered and re-registered (an Intermediate Result #3 indicator for USAID's
current Strategic Objective #4), and an increase in resources allocated to communities through
the intermediation ofNGOs; and
• Early, yet already successful, implementation ofcollaborative GOEINGO projects (e.g., the
RCWDA and EMRDA projects in Region 4; see Annex 1 for the list of acronyms) that will serve
as models elsewhere in Ethiopia.
As stated earlier, the most current and comprehensive assessment ofthe enabling environment is
found in the November/December 1999 "Review ofEnabling Environment for Ethiopian NGO
Sector", by Ms. Lisbeth Loughran and Messrs. Jeffery Clark and Daniel Bekele. As a follow up to the
May 1998 "Report on the Enabling Environment for the Ethiopian NGO Sector" (which also
included Mr. Clark's participation, consequently providing a significant degree of continuity), this
very timely, must-read report provides a variety of observations that are cited below and worthy of
close scrutiny by Pact, USAID. other donors, and the NGO community.
By any objective measurement, growth in the Ethiopian NGO sector and enhancement of collective
operational capacity and relevance to advancing national development priorities over the decade of
the 1990s were extremely impressive. Now steady improvement in the enabling environment, in
which NGOs form and operate, promises to facilitate additional significant growth within the sector
during the opening years ofthe new century. The indigenous NGO community has taken root in
Ethiopia and is poised to playa gradually expanding role of central importance to the country's
political, social and economic evolution.
A number ofindicators support this conclusion. The central and critical factor in improvement in
the enabling environment, however, is that political forces within the Government of Ethiopia and
the ruling EPRDF coalition have been able to accommodate operational space for the NGO sector
within their ideological perception ofthe nation's basic Structural alignment and accept NGOs as
legitimate players in its political and economic transition. This shift in attitude is not yet complete
and certainly is not in place across the entire political/governmental landscape, but telltale signs are
strong and convincing.
While these are encouraging achievements and positive indications for the future, they must be
correctly attributed to a variety ofsocio-political and economic reasons, as well as interventions by
domestic and international NGOs and donors-one of them beIng Pact. Indeed, as one examines the
factors listed below-which frame the conclusions reached by the report's authors--the very close
correlation between those factors and Pact's past and current interventions (as listed above) become
very evident.
• The number ofNGOs registered with the government has grown significantly and the
percentage ofthose registered NGOs being indigenous entities has eclipsed that ofinternational
counterparts;
• The act ofregistering for NGOs has receded as a continuous issue as the process has become
relatively transparent and routine;
• Media portrayal ofthe NGO sector has undergone a radical transformation as the number of
articles concerning NGO activities has increased significantly. the opportunities for journalists to
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pursue investigative reporting have expanded, and the editorial cast ofnews stories has notably
shifted to more positive portrayal ofthose activities;
• Collaboration between NGOs and government agencies at all levels-most significantly at the
regional and local levels-has exploded in frequency and imponance;
• Adoption ofthe Code ofConduct by the NGO sector has sent a positive signal about its ethical
underpinnings to critical observers, provided evidence of ability ofthe sector to impose self￾regulation, and spurred consultation and collaboration within the community;
• The mobilization ofNGOs around humanitarian needs in the face ofthe border war with
Eritrea and drought in the northern and eastern regions has served to underscore their legitimacy
and relevance in the eyes ofkey government officials; and
• Cautious optimism has replaced trepidation in anticipation ofthe introduction of national
NGO legislation.
In summary, while "progress is hardly uniform or consistently observed across the speeuum ofNGO
operations...NGOs in Ethiopia have crossed a threshold of acceptance and relevance that well places
them to assume a permanent position as serious contributors to the country's development process
and its political, social and economic evolution". The large and diverse audience ofinterviewees
repeatedly verified the essence ofthis assessment.
In fact, it is not an overstatement to say that the Project's multifaceted interventions, coupled with
other complementary and propitious events, have been very instrumental in bringing about this
major improvement in the enabling environment - an environment that is progressively more
conducive to significant NGO advancements in the years ahead.
As stated by one NGO representative: "Pact has served as an intermediary between the government
and the NGOs. It bridged the government-NGO gap. Consequently, there is now a common
language between the government and NGO sector because of Pact as well as the Code ofConduct".
Objective Two:
"NGOs have improved capacity to carry out effective programs
As per Pact's Technical Proposal for Phase II, the following are the principal elements ofthe
Objective:
• NGO capacity building comprised of building in-country capacity to deliver training and
mentoring services, organizational assessments, training, mentoring, resource center, rural
development/food security learning centers (an anticipated IIRR activity to be discussed later),
and exposure visits; and
• Strategic Action Grants (SAGs) comprised of commodity, personnel (both short- and long-term)
and activity grants.
As with the first objective, before addressing the broader impacts ofthe various interventions under
Objective Two, it is appropriate to first give an overview ofthe significant achievements during both
phases ofthe Project:
• An overall improvement in the management and financial capacity (as measured, inter alia,
through "re-OCATing" in the case of 29 ofthe first NGOs) of 82 NGO "partners". (In fact,
Pact has been directly involved with (and, therefore, OCATed) 93 NGOs, but 11 NGOs have
either been de-registered by the GOE or the partnership was terminated for cause; this essential,
indeed, healthy process will be addressed later);
• Through a variety of training courses and mentoring, those same NGOs have improved their
technical knowledge and skills (consequently, their service deliver capacities) in the Project's key
sectoral foci, i.e., rural development and food security, street children and orphans (subject of a
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separate evaluation conducted concurrently with this evaluation by a representative from
USAIDlWashingron's office ofDisplaced Children and Orphans Fund), education, democracy
and governance, and health (an initiative requested by USAID/Ethiopia during Phase II);
• An extensive variety and complexity ofSAGs among all parmer NGOs which have resulted in
direct impacts on the recipient NGOs (in terms of both their organizational and individual staff
competencies, and utilization ofparticipatory methodologies) and their respective target
beneficiaries/communities in six regions (examples ofboth will be described below);
• An articulated strategy among a majority of partners on how to address gender issues, the
development and use ofgender indicators, the establishment ofNGOs' links to women's affairs
bureaus, and improvements in gender representation among the partners' beneficiaries and
within their management and board structures;
• Exposure tours to other countries in Africa, Asia and Latin America for approximately 40 NGO
and GOE representatives that has resulted in direct impacts on their respective institutions (as
will be described later) as well as the multiplier effects due to Pact's very strong partnership
network (through regular "partner meetings", the quarterly newsletter IMPact, and other NGO
and GOE fora); and
• Through the extensive utilization and mentoring oflocal consulting organizations, a capacity
now exists in country to design, conduct and evaluate participatory training that is based on
adult learning principles.
When considering the impacts ofthese interventions, there are the following three vantages from
which they are assessed: 1) what impacts have the activities had on the organizational, managerial and
financial capacities ofthe NGOsj 2) what impacts have been realized by the respective NGO's
intended beneficiaries; and 3) what impact has there been on the NGOs' capacities to obtain
additional donor or community resources to assure its sustainability?
With respect to the direct impacts on each ofthe partner NGOs, the evaluator received extensive and
very positive feedback from the large sample ofNGOs (during meetings with 5- to 15-person
sectorally-focussed groups as wdl as in one-on-one meetings, hence greater candor). What came
through with total unanimity was the influence that Pact's Organizational Capacity Assessment Tool
(OCAT) had on the NGOs' internal perceptions, objectives, strengths, weaknesses, etc.
As oft repeated by a large number ofrepresentatives: "We would normally look at ourselves but not
in such a complete and critical, yet constructive, way. This has been a.'systematic learning process'
for all ofus that has been very beneficial to us and our beneficiaries". Another NGO representative
was even more candid when he said: "The OCAT exercise was first seen by us as a means to get
Pact's grants for our specific activities, but we now see it as a self-improvement tool".
Besides the various supportive comments from the NGOs (ones which the evaluator appreciates
would inherently be positive given the nature of his role and cultural norms), we also have the benefit
ofthe results ofPact's first "re-OCATing" exercise which took place in October 1999 among 29 of
the first 35 parmers. Without describing in detail the composition ofthe OCAT, it can be said that
the analytical tool (developed for the Pact/Ethiopia program and now used in Pact's other country
programs as well as by other donors here and elsewhere) is a way by which NGOs are assessed in
terms of the following seven criteria and, in turn, ranked as a "nascent, emerging, expanding or
mature" institution: governance, management practices, human resource management, financial
resource management, service delivery, external relations, and sustainability.
What is demonstrated within the draft "Consolidated Report on Participatory Organizational
Capacity Re-Assessment of 29 Partner NGOs, October 1999" is the fact that in 21 ofthe cases
(72%) there was an improvement in the average composite scores for the seven criteria. While
recognizing the subjectivity aspects ofthe OCAT (an issue acknowledged and debated within Pact),
it certainly can be said that there is ample evidence to support the consensus of opinion delivered to
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the evaluator. Indeed, by recognizing the margin oferror issue, it appears that in four additional cases
the negative score is so small that it would be considered insignificant when put through any sound
statistical analysis.
Another aspect to consider is the correlation between the NGOs' completion ofPact's three core
training courses and attainment of a higher or lower average OCAT score. It is worth noting that in
those eight cases where the NGOs had a decrease in their average score, the large majority did not
take the core courses or additional training courses, nor did they receive the associated mentoring
from Pact - a significant and very distinguishing feature ofPaet's capacity building program. Indeed,
as stated by one NGO representative, " ...the mentoring concept was foreign to Ethiopia until Pact
began its program".
(See Annex 4 for a graphic comparative presentation ofthe re-OCATing results, by each ofthe seven
criteria and four stages ofinstitutional development, as well as by the individual analytical elements
within each ofthe criteria. The "core" courses are: 1) Strategic Planning and Management; 2)
Participatory Project Design, Monitoring, Evaluation and Reporting; and 3) Financial
Management.)
With regards to the impacts on the respective NGO's intended beneficiaries, the evaluator expended
substantial time discussing this topic with the NGO representatives as well as with the direct
beneficiaries at a number of project sites (i.e., HUNDEE in Sululta; JACH and ACSI in Bahir Dar;
and RCWDA, KCADO and EMRDA in the Oromia Region. See Annex 2 for the liSt of
organizations and persons contacted).
At the project sites, the evaluator was able to ask the attendees, through a translator, a number of
simple and standard questions regarding their perceptions ofthe NGO's level of assistance as well as
its capacity to deliver and monitor services, whether they be existing or new services (e.g.,
services which may have recently commenced as a consequence ofthe NGO's receipt of one of Pact's
"activity grants" - one ofits primary objectives being to demonstrate institutional capacity to other
prospective donors). In the absence of any real way to quantifiably capture the results ofthese
comments (especially given the time available, the subjectivity ofthe process, etc.), a number ofthe
key and oft repeated points made by both the NGO representatives and, most importantly, the
beneficiaries follows:
• They (the NGO) are better organized and seem to have a clear pl;m for providing suPPOrt to us.
They inform and follow up with us on all aspects oftheir assistance.
• They (the beneficiaries) are more motivated to support the NGO and their work; the motivation
even includes the creation ofincome-generating activities (an issue to be discussed later).
• An old man stated that he lived through the Emperor Haile Selassie and Dergue periods but this
is the best time of his life, and it is because the NGO (HUNDEE) has been able to assure him
and his family of a steady food supply (and, consequently, security) through HUNDEE's
successful operation of the grain bank.
• The NGOs are now seen as a means to address a variety of community-related issues because
they (the NGOs) appear to be better able and willing to assist the people.
• The NGOs have demonstrated a sincere commitment to the people--something that has not
always been evident from the government.
The final measure ofthe Project's real impact within this objective is with respect to the NGOs'
capacities to obtain additional donor or community resources in order to sustain their assistance
programs. As Pact has successful conveyed the message to its parmer NGOs that they are not a donor
but rather an agent for institutional capacity building, the NGOs have come to realize the
importance of maintaining existing as well as securing new financial assistance.
After numerous discussions with the diverse interviewees, it became very evident that a really accurate
measure ofthe lasting impact ofPact's interventions is to ask whether or not a parmer NGO is better
7
able to "market itself' as a reputable, transparent, and effectively-managed institution to other
contributors or donors - be they communal, intra-Ethiopia (not very common given the lack of
domestic taX incentives [discussed later], tradition, etc.) or international. What carne from this line of
questioning of both the NGOs and other involved donors was a resounding "yes".
Once again, the empirical information gained by the evaluator is best presented by the utilization of a
number ofregularly-cited points made by a variety of parties:
• Other donors have noted that we are now a more dynamic organization. and that we have an
increased capacity to manage their resources. We have gained credibility and a good image.
• We are now using the OCAT and our results as a public relations and marketing tool with
international donors. They greatly appreciate our commitment to self-examination and
improvement.
• By taking Pact's Participatory Project Design, Monitoring, Evaluation and Reponing training
course and subsequent mentoring services, we have been able to develop becrer project proposals
that have resulted in a significant increase in donor funds.
• And from an international donor: Before Pact's interventions. we were the only donor assisting
the NGO. Now there are a number ofinvolved and interested donors. The OCAT process
helped them identify and address issues. We are now receiving financial reports on rime and they
are more accurate and thorough. The development ofthe Strategic Plan helped to reflect upon
and focus the NGO's program. The NGO now prosluces good and focused proposals. and they
now have the capacity to repon on project performance and its finances.
An interesting anecdote to this demonstration ofthe NGOs' capacities to now garner additional
donor resources: In one case, an NGO parmer noted that, while obtaining some new donors'
assistance, they had lost an earlier donor because it had been determined that the NGO had, in fact,
"graduated" in terms of a demonstrated need for further assistance. While difficulc for that particular
NGO, it is one ofthe best indicators ofprogram impact and success!
Objective Three:
"NGO umbrella and networkinggroups take aproactive approach in representing andsupporting
members".
In accordance with Pact's Technical Proposal for Phase II, the following are the principal elements of
the Objective:
• Strengthening ofone existing network, i.e.• Forum on Street Children. through technical
assistance and SAGs;
• Support and facilitate the formation ofsix formal and informal sectoral umbrellas and networks
through training and mentoring. technical assistance. and SAGs; and
• Education regarding the role ofumbrellas and networks through the sensitization ofNGOs on
the their uses and functions. and through exposure visits.
As with Objectives One and Two. before addressing the broader impacts ofthe various interventions
under Objective Three. it is appropriate to first give an overview of the significant achievements
during both phases ofthe Project:
• Pact and CRDA (the Christian Reliefand Development Association. the oldest and largest
membership organization for NGOs in Ethiopia and the only other principal provider ofNGO
capacity building) have developed a formal collaboration Struccure through periodic meetings (a
topic to be addressed later), and participation in jointly-sponsored activities;
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• Support (i.e., facilitation not formation) and memoring for four formal and informal NGO
umbrella groups/networks in basic non-formal education, micro-finance, micro-credit, and
orphanages/child welfare;
• A variety of generic training courses provided to NGOs on networking that has resulted in a
greater understanding and appreciation for the roles and values of umbrella groups/networks;
• NGOs receiving support services through the umbrella groups/networks; and
• Participation in exposure tours in other countries that looked specifically at networking.
When considering the broad impacts to date, it first must be acknowledged that the level of activity
in this area has not been as substantial as in the other two objectives. Nonetheless, there is very ample
evidence ofimpact based upon the interviews conducted with those NGOs engaged in one ofthe
networks as well as those who desire to formalize a network. The perceptions ofPaet's Program
Managers and Co-Directors were also insightful in this regard.
Here again, the best way to convey what these interventions have really meant to the NGOs, and
what they have done in support ofthe enhancement ofthe enabling environment, is to summarize or
quote a number ofthe observations made by the interviewees:
The willingness now ofNGOs to create networks demonstrates the growing maturity and,
equally important, the confidence they have in their positions;
• As in the case of Pact's individual partner NGOs, some ofthe recendy-established networks are
now receiving support from donors because ofPaet's initial support. For example, in the case of
the micro-finance association, they are now receiving support from the African Development
Bank, World Bank, Irish Aid, etc. "A lot ofinterest and support is coming now because of Pact;"
• "Networks/associations were long overdue as there has been a felt need, but the process needed
to be transparent and it took much effort and cajoling - Pact provided that help";
• Significant networking is occurring on a daily basis at Pact's Development Resource Center
where NGO, GOE and private sector representatives exchange information and ideas. This is
also being achieved through the wide distribution of Pact's quarterly newsletter IMPact;
• "Pact's efforts have brought about a phenomenal change in the establishment and fostering of
linkages among NGOs";
• "The culture of networking JUSt didn't exist before Pact";
• With respect to the recendy-formed voter education informal network among six NGOs, the
GOE is supportive oftheir planned efforts; and
• "The exposure visits have not only helped to obtain new information but they have enabled us to
establish informal networks with our NGO and government colleagues".
9
Broad Concerns and Specific
Questions
In accordance with the SOW, the following section will address the more general concerns of any
development assistance program as well as the specific questions raised therein, As stated earlier, by
responding to the wide variety of questions presented, further aspects ofthe Project's overall impacts
will be demonstrated.
Development Assistance Concerns
Rdevance: While there has been substantial progress made toward the establishment of a more
enabling environment and the improvement in the NGOs' capacities to serve as parmers in
Ethiopia's development, there is no question that the development constraints, and the strategies to
address those constraints, are still applicable. Likewise, in all respects, it appears that the Project's
specific activities are still focused on those constraints. However, as will be discussed in the
recommendations section, there are a few areas where some additional fine-tuning is suggested.
Effectiveness: There's no doubt that the Project is fulfilling Pact's and USAID's expectations in
terms ofthe stated objectives, and that those objectives are still valid. Based on discussions with
USAID staff, however, it is evident that they are in the process ofre-examining their overall strategic
goal and objectives and, consequently, the role that Pact will play in the achievement ofthose
objectives. Therefore, at the appropriate time, it is critical that Pact (along with other NGOs) be
called upon by USAID to provide valuable, "first-hand, field-based" inputs for that strategy
development process.
Efficiency: While the evaluator has not undertaken a cost-benefit analysis ofthe overall program, it
would appear from his years of working with U.S. PVOs on development assistance programs that
USAID and the people ofEthiopia are receiving a very good return on the USAID investment. The
low operational costs of Pace (as compared to any profit-making firm), coupled with the laudable
utilization of all Ethiopian staff (except for Pact's American Co-Director) in its office in Addis
Ababa, clearly suggests a high degree of efficiency.
Likewise, over the years, Pact has progressively increased its use'oflocal human resources for most of
its in-country work. Additionally, the Pact staff has increasingly assumed a much greater role in the
provision oftraining-previously the domain oflocal contractors.
Impact: This topic has been and will be further discussed in the pages that follow.
Innovation: As discussed earlier, the Project has been effectively capitalizing on exposure tours -
both to other countries as well as regions of Ethiopia - to expose NGO and GOE representatives to a
wide variety ofdifferent ideas and approaches for capacity building, networking, etc. While
seemingly cosdy to some, the returns on these investments oftime and financial resources have been
extraordinary. A case in point: As a clear and direct result ofthe participation of an influential
GOE/NGO representative from Ethiopia's Region 3 in the Bangladesh exposure tour, a policy
change now officially permits non-formal education in the Region - some ofwhich is now
undertaken by Pact's NGO partners.
With the substantial improvement in the NGOs' acceptance within the GOE and the broader
Ethiopian communiry, however, it appears that Pact should further capitalize on the opportunities
for more domestic "exposure tours". This, in turn, will further enhance the networking objectives of
the Project.
10
"
A related innovation. and one which should be resuscitated, is Pact's support and facilitation ofthe
local development oflow-cost promotional videos for some ofthe larger NGOs (as has already been
done for Jerusalem Association Children's Home, and Rift Valley Children and Women
Development Association). The potential promotional returns-financial for the NGOs as well as
fostering the "development partnership" image with the GOE and general public - cannot be
overstated. Additionally, Pact's supportive effortS to get these videos aired on local television certainly
should be continued.
Finally, special recognition should be given to Pads more recent training initiatives in conflict
prevention and management, leadership, and resource mobilization. All ofthese courses have been
well received by the NGO and GOE participants (especially for the GOE representatives in the case
ofthe conflict prevention and management course) and continuation ofsuch courses are highly
desired and recommended. Of particular importance for the future is the resource mobilization
training that was first conducted in December 1999. In light of the following discussion on
sustainability, it is imperative that Pact continues its efforts (and encourage others, e.g. CRDA) to
enable partner NGOs to expand the donor base, whether domestic or international.
Sustainability: This issue needs to be addressed at a number of different levels. First there are the
issues related to an individual NGO's as well as the overall NGO community's capacity to retain
trained and capable staff In this regard, it is very impressive to see that while, for example. there
appears to be a significant turnover oftrained NGO acsountants (a major component ofPact's
training program), me vast majority ofthem are reported to have moved to another NGO rather
than seek employment in the more profitable private sector. Fortunately, it would appear that the
sector is gready benefiting from the personal commitment and devotion that people have toward the
NGO community and its greater purposes. In a broader sense, it can be assumed that the overall
NGO sector's human resource capacity will improve as a consequence ofthis altruistic commitment
to the objectives ofNGOs.
Second, there's the very significant issue over the viability ofsome ofthe Pact-supported Ethiopian
NGOs. As with anywhere in the world, it would be unrealistic to expect that every one of the NGOs
supported by Pact, especially since many are only "nascent" or "emerging", will survive in their
present form. However, it must be emphasized mat Pact is certainly providing the essential
organizational. managerial and financial cornerstones to best equip the NGOs for a successful and
sustainable program. (The prospects for income-generating activities to complement other donor
resources are discussed in the Issues and Recommendations section).
Nonetheless, there will be some NGOs which will either merge, in one form or another. with a
larger, more established NGO or another similar such struggling NGO, or simply terminate its
existence. As will be discussed in the next section. Pact has had to terminate some ofits parmers
during the course of the Project, and will certainly need to do so in the years ahead, for a number of
different reasons.
Lasdy, there are the issues surrounding the sustainability ofPactlEthiopia-in whatever form that
might be. As will be addressed later, this is an issue that is now on the minds of Pact and has
certainly been considered by USAID/Ethiopia, particularly in the context ofCRDA and itS
expanding role and membership.
Democracy Building: As specifically noted within the SOW. the underlining theme and emphasis
ofthe Project is participatory development that serves as the foundation for building an active
Ethiopian civil society.
While the Project is, in fact, working specifically with a cluster of democracy and governance-related
NGOs, it is its overall engagement (and that ofCRDA and others) with the NGO community at
large that is making a significant difference in the efficiency and transparency ofthe Ethiopian
society. Pact's major initiative of engaging GOE representatives in a wide variety ofProject￾supported activities is worthy ofspecial mention in this regard. Likewise. the expanding prominence
11
ofnetworks and associations are primary vehicles for the further engagement of civil society in the
overall direction and success ofEthiopia.
Specific Questions and Issues
Project Management
Overall design and implementation: Based on Pact's original project proposal ofJanuary 1995 and
subsequent Phase II proposal, as well as the initial "enabling environment study" in March 1996 and
subsequent updates in May 1998 and December 1999, Pact has successfully implemented (with
revisions, when and where appropriate) this capacity building program. The objectives have been
realistic and achievable, although the unforeseen delays in the Project's implementation (due initially
to the GOE registration process and then the sudden loss ofthe first Pact Director) had an impact
on the actual achievements in the program's early stages.
The strategies utilized by Pact appear to have been well conceived, and are well founded on Pact's
experiences with their programs in other countries. The utilization ofPaet's international network
and specific programs has greatly enhanced the performance ofthis project and the attainment ofthe
specific objectives. Indeed, that same network will be of great service to the Pact parmers in the years
after Pact's direct participation is concluded.
Pact/Ethiopia and USAID/Ethiopia project management: By way of background, Pact is
implementing the Project under a Cooperative Agreement with USAID that specifies a "substantial
involvement" role for USAID. As such, USAID is expected to provide Pact "...with overall policy
and technical guidance which ensures that program implementation is consistent with
USAID/Ethiopia's Strategic Objectives".
Pact's Co-Directorship: During the early stages ofPhase One (i.e., up until the death ofthe PactlE
Country Representative in February 1997), all principal management responsibilities were vested in
the Country Representative, although a rudimentary co-directorship structure existed with the most
senior Ethiopian staffmember. Without doubt, that primary leadership structure was best suited for
those early, and very difficult, stages of project start-up and implementation. However, with an eye
to the long-term future ofa post-Pact local entity and recognition ofthe proven [alent and capacity
ofthat senior Ethiopian staffmember, PactlWashington formalized (with USAlD/E's concurrence)
the creation ofthe current Co-Directorship arrangement.
During the evaluation, it was clearly evident that the dual directorship is working, both from the
prospective ofthe interviewed Pact staff as well as the NGO partners. Since the arrival in September
1997 ofthe PactIW Co-Director, substantial effort has been made to configure a workable division
ofresponsibilities between the two Co-Directors. While recognizing that such a management
arrangement is never static, the two individuals have worked well in a give-and-take way to adjust
their roles to suit the needs ofthe organization and the strengths ofthe individuals.
In turn, this management structure has facilitated a very collaboratively-determined division oflabor
among the NGO program managers and other principal staff. As a consequence, the key
implementation staff (indeed, all support staff) work together in a very collaborative fashion, wherein
many ofthe staff are fully conversant in the principal aspects of a colleague's work and can assist one
and another when and where necessary.
Substantial Involvement: It would appear from the brief discussions with USAID staff, and more
lengthy ones with Pact staff, that there has been a sometimes-uneven level of USAID engagement, as
anticipated in the specific clauses ofthe Agreement,
While there has been fairly regularly participation in certain day-to-day implementation aspects of
the Project, USAID has for only the first time since the Country Representative's death officially
reviewed and approved Pact's annual workplan (for calendar year 2000). However, prior to the
12
.'
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Representative's death in February 1997. there was a greater USAID engagement in the review of
Pact's workplans, project start-up activities. etc.
Likewise, there has been only one instance where USAID has responded to Pact's semi-annual
Project Activity Status Reports. While not specifically called for in .the Agreement. an interchange
between USAID and Pact certainly would be expeered regarding these comprehensive reports,
especially since they appear to be very valuable in terms ofUSAID's performance reporting
responsibilities.
Finally. given the multi-sectoral focus ofthe Projeer (which directly coincides with USAID/E's areas
of engagement), it seems unfortunate that USAID is not better capitalizing on the experiences,
information and achievements ofthe Project. (In faer, while USAIO's principal Ethiopian cognizant
officer has been regularly involved in training. panel discussions, parmers' meetings, etc., the
evaluator was informed by Pact staff that repeated invitations to other USAIO stafflargely have not
been capitalized upon to enable them to become more familiar with the Projeer and its impacts).
Therefore, and in recognition ofthe fact mat USAID is currently undertaking a strategic planning
exercise, it is strongly recommended that USAIO form a more structured and regular multi-office
meeting wherein Pact is able to share its valuable field-level information. Indeed. during this
important planning period for USAID, it seems even more imperative for it to capitalize on the
Project's experiences and staffinsights. In the broader COntext, the resurrection ofthe
USAID/Partners retreat (lase conducted in October 1998) would be another way co assure valuable
NGO partners' inputs.
support: While not a major focus ofthis evaluation, it does appear that PactlE is
receiving excellent support from its headquarters. Due to a nwnber of extenuating circwnstances.
however, it did appear during the evaluator's tenure that the headquarters staffwas not able to
respond in a timely fashion to a couple ofspecific and urgent requests made by the American Co￾Director. On the other hand, it is clear that headquarters is doing its best to assure that its
responsible program manager provides the necessary level of backstopping, as evidenced by her
upcoming trip to Ethiopia.
The Monitoring, Evaluation) Reporting) and Information Tracking (MERIT) system: Very
significant progress has been made with respect to the operationalization ofthe MERIT system and.
most importantly, the usefulness ofthe information being provided to program managers and the
Co-Directors. With the very capable assistance ofthe system administrator. the MERIT system is
now producing a wide variety ofreports that are enabling the program managers to monitor various
important NGO partner activities, e.g.• training courses attended; and types, size and terms ofSAGs
awarded.
However, from the relatively brieftime spent examining the system. there are a few suggestions on
utilizing the system as a more proactive management tool. First. based on the results ofthe October
1999 (and subsequent, as they become available) "Participatory Organizational Capacity Re￾Assessment of Partner NGOs" report, the program managers need to utilize the MERIT system to
actively monitor the correlation between the re-OCATed scores and the respective NGO's
attendance at core and secondary courses and utilization ofPace's mentoring services. As indicated
earlier, such a correlation exists and the findings should be used by the program managers to
encourage che lagging NGOs accordingly. In curn. and in the face ofthe pressures ofbringing on
new partner NGOs and "graduating" older partners, the outcome ofthis periodic examination of
"non-performers" and follow-up support may be the appropriate cessation ofthe "partnership".
Second, the system manager and the program managers should examine ways by which the MERIT
system can be further refined so that a sore of "red flag" mechanism is in place to alert program
managers co possible issues or problems. such as the one identified above. (Apologies are in order if
such a facility already exists but was not apparent to the evaluator). As the Project has matured and
substantial experience has been gained with che partner NGOs. it is clear that such a proactive
13
management tool is essential for both PaetlE and its parmers. And, in a rdated matter, the program
managers need to asswe that they keep up on their timely entry into the system ofthe required
information-the system is only as good as the information entered!
Operational procedures and administr.p.tive support: While not having the time to examine many
aspects ofPaet's specific internal procedwes, the evaluator has, nonetheless, a broad concern
regarding the overall parmer-management capacity ofthe office. As implied above, Pact is now at a
point with its parmers that some will be "graduating" from the receipt ofthe primary elements of
Pact's support program, while others may need to have a cessation in their relationship with Pact
until such time as they demonstrate the necessary long-term commitment, etc.
Therefore, in light ofthe current Phase II completion date ofSeptember 30, 2002 (i.e., in context
with the average amount oftime required for a successful and completed parmership) and the
continuing demands from NGOs to become Pact parmers, it is essential that Pact's management
continue to focus on the issues and criteria for parmer "graduation" and "cessation", and act
accordingly. This will, in turn, enable Pact management to more effectively manage the overall
partnership portfolio and assure the continuation ofthe high levels ofsupport [0 each NGO
necessary for their successful "graduation" to "maturity."
Workplans: Once again, there has not been adequate time available during this impact evaluation to
thoroughly examine the annual/quarterly workplans and the performance against those plans.
However, based on the numerous discussions with the program managers, grants and financial
management office staff, and the Co-Directors, it appears that they collectively consider these plans
as vital planning and management tools. While there is, undoubtedly, the usual advancement or
slippage ofspecific activities within each officer's workplan, it appears that the quarterly reviews with
the responsible officers asswes that the overall objectives and achievement dates are kept at the
forefront oftheir individual workplans.
International Institute for Rural Reconstruction (IIRR): IIRR signed a Partnership Agreement
with Pact on October 20, 1995 for the period from July 31, 1995 through December 31, 1997; and
was subsequently amended as parr ofPact's extension under a "bridging" agreement with USAID. As
highlighted in the February 1997 mid-term evaluation (conducted by this evaluator), however, there
were a number ofissues at that time regarding the collaboration between the two organizations and
the coordination oftheir respective training programs. There were also issues over IIRR's timely and
accurate financial reporting.
In December 1997, the "IIRR Rapid Assessment-A Discussion Document" was completed by a local
consulting firm. Following comments from both Pact and IIRR, the document's author wrote a very
candid preface to the report stating:
"The commentsfrom Pact and IIRR were crucial in that they haveforced the comultant to revise
her views in one crucial way. Previously, she believed that despite a history ofmisunderstanding and some
temion between the partners, these problems could be sorted out through aprocess ofcompromise and
flexibility, andwith a spirit ofgoodwill. The comultant now wishes to express reservatiom about this
earlier, optimistic opinion. In particular, IIRR staffcomments reveal a negativity quite at odds with
developing a sound working relatiomhip with Pact. Their comments are written with apassion which.
while commendable for their obvious commitment to IIRR's "good name': show afrank hostility to change
and compromise.... In short, there will be no quick.fix to what is clearly a complex problem ':
Nonetheless, as is thoroughly documented within the Pact fUes, very substantial efforts were made by
Pact to continue to have IIRR engaged within the Project, albeit under the terms of a specific
contract for training services rather than a grant. Without belaboring the details, suffice it to say that
IIRR was unwilling to provide the requested services in the manner appropriately requested by Pact.
Therefore, their relationship ended in late 1998, although the transfer ofthe remaining property
back to Pact did not occur until early 1999.
14
& to the impact ofthis,organizational separation, it can only be described as very positive. Pact,
through the employment of an additional program manager for food security/rural development, in
conjunction with the local consulting firm, Development Studies Associates, are now very effectively
and efficiendy fulfilling all the requirements for full suppon to those NGO partners. Indeed, Pact is
no longer expending inordinate amounts oftime having to manage the poor-fitting international
NGO pannership
Christian Relief and Development Association (CRDA): Without providing all the details on the
CRDA's membership composition and the portfolio ofsupport to its members, it is important to
acknowledge the very significant role that the country's largest umbrella NGO membership •
organization plays within the NGO community. & is know by all, CRDA over the past few years
has been going through a substantial evolution in terms ofthe services being provided to its
members-especiallyas the nature and magnitude ofthe NGOs' roles have changed so significandy
in Ethiopia.
In what appears to be an excellent and very positive example of "replication is the best form of
flattery," CRDA has been undenaking a number ofinitiatives and approaches that are very similar to
those first-ever-in-Ethiopia efforts conducted by Pact, e.g., strategic planning, board development,
mentoring, and the fostering ofGOE/NGO relations. Additionally, CRDA has utilized Pact training
stafffor its own internal capacity building efforts, although it appears that CRDA does not want to
undertake its own OCAT exercise-even though it is n9w conducting an OCAT-like exercise on
some ofits members.
While there are issues regarding the apparent duplication ofsome training courses, this is really only
a matter ofimproving' the coordination and collaboration between the two organizations (and
recipient NGOs) rather than a case of a more fundamental problem of direct, adversarial
competition. & more than one NGO representative essentially put it: "There's more demand then
there is supply ofthe capacity building suppOrt services required by all the Ethiopian NGOs". (For
reference purposes, see Annex 3 for a list ofNGOs that are Pact partners but not CRDA members,
and a list ofNGOs that are associated with both Pact and CRDA).
Indeed, what is evident here is a very healthy and constructive competition (and this desirable) that
is leading to a more responsive and comprehensive NGO support infrastructure-after all, the two
institutions have very similar objectives. Yes, there is room for improvement, and the two agencies
have been working toward that end. While not as regular as they should be, meetings are held at both
the technical committee level as well as the senior management level. They also hold a semi-annual
meeting for all ofthose same Staffmembers in order to ensure the full and timely sharing of
information.
Therefore, what is recommended is the following: l) the continuation, when and where appropriate,
for the fullest possible collaboration on mutually-desired programs and new interventions, e.g., the
NGO Affairs Committee and regionally-focused programs; 2) the strict adherence to the schedule of
meetings at all levels (extraordinary efforts should be made to quickly reschedule any delayed
meetings; too much is happening within the cwo organizations and the NGO community to let too
much time elapse between the meetings); and 3) Pact's Ethiopian Co-Director should assume total
responsibility for all aspects ofthe above recommendations (to the extent that it be one ofthe specific
components of his job description), with special attention paid to ensuring the regular occurrence of
the technical committee-level meetings as well as the senio.r management meetings.
Phase ill and institutional life after Pact support: There are a number of unknowns with respect
to where USAID will be directing its resources in the years ahead. As suggested earlier, however,
there are a number of good, multi-sectoral, field-based why Pact (and, indeed, other NGOs)
should be utilized during USAID's ongoing development ofits new strategy.
While recognizing the uncenainties related to USAID's potentially new Strategic Goal and
Objectives and the associated levels ofresources, Pact/E must still proceed, nonetheless, with its
15
essential long-term planning process. In that regard, a third phase ofthe Project had been envisioned
in Pact's original unsolicited proposal submitted to USAID/E in January 1995, and as further
amplified in April 1995 at the request ofUSAID.
What makes some preliminary long-term planning necessary for Pact, even at this stage of Phase II, is
the fact that they are working on a long timeframe with respect to the addition of any new NGO
partners. Specifically, with the ample experience gained with the current 82 parmers, it is clear that
the entire process-from parmer identification and OCATing, to training and mentoring, to SAGs
(with terms of a year and sometimes longer), to final "graduation"-spans a very considerable period
oftime. Therefore, although the current Phase IT termination date ofSeptember 30, 2002 seems a •
long way away, Pact must now focus its attention on its current partnership portfolio, on those
partners either nearing "graduation" or possible "cessation," and the period oftime during which
they can rake on new partners, given the above time requirements.
It is in this context too that Pact must very soon update its vision of a Phase III, especially in the
context of the absorptive capacity and organizational evolution ofthe PaetlE office. Mindful ofthe
previous discussion on eRDA and the continuing foreseeable demands and need for the services of
both Pact and CRDA, the next year and a halfwill require Pact's focused attention on what Phase III
should look like and how will a post-PactiUSAID-supported entity sustain·its operation. As stated in
PactlWs document entitled "Exit Srrategies-Transitioning from International to Local NGO
Leadership":
The realstory oflocalsustainability only unfolds after the internationalNGO gracqully exits.
Creating a sustainable, dynamic local NGO means that the international NGO must take on a new role
and step back when its goals are accomplished. St/.stainability truly begins when the localNGO takes the
organizational torch and determines its own chosen path.
As with the sustainability issue for individual NGOs, the current national debate over income￾generating activities for NGOs is also very applicable for the PactlE program and office after USAID
and PactIW assistance is terminated. See the Issues and Recommendations section below for a
complete discussion ofthis topic.
Project Objective Components
The purpose ofthe following section will not be to explicitly address each and every question
presented in this section ofthe SOW (especially since the majority have already been covered in the
preceding sections) but rather to provide additional points regarding the Project's impacts and the
future.
Enabling environment: While many aspects ofthis topic have been addressed under the Objective
One discussion, there are a few additional concluding comments to be made. First among them is
that it is important to realize that what is occurring today within Ethiopia is a fundamental
attitudinal change in the perception ofNGOs-and that is from all quarters ofthe public and
private sectors. They are no longer JUSt "assistants in relief" but rather "partners in development."
Pact. in concert with the eRDA and others, have served as the "critical mass" required to energize
and empower the NGO community to the point where they collectively feel that they have a real
"voice" in the development oftheir nation, and that they are being listened to by their government.
Indeed, NGOs have become their own "agents of change"-not just for their organizations but also
for others in the NGO community and beyond.
As reported from a number of different vantages. there is a feeling that relationships have
considerably improved between the GOE and NGOs, between the NGOs themselves, and between
donors and NGOs. With respect to the GOE, they are now looking to NGOs not just as
implementers oftheir own community programs but for inputs on new policy proposals (e.g.,
discussion at the regional levels on income-generating activities for NGOs), and they are even
16
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..
directly supporting prospective and ongoing programs (e.g., with prdiminary assessmenrs, and
technical and material support).
In sum, as one GOE representative stated, "the government used to see irself as a controller of
NGOs, but now it sees irselfin a partnership with NGOs". And here's one good example: the
Foreign Relations and Development Cooperation Bureau for Addis Ababa City Administration will
soon be issuing irs own newsletter to NGOs.
As to the future, Pact should continue to foster the collaboration between the NGO community and
the GOE, at both the central and regionallzonallevels. Pact's cUrrent strategy ofincluding a diverse
group ofGOE representatives in a variety oftraining courses (such as the highly successful and
requested "Conflict Prevention and Management" course) certainly should be continued. In turn,
Pact and the NGO community should capitalize on the growing "goodwill" among the parties to
advance some ofthe critical issues oftoday and tomorrow, e.g., the long-awaited new NGO
legislation, the permissibility ofNGO income-generating activities, support for NGO networks and
associations, and revision of Ethiopian tax laws to encourage charitable contributions.
NGO capacity building: In addition to the significant improvement in the NGOs' organizational
capacities between the first and second OCAT exercises. an interesting outcome from that fust group
ofre-OCATed NGOs was the confession by many organizations that they were more honest the
second time around. As they now see the OCAT as an important tool for their own improvement,
and not merely as a means to receive SAGs. they have a-much greater appreciation ofits utility. That
message is now making the rounds among other current and prospective partner NGOs. As stated by
one senior NGO representative: "The OCATwas not initially wdcomed as it was too revealing and
sometimes embarrassing, but now it is really appreciated".
Mention also should be made with respect to the highly successful "university studenrs internship
program" which has played an important capacity development role within partner NGOs. In
addition to meeting many ofthe NGOs' technical assistance requirements, and in a very coSt￾effective way, the Pact-initiated program has opened a new area ofemployment prospects for
university graduates. This program has been very well received by the NGOs and certainly should be
continued.
Another area for further emphasis is the expressed impacts as a result of Pact's introduction ofthe
concept and practice ofmentoring - a technique now being supported and emulated by CRDA and
other donors. As stated by one of Pact's consultants: "Compared to other donors, Pact is very unique
in terms ofskills transfer, technology transfer, in-service training, and mentoring".
Lascly. in addition to the previously mentioned "Conflict Prevention and Management" training
course, special note also should be made with respect to Pact's other more recent training initiatives
in leadership and resource mobilization. Pact is currently further assessing the outcomes from those
first courses conducted last November and December, and is reviewing a report on the "culture of
giving in Ethiopia". Following further refinements, the courses will be offered again, especially as the
issue ofresource mobilization becomes an evermore-prominent issue for the larger number ofNGOs
competing for the limited domestic and international support.
Network promotion: While networking in the formal, institutional-facilitation sense is fairly new to
Pact's program of endeavors, it has been supporting informal networking from the very inception of
the Project. Specifically. Pact has been the catalyst for the creation ofthe broader NGO network
through, inter alia, its semi-annual Partners' Meetings, widely-attended training courses, the IMPact
newsletter, and the Development Resource Center.
For the future, Pact will be continuing its network facilitation effortS so that the NGOs may
capitalize further on the power and influence oftheir collective strength. as well as serve as prototypes
for other prospective networks. In the future, the collective "voice" ofthese networks may very well
need its own structure, i.e., a national network of networks (as discussed with the CRDA Executive
Director). While farther into the future. such an umbrella network could serve. in a complementary
17
:
way to Pact, CRDA and others, as a means to share and address the common set ofissues and
opportunities across the entire array ofsectors.
Strategic Action Grants: The SAG administration and management has come a long way since the
Mid-term Evaluation of February 1997. The significant achievements are not just measured in terms
ofthe refinement ofthe SAG manual (now embodied in the July 1998 version, as amended) and the
very thorough grants management achieved through the MERIT system but, most importantly, in
the awarding and disbursement ofthe different types ofSAGs. On the other side, as discussed in the
earlier section on Objective Two's impacts, it is very evident that the SAGs have had a profound and
lasting impact on all aspects ofthe recipient NGO's operations and the delivery oftheir intended
services, i.e., capacity building for targeted sectoral NGOs that has directly resulted in improved
service delivery in those USAID-priority sectors
As clearly demonstrated by the Annex 5 chart, there seemingly is no longer cause for any concern
regarding the "slow burn rate" ofthe SAG activities. Indeed, there was a seven-fold increase (EB
12.84 million vs. 1.83 million) in the amount ofSAGs awarded in 1999 versus 1998 (the largest
increase occurring with Activity Grants), and current projections indicate that the total amount for
1999 will be met or exceeded in 2000. It is especially for this reason that Pact is currently pursuing
with USAID an additional obligation offunds into the Cooperative Agreement to cover anticipated
expenditures well into USAID's FY 2001While NGO parmer representatives repeatedly
acknowledged that Pact is not a "donor in the traditional sense", a large number ofthem have
received SAGs that have the same look as a traditional donor-funded activity, especially in the case of
the Activity Grants for specific NGO-implemented projects. The strong argument for giving these is
that the NGOs are able to put to actual practice the planning, organizational, managerial and
financial management skills developed during the partnership relationship with Pact. Additionally, it
enables them to demonstrate to ongoing or prospective donors their expanded capacities to manage
additional activities and resources.
As will be discussed in the following section, however, Pact is now at a critical point in terms ofthe
levels and duration ofSAGs, especially in the context ofthe more "mature", soon to "graduate"
parmers.
Devdopment Resource Center: As stated before, the DRC has not only fuled a very significant gap
in terms of the availability of development literature and photocopiers, computers and printers, the
Internet and e-mail, and a variety of computer training for Pact partners, but it also serves as a very
successful venue for NGO networking. The clientele includes not only various members of the NGO
community (and not just Pact's parmers), but also college students, researchers, and GOE
representatives (statistics are kept on all visitors, their organizations, and their interests).
These services, however, are being provided free of charge and, therefore, while being closely
monitored and controlled, raise the question as to cost recovery. This issue and the broader aspects of
income-generating activities for NGOs, including a post-PactlUSAID organization's capacity to
sustain operations, are discussed below.
l8
Issues and Recommendations
While there have been a number ofissues and recommendations raised at variow points throughout
the above text, me purpose ofthe following is to capture all key issues and recommendations so that
this section ofme evaluation may serve as a focal point for review, discussion and action. The list,
however, is not intended to be in a priority order nor inclwive of all issues now before Pact and the
NGO sector.
"Cessation" (or termination) and "graduation" of NGO partners:
This is not a comfortable topic within Pact or among the partners, but is one that must be further
addressed and resolved within Pact, and the NGOs to be advised accordingly. While substantial
discussion has already occurred within and between the parties (and discwsed during the evaluator's
debriefing ofthe Pact staff, a small group ofNGO representatives, and USAIO/E staff), there soon
needs to be some initial operational agreements and the establishment ofparameters, especially in the
case of "graduation."
This is particularly important in light ofthe current issues of Pact's absorptive capacity to handle any
additional partners, for which there is substantial demand, and the timeframe required for a new
partner NGO to go through the full cycle of OCATing,. training, mentoring, SAGs, etc., as
described earlier in the context ofthe current Cooperative Agreement termination date ofSeptember
30,2002.
A very related element ofthe question of an NGO's graduation is the timeframe and number of
Activity Grants that a parmer receives. As the underlying rationale for the awarding ofActivity
Grants is to permit an NGO to put their enhanced skills and capacities to work and be able to
demonstrate those skills to prospective donors, it begs the question ofwhether or not Pact is
becoming more of a donor than a capacity building partner when it gives more than one or two
Activity Grants to one NGO. (A review of one MERIT-generated document demonstrated that there
are a good number ofexamples where NGOs are receiving numerow Activity Grants). Further
consideration and resolution ofthe issue is essential.
Resource mobilization, income-generating activities, and domestic tax incentives for
charitable contributions:
These three form the cornerstones of an NGO's sustainability (whether mat be a partner NGO or
PactlE after PactIW and USAIO support is concluded).
Many ofthe partner NGOs are now receiving donor support (and will hopefully continue to expand
such support as a consequence ofthe Project). This support also will hopefully expand too as a result
ofPact's (and, more recently, CRDA's) resource mobilization training and promotion efforts - this
should be an area of high priority for Pact during the remainder of Phase Two.
Regarding income-generating activities for NGOs, there seems to be some inconsistencies internally
within the GOE (i.e., between DPPC and the Ministry of]wtice), and between "regional NGOs"
(i.e., GOE-affiliated NGOs) and true NGOs. While it is hoped that the long-anticipated new NGO
legislation will specifically address and clarify the permissibility and eligibility ofincome-generating
activities (a topic now being addressed at the regional government level), Pact and its partners (and
CRDA, USAID and others) should continue to encourage the GOE to submit for public review and
then promulgate the new legislation-this should likewise be a high priority for all parties.
The potential for Pact's swrainability, as well as all the other NGOs, is obvious (e.g., Pact's ability to
recover costs for the ORe's services and, more significantly, the paid provision of capacity-building
training, etc. to private and public sector institutions would then enable Pact to continue its altruistic
support to the NGO community).
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Lastly. the GOE has no taX incentives for charitable contributions; indeed, there is a disincentive (as
reponed to the evaluator by one NGO representative) as the GOE actually taXes declared charitable
contributions as ifthey were profits. .& discussed during the USAID debriefing on this evaluation,
collective efforts from all quarters, especially USAID through its relationship with the Ministry of
Jwtice, must occur for the sake ofthe long-term viability ofthe essential Ethiopian NGO
community.
Increased Pact- eRDA collaboration:
.& stated earlier, Pact and eRDA need to fulfil their pronounced commitments to collaborate when
and where possible. From Pact's vantage. this should be achieved by: 1) assuring the regular
occurrence of both the technical and senior-level meetings; 2) the continuation of collaboration on
mutually-desired programs and new interventions; and 3) the Ethiopian Co-Director taking the lead
role in making sure that all this occurs. Both parties need to continue to remind themselves that the
occasional perceived institutional competition that occurs is a healthy and advantageous by-product
oftheir respective efforts.
Regional governments' perceptions of their roles in NGO programs:
While the evaluator saw and heard of a number ofvery encouraging examples of close collaboration
between regional governments and NGOs (e.g.• in the Amhara and Oromia regions) that are very
positive indications for the future, significant caution should be expressed, however. as to the degree
to which the government agencies directly involve themselves in the NGOs' activities.
As intimated in varying degrees throughout the translatiO'n ofthe "Amhara National Regional Srate:
NGOs' Program/Project Implementation Guidelines". issued during the evaluation, the Amhara
regional government may be seeing NGOs too much as an extension ofthe government arm. as
exemplified by the highly-supported "regional NGOs".
By way of example, in the closing section ofthe Guidelines. it is stated under "Issues Which Need
Immediate Attention", that one issue is: "holding sector offices responsible and accountable for
NGO projects just like they are for government projects". (However. it is appreciated that this is a
translation and. therefore, there may be some margin of error). In any case, there is enough evidence
to clearly suggest that this apparent trend should be of considerable concern, watched very closely.
and addressed accordingly.
USAID and Pact collaboration:
As noted earlier. these are important times for both USAID/E and PacrlE as to their future
directions. Recognising the multi-sectoral. civil society development nature ofthe Project. it appears
very evident that USAID should more fully capitalise on the potential cross-sectoral synergies and
field-based information and contacts coming through the Project.
As recommended during the debriefing at USAID, special efforts should be taken by both parties
(especially now as USAID is going through a strategic redesign) to ensure the fullest possible
collaboration; regular meetings with and field visits by representatives ofUSAID's various technical
offices should be established. At a broader level. the resurrection ofthe USAID/NGO Partners
Roundtable also would be sensible, particularly in light ofthe ongoing strategic design process.
MERIT system:
It warrants repeating that the MERIT system should become more of a proactive tool for a good
number ofthe different officers within Pact. including the Co-Directors. The program managers and
others need to work with the system operator to ensure that they are getting the information they
need and want. Lkewise. the staff need to do their utmost to ensure that the system contains timely
and accurate information.
With reference to possible candidates for "cessation" ofassistance. the MERIT system can be better
utilized to "red flag" NGOs that are not receiving the essential training and mentoring (but are
receiving Activity Grants. for example) and, therefore. warrant closer scrutiny by Pact management.
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.'
..
, I
, .
Current and future interventions:
The videos done on JACH and RCWDA have been very hdpful to those respective NGOs as well as
the greater NGO community, and further gains hopefully can be achieved with the sought-after
airing ofthe videos on national television. To the extent possible and feasible, it is recommended that
Pact continue to support similar such video production efforts, although it is likely that the possible
airing ofthose videos on national TV will be the responsibility ofthe NGOs.
Continuing to support the positive efforts ofthe national press and journalists also should
complement these expanded NGO promotional efforts. The consequences of these collective efforts
will be an evermore expanded and knowledgeable NGO network and support infrastructure. Pact's
continuing concerted focus on a number ofspecific existing or new networks is also critical to the
sustainability, efficiency and clout ofthe NGO community.
On repeated occasions, it was very evident that both the international and domestic exposure tours
have had profound impacts at the regional policy level as well as upon individual NGOs and the
network at large. For example, as directly observed by the evaluator, the information exchange and
support structure established as a consequence ofEMERDA's staff visit to the RCWDA's program
was very significant. Therefore, it is strongly recommended that Pact continue to support the very
low-cost, high-rewards domestic exposure tours, while still capitalizing on international tours when
the program content and participants are so justified.
With respect to the expanded participation in and support ofthe NGO community's overall
advancement, Pact should certainly continue its university students internship program with the
NGOs, as well as maintain its program of GOE representatives' participation in training programs,
exposure tours, etc.
Lastly, it goes without saying that Pact, as an acknowledged innovative and dynamic force in
Ethiopia, should continue to look for new areas of opportunity, within the country and the region,
where they can continue to bring about positive and sustainable change for the nation's NGO
community and the greater society.
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