Economic and social evaluation of the project " Agricultural mechanization services for farmers living in the commune of Cuneo, IX Región of Chile"

Abstract

An economic and social* evaluation of the project «Agricultural mechanization services for farmers living in the county of Cuneo, IX Región» was carried out from a quantitative and qualitative viewpoint simultaneously. Data were taken from administrative registers of the project, a socioeconomic survey applied to 80.3% of the target population, and the use of the»Focus Groups» technique within each one of the country organizations involved. It was concluded that the project would not be feasible for international financial support the way it is managed today. Structural adjustments are required to allow the absorption of the negative economic differential generated. As to the effiency achieved, evaluation showed that the project accounts for only 55.17% of the estimated budget per hour/tractor/year. Social evaluation was possible under the assumption that the market was not distorted from the product standpoint; adjustments to the calculation functions proposed by Fontaine (1992) were made, and the concept of marginal investment was added in order to make these functions operative. In spite of the financial problem faced by the project, the social evaluation showed a social rate of return of 53.0%, representing a real value of the net social benefits of Ch$ 21,586,421 (US$ 57,781). These figures reveal the extraordinary social benefits the project represents to the community despite the financial problem detected.