Performance assessment for local development fund in Egypt

Small projects play an important role in rural development. Egyptian Government places great importance on the credit institutions, which contribute in rural development activities. Local Development Fund (LDF) is one of the most important of these institutions in Egypt. Therefore, the objective of this study is to evaluate the performance of local development fund. The study depends mainly on both a descriptive and an econometric analysis of the secondary data of the LDF. Dummy variables are included to test the impact of the national program for rural development Shorouk on projects financed by LDF. The period from 1979/1980 to 2006/2007 is divided into two periods as a result of policy change Shorouk, namely, period I from 1979/1980 to 1993/1994 and period II from 1994/1995 to 2006/2007. These may also called before and after the implementation of Shorouk program. The results of the study could be summarized in the following: .Agricultural projects financed by LDF represented 82 % of the total projects. Animal production projects achieved to a higher position in the number of agricultural projects, loans value, self-participation, and beneficiaries' number. Also, workshops and industrial projects occupied the first position in the number of non-agricultural projects, loans value, self-participation, beneficiaries' number, and employment opportunities. In period II, the number of projects, loans value, self-participation, beneficiaries' number showed a significant increase. While, the average of loans value and self-participation decreased significantly. The employment opportunities remained unchanged during period II, .The financial indicators showed an increase in efficiency ratios for LDF activities. In conclusion, the study recommended that there is a need to increase the financial resources of local development fund, the Government of Egypt should encourage investments in the non-agricultural projects, the beneficiaries should be encouraged to increase their self-participation. This would result in increased investments and employment opportunities