The Livestock Sector RehabilitationProject, operational from 1986 through 1995, was seen asessential in facilitating the new government'simplementation of its economic strategy when it came tooffice in 1984. Previous government policy had required that10 percent of all herds be sold at a fixed price through theState Cattle Marketing Agency, encobe. This caused manyherders to emigrate and hide their animals in forests oroutside the country. In addition, poor animal healthrepresented a severe constraint to agricultural productivityand growth on which approximately 30 percent of thecountry's rural population (160,000 families) depended.All the livestock sector reforms took place within thecontext of a major overhaul of the National Livestock Directorate.