Social Funds Innovation Notes

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Social Funds Innovation Notes are published informally by the Social Funds Thematic Group of the Human Development Network – Social Protection. These replaced the earlier series called Social Funds Innovation Updates.

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    A Story of Social and Economic Empowerment : The Evolution of “Community Professionals” in Sri Lanka
    (World Bank, Washington, DC, 2006-09) Munshi, Meena ; Hayward, Natasha ; Verardo, Barbara
    This note explores the critical and innovative role played by 'community professionals' in the village self help learning initiative and Gemi Diriya programs in Sri Lanka. It describes the strategy used by the projects to mobilize and strengthen grassroots resource persons in support of achieving the Bank's mission of poverty reduction and livelihood improvement in rural Sri Lanka. In Gemi Diriya, community professionals are proving to be a driving force behind establishing sound village organizations, building capacity at the village level and promoting villager-villager learning. Institutionalizing the role of grassroots professionals by creating a 'community professional learning and training center' has allowed the program to scale up in a cost-effective and sustainable manner.
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    Integrating Social Funds into Local Development Strategies : Five Stories from Latin America
    (World Bank, Washington, DC, 2005-09) Serrano, Rodrigo
    The steady movement towards decentralization that Latin America has experienced in the last decade, often referred to as the "quiet revolution", has led governments and donors to rethink the role Social Funds (SFs) should play in promoting local development. While SFs had been relatively successful in building local infrastructure, insufficient integration with public sector systems (both national and local) had raised well founded concerns about institutional and investment sustainability. This Note gives a quick overview of how reforms are unfolding in five SFs in Latin America, and highlights some features of the emerging models. It shows that many SFs are working closely with local governments. For these SFs the challenge is no longer whether they undermine local governments or not but rather how they can become an effective instrument of the country's decentralization policy-i.e., how their interactions with local governments, communities, and sectoral agencies advance the decentralization policy objectives and a more balanced approach to local development.
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    Holding the Door Open : Facilitating Access to Microcredit in the Benin Social Fund
    (World Bank, Washington, DC, 2002-03) Elder, John ; Tovo, Maurizia
    During preparation of the Benin Social Fund Project, all levels of society indicated that lack of access to credit was a major problem for poor people. At the same time, there was reluctance to put in a micro-credit component, as an assessment of this type of component in social funds had yielded mixed results. The Bank was already supporting the Second Rural Credit Project, providing technical support to a national association of cooperative savings and credit societies to increase the availability of credit. Nonetheless, the Government, having identified micro-credit as a priority, was keen to have micro-credit activities. To balance the somewhat conflicting points of view, the project team decided to develop financial intermediation services for low-income groups, without providing the actual credit. To take into account the heterogeneity of institutions involved in microfinance at the time, the unequal distribution of financial services in the country (especially urban/rural), and the characteristics of different types of clients, the microfinance component was divided into three sub-components, two dealing with formal financial systems, the other with informal ones. The project has been able to fill a gap between poor households and formal credit sources. Critical for the success were the already-existing formal credit organizations that offered financial services relevant to the needs of poor groups. While expertise on microfinance is hard to find, results suggest that intermediation only works where credit is actually available, in a form usable by the target population. Notably, targets should be adjusted to focus on what is important to the beneficiaries.
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    Nicaragua Social Investment Fund : Conditional Cash Transfer, a New Avenue for Social Funds?
    (World Bank, Washington, DC, 2002-02) Vermehren, Andrea
    The note presents the case of the Nicaragua Social Investment Fund (FISE), which accounts for an impressive record, having financed a significant number of projects in ten years (sixty percent of these benefiting the education sector). Moreover, it reinforced rural water, and municipal infrastructure projects, and strengthened its engagement in local capacity building at the municipal, and community levels. However, in the late 90s, it became clear there were limits to the effectiveness of supply side interventions, and both FISE, and the government began thinking about strengthening the demand side, through new ways to improve access to social services, and creating an opportunity for inclusion of the most vulnerable, particularly children living precariously in rural areas. The Conditional Cash Transfer (CCT) program is examined, a new window to finance cash transfers to extremely poor families in selected rural areas. Yet, the remarkable results of CCT questions its affordability, and sustainability. The Government is now starting to prioritize programs, and investments in the social sector to achieve greater impact. As for the question of the program's cost effectiveness, the Government is considering undertaking a comparative analysis to assess results.
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    The Moldovan Social Investment Fund : Building Local Capacity and Improving Services
    (World Bank, Washington, DC, 2002-01) Bezhanyan, Anush ; Ionascu, Alexei
    The note reviews the impact of the Moldova Social Investment Fund (MSIF), aimed at building local capacity, and improving services, though also looks at the implementation problems connected with community participation. To address these issues the MSIF management delegated responsibilities to implementing agencies, while also improved technical assistance. The development of partnerships achieved greater impact, which led to performance contracts, as tools to promote the sustainability of investments. Lessons reinforce the need for community ownership, and, suggest wider community consultation to identify, and solve technical issues. The need to maintain links with communities after subproject implementation is emphasized, to ensure long-term sustainability.