Human Development October 2002 Findings reports on ongoing operational, economic, and sector work carried out by the World Bank and its member governments in the Africa Region. It is published periodically by the WORLD BAN K Knowledge and Leaming Center on behalf of the Region. The views expressed in Findings are those of the author/s and should not be attributed to the World Bank Group. http://www.worldbank.org/afr/findings OAWDfl The Eritrea Community Development Fund Project he Eritrea Community Devel- the capacity of local contracting F , T opment Project was estab- firms to effectively engage in exter- lished to provide poor commu- nally funded projects. ECDF's nities, especially in the rural and modus operandi, transparent pro- war-devastated areas of the coun- cedures, and institutional arrange- .0 try, with sustainable assets and ments which sought to build on ex- basic services required to improve isting institutional and community their social and economic stan- organization structures have con- dards. ECDF was designed to pro- tributed to establishing important mote community development and building blocks to assist Govern- to strengthen the capacity of local ment in moving the decentraliza- communities to identify and select tion process forward. Based on its * their development priorities, man- track record, the ECDF has and age project implementation, and continues to be an important player maintain community assets. in facilitating Eritrea's transition to * Project interventions have benefited local government-led program about 1,150,000 individuals (one- implementation. e third of the population) of which 50 percent are women; average invest- Impact ment per capita was about US$23. The project was declared effective An Intensive Learning Implemen- in June 1996 and closed in Decem- tation Completion Mission was un- _ ber 31, 2001. The project provided dertaken by the World Bank to per- _ an important platform for harness- mit a more comprehensive analy- ing local input in local development sis of the project's implementation * efforts, strengthened the capacity experience and achievement, focus- of communities to manage and ing especially on lessons learned. implement their own development Education. Better access to priorities, enhanced regional and school facilities for at least 375,000 local government's approach to children at the primary and lower community development and their junior secondary levels, of whom 48 N U capacity to conduct public procure- percent were girls. Make-shift ment, and indirectly, strengthened classrooms provided at least 20,000 U Internally Displaced Persons (IDPs) pairs and regular maintenance. The racing sub-projects contributed to with access to schooling. Approxi- construction of water supply enhancing community awareness mately 200 women also benefited schemes had a direct income ben- of the benefits of terracing and from skills training courses. The efit (albeit temporary), with con- helped minimize soil erosion, raised findings of an Impact Evaluation tractors on average, employing the water level, retained moisture commissioned by the ECDF pointed about 42 community members in the soil, permitted the reclama- to other positive effects. Of the earning Nakfa 49,500 ( US$3,700 tion of extra farm land, and gener- school sites surveyed, the number )per sub-project. ated income for households. Tree of children attending primary and Feeder Roads. Feeder roads in- planting sub-projects are expected junior secondary schools increased creased access to and from rural to produce long-term economic by 191 percent and 69 percent, re- communities, markets, and social benefits from the sale of trees and spectively after the construction or services. The Impact Evaluation short-term benefits from the sale rehabilitation of schools. Travel indicated several positive effects of grass grown in the enclosure. time to schools was reduced by 50- resulting from the construction of There were also perceived positive 60 percent on average. feeder roads: (i) average travel per health impacts through the plant- Health. Improved access to person per year increased by 56 ing of Mim trees which are believed health facilities and health care percent along the feeder roads; (ii) to protect against malaria. Overall, services for at least 180,000 indi- increase in fertilizer usage, the NRM activities promoted a strong viduals, of whom over 50 percent mechanization of 170 hectarer of community-level organizational were women. The findings of the land, and reduced loss of perish- structure which is necessary for Impact Evaluation revealed that in able goods; (iii) increase in access managing and sustaining sub- the health facilities surveyed, the to a wider range of commodities projects requiring the cooperation required services were being pro- available in local stores (iv) a re- of the community as a whole. vided and, in some cases, even ex- duction in the costs of transport- Savings and Micro Credit Pilot panded. In addition, the number of ing agricultural produce; (v) .pro- (SMCP) services were provided to episodes in households for nine vided incentives for farmers to ex- 11,800 individuals,.of which 36 major diseases (including diarrhea, ploit new markets; (vi) stimulated percent were women, many of malaria, TB, and others) were re- agricultural production and created whom were able to use loan funds ported to decline by about 15 per- links between deficit and surplus to improve their livelihood and in- cent. Especially with regard to chil- areas; (vii) provided households crease their self-confidence and dren, there was a reported decline with (temporary) employment op- economic independence. Average in episodes of diarrhea, malaria, portunities during construction; household income increased by 20 internal parasites, malnutrition, and (viii) increase in the provision percent; clients with a cash hold- and respiratory diseases. Travel of government services due to ing of Nakfa 10,000 (US$ 741 ) in- time to the health facilities as well easier access. While 97 percent of creased by at least 50 percent, and as waiting time have declined. goods were transported previously average monthly household expen- Rural Water Supply. Increased by pack animals or on people's ditures of clients increased by access to safe water for at least backs, after the feeder roads, 66 about 24 percent. The SMCP pro- 210,000 individuals.Women ben- percent of goods were transported vided a platform for promoting in- efited from the close proximity of by trucks and another 21 percent stitution building, notably through water sources, reducing their travel by a combination of trucks, ani- strengthening the capacity of vil- time, physical effort exerted, and mals, and people. Pregnant women lage administrations to manage vil- workload. The cost of water was benefited from better transporta- lage-based savings and micro credit significantly reduced and the rev- tion and this was reflected in the services program. The organization enue generated for the community increased use of health services. and operation of the village bank- by the sale of water has bolstered Natural Resource Management ing model (with its underlying soli- the confidence of community to (NR1. The project supported com- darity group structure) promoted manage its own water schemes, munity-based initiatives to protect community cohesiveness, high- including undertaking minor re- and improve the environment. Ter- lighted the important of collective action and accountability by mem- improved animal health and re- ized institutions to more partici- bers in servicing and repaying duced animal mortality. Women patory institutions that encour- loans, and strengthened the inter- benefited from the closer proxim- age and sustain local level in- action and relations between the ity of clinics. Improved access to volvement. village administrator vis-a-vis veterinary services contributed to * Maximizing development impact credit committee members, the vil- a decline in animal loss from dis- requires that interventions be lage bank membership, and even eases, providing households with designed in a more integrated the rest of the village residents. savings. fashion and that necessary SMCP's portfolio quality has been complementary inputs, including sustained at a high level, with re- Lessons learned "software", are in place. payments at almost 97 percent and * Community-based projects can has achieved an operating self-suf- * Efforts to build on existing insti- simultaneously create short-term ficiency level of almost 173 percent tutional structures should be jobs and improve basic social and by project closing. Work is under complemented by explicit mea- economic infrastructure and fa- way to develop SMCP into a Na- sures such as greater community cilities that are critical to devel- tional Government Program. mobilization, information dissemi- oping a country's human re- Markets. The construction of nation and targeted capacity build- sources and expanding private market places provided access to ing to ensure that the institutions sector employment and growth. the rural population, including ur- function in an effective, inclusive, . Rigorous and continuous imple- ban dwellers. Apart from the gain- and participatory manner mentation of well-defined capac- ful employment of about 325 trad- * Clear mechanisms and incentives ity building measures, including ers of which the majority were need to be established up-front the establishment of appropriate women, the construction of mar- to facilitate the achievement of mechanisms, can enhance the kets provided job opportunities for the less visible objectives of in- sustainability of service flows community members. Traders were stitutional development and over the operational life of project able to derive some savings from sustainability. The trade-offs be- investments the lower operating costs due to tween the physical and more . The village banking model can subsidized rent and shared utility qualitative output targets need to promote community cohesive- bills. Operating with full occupancy be confronted in the project de- ness and community-driven mi- and in an environment of peace, sign stage and the hierarchy of cro-finance development. Close these market places are expected objectives needs to be defined and collaboration with lower level ad- to generate employment for about established up-front. Explicit ministrative structures also pro- 800 traders of whom 80 percent measures are needed to compen- vide a dynamic foundation for would be women. Compared to the sate for the natural bias towards strengthening the institutional old market places, those con- maximizing immediately visible development of community- structed by ECDF are clean and and more easily measurable re- driven micro-finance develop- hygienic and promote good health sults. ment. practices. . By promoting local governance, . Social Fund operations can be Veterinary Clinics. The con- transparency, accountability, lo- more effective when (i) commu- struction of veterinary clinics in- cal capacity building and nity-driven projects include the creased the access of households, sustainability of local services, development of social capital and including women, to veterinary ser- community-based projects can institution building as explicit vices. Livestock owners benefited contribute to a country's broader objectives; and (ii) interventions from: (i) increased income from the efforts to decentralize the provi- are linked to more broader na- sale of animals and animal prod- sion of public good.s and services tional goals of promoting sustain- ucts, (ii) improved livestock produc- in a way that also helps local gov- able development and reducing tion capacity; (iii) increased ernments fight poverty. Social poverty draught power for transportation funds can thus help transform poverty. and production purposes, and (iv) "top down" and heavily central- * Social Funds are effective in de- livering urgent basic social and economic services during conflict This article was written by Marilou and post-conflict periods. By en- Bradley, Operations Ofier, AFTH1, suring a complementarity be- Africa Region, the World Bank. For tween ECDF goals and broader more information, please e-mail national development objectives Mbradley@worldbank.org at the outset, and by building on, strengthening, and collaborating with existing Government and local institutions during imple- mentation, ECDF was able to as- sist the government in address- ing war-related emergency needs. Flexibility in project design al- lowed ECDF to quickly make the necessary adjustments during implementation. 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