DESIGN FEATURES OF MASAF 3: UPDATE

FORM FOLLOWS FUNCTION

IMPROVING THE QUALITY IN SOCIAL FUNDS (SF) AS OPERATIONS WITH A COMMUNITY DRIVEN

DEVELOPMENT (CDD) APPROACH: APRIL 11, 2005

N. Mungai Lenneiye, Sr Social Protection Specialist, AFTH1

Form follows function 2

Presentation outline

Beyond words1. Development challenges in Malawi2. Management and skills structure of PMU3. Implementation arrangements4. Institutional linkages5. Preparation6. Sustainability7. Wrap-up: key lessons/challenges

Form follows function 3

Beyond words… approach

Approach… kind of ‘filters’ that can be used to view a project or program.Primary Health Care (PHC) approach had 8 elements; not a single project had them all.CDD approach in the Africa region has five ‘features’ and not a single project has all 5.Framework… a guide to action? e.g. Local Development (LD) Framework, Social Risk Management (SRM) Framework, etc.

Form follows function 4

Beyond words… core focus

CDD Approach SFs LG Projects LD Framework

Empower communities

Empower LGs

Align the centre

Capacity building

Accountability

Empower communities

Empower Local Governments

Empowerment

Local Governance

Local service provision

Private sector growth

Form follows function 5

Beyond words…empowerment

Information accessParticipation and inclusionAccountabilityLocal organizational capacityPlug these elements whenever empowerment appears in the approaches and frameworks. Are there operational implications?

Form follows function 6

Underlying theme…

I have the yam, and I have the knife(an African saying on power relations)

Making community empowerment a cornerstone of decentralization:

keep the yam, give them the knife!

Background materialsFindings no. 233Paper on “Who has the yam, and who has the knife?”

Form follows function 7

1. Development Challenges

First generation SFs stimulate/use social capital.

Physical infrastructure is built by communities

Access (health, education, water, etc.) is increased.

Sectoral failures noted (staffing, O&M, technical backstopping, low ownership, etc.).

Little demonstrated evidence of improved outcomes:

New policies (PRSP/MTEF, Decentralization, MDGs, etc.)

Form follows function 8

Issues… development challenges

How should SF respond to the MDGs?What impact do MDGs have on sector-led planning and the CDD approach?How does SF respond to Local Government Projects

Form follows function 9

Design responses…

Selected MDG indicators for community action(from 8 MDGs, 18 targets, and 48 indicator targets)

Contentious selection of lending instrument. Bank unhappy about APL, Government very keen.

Need to stimulate community savings and investments

(Use of IDA funds for savings mobilization; community’s own resources for lending)

Form follows function 10

2. Management & skills structure

Management through components creates silos.

Direct funding takes place even without Local Governments (LGs).

Building on success of development communication is urgent and necessary.

Need to extend community accountability upwards.

Monitoring & Evaluation is slow to evolve.

Sectors are not too keen on direct financing.

Form follows function 11

Issues… management

What kind of institution is needed?

Are PMU experiences relevant to Government management systems?

Form follows function 12

Design responses…management

Operational requirements (deliverable sub-projects, Fiduciary requirements)External demands (research, training, norms)Internal needs (monitoring, learning)Getting the KISS right (Knowledge & Information Sharing System)

Local Government concerns (staff, grants, etc.)Performance management culture: experience mainly from private sector

Form follows function 13

3. Implementation Arrangements

Approval Authority

Implementation and technical

Planning and appraisal

Village Elected Cttees. Extension staff

District Committees of elected LGs

Sector specialists Teams of experts

National Steering Committees

Management Units in Presidents Office

Sector Experts Team/Advisory Committee

Form follows function 14

Issues…implementation

How can the roles of District Local Governments be expanded?

Can can issues of technical quality be better dealt with?

How can PMCs be made more accountable to elected Local structures and to communities?

Form follows function 15

Design responses…implementation

Delivery benchmarks were developed (CSPC)

Roles of PMCs, LGs, CBOs/CBOs re-defined

Graduation criteria for LGs were defined

Measurement of inputs, outputs, and outcomes

Community to community (C2C) learning

Community Monitoring and Statistics Days, Community Score Cards, Citizens Report Cards, and annual poverty reports introduced.

Form follows function 16

4. Institutional Linkages

Resource allocation (to districts) to facilitate predictable planning.Role of Local Government Ministries (with NLGFC, LGAs Administration) strengthenedPlace of NGOs, CBOs, and private sector expanded.Linking with MOF and MoLG over recurrent costs and MTEF (NTAC and SET)Fostering broader partnership (NACCEA)

Form follows function 17

Issues…institutional linkages

Can the adoption of indicative district resource allocation formulae retain the CDD approach?Does a SF weaken decentralization or prepare the ground for deepening decentralization?Are PRA tools used in SF more than ‘planning black boxes’ left to LGs?

Form follows function 18

Design responses…institutional

Global IPFs done (whole project)

Intra-district resource targeting, NOT allocation, done.

Open-ended PRAs adopted to strengthen district-level planning

Support of communities with extended PRAs

‘Planning black boxes’ still in place, unpacking has started (see Safeguards Toolkit)

Form follows function 19

5. Preparation

Human Development sectors (health and education) not fully mobilized.Other key sectors (water & roads) mobilizedGetting MFI expertise on Board (‘clinics’ held).Quality at Entry reviews done inside the Bank, but more looking back and less forward-looking.Strong Government team with outstanding leadership

Form follows function 20

Issues…preparation

How would you recruit a multi-sectoral team in a sector-dominated culture (IDA and Borrower)?

How do you respond to strong government ownership (e.g. on MFI issues).

Form follows function 21

Design responses… preparation

Strong government team with clear mandates.

Collegial IDA-Borrower team members.

Getting responsive fiduciary expertise.

Integrating safeguards into CSPC.

Cost-effectiveness vs. economic rates of return utilized.

Flexibility retained (e.g. LGSP and LG MIS)

Form follows function 22

6. Sustainability

Malawi health sector losing staff: facilities with 30-35% staffing levels.Government revenues are dropping, poverty levels are on the increase in Malawi.Malawi decentralization program moving slowly even by standards of its designers.Spheres and not levels of Government legally recognized in Tanzania (Village, Local Government, and Central)

Form follows function 23

Issues… sustainability

Can capacity building be made demand-driven?Are projects a sustainable way to provide resources to poor countries?Can Village Governments be put on equal footing with other levels of government?

Form follows function 24

Design responses… sustainability

Need to close service gaps for the poorResponding to the needs of the vulnerable (market- and group-mediated income support)Better linkage between investments and recurrent funding (NTAC and SET)Institutionalized impact monitoring of community investments (NACCEA, the press, and MOF Quarterly PRSP reviews)Single National Village Fund with CE

Form follows function 25

7. Wrap-up: key lessons

Social Funds as instruments for community empowerment (for improved governance).Social Funds are not suitable tools to tackle decentralization (fiscal, HRD, fiduciary)A strong government team is an asset, Bank staff need to be responsive.Social Funds need to remain flexible and responsive to new policy/program challenges (e.g. MDGs)

Form follows function 26

Lessons cont…

Cross-country learning possible (Malawi to Tanzania, to Uganda, to Malawi, to Tanzania).

Inter-country exchange of experiences useful

Consistency in team membership helps

Bank’s readiness to document and disseminate its learning from implementation experiences

Putting political commitment to good use (avoid danger of project being called ‘politicized’)

Form follows function 27

Key challenges… existing SFs

Integration of development communication into general accountability mechanismsKeeping SFs as “Funds” and not turn them into technical agencies.Move from Social Capital for ‘closing service gaps’ to Economic Capital for ‘sustainability’Deal with operational implications of Bank ‘approaches’ and ‘frameworks’?Is the future of SFs in Bank portfolio certain?

Form follows function 28

Key challenges… new SFsRing-fencing the most recent tool for SFs:-

Central ministry/LG gets funds for capacity building Dedicated sector funds given to SF

DfID for Improving LivelihoodsIDA in Malawi for Community Land ReformIDA in Tanzania for

Marine and Coastal communitiesForest resource utilizationCommunity AIDS-related treatment in Zanzibar

Form follows function 29

SFs give the poor a chance…

To be participants, not spectators,in the alleviation of their own poverty