Document ofThe World Bank

Report No: 21344-AR

PROJECT APPRAISAL DOCUMENT

ONA

PROPOSED LEARNING AND INNOVATION LOAN

IN THE AMOUNT OF US$5.0 MILLION

TO THE

ARGENTINE REPUBLIC

FOR A

FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM

October 30, 2001

Argentina, Chile, Paraguay and Uruguay Country Management UnitPoverty Reduction and Economic Management UnitEnvironmentally and Socially Sustainable Development UnitLatin America and the Caribbean Region

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CURRENCY EQUIVALENTS(Exchange Rate Effective November 27, 2000)

Currency Unit = $ Argentine Pesos1$ = US$1.002US$1 = $0.998

FISCAL YEARJanuary I through December 31

ABBREVIATIONS AND ACRONYMS

CAS Country Assistance StrategyCBO Community-Based OrganizationCEPAL Comisi6n Econ6mica para America Latina y el Caribe (Economic Commission of l atin

America and the Caribbean)CMU Country Management UnitCNM Consejo Nacional de la Mujer (National Council of Women)CQ Selection Based on Consultants' QualificationsFARAH Financial Accounting, Reporting and Auditing HandbookGOA Government of ArgentinaIBRD International Bank for Reconstruction and DevelopmentIDB Inter-American Development BankLCR Latin America and the Caribbean RegionLCSES Latin America and Caribbean Region Environmentally and Socially Sustainable Development

Sector Management UnitLCSPR Latin America and Caribbean Region Poverty Reduction and Economic Sector Management

UnitLG Local GovernmentLIL Learning and Innovation LoanM&E Monitoring and EvaluationMET Memnorandum de Entendimiento Tecnico (Technical Memorandum of Understanding)N.B.F. Not Bank-FinancedNGO Non-Governmental OrganizationPA Participatory AppraisalPAD Project Appraisal DocumentPHRD Policy and Human Resource Development (Japanese Trust Fund)PIU Project Implementation Unit (Unidad Ejecutora)PMR Project Management ReportsPPF Project Preparation FacilityPROFAM Family Strengthening and Social Capital Promotion ProjectQCBS Quality- and Cost-Based SelectionSA Social AssessmentSIEMPRO Programna de Seguimiento de Indicadores y Evaluacion de Proyectos Soc iles (Mor itorl r c.F

Indicators and Evaluation of Social Projects Program)T .A Technical AssistanceTOR Terms of ReferenceUNDP United Nations Development ProgrammeUNIFEM United Nations Development Fund for Women

Vice President: David de FerrantiCountry Director: Myrna AlexanderSector Directors: Ernesto May/John RedwoodSector Managers: Maria Correia/Shelton DavisTeam Leaders: Maria-Valdria Pena/Sandra Cesilini

ArgentinaFamily Strengthening and Social Capital Promotion Project - PROFAM

CONTENTS

A. Project Development Objective ................................................................... 2

1. Project development objective ................................................................... 22. Key performance indicators ................................................................... 2

B. Strategic Context ................................................................... 2

1. Sector-related Country Assistance Strategy (CAS) goal supported by the project ........ 22. Main sector issues and Government strategy ................................................................. 23. Learning and development issues to be addressed by the project .................................. 54. Learning and innovation expectations ................................................................... 6

C. Project Description Summary ................................................................... 7

1. Project components ................................................................... 72. Institutional and implementation arrangements ............................................................. 83. Monitoring and evaluation arrangements ................................................................... 9

D. Project Rationale .................................................................. 10

E. Summary Project Analysis .................................................................. 10

1. Economic .................................................................. 102. Financial .................................................................. 103. Technical .................................................................. 114. Institutional .................................................................. 115. Environmental .................................................................. 126. Social .................................................................. 127. Safeguard Policies .................................................................. 15

F. Sustainability and Risks .................................................................. 15

1. Sustainability .................................................................. 152. Critical Risks .................................................................. 163. Possible Controversial Aspects .................................................................. 16

G. Main Loan Conditions .................................................................. 16

1. Effectiveness Conditions .................................................................. 16

H. Readiness for Implementation .................................................................. 17

1. Compliance with Bank Policies .................................................................. 17

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Annexes

Annex 1. Project Design SummaryAnnex 2. Project DescriptionAnnex 3. Estimated Project CostsAnnex 4. Social AssessmentAnnex 5. Procurement and Disbursement Arrangements

Table A. Project Costs by Procurement ArrangementsTable A 1. Consultant Selection ArrangementsTable A2. Procurement PlanTable B. Thresholds for Procurement Methods and Prior ReviewTable C. Allocation of Loan Proceeds

Annex 6. Project Processing Budget and ScheduleAnnex 7. Documents in Project FileAnnex 8. Statement of Loans and CreditsAnnex 9. Country at a Glance

IBRD Map 29348, Map of Argentina

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ARGENTINAFAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM

Project Appraisal Document

Latin America and the Caribbean RegionArgentina, Chile, Paraguay and Uruguay Country Management Unit

Date: October 30, 2001 Team Leaders: Maria-Valeria Pena/Sandra CesiliniCountry Director: Myrna Alexander Sector Directors: Ernesto May/John Redwood

Sector Managers: Maria Correia/Shelton DavisProject ID: P070374 Sector: BI - Institutional DevelopmentLending Instrument: Learning and Innovation Loan (LIL) Theme(s): Gender

Poverty Targeted Intervention: Y

Project Financing Data[X] Loan [ ] Credit [ Grant [ Guarantee [ ] Other[Specify]

For LoanslCreditslOthers:Amount (US$m): $5.0 million

Proposed Terms: LIBOR-Based Variable Rate Single Currency LoanGrace period (years): 5 Years to maturity: 15Commitment fee: .75%Front-end fee on Bank loan: 1.0%

Financing Plan: Source Local Foreign TotalGOVERNMENT 1.05 0.00 1.05IBRD 4.51 0.49 5.00Community Participation 0.67 0.00 0.67

Total 6.23 0.49 6.72

Borrower: Argentine Republic

Responsible agency: National Council of Women - Consejo Nacional de laMujer - CNM

Address: AV. R.S. Penia 648, 7P. "A"; (1035)- Capital FederalBuenos Aires, Argentina

Contact Person: Marisa AlfizTel: 345-6402/6403/0683 Fax: 345-6402/6403/0683 E-mail: cnmgcnm.gov.ar

Estimated disbursements (Bank FY/US$M):

- - FY-:: - .- - - 2002:--- - a m - - - 2003'- - 2004- 2005Annual 0.8 1.9 1.7 0.6

Cumulative 0.8 2.7 4.4 5.0Project Implementation Period: January 2002 - December 2004

Expected Effectiveness Date: January 1, 2002 Expected Closing Date: June 30, 2005

A: Project Development Objective1. Project development objective: (see Annex I)

The development objective of the Argentina Family Strengthening and Social Capital Promotion Project -PROFAM - is to test and monitor a social capital approach to address the vulnerability of the poor bytargeting families as comprehensive units and promoting gender equity.

To achieve this objective, the project will support, monitor, and learn from: (a) initiatives promoted bylocal governments (LGs) and community-based organizations (CBOs) to enhance effective allocation ofresources and use of opportunities by vulnerable families through the promotion of gender equity andcohesive family practices (Programa Equidad); (b) actions led by CBOs and LGs to foster more effectiveuse of community resources by strengthening linkages among neighboring families; (c) actions thatcapture the potential of community social capital by advancing prospects for the creation and/orstrengthening of civil society organization networks; and (d) dissemination of best practices oncommunity interventions supporting family development and equitable gender relations.

2. Key performance indicators: (see Annex 1)

Key performance indicators to be compared to a baseline study include: (a) improved awareness amongbeneficiary families about the importance of gender equity and cohesive family practices as a means ofreducing their vulnerability; (b) improved awareness among beneficiary families participating inPrograma Equidad about children's emotional needs and how to respond to them; (c) decrease indomestic violence episodes among beneficiary families participating in Programa Equidad; (d) improvedevidence of responsible parenthood among beneficiary families of Prograina Equidad through: (i)increase in father's involvement in childcare and support; and (ii) decrease in teenage pregnancy; and (d)increase in the proportion of CBOs and LGs connected in civil society networks.

B: Strategic Context

1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)

Document number: 20354 Date of latest CAS discussion: June 27, 2000In addition, the Board discussed the Progress Report on July 19, 2001 (R2001-0127; IFC R2001-0155).The joint IBRD/IFC Argentina Country Assistance Strategy (CAS) was discussed by the ExecutiveDirectors on June 27, 2000. A new administration took office in December 1999 and is stronglycommitted to improving the well being of the poorest families in the country. The LIL is consistent withthe CAS goal of supporting the design and implementation of human capital development and povertyalleviation programs that address the specific needs ofparticular vulnerable groups and/or demonstrateeffective and innovative ways of delivery, through the provision of technical assistance (TA) andinvestment lending. Based on the results of the Poverty Assessment (1999), that identified gender as animportant dimension of poverty, the CAS identifies family capacity development as a priority.

2. Main sector issues and Government strategy:

Argentina has experienced a strong average growth since the Convertibility Plan was launched in 1991.The size of the economy doubled from 1990 to 1999. However, in 1995, the economy contracted afterthe devaluation of the Mexican peso, and since 1998, the combined effects of the East-Asia crisis, thedevaluation of the Russian ruble and of the Brazilian real, and deterioration in commodities prices, havecaused a deceleration in growth. GDP declined by about 3.5 percent in 1999 and has stagnated in 2000.Unemployment reached a high of 18 percent in 1996, fell to 12 percent with the recovery in 1997 but hasagain increased to more than 15 percent. The results from the Social Capital Survey carried out in 2000show the presence of at least one unemployed person in 52 percent of the poorest households in contrastto only 11 percent in the highest income quintile households. Although many social indicators haveimproved in the past ten years, poverty levels have remained high. The Bank's latest estimates (see the

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1999 Poverty Assessment) put poverty at about 30 percent of the populations, with more than 40 percentof Argentina's children in families below the poverty line.

Family and Poverty. Poverty and family organization are intrinsically linked. Decisions on the allocationof time, finances, and use of resources and opportunities are made at the family level and they are basedon the organization of gender and generational roles. Variations in gender roles, including segregated orinterchangeable and balanced roles will affect reproductive patterns, acquisition of human capital,opportunities and timing of entrance in the labor market, and income earning potential. One of the mostconspicuous consequences of the association between poverty and segregation of gender roles inArgentina has been the deterioration offamily cohesion and its ability to mobilize and make use ofresources and opportunities.

As indicated in the Poverty Assessment (Poor People in a Rich Country, 1999), the poor in Argentinahave the greatest family obligations and dependents. In urban areas, the poor have significantly largerfamilies. They also have younger families with high dependency ratio and unemployment rates that aretwice the ratio of non- poor. The 1997 household survey shows that 52 percent of Argentinean familieshave children under the age of fourteen, with one-fourth of families in the poorest quintile having three ormore children under the age of fourteen. Results from the recent Social Capital Survey (2000) haveconfirmed this trend by also showing that, among the households in the lowest income quintile, 32percent of residents were less than 12 years, whereas among those in the highest quintile, this proportiondropped to 8 percent.

While the overall fertility rate in Argentina is low in comparison to other countries in the region, this ratevaries widely across socioeconomic groups. Residents in rural and marginal urban areas are at adisadvantage in terms of access to reproductive services and informnation. For example, women consultedfor the Social Assessment (SA) during project preparation were unaware of the linkage between multiplepregnancies, poverty, and their poor health status-to be either pregnant or nursing was very oftenaccepted as destiny. The SA also reveals that many women, despite having many children at a veryyoung age (sometimes five children before the age of 30), contraception was refused by theirneighborhood public health facility. It is noteworthy that the standard health care package covered byquasi-public health insurance providers does not include contraception. Non-governmental organizations(NGOs) consulted during the SA note that it is not unusual to find women with ten children in theshantytowns of metropolitan Buenos Aires.

According to the 1999 United Nations Development Fund (UNDP) report ( Violencia de Genero inArgentina), pregnancy among teens is on the rise with about 15 percent of all mothers under the age oftwenty. In absolute terms, of the 700,000 annual births, about 100,000 mothers are less than twenty yearsold. A small proportion (3.3 percent) consists of children born from mothers between the ages of 10-14.This is significant in social, biological and psychological terms. Evidence also shows that precociouspregnancies are more frequent among those with less schooling or living in more precarioussocioeconomic conditions. There is also an apparent lack of paternal responsibility in the case of half ofall children born that year.

The lack of information and access to contraception alternatives has resulted in a high number of illegalabortions - the third cause of maternal mortality in the country. Domestic violence and street violence arealso commonly reported and rapidly becoming one of the most important issues on the agenda of localgovernments and CBOs. Individuals under the age of 21 are the victims in 76 percent of all sexualcrimes, and in 87 percent of the cases, the victims are women. In about 90 percent of the cases, thevictims were familiar with the perpetrators. In 1997, of the 133,376 telephone calls to a hot line (TelefonoTe Ayudo), the highest proportion related to violence committed against children, and while the majorityof perpetrators were the father, in 20 percent of the cases, the mother was the perpetrator.

Social Capital. Several research studies conducted by the Bank demonstrate that communities withhigher levels of social capital are more likely to organize, and define and pursue common goals. The

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Social Capital Survey in Argentina (2000) indicates that the diversity and frequency of networking in thelowest income quintile is in general lower than in the highest. For example, among those living in thepoorest quintile, only about 33 percent socialize with friends in contrast to almost 60 percent in thehighest quintile, nearly double the percentage. About 58 percent of residents in the highest quintilehouseholds participate in activities with their families. This percentage drops to 43 percent in the poorestquintile. However, among those who participate, the lowest quintile is as likely as the highest to beinvolved in philanthropic organizations (33 percent and 34 percent respectively). These results indicatethat poverty does not signify a lack of generosity.

Government Strategy

Argentina faces a set of social problems that are not easily resolved in the short run. The Government ofArgentina (GOA), in partnership with the provinces, has shown a strong commitment to greater socialjustice notwithstanding fiscal constraints. GOA recognizes the need to strengthen the social safety net,reduce social risks, and stimulate community development. It thus has in place a variety of socialprograms targeting the poor, many of which are supported by the World Bank and the Inter-AmericanDevelopment Bank. Many of these programs are well targeted and some have a high degree of success inreaching the right beneficiaries; others have never been evaluated and there is a general impression thatthere are too main programs, duplication, and heavy administrative costs. Moreover, as studied in therecent Poverty Assessment, coverage is low-only 25 percent of the poor have access to publicprograms-and funding of these programs is counter-cyclical-funding gets cut just when needs are thegreatest when an economic crisis hits. Increasingly, there is a concern that social programs in and ofthemselves are not sufficient to build capacity among the poor and to promote collective and individualaction to improve the wellbeing of the poor. Thus, there is still a very large agenda in the social sectorand among its priorities, Government intends to revamp many social programs, with improved targeting,service delivery, and the incorporation of particular concerns, as recognized in the CAS, to indigent,children, and vulnerable groups through a gender perspective.

Both the World Bank and the Government are conscious that gender dimensions need to have a higherprofile in development programs and are making a particular effort to incorporate gender more explicitlythe Bank-financed projects. A PHRD grant, for instance, is supporting actions to improve Governmentcapacity to plan and implement public policies and programs so they respond to the differentiated needsand priorities of both men and women. In addition, the Bank's technical assistance (TA) facility ongender is providing ongoing follow-up to Bank projects during preparation and implementation. Basedon experience from the Latin America and Caribbean Region, this lack of follow-up in projects is one ofthe key constraints for successfully integrating gender into operations.

More broadly, the Government's main instrument for addressing the gender dimensions of poverty andsocial policy is the National Council of Women (Consejo Nacional de la Mujer, CNM). CNM is apolitically autonomous, decentralized entity that falls under the Chief of Cabinet (Jefetura de Gabinete deMinistro de Poder Ejecutivo Nacional). CNM was created in 1994 with the responsibility to ensurecompliance with the Convention for the elimination of all Forms of Discrimination against Women, underLaw 23.179.

CNM has adopted a philosophy that democracy without equality is not democracy. It has also adopted agender perspective to address disparities and/or inequities between men and women, rather than onlyfocus on women's issues. The policies it has adopted have the common aim of promoting sharedresponsibility among men and women within the concept of citizenship. In practical terms, this has meanta response to poverty based on a strategy that emphasizes the inclusion of men in household chores andchild care, the expansion of opportunities for women in the labor market and public decision-making and,for the couple, more conscious reproductive and health choices.

CNM supports sectoral strategies to improve the quality of life in the following areas: (a) health-topromote gender equity and quality of health care including responsible reproductive decision-making; (b)

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education-to promote equal opportunities for boys and girls; (c)justice-to coordinate actions amonggovernment agencies to reduce violence against women and ensure international conventions associatedwith women's and children's rights are upheld; (d) legislation-to work with parliament on thepromotion of laws that strengthen gender equity; and (e) communication-to develop informationcampaigns.

CNM has also promoted the establishment of a Forum on Civil Society, comprised of civil societyorganizations, to create a space for the exchange of ideas, debate, and promotion of proposals for thedesign and monitoring of public policies and programs. In addition, CNM recently began implementationof the National Program for Women (Programa Federal de la Mujer), financed by the Inter-AmericanDevelopment Bank (IDB), which will support the establishment of decentralized Provincial Offices of theProgram for Women (Areas de Mujer Provinciales).

Addressing the gender dimensions of poverty and social policy in the present context of rising poverty,unemployment, violence and social exclusion in Argentina presents a challenge. The Government's goalis to reduce vulnerability by strengthening family cohesion, solidarity between male and female familymembers, and capacity for conscious socio-economic and reproductive decision making. Deepeningsocial capital to be able to undertake collective action is an imperative. Given the complexity andnewness of these issues in Argentina, their sensitivity and the lack of a track record in such areas, theGovernment has wisely adopted a cautious stance and intends to proceed with a pilot program relying onlocal institutions and building upon the best practices and leading cases that do now exist and/or can bedeveloped. An essential ingredient in this strategy is to promote activities that can have a great impact inthe short run and involve groups keen on accepting changes. Thus, the main features of the strategyentail: (a) capturing and fostering the capacity of LGs and CBOs to reduce the vulnerability of poorfamilies by promoting their cohesiveness; (b) supporting actions which deal with the family as an integralentity rather than utilizing a specific sector approach; and (c) advocating a role for the public sector thatstresses the linkages between poverty and gender segregation. A fundamental part of the strategy is tomove away from client-oriented solutions that may foster dependency among the poor and towardinnovative interventions that foster the active participation of families themselves in the design andimplementation of such programs.

3. Learning and development issues to be addressed by the project:

Social Capital Approach. The first strategic choice was to build on the existence of community socialcapital rather than existing centralized government institutions. Intensive monitoring and evaluation ofthe LIL will focus on the most effective grassroots arrangements for family development with anemphasis on the creation of networks of civil society organizations. The LIL will provide opportunities tolearn from the implementation of a community-based perspective by CNM with the participation ofbeneficiaries. The LIL will also provide important lessons on whether and under what conditionsempowered community groups can play a central role in the promotion of equitable gender and familyroles and anti-violence interventions. The successful implementation of this LIL will make a substantialcontribution to the design of more effective projects that improve the well being of poor men and womenby: (a) promoting family development; (b) addressing norms, expectations, and values that lead topassivity, discrimination, and often violence; and (c) avoiding the continuation of clientelistic relationsamong the poor.

This project will provide lessons from three different models: (a) promoting change within localgovernments in their relationship with families, particularly on how gender and generational roles aredefined; (b) providing incentives to different forms of association between local governments, serviceNGOs, community-based organizations (CBOs), and families; and (c) building partnerships amongfamilies. The implementation of these different types of activities in different regions and communitieswill provide important lessons on how to target comprehensive family programs.

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Promoting a Comprehensive Approach to Families. The second strategic choice by GOA was whether tosupport sectoral interventions targeted to families (after-school programs, nutrition for mothers, micro-credit for adults, etc.) or whether to support an approach which would strengthen and empower a familyas an entity, capturing its own resources and emotional capacities. By choosing to test a comprehensiveapproach to family development, the project will provide lessons on: (a) what are the most effectivemeans to recuperate damaged family relationships; (b) what is the potential of poor families to reducesome of their vulnerability either through cooperation among family members and/or cooperation amongfamilies in the same neighborhood (such as child care and division of domestic and reproductive chores);and (c) what is the extent to which poor families are available to cooperate with other poor families topromote their own development.

Promoting Gender Equity and Changing Gender Stereotypes. The third strategic choice by GOA waswhether to design the LIL addressing women's issues or whether to learn from a gender approach whichincludes male and female needs and perspectives. Indeed, given that women and men's social standingemerges from gender roles, socialization, and expectations, both male and female roles will be addressedin PROFAM. The proposed project will apply a "true" gender perspective in its approach and take intoaccount the impacts of gender relationships on the family by addressing the consequences of gender roleson both sexes and considering the linkages between the genders rather than focusing solely on women.This project will promote awareness and leadership about the value of equitable relationships betweenmen and women and the transmission of new ideas and successful experiences that can be replicatedthroughout urban and rural Argentina. It will also promote awareness on the relationship betweenviolence, vulnerability, and gender segregation.

A final decision was whether to implement the LIL through an agency specializing in gender anddevelopment, such as CNM, or to learn from an agency specializing in poverty alleviation. CNM waschosen given its consideration of gender segregation as an important dimension of poverty, an unusualapproach in organizations specializing in social policy. CNM was also selected for its interest in workingwith grassroots organizations, rather than with a centralized approach. This LIL will allow thegovernment to test an approach to social policy focused on an associative perspective (gender!family/community/services) rather than solely on service delivery.

4. Learning and innovation expectations:

[x] Economic [x] Technical [x] Social [x] Participation[ ] Financial [x] Institutional [ ] Environmental [x] Other

(a) Economic. The LIL is expected to provide important lessons on how to identify and overcomeobstacles that segregated gender roles pose to reducing the vulnerability of poor families. These obstaclesmay be overcome with actions such as providing access to reproductive information and responsibilitiesto women and men or promoting a more balanced division of intra-household work, thus improvingwomen's opportunities in the labor market.

(b) Technical. The LIL will: (i) develop a participatory monitoring and evaluation system in whichbeneficiary's concerns are included and considered as indicators of the project's impacts andperformance; (ii) assess the impact of programs with a gender equity approach; and (iii) develop thecapacity of multiple actors to understand the interaction between family and gender issues (particularlythe role of socialization on the development of gender roles) and to plan equitable gender policies withequitable gender outcomes, as part of development policies. The LIL will initiate a mutual learningprocess on family and community cohesiveness through Programa Equidad. This program is the first tobe developed within Argentina and the lessons learned will potentially benefit other interventionsdesigned to reduce violence among men and women and/or to foster a stronger sense of family andcommunity at the local levels.

(c) Social. The LIL will provide opportunities to leam about: (i) how to capture inherent, but oftenhidden family resources in order to promote the well being of all family members; (ii) the benefits of

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cooperation among grassroots organizations and between males and females to reduce the hardship ofpoverty; and (iii) how to support heads of family affected by the high incidence of unemployment toadapt to new roles within the family.

(d) Participation. The LIL incorporates a participatory monitoring and evaluation process through theinvolvement of civil society and beneficiary families in the review and discussion of lessons learned fromthe project activities. The expectations are to learn: (i) how to develop mechanisms for informedstakeholder participation in the monitoring and evaluation processes; (ii) how to foster families'involvement within the communities where they live; and (iii) what are the most effective means ofstrengthening family groups.

(e) Institutional. The LIL will also test the advantages and disadvantages of institution-based (localgovernment) and civic-based (CBOs and NGOs) approaches to address family development and genderequity. It will work through existing institutions to provide inforrnation on: (i) how to develop thecapacity of local government to understand and apply a gender approach to public and social policies; (ii)how to provide incentives to the civil sector to promote more equitable human resources, recruitment, andbenefits policies for both men and women, for instance, recognizing women's rights to promotion, butalso the paternal responsibilities and rights of men; and (iii) how to introduce gender concerns and criteriawithin social programs addressed to the poor.

(g) Replicability. Since a family strengthening and social capital LIL with a gender approach to povertyalleviation will be the first to be implemented within the region, the lessons learned will help decidewhether: (i) it could be expanded to a greater number of beneficiaries; (ii) whether other sectoral projectscould take the same gender approach; or (iii) whether it could in its entirety or in its components, bereplicated in other countries.

C: Project Description Summary

1. Project components: (See Annex 2 for a detailed description and Annex 3 for the detailed costs.)

The main component of the project is the Programa Equidad to facilitate equitable and cooperativefamily and community life. This program is a demand-driven mechanism that will provide grants forsubprojects implemented by LGs and CBOs that address issues of reproductive health, anti-violence, civicrights, cooperation within and among families, and community development aimed to reduce the degreeof vulnerability of poor families.

Typical subprojects to be considered may include programs such as those visited during the SocialAssessment for the project including: (a) domestic violence interventions where children are supportedand both men and women are targeted (after time and intense work, the men can function as facilitators offuture interventions with other men); (b) placement of children from dysfunctional and violent parents intemporary, community-based "host" families while there are interventions focusing on strengthening thechild's original family - a strategy which has positive results and is proven to be more cost-effective thanlarger institutional homes; (c) an after-school program that supports children with learning disabilities byinvolving both parents; or (d) a local government-sponsored health center that offers an after-schoolprogram to facilitate discussion groups among men and women about reproductive health roles andresponsibilities and responsible parenthood.

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The project's other components will address gender awareness more generally, and provide support forproject implementation and institution building for CNM, including the baseline study, monitoring andevaluation.

indicdativ %Of an- %of

Component 'eto Iot Total financing Bank-1. Family Strengthening Capacity Building 4.27 63.9 3.57 83

a. Programa Equidadb. Social Capital

Promotion2. Gender and Communication 1.20 18.2 0.83 69

Community Awareness3. Institutional Institutional 1.20 16.9 0.55 50

Development DevelopmentTotal Project Costs* 6.67 99.0 4.95 75

Front-end fee 0.05 1.0 0.05Total Financing Required 6.72 100.0 5.00* Includes Physical and Price Contingencies

2. Institutional and implementation arrangements:

2.1 Institutional Arrangements:

The institutional arrangements are designed to build upon the existing capacity and experience of CNM,which will be responsible for project implementation through existing local government and communitybased organizations. The project will be implemented in collaboration with the Ministry of SocialDevelopment and Environment (Ministerio de Desarrollo Socialy Medioambiente) to ensure thecoordination of PROFAM with other similar initiatives targeted towards vulnerable groups.

At the same time CNM will coordinate the proposed project with other programs under its responsibility,namely, a $15.0 million project financed by the Inter-American Development Bank (IDB) - the NationalProgram for Women (Program Federal de la Mujer) and a Policy and Human Resource Development(PHRD) Grant from the World Bank for a Gender Technical Assistance Capacity Building Initiative, inaddition to collaborating on other donor funded programs.

2.2 Implementation Arrangements:

CNM will be responsible for all project implementation activities, including accounting, disbursement,monitoring and evaluation, coordination, and supervision. CNM will implement the project through theexisting Project Implementing Unit (PIU) (Unidad Ejecutora) comprised of both technical andadministrative specialists and managed by an Executive Coordinator, who will manage both the IDBproject and the proposed LIL. At present the PIU has both administrative and technical groups. Theadministrative group is staffed by an accountant and one assistant and deals with procurement, financialmanagement, and other administrative aspects. The head of this group, who will serve as theAdministrative Chief, is a former consultant to the IDB and is familiar with procurement procedures.

Under the project, a second technical person and an administrative assistant would be hired to workwithin the PIU administrative group with primary responsibility over the implementation of the LIL.Short-term consultants will be hired for special tasks, when necessary.

The principal activity under the PROFAM project will be the implementation of a demand-driven smallgrants program - Programa Equidad. Potential grant recipients will include community-based networks

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comprised of civil society organizations, local government, and CBOs that are implementing innovativeprojects, which are compatible with the objectives of PROFAM. Technical assistance for the preparationand implementation of subprojects may be included in the proposal amount. Proposals will be developedin accordance with procedures and criteria outlined in the Operations Manual and will be evaluated andselected by an external committee of specialists (See Annex 2 for more details).

CNM's implementation responsibilities include: (a) ensuring that appropriate methods are identified andutilized to target and inform key stakeholders throughout the project; (b) facilitating the definition ofmechanisms that ensure sustained accountability, communication, and monitoring with the beneficiarycommunities and families by recipient/implementing organizations and networks; (c) emphasizing theinclusion of families in the planning, control and oversight of subprojects; (d) overseeing the quality ofthe implementation of subprojects and other project activities; (e) monitoring and evaluating the project'sperformance; and (f) developing and measuring impact indicators.

Specific roles and responsibilities for all entities involved in the implementation of the project, includinginstitutional structure, are included in the Operations Manual. The project will be implemented over aperiod of three years (January 2002 to December 2004).

Procurement. Disbursement, and Financial Management

Procurement, disbursement, and financial management arrangements have been discussed in detail withCNM. The Procurement Specialist in the Argentina Resident Mission carried out an overall assessmentof the procurement capacity of CNM and a procurement action plan was agreed upon with CNM. Annex5 contains a description of the procurement and disbursement arrangements covering goods, consultantservices and training, and Programa Equidad grants. A Bank-certified Financial Management Specialistalso carried out an assessment of CNM during project preparation. Based on this assessment, CNMsatisfies the basic minimum financial management requirements; however it is not currently eligible forProject Management Report (PMR)-based disbursements. It was agreed that traditional disbursementprocedures would be used for a transition period of six months after project effectiveness. Thesearrangements are reflected in the Operations Manual.

Accounting, Financial Reporting, and Auditing Arrangements.

The project will maintain project accounts in accordance with sound accounting practices acceptable tothe Bank, as required by the Financial Accounting, Reporting and Auditing Handbook (FARAH). CNMwill have the records and accounts of the project for each fiscal year audited, with a separate opinion withrespect to the Statements of Expenditures and the Special Account, by independent and qualified auditorsacceptable to the Bank. A national auditor will audit all project operations (on an annual basis), asdescribed in the Operations Manual. The requirements for accounting, financial reporting, and auditingare described in detail in Annex 5 and the Operations Manual.

3. Monitoring and evaluation arrangements:

An effective monitoring and evaluation system (M&E) is crucial to the success of this LIL since it willallow the testing and improvement of service delivery approaches based on lessons learned. The systemshould be established at the outset of project implementation. The use of participatory techniques inmonitoring and evaluation will be encouraged through the inclusion of project beneficiaries' ownevaluation. The adoption of key indicators will enhance data comparability and information sharingamong regions and provinces.

The M&E system will allow testing through control groups in comparison with a baseline: (a) LGs versusCBOs; (b) local-based approaches versus centralized approaches; (c) family approach versus sectoralapproach; and (d) gender equity approach versus approaches that accept traditional roles. The monitoringand evaluation system will be systematically documented to enhance the learning process within CNMand among other Ministries and civil society organizations, and to exchange experiences with other

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projects in Argentina and in other countries. Civil society will participate through the Forum of CivilSociety and other organizations to be consulted during projecf implementation. The monitoring andevaluation system follows the logical framework of the LIL, assessing component performance, outputs,and impacts.

CNM, with support from its provincial offices, will have primary responsibility for project supervision,monitoring and evaluation. On an annual basis, beginning in 2002, CNM will prepare a ProjectImplementation Report covering project implementation activities and monitoring and evaluationindicators during the previous year as well as an Annual Operating Plan for the following year. Theongoing Bank-financed Monitoring of Indicators and Evaluation of Social Projects Program (Programade Seguimiento de Indicadores y Evaluacion de Proyectos Sociales, SIEMPRO) will also contribute to themonitoring and evaluation of PROFAM impacts.

Baseline. The baseline study will include gender-desegregated data and it will be developed byintegrating the results of studies to be carried out under the project which include families, LGs andCBOs. A survey carried out by CNM, in collaboration with the Bank on the reproductive issues of poorrural families, will complement the baseline.

Reports. The monitoring and evaluation system includes three types of reports: (a) Operational Reportsof each component to be prepared according to the performance monitoring indicators timetable; (b) aMid-term Evaluation Report incorporating beneficiaries' views to be prepared at the end of the first yearand disseminated to civil society; and (c) an Impact Evaluation Report to be produced at the end of thethird year consisting of results from the beneficiary assessment and main lessons learned to bedisseminated among federal and local governments and civil society.

D: Project Rationale:This section is not to be completed in a LIL PAD. Rationale should be implicit in paragraph B: 3.

E: Summary Project Analysis (only as applicable to this LIL)

1. Economic

The project has not been subjected to a conventional economic rate of return analysis since its immediateobjectives and outputs are either primarily institutional or involve changes in behavior. However, theproject will generate the following non-quantifiable economic benefits: (a) mobilization of capacitieswithin families and among families to face the challenges of poverty; (b) greater awareness about the roleof gender equity in promoting better access to human capital and other resources and opportunities; and(c) enhanced institutional capacity to meet economic needs of male and female beneficiaries. There is achance, too, that the project could generate quantifiable benefits in terms of opportunities for women inparticular to generate incomes as one of the possible outcomes of shifts in traditional gender roles. Inaddition, as part of the LIL's monitoring and evaluation system, the different approaches and activitiesincorporated into the project will be assessed including regarding costs and returns.

2. Financial

[ ] Summarize issues below (e.g., cost recovery, tariff policies, financial controls and accountability)[]To be defined (indicate how issues will be identified) [x] None

PROFAM is a pilot project and cost recovery is not a project objective. However, fiscal sustainability isan important consideration in the design of this LIL as is testing the level of administrative costs forimplementation. Although CNM has committed itself to promoting equal opportunities among men.andwomen and public policies with a gender perspective, at present, the current level of public expenditureon gender initiatives is low. The planned investments in the project, such as the development ofinformational materials, have low recurrent cost implications.

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CNM will monitor and assess the costs of Programa Equidad. In addition, the project will involve localcommunities and organizations in the financing and maintenance of subprojects under this program. Forinstance, successful proposals to the Programa Equidad will include a 20 percent minimum contributionon the part of the beneficiaries.

3. Technical

Traditionally, social programs have addressed poor families through separate sectoral initiativesfrequently treating the family members as individual clients of early childhood, primary or secondaryeducation, nutrition, scholarship programs, education, HIV programs, etc. The proposed LIL will test theintroduction of diverse mechanisms at different levels for operationalizing a comprehensive, integratedfamily approach in development projects. The LIL will carry out actions to promote changes in behaviorin three levels and evaluate the results through participatory monitoring and evaluation. Theseinstruments were identified to maximize effective actions in the short-run and provide a range of pilotingfrom a communications strategy to a small grants program. The different levels include: (a) institutional -the strengthening of the capacity of the regional agencies of CNM to incorporate its gender equitymandate through seminars and workshops; (b) conimunity-basedpartnerships - support to capacitybuilding and technical assistance for NGOs and CBOs and grants in the Programna Equidad; and (c) civicincentives - to transmit new ideas and successful experiences to a wide audience.

4. Institutional

4.1 Executing agencies:

CNM has demonstrated capacity for project execution. Currently, CNM is involved in several differentprojects and programs with international financing. CNM is executing a $15.0 million loan from theInter-American Development Bank (IDB) to improve the development, monitoring, and evaluation ofpublic policies and programs, the National Program for Women (Programa Federal de la Mujer) throughwhich five new provincial offices are being established. They are also executing (but not administering)the PHRD for Gender Technical Assistance Capacity Building Initiative, a project on gender in the healthsector financed by the Economic Commission on Latin America and the Caribbean (Comision Econ6micade Latina Americay el Caribe) and a project to strengthen communication strategies (United NationsDevelopment Fund for Women, UNIFEM).

4.2 Project management:

Overall, CNM has both the technical and administrative capacity to manage the PROFAM project. Whennecessary, consultants would be hired for specific tasks. CNM is an autonomous organization whichseeks to decentralize its community interventions to the grassroots level, maintaining only theadministrative functions and those responsibilities related to the articulation of social policy formulationat the central level. Both the IDB-financed project and the World Bank-supported PHRD havecontributed to the institutional capacity of CNM.

4.3 Procurement issues:

Procurement will be the responsibility of the PIU within CNM. The procurement assessment carried outduring preparation indicated that the PIU, specifically the Administrative Chief, has experience andknowledge, although some limitations were identified in procurement procedures. For instance, littleexperience exists in community-based procurement, which represents the majority of the LIL'sprocurement activities and where procurement supervision and monitoring will be key for successfulimplementation of the subprojects. To minimize the risk related to the lack of procurement experiencewith World Bank projects, it was agreed that as part of the Action Plan, the Administrative Chief willenhance her knowledge with training on selection of consultants for World Bank projects. Due to thesmall amount of procurement required for the LIL, an experienced consultant will be retained for

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procurement assistance, specifically for LIL activities, when required. In addition, an independentconsultant will conduct audits on one out of every five subprojects annually.

4.4 Financial management issues:

An assessment of the project's accounting system, internal controls, planning, budgeting, and financialreporting system was conducted during project preparation. The PIU satisfies the Bank's minimumfinancial management requirements (4B certification). Nevertheless, the project is not currently eligiblefor Project Management Report (PMR) based disbursements. It was agreed that traditional disbursementprocedures would be used for a transition period of six months after project effectiveness.

5. Environmental Environmental category: C5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (includingconsultation and disclosure) and the significant issues and their treatment emerging from this analysis.

No civil works will be financed under the project. Proposed subprojects to be financed under theProgrania Equidad will be relatively small in nature and are intended for capacity building and familystrengthening activities.

5.2 What are the main features of the EMP and are they adequate? Not Applicable.

5.3 For Category A and B projects, timeline and status of EA Not Applicable.

5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EAreport on the environmental impacts and proposed EMP? Describe mechanisms of consultation that wereused and which groups were consulted? Not Applicable.

5.6 What mechanisms have been established to monitor and evaluate the impact of the project on theenvironment? Do the indicators reflect the objectives and results of the EMP? Not Applicable.

6. Social:6.1 Summarize key social issues arising out of project objectives, and the project's planned socialdevelopment outcomes.

A Social Assessment was carried out during preparation with a desk review of relevant reports, fieldwork,and consultations with task managers, NGOs, and community-based groups. The key social issues in thisLIL include the link between poverty and family organization, gender roles, violence, and social capital.The main findings of the Social Assessment indicate that different types of channels need to be used topromote change in gender-based social expectations, such as the media, education, families, andcommunities. The LIL will work through community and local level organizations to address issues thatrequire changes in attitudes, such as substance abuse, family relations, violence, maternal health, andreproductive health. The project will act through community social capital and target both males andfemales.

Family and Poverty. Although Argentina is a relatively rich country, it also has a high level of poverty,affecting about 30 percent of its population. In absolute terms, of the 32 million people living in urbanareas in Argentina in 1998, about 9 million were living in poverty and about 2 million in extreme poverty.The poorest households in Argentina tend to be younger, have more children and have larger dependencyratios (see Table). Since poor families are larger and younger than average, children are more prone to bepoor than adults. In 1998, around 45 percent of all children (aged 0-14) were living in poverty comparedto 25 percent of adults. Only 13 percent of those 65 years old and older were found to be below thepoverty line. Large family sizes are the result of much higher fertility rates among poor women, a factorthat tends to perpetuate poverty. Though population growth in Argentina is relatively low, 1.3 percent peryear, fertility rates are higher for the poor families.

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Comrnarison of Indicators for Lower and Higher Income FamiliesIncome levels Average age of Average size of Fertility Rate

household householdLower quintile 25 years 5.1 people 4.2 per 1,000Upper quintile 41 years 3.1 people 1.3 per 1,000

Poor families face many obstacles to overcoming poverty. They live in poor housing areas, which oftenlack water and sanitation services, access to roads and other public amenities. Only about 25 percent ofpoor families receive any form of direct public assistance. Another problem is that children of poorfamilies are more likely to drop out of school for various reasons, mainly the need to work. Poor familiesfrequently suffer from bad health, lack of education, malnutrition and other factors such as violence.

Unemployment has risen and the rates are higher among the poor and very poor than for the generalpopulation. In a recent survey among the urban poor, the lack of a steady job and the problems ofviolence and insecurity were considered the most important issues. This situation often leads to problemsof alcohol and drug abuse, and an increase in domestic and community crime and violence. It also maylead to a shift in gender roles as more poor women join the labor force and sometimes earn more thantheir partners. This shift has been a source of tension within the family and it appears to be increasing.Youth also stand out as a particularly vulnerable population. Poor youth report a high incidence of drugand alcohol abuse and a general feeling of despair as they face a future characterized by insecurity,unemployment, and violence.

Gender, fanmilies, and poverty. Within the family unit, one of the most important changes registered inrecent decades is the changing role of women. Women, particularly poor women, have increasinglyentered the labor force as a strategy to maintain household income. According to a recent survey,'women represent 39 percent of the labor force in Argentina. However, women entering the labor marketusually are only employed part time, on a temporary basis or in conditions demanding long hours at lowpay. Between 20 and 30 percent of women are employed in domestic service or in the informal sector.Gender bias prevails because on average, women earn only 71 percent of what their male counterpartsearn in similar jobs. Differences are higher at professional levels where women's earnings are only 66percent of men's and they have fewer opportunities to occupy managerial positions. In recent years,unemployment has particularly affected male workers with a higher impact on young uneducated men.

Despite changes in the labor market, changes in the domestic roles within households have been slower.In Buenos Aires for instance, between 1980-1994, the proportion of families with only one income earnerdecreased from 68 to 52 percent while the families with two income earners increased from 23 to 38percent in the same period. Nevertheless, the main burden of domestic chores still lies on women.Higher income women can hire domestic help, but poorer women have to reconcile their working hourswith domestic work. According to a recent study,2 female-headed households face difficulties thatincrease the probability of remaining poor. Usually, these households have only one source of incomeand most of the resources are spent on food and services. The probability of children from these female-headed households being poor is 25 percent higher than in a household headed by a man, thus continuinga vicious cycle of poverty.

Violence. Domestic violence mainly affects women and the majority is domestic workers. In 30 percentof the cases, unemployed men are responsible for violence, indicating that frustration and economicuncertainty spur violence. In addition, social patterns contribute to domestic violence such as aggressivemodels, "macho" attitudes, and lack of education as well as social tolerance towards violent behavior.

' Rodriguez et al, 1997 Encuesta Permanente de Hogares de 1,9962 Geldstein Rosa, 1997. Mujeresjefas de hogar: familia, pobreza y gdnero.

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Institutional and legal issues and gender. Argentina competes favorably in social indicators such asliteracy, infant and maternal mortality, etc. However, there are some institutional and legal drawbacksaffecting Argentinean families. The most important one is the lack of an official public program onfamily planning. While a new Reproductive Law was recently approved in the City of Buenos Aires, ithas not been approved in all of the Provinces. Adolescents, the poor population and rural inhabitants arethe most affected by the lack of access to family planning services and information. Teen-age pregnancyremains a problem in Argentina, particularly among girls with low levels of education.

Social security coverage also seems to be gender biased due to lower female participation in the laborforce, higher levels of dependency and greater participation of working women in the informal sector.Therefore, few women have pensions or other forms of social support and are more prone to be poorduring old age. This situation is expected to change accordingly with changes in occupation patterns andthe increase in the number of more educated women.

Recent legislation intended to eliminate gender discrimination and the creation of institutions such asCNM and the Child and Family Council, as well as various public programs intended to supportvulnerable populations and address poverty would help to reverse the above-mentioned situation. ThePROFAM LIL fits within this new framework.

6.2 Participatory Approach: How are the key stakeholders participating in the project?

From the initial identification of PROFAM and throughout project preparation, CNM has been carryingout an ongoing, open consultation process with potential beneficiaries in order to learn from existingexperiences of community-based family interventions. The preparation team carried out a consultationprocess with community-based organizations and local governments working on issues related to thestrengthening of families, reproductive health, violence, and education. Important lessons were drawnfrom this experience including targeted beneficiaries, eligibility, project activities, potential demand forPrograma Equidad, costs of subprojects and appropriate institutional mechanisms. These lessons andexperiences were incorporated into the project's design and Operations Manual, specifically about theimplementation of Programa Equidad.

6.3 How does the project involve consultations or collaboration with NGOs or other civil societyorganizations?

A principal objective of the project is to pilot and strengthen innovative approaches to familyinterventions by LGs and CBOs. A second objective is to promote the existing social capital within poorcommunities. Thus, by its nature, the project is dependent on the collaboration with civil societyorganizations.

6.4 What institutional arrangements have been provided to ensure the project achieves its socialdevelopment outcomes?

The LIL is designed to empower community organizations and create ownership for the project by givingfull responsibility to the beneficiaries. As mentioned above through the Programa Equidad, PROFAMwill finance initiatives that promote responsibility and participation of all beneficiaries from decision-making to execution to monitoring. In addition, Progrania Equidad includes a minimum beneficiarycontribution of 20 percent. Technical assistance and training will be provided as necessary and prioritywill be given to subproject proposals that include a participatory approach and seek to improve genderequity. This learning experience will also help community networks to develop their own capacity toensure sustainability.

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6.5 How will the project monitor performance in terms of social development outcomes?

PROFAM is a social development project and the expected social development outcomes are directlylinked to the overall project objectives. Refer to Section C.3, Monitoring and evaluation arrangements,for further details on proposed mechanisms.

7. Safeguard Policies:7.1 Do any of the following safeguard policies apply to the project?

Policy ApplicabilityEnvironmental Assessment (OD 4.01) NoNatural Habitats (OP/BP/GP 4.04) NoForestry (OP 4.36) NoPest Management (OP 4.09) NoCultural Property (OPN 11.03) No

X Indigenous Peoples (OD 4.20) YesInvoluntary Resettlement (OP 4.30) NoSafety of Dams (OP 4.37) NoProjects on International Waterways (OP 7.50) NoProjects in Disputed Areas (OP 7.60) No

7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.

The Argentina Indigenous Community Development LIL focuses on strengthening social organizationand culture of indigenous peoples and formulating local development plans within indigenous lands.Therefore, the PROFAM LIL will not specifically target indigenous peoples, but rather ensurecoordination, where appropriate, between the two projects.

F: Sustainability and Risks

1. Sustainability:

This section is not to be completed in a LIL PAD.

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2. Critical Risks: (reflecting assumptions in the fourth column of Annex 1)

From Outputs to ObjectiveLack of demand from LGs and CBOs for M Outreach and communicationPrograma Equidad. strategies included in project.

CNM does not receive continued support from M Conduct a communicationGOA for its focus on gender equity as an campaign and promote horizontalelement of poverty reduction. exchange of positive experiences

among networks and families.

Counterpart funds are not made available in the S A condition of negotiations will benational budget. reserving the Bank and government

financial resources in the 2001Budget Law.

Civil society organizations and local N Conduct educational campaigns andgovernments do not support the values of capacity building activities withPROFAM and of working in networks. critical stakeholder groups.

From Components to OutputsBeneficiaries and CNM do not remain M Develop beneficiary ownership andcommitted to the conception of PROFAM as an ensure a participatory focus.innovative learning process.

The distribution of grants may not be timely. M Clear design of operation ofPrograma Equidad to ensure anefficient and focused process withtransparency and consensus.

Overall Risk Rating M

Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk)

3. Possible Controversial Aspects

The question of reproductive health and access to family planning information and materials, while not adirect objective of the project, may none-the-less be controversial depending on how the project's stanceis perceived by groups who are not supportive of such measures. Moreover, changes of traditional genderroles and equity may be negatively perceived by some. The collaborative stance of the project and itsgoal of promoting best practices among existing NGOs will mitigate against these possible negativereactions.

G: Main Loan Conditions

1. Effectiveness Condition:

a. Presentation of the final version of the Operations Manual satisfactory to the Bank.

2. Other:

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H: Readiness for Implementation[] 1. a) The engineering design documents for the first year's activities are complete and ready for thestart of project implementation.[X] b) Not applicable.[X] 2. The procurement documents for the first six months' activities are complete and ready for thestart of project implementation; and a framework has been established for agreement on standard biddingdocuments that will be used for ongoing procurement through the life of the LIL.[X] 3. The LIL's implementation plan has been appraised and found to be realistic and of satisfactoryquality.[] 4. The following items are lacking and are discussed under loan conditions (Section G):

1: Compliance with Bank Policies[X] 1. This project complies with all applicable Bank policies.

lvjv,i~N\LAJ / b/}A'>/ A ,v,Team Lea4er: Maria-Valeria Pena Team Leadert: Sandra Cesilini

or D r: Ernesto May Sec r Director: John Redwood

Country Director: Myrna Alexander

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Annex 1: Project Design SummaryARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM

Sector-related CAS Goal: Sector Indicators: Sector / Country Reports: (from Goal to Bank Mission)To promote human capital National economic data, Poverty alleviationdevelopment, gender equity Decrease in the living standard surveys prioritized by GOAand poverty alleviation proportion of families

living below the poverty No major economic andFollow-on Development line. social crisisObjective:The well being of poor menand women will improvethrough support to genderequity and strengthening offamilies as comprehensiveunits.

Project Development Outcome / Impact Project Reports: (from Objective to Goal)Objective: Indicators: Counterpart funds areTo test and monitor a social As compared to a Questionnaires, field available and timely andcapital approach to address baseline study: visits and participatory the GOA commitment tothe vulnerability of the poor (a) improved awareness beneficiary assessments family strengthening andby targeting families as among beneficiary gender equity remainscomprehensive units and families about the strongpromoting gender equity importance of gender

equity and cohesive No major economic orfamily practices as a social crisismeans of reducing theirvulnerability;(b) improved awarenessamong beneficiaryfamilies about children'semotional needs andhow to respond to them;(c) decrease in domesticviolence episodes amongbeneficiary families;(d) improved evidenceof responsibleparenthood amongbeneficiary families;(d) increase in theproportion of CBOs andLGs connected in civilsociety networks.

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Hierarchy of Objecves Key Performance M.trlg & .liAtion.__.__.__.__..__.__._ . ndicator_

Output from each Output Indicators: Project Reports: (from Outputs to Objective)component: Programa Equidad finds aIa. Families' abilities to la. At least 100 Project completion report sustainable demand fromfunction cohesively are subprojects are LGs and CBOsstrengthened successfully Supervision reports

implemented under CNM receives continuedEquity Program by the support from theend of the project, government for its focus onaccording to indicators gender equity as an elementincluded in the of poverty reductionOperational Manual

lb. Community social lb. At least 30 Timely allocation ofcapital is expanded. networks of LGs and counterpart funds

CBOs receivecapacity on gender and A number of LGs andcohesion approaches CBOs share the values of

PROFAM and of working2. Gender awareness 2a. At least three in networks(parental responsibility, communicationreproductive health and campaigns are carrieddecision making, respect for out by the end of thenon traditional gender roles projectamong children and youth,) 2b. Ten "encuentros" ofamong critical stakeholder critical stakeholders aregroups increases organized in different

areas of the country tointerchange positiveexperiences related tothe objectives ofPROFAM2c. Three disseminationpackages ofcommunicationmaterials linked to theproject themes aredefined andimplemented each year.

3. CNM capacity for 3. Small training andcommunicating with local disseminationstakeholders and facilitating workshops betweencommunity driven CNM and its localinitiatives is strengthened agencies are organized

in all 24 provinces bythe end of the project

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Hierarchy ofWObjoit . ei Assumptions

Project Components/Sub- Inputs: Project Reports: (from Components tocomponents: (in millions) Outputs)

1. Family Strengthening: 1. US$4.27a. Programa Equidad Supervision reports Project beneficiaries and

Independent project CNM remain committed tob. Social Capital Promotion auditing PROFAM as an innovative,

Ongoing participatory learning process2. Gender and 2. US$1.21 beneficiary assessmentCommunity Awareness: Timely distribution ofa. Meetings and workshops grants

b. Publications and videos

c. Media Campaigns

3. Institutional 3. US$1.20Development:a. Consultants

b. Equipmentc. External auditorsd. Capacity buildinge. Monitoring andevaluationf. Administrative unit

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Annex 2: Project Description

ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM

The development objective of the Argentina Family Strengthening and Social Capital Promotion Project -PROFAM is to test and monitor a social capital approach to address the vulnerability of the poor bytargeting families as comprehensive units and promoting gender equity. To achieve this objective, theproject will support, monitor, and learn from initiatives promoted by local governments (LGs) andcommunity-based organizations (CBOs), provide capacity building opportunities for networks, LGs, andCBOs, and promote the dissemination of knowledge and experiences related to community interventionssupporting family development and equitable gender relations. The following three components havebeen designed to meet this objective.

Project Component 1 - US$4.27 millionFamily Strengthening

The strengthening of families through an approach, which recognizes them as agents rather than clients, isimportant to capture and support family capacity in order to work cohesively to face the numerouschallenges of poverty. Recognizing the characteristics of families and communities, PROFAM willsupport different types of initiatives from community-based networks, LGs and CBOs that are intended tosupport families, promote more equitable gender relationships and expand community social capital. Thiscomponent consists of the following sub-components:

1. Programa Equidad. The principal activity of PROFAM will be the implementation of thePrograma Equidad, a demand-driven grant program for the development of small subprojects whichpromote and strengthen the capacity of families to actively function within their community.

Targeting. The Programa Equidad will target poor communities in Argentina where domestic violenceagainst women and children, teen pregnancy, juvenile delinquency, and substance and alcohol abuse arehigher. It will also target poor areas where there is a lack of access to reproductive health information andoptions, including childcare.

Eligibility. LGs, service NGOs, CBOs and other civil society groups are eligible to apply for the smallgrants program, although preference shall be given to those organizations that have proven targetingmechanisms, technical experience in related themes, and demonstrate a capacity and willingness to beinnovative and to learn. Specific eligibility criteria for LGs and civil society organizations are detailed inthe Operations Manual. Those groups that do not fulfill the eligibility criteria but have potential mayreceive technical assistance in order to refine and re-submit the proposals.

Selection. CNM will ensure that the proposals meet the minimum technical criteria before their inclusionin the selection process. An evaluation and selection committee comprised of external specialists will beestablished to conduct the review and selection of grant proposals. The principal responsibilities of thecommittee will include: (a) carrying out a review of community subprojects in compliance with projectguidelines and eligibility criteria as defined in the Operations Manual; and (b) assessing communityparticipation in the identification, preparation and execution of subprojects and the quality of technicalassistance. The technical committee will also be responsible for establishing the paranThters to monitorand evaluate subproject implementation.

Criteria. Priority shall be given to proposals that seek to promote more equitable gender relationshipswithin the family and/or the community. For those applicants that lack experience in the incorporation ofa gender approach, but demonstrate the capacity to achieve the goals of PROFAM, technical assistancemay be provided. The detailed eligibility criteria are included in the Operations Manual. Three keyselection criteria are that proposals must: (a) include a gender perspective; (b) foster partnerships amongLGs, CBOs and families in order to increase access, availability and utilization of resources; and (c)

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incorporate participatory decision-making processes with potential beneficiaries. Proposals will bedeveloped in accordance with procedures and criteria outlined in the Operations Manual. Small grantrequests may not exceed $30,000 and should include a minimum community contribution of 20 percent.Technical assistance for the preparation and implementation of the subprojects may be included in theproposal amount.

Menu. Due to the demand-driven, innovative nature of Programa Equidad, the Operations Manualincludes eligible themes, rather than specific activities. Some examples of subproject themes may includereproductive health, domestic violence, maternal/paternal responsibility, rights and citizenship, childwelfare and educational support, culture and recreation, and environmental awareness. The project willnot finance religious or political activities, or major civil works

2. Social Capital Promotion - Networks or associations of CBOs, NGOs, and in some cases, localgovernments, are often better situated than central or provincial governments to work with poorcommunities on the design, management and monitoring of community-based initiatives. In addition,these networks provide an integrated approach to addressing problems of poverty and familialrelationships by promoting the collaboration and solidarity of these organizations. Often they are moreaware of the need to avoid prolonging clientelistic relations among the poor.

PROFAM will support the strengthening of existing networks, LGs, CBOs and other civil societyorganizations through capacity building and technical assistance, and in some instances the provision ofbasic equipment such as computers or printers. The selection criteria and procedures for such activitiesare detailed in the Operations Manual, however priority will be given to those networks that demonstrateinnovative approaches to family strengthening, facilitate the participation of the family and promote moreequitable gender relations. Capacity building activities for the organizations will: (a) encouragereciprocity among civil society and governmental organizations; (b) promote the articulation of anintegrated strategic approach to facilitate their collaboration; (c) improve the participation of families andother stakeholders in the design, management and monitoring of community-based initiatives; and (d)strengthen the administrative capacity of such organizations.

Project Component 2 - US$1.21 millionGender and Community Awareness

The objective of this component is to promote awareness-raising and communication strategies at amicro-level that seek to directly impact the project target areas to further enhance government-civilsociety-community-family relationships, particularly related to reproductive health choices and decisionmaking, parental responsibility, respect for non-traditional gender roles among youth and children, etc.Specifically, communication strategies will: (a) disseminate best practices on community interventionsdedicated to family development and equitable gender relation; (b) promote an increased understandingabout gender issues and the rights of children among critical stakeholder groups; (c) encourage theparticipation of families as protagonists in the definition of their own priorities and evaluation of socialprograms from which they benefit; and (d) increase awareness of benefits of working in alliances orpartnership networks.

Project Component 3 - US$1.20 millionInstitutional Development

This component will build upon the existing project management capacity of the PIU within CNM as theentity responsible for the coordination and monitoring of the implementation of the project by providingtechnical assistance and capacity building for PIU staff and consultants. Specifically, this component willsupport: (a) consultants to support the technical and administrative implementation of the project; (b)capacity building for PIU staff and consultants; (c) the implementation of a monitoring and evaluationsystem, including the definition of the baseline and performance indicators; (d) consultants for the projectaudits; and (e) equipment (computers, printers, software etc) necessary for project implementation.

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Annex 3: Estimated Project Costs

ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM

Prjc ost By GioeU~mf s$l~i Smliont

1. Family StrengtheningPrograma Equidad 3.03 0.00 3.03Social Capital Promotion 0.87 0.16 1.03

Subtotal 3.90 0.16 4.06

2. Gender and Community Awareness 1.02 0.13 1.15

3. Institutional Development 1.05 0.11 1.16

Total Baseline Cost 5.97 0.41 6.38 a/Physical Contingencies 0.26 0.02 0.28Price Contingencies 0.00 0.01 0.01

Total Project Costs 6.23 0.44 6.67Front-end fee 0.00 0.05 0.05

Total Financing Required 6.23 0.49 6.72a/ total does not add due to rounding

-- ti - byCost .i- Catpnoryt -:;I -i, US $n-iHion US $mIlion-

Goods 0.69 0.05 0.74Consultant Services and Training 1.54 0.39 1.93Subprojects 3.37 0.00 3.37Operating Costs 0.63 0.00 0.63

Total Project Costs 6.23 0.44 6.67Front-end fee 0.00 0.05 0.05

Total Financing Required 6.23 0.49 6.72

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Annex 4: Social Assessment

ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM

1. The social assessment (SA) conducted for the project was based on several reports on household, families,gender, and poverty available for Argentina, including the 1999 Poverty Assessment and a Gender Portfolio Reviewundertaken by the Gender Unit in LCSPR. It was also based on consultations with task managers, NGOs andcommunity-based groups. The project design, including components, sub-components, activities, costs and keyindicators, is compatible with the recommendations from the SA.

2. Poverty and family organization are intrinsically linked. Decisions on the allocation of time, finances, anduse of resources and opportunities are made at the family level and they are based on the organization of gender andgenerational roles. Variations in gender roles, including segregated or interchangeable and balanced roles willaffect reproductive pattems, acquisition of human capital, opportunities and timing of entrance in the labor market,and income earning potential. In Argentina, family size is the single most importantfamily characteristic correlatedwith per capita income and expenditure. An analysis of expenditure per capita in terms of a number of householdcharacteristics demonstrates that only the number of household members and the completion of primary school bythe household head were statistically significant, with a negative correlation between per capita expenditure andhousehold size accounting for almost all the "explained" variance. A review of the Bank portfolio in Argentinasuggests that attention to a family interaction framework and gender could improve the quality and developmentimpact of the Bank's investments in the sub-region.

3. At the aggregate level, Argentina's relative achievements in reducing gender gaps and addressing gender-differentiated issues are noteworthy. In terms of gender, this country displays many characteristics of anindustrialized nation: a gender balance in educational attainment, relatively low fertility levels and maternalmortality rates, and one of the lower gender gaps in labor force participation in Latin America. The average wagedifferential between men and women is not only among the lowest in the Region, but it compares very favorably tomany industrialized nations, such as the United States, Canada, Switzerland and Britain where the differential ishigher than Argentina's.

4. While the average fertility rate is low compared to other Latin America and the Caribbean (LAC) countries,rates vary widely across socioeconomic groups, with rural and marginal urban areas at a disadvantage in terms ofaccess to services and information. The risk of maternal mortality increases with the number of pregnancies.Together with infant mortality, maternal mortality accounts for the majority of all premature deaths. Maternalmortality rates, again while comparatively low, range significantly in the country. The main reason for the highnumber of children among poor women is lack of access to contraception. However, women also show a lack ofawareness regarding the linkage between multiple pregnancies, poverty, and their poor health status. Some womenconsulted during the SA, often understand either pregnancy or nursing as a "destiny." Women would sometimesremark that "religion forbids the use of contraception," a powerful argument in a very Catholic country. Onewoman interviewed in a shelter for battered women during the field work also suggested that when their wives arepregnant or nursing all the time, men are assured that they are able to "control" their wives and keep them at home.In other words, high fertility is a poverty issue that results from a very segregated pattern of gender roles and veryoften, it is linked to domestic violence.

5. Teenage pregnancy continues to be a problem in Argentina with higher rates of adolescent pregnancyobserved among those girls with less formal education. Some studies also show that while fertility rates havedecreased since 1980, the incidence of pregnancy increased moderately among girls between the ages of 10 and 14.Adolescent fertility rates also vary by region and by socioeconomic group. At one extreme, the Federal Capital(14.2 per 1000) exhibits adolescent fertility rates similar to European nations whereas jurisdictions such as Chabut,Formosa, Misiones, Rio Negro and Salta exhibit rates similar to other less developed Latin American countries(over 50 per 1000).

6. Pregnant teens are more likely live in poor households, and their children are more susceptible to the risk oflow birth weight, neglect and more likely will dropout from schools and live in poverty than those of other women.A study of adolescent fertility conducted by Pantelides et al in Buenos Aires showed that adolescent girls and boys

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have limited knowledge of how their reproductive systems function. The study also showed that among thoseinterviewed, 40 percent were not using contraceptive devices and 25 percent of these (all female) did not usecontraception because they wished to become pregnant. The study found that 94 percent of males and 77 percent offemales interviewed were sexually active, and among those, 15 and 41 percent, respectively, had experienced apregnancy. In the majority of the cases, girls had dropped out of school before becoming pregnant. Other factorsthat put girls at risk of early pregnancy included: (a) having a mother or father who had his/her first child before theage of 20; (b) having a sibling who had been an adolescent mother; and (c) having had a parent, particularly themother, absent from the home.

7. The study found that 10 to 14 year olds were more likely to become pregnant by men over the age of 30, incontrast with older adolescent groups, where it is rare that fathers are older than 30. A United Nations DevelopmentFund (UNDP) report ( Violencia de Genero) indicates that in absolute terms, of the 700,000 annual births, about100,000 mothers are less than twenty years old. Evidence also shows that precocious pregnancies are more frequentamong those with less schooling or living in more precarious socioeconomic situation. Fathers of babies born fromwomen between the ages of 9 and 13 are on average ten years older than the mothers.3 Information reported byUNDP also shows that in 1997, in some municipalities, there was a lack of paternal responsibility in half of allchildren born that year. The lack of information and access has resulted in illegal abortions - the third cause ofmaternal mortality in the country.

8. Among the better-educated in Argentina, gender differences in salary levels and advancement in the laborforce persist. Moreover, while education has brought opportunities to women in the labor force, their contributionsare perceived as supplemental or secondary to men's. Domestic work continues to be for the most part a woman'sresponsibility. Moreover, among the poor, responsibilities for housework and childcare constrain the potential forwomen to work outside of their homes. Married women generally exhibit low labor force participation rates.Among the poor, boys are expected to work starting very early in life, thus severely hindering their educationalattainment and future income, leading to lifelong frustration.

9. For adult men, despite continued economic growth, high unemployment is an emerging problem, which hasled to high incidences of depression, substance abuse, and violence among men. This appears to be due to socialnorms and systems governing male roles, the stigma men face when they are unable to fulfill their primary role asfamily provider, and the fact that male roles tend to be narrowly defined. Substance abuse and alcoholism,particularly among men, are important worries for their families. This is a factor in violence among youngsters anddomestic violence against women and children, and it is an obstacle to resources and income opportunities.Domestic violence and street violence are commonly reported and are rapidly becoming one of the most importantitems on the agenda of local governments and NGOs.

10. Research conducted by the World Bank demonstrates that a community with high levels of social capital ismore likely to organize itself, define, and pursue common goals. Moreover, social capital is an important asset inany ongoing program or project requiring collective action, as in the case of PROFAM. The 2000 Social CapitalSurvey in Argentina indicates that the diversity and frequency of networking in the lowest income quintile is lowerthan in the highest. For example, among those living in the poorest quintile, only 32.8 percent socialize with friendsin contrast with almost the double in the highest quintile (59.5 percent). Whereas 58.4 percent of residents in thehighest quintile households affirm they participate in activities with their families, this is true for only 43 percent ofresidents in the poorest quintile households. On the other hand, among the poor that participate in any association,33 percent participate in philanthropic organizations and 48.8 percent in religious organizations (48.8 percent) ascompared to those in the highest income quintile (33.8 percent and 23.7 percent respectively).

H1. These results indicate that generosity might be a characteristic of the poor. There is a need for actions thatmobilize and expand this generous characteristic of their social capital by: (a) supporting civil society organizationswhich are community based and able to enrich family and community life; and (b) supporting actions that bridgegaps between poor families and community and service organizations. PROFAM will provide support to both

3 Aldo Isuani-Daniel Filmus (1998). Los Retos de la Salud Reproductive. La Argentina Que Viene: anatisis y propuestas para uncasociedad en transici6n. CEDES: Buenos Aires

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actions, testing the hypothesis that by promoting a more cohesive and less segregated family life, there will be apositive impact on the ability of families to face challenges posed by poverty.

12. Strategic recommendations. First, the LIL should act upon traditionally held gender roles and expectationsso that women and men can take advantage of the newly created opportunities, particularly less crowded householdsand more schooling. Different channels need to be used to promote change in gender-based social expectations,such as the media, education, families, and communities. PROFAM has defined a specific component to befinanced under the loan. Second, to address this, the LIL should act through community and local levelorganizations. Decentralized mechanisms and community-based organizations have comparatively moreadvantages than the central government to address issues identified in this report that require sustainable changes inattitudes, such as substance abuse, family disintegration, domestic violence, violence among young men, maternalhealth, teenage pregnancy, or reproductive health. PROFAM will act through community social capital and willfinance specific activities. Third, it is important that the LIL target males as well as females because gender is arelational category. PROFAM will incorporate this criteria in the Operations Manual for the Programa Equidad.

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Annex 5: Procurement and Disbursement Arrangements

ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM

Procurement

A. General

Procurement of goods financed by the Bank under the project would be carried out in accordance with the Guidelines,Procurement under IBRD Loans and IDA Credits, dated January 1995 and revised in January and August 1996,September 1997 and January 1999. Consultant services will be procured in accordance with the Guidelines: Selection andEmployment of Consultants by World Bank Borrowers dated January 1997 and revised in September 1997 and January1999, and the provisions stipulated in the Loan Agreement. No civil works or recurrent costs will be financed under theproposed LIL.

Procurement methods: The methods to be used for procurement are described below and the estimated amounts foreach method are summarized in Table A. The threshold contract values for the use of each method are established inTable B.

B. Procurement Responsibilities and Capacity

Procurement activities for the Gender and Community Awareness and Institutional Development components will becarried out by the Project Implementing Unit (PIU) of the National Council of Women (Consejo Nacional de la Mujer,CNM). This unit will also coordinate and supervise procurement actions for the subprojects where procurement activitieswill be carried out directly by the beneficiaries. An assessment of the capacity of CNM was carried out before appraisalto review the organizational structure of the PIU, identify weaknesses and risk factors, and propose specific actions to beaddressed before effectiveness.

The procurement assessment indicated that the PIU, specifically the Administrative Chief, has experience and knowledge,although some limitations were identified in procurement procedures. For instance, limited experience exists incommunity-based procurement, which represents the majority of the LIL's procurement activities and where procurementsupervision and monitoring will be key for successfully implementing the subprojects. To minimize the risk related to thelack of procurement experience with World Bank projects, it was agreed that as part of the Action Plan, theAdministrative Chief will enhance her knowledge with training on selection of consultants for World Bank projects. Dueto the small amount of procurement required for the LIL, an experienced consultant will be retained for procurementassistance, specifically for LIL activities, when required. In addition, an independent consultant will conduct audits onone out of every five subprojects on a yearly basis.

C. Procurement Arrangements

1. Procurement of Works

No procurement of works is anticipated under the project.

2. Procurement of Goods

Goods to be procured under the project include computers, printers, videos, publications, and reproduction of promotionalmaterials. Due to the nature and small amounts required, grouping of these purchases would not be feasible.Consequently, no foreign or domestic suppliers would be interested for ICB or NCB procedures. If required, contractsabove $50,000 should be procured under NCB procedures. The actual procurement methods would be determined on thebasis of the annual CNM procurement plans. Contracts estimated to cost less than US$50,000 per contract, up to anaggregate amount of US$530,000 equivalent may be procured using shopping procedures based on a model request forquotations satisfactory to the Bank.

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3. Consultant Services and Training

Consulting services include technical assistance and provision of training. Most of these services are expected to becarried out by individual consultants. Training and promotion activities would include the rental of facilities, materials,meals, and transportation expenses for participants.

Firms

Consultant services carried out by a firm will be hired using QCBS procedures.

Individuals

The project would finance individual consultants for the strengthening of CNM's PIU, i.e. staff for administration of theproject, and training for beneficiaries in organization and preparation of community initiatives. Short-term consultantswill carry out the majority of these assignments. For the administration of the project, one long-term assignment has beenidentified and would be selected in accordance with the provisions of paragraphs 5.1 through 5.3 of the ConsultantGuidelines taking into consideration the total cost of the contract for the long-term duration of the assignment. Thiscontract would include clauses on periodic evaluation and termination.

4. Subprojects

The project includes an estimated amount of US$3.37 million equivalent for subprojects. These subprojects consist ofgrants to finance initiatives proposed by municipalities and civil society associations on a competitive basis. Subprojectsare not predefined. Typical subprojects to be considered may include: (a) domestic violence interventions where childrenare supported and both men and women are; (b) community-based "host" families where children from dysfunctional andviolent parents are placed temporarily; (c) after-school programs that support children with learning disabilities byinvolving both parents; and (d) local government-sponsored health centers that offers an after-school program to facilitatediscussion groups among men and women about reproductive health roles and responsibilities and responsibleparenthood; etc. The financing of individual subprojects can not exceed US$30,000. The Operations Manual describes indetail the selection procedure and eligibility criteria and conditions applicable to the subprojects. Beneficiaries have tocontribute in cash or in kind with 20% of the total amount of the subproject. An individual subproject could consist ofgoods, works or services, or any combination of the three. Procurement under subprojects is done by the beneficiaries andto the extent possible would follow shopping procedures. For small purchases of consumption items and off-the-shelfgoods direct contracting may be considered. Subprojects will be subject to post-review.

5. Prior Review

The prior review thresholds are summarized in Table B. Bank's prior review will be required for a) any NCB; b) the firstthree contracts under national shopping procedures; c) contracts with individuals consultants above $50,000, and forconsultant firms above $100,000. The proposed thresholds for prior review are the standard thresholds used in Argentina.In addition to the prior review of individual procurement actions, an Annual Operating Plan and budget will be reviewedand approved by the Bank.

6. Procurement Supervision

Procurement Plan. CNM has prepared an indicative plan for the 3-year period of project implementation, which providesthe basis for the aggregate amounts for the procurement methods (per Table A). Annual procurement plans will besubmitted as part of the Annual Operating Plan.

In addition to the prior review, it is recommended that two full supervision mission visit the field to carry out post reviewof procurement actions six months after Project initiation and yearly thereafter. Such post-review field analysis shouldcover a sample of not less than 20 percent of contracts signed and one out of five subprojects.

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Procurement methods (Table A)

Table A: Project Costs by Procurement Arrangements(US$ million equivalent)

Procurement Method'ExpenditureCategQry TotalCost

NC8-- Other at N_._F_.-1. Goods b/ 0.53 0.21 0.74

(0.40) (0.40)2. Consultant Services and Training 1.90 0.03 1.93

-- (1.90) -- (1.90)

3. Subprojects 3.37 3.37(2.65) (2.70)

4. Operating Costs 0.63c 0.63

5. Front-end Fee 0.05 0.05(0.05) (0.05)

Total 5.85 0.87 6.72d(5.00) (5.05)

Figures in parenthesis are the amounts to be financed by the Bank loan. All costs include contingencies.

Note: N.B.F. = Not Bank-financed

a/ Includes goods to be procured through national shopping (US$0.53 m.), consulting services (US$1.04 m),training (US$0.9 m), and subprojects (US$3.37 m).b/ Contracts for goods estimated to cost more than US$50,000 per contract should be carried out under NCB.Procedures. During preparation, no contracts above US$50,000 were planned and therefore not costed.c/ Includes operating costs related to managing the project.d/ Total amount does not add due to rounding.

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Table Al: Consultant Selection Arrangements (optional)(in US$ million equivalent)

X~~~~ AQCBS QBS LCS CQ Other

A. Individuals 1.00 1.00(1.00) (1.00)

B. Firms 0.02 0.02(0.02) (0.02)

Total 0.02 1.00 1.02.______ ______ ______ _ _(0.02) _ (1.00) (1.02)

Note: QCBS = Quality- and Cost-Based SelectionCQ = Selection Based on Consultants' QualificationsOther = Selection of individual consultants (per Section V of Consultants Guidelines),Commercial Practices, etc.

N.B.F. = Not Bank-financed.Figures in parenthesis are the amounts to be financed by the Bank loan.

Table A2: Procurement Plan (in US $million)

im E$g1 Contracts,' !A 0..iFM "I S 2 Ag , MEquipment 1 0.05 XPromotional Material N/A 0.69 X X XIndividual Consultants -15 1.00 X X XConsultant Firms -1 0.02 X X XTraining N/A 0.91Subprojects -140 3.37 X X XOperating Costs N/A 0.63 X X X

TOTAL 6.67Front-end Fee 0.05

TOTAL 6.72

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Prior Review Thresholds (Table B)

Table B: Thresholds for Procurement Methods and Prior Review

(Th Ihod) -rcureetPiRveExpenditure Categoryr i-; -i thousXad) MehdfS iio1. Goods

>50,000 NCB All if any<50,000 Local Shopping First three contracts

2. Services(a) Individual >50,000 CQ All

<50,000 CQ TORs-CV(b) Firms >100,000 QCBS All

<100,000 QCBS TOR/short list3. Subprojects

<30,000 N/A None

Total value of contracts subject to prior review: 800,000

Overall Procurement Risk Assessment: High

Frequency of procurement supervision missions proposed: Every six months.

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Disbursement

Allocation of loan proceeds (Table C)

Disbursements will be made against the categories of expenditures indicated in Table C. The proceeds of the proposedLIL are expected to be disbursed over a period of three years. The Bank will not finance any recurrent costs. The projectis expected to be completed by December 31, 2004 and the Loan Closing Date would be June 30, 2005.

Financial Management/Disbursement Procedures

A Bank-certified Financial Management Specialist carried out an assessment of CNM during project preparation. CNMwill be responsible for all project implementation activities, including accounting, disbursement, monitoring andevaluation, coordination, and supervision. CNM will implement the project through the existing Project ImplementationUnit (PIU) comprised of both technical and administrative specialists and managed by an Executive Coordinator. Short-term consultants will be hired to strengthen the PIU for special tasks, when necessary.

Based on the financial management assessment, CNM is not eligible for Project Management Report-baseddisbursements. It was agreed that traditional disbursement procedures would be used for a transition period of six monthsafter project effectiveness. These arrangements will be reflected in the Operations Manual of the project.

Disbursements will be made on the basis of full documentation for all expenditures made under contracts requiring priorreview by the Bank, and contracts whose value will be raised above the prior review limits as a result of amendments. Forall other expenditures, disbursements will be made against SOEs: (a) goods costing less than $50,000; (b) contracts forconsulting firms, including NGOs costing less than $100,000; (c) contracts for individual consultants costing less than$50,000; (d) all training expenditures; and (e) all Programa Equidad grant expenditures

Special Account

Payments from the loan proceeds will be administered by the PIU from a Special Account. The Special Account will bemaintained in US dollars in a commercial bank selected by the Borrower and acceptable to the World Bank. Theauthorized allocation, sufficient for about four months of eligible expenditures, would be US$500,000. The SpecialAccount will be managed by the PIU which will be responsible for preparing disbursement requests. These requestswould be submitted monthly or when the Special Account has been drawn down by a third of the initial deposit,whichever occurs first. The Special Account will be audited annually by independent auditors acceptable to the Bank.

Retroactive Financing. Retroactive financing of up to US$ 500,000 (10% of the Loan amount) will be allowed foreligible expenditures incurred not earlier than October 23, 2000.

Accounting, Financial Reporting, and Auditing Arrangements

The project will maintain project accounts in accordance with sound accounting practices acceptable to the Bank, asrequired by the Financial Accounting, Reporting and Auditing Handbook (FARAH). CNM will have the records andaccounts of the project for each fiscal year audited, with a separate opinion with respect to the Statements of Expendituresand the Special Account, by independent and qualified auditors acceptable to the Bank. A national auditor will audit allproject operations (on an annual basis), as described in the Operations Manual. In addition, a private auditing firm will becontracted to assess management capacity of a sample of beneficiary organizations. Project expenditures will be recordedin such a way that all related sources of funds and types of expenditures are clearly identified. CNM will (a) establish aconsistent financial, accounting and reporting system for the project and (b) maintain all required information andsupporting documentation corresponding to project implementation. The requirements for accounting, financial reporting,and auditing are described in detail in the Operations Manual.

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Table C: Allocation of Loan Proceeds(in US$ thousands)

Expenditure Category Amount in US$'0 |- Finaneing PercentageGoods 380,000 100% Foreign

_ _______________________ 50% Local

Consultant Services and Training 1,300,000 100%Subprojects 2,570,000 100% of CNM's contributionProject Preparation Facility 500,000 100%Front-end Fee 50,000 100%Unallocated 200,000

Total 5,000,000

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Annex 6: Project Processing Budget and Schedule

ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM

Time taken to prepare the project (months) 3First Bank mission (Identification) 06/25/2000 06/25/2000Appraisal mission departure 09/18/2000 10/16/2000Negotiations 12/04/2000 10/5/2001Planned Date of Effectiveness 01/01/2001

Prepared by:National Council of Women (CNM)

Preparation assistance:PHRD and PPF

Bank staff who worked on the project included:

Maria-Valeria Pena, Co-Task Manager Senior Social Scientist, LCSEOSandra Cesilini, Co-Task Manager Social Development Specialist, LCC7C

Mariana Montiel Senior Counsel, LEGLAMaria Elena Castro Senior Social Scientist, LCSEOTeresa Roncal Procurement Analyst, LCSESLee Anne Adams Operations Analyst, LCSEOSusana Cirigliano Financial Management Specialist, LCOAAAndres MacGaul Country Procurement Specialist, LCOPRVanessa Andreani Team Assistant, LCC7CLuis Constantino Peer Reviewer, SASRDMarc Alexander Peer Reviewer, ECCSDMaria Madalena dos Santos Peer Reviewer, LCSHE

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Annex 7: Documents in the Project File

ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM

A. Project Implementation PlanOperations ManualProject Implementation Plan

B. Bank Staff AssessmentsProcurement AssessmentFinancial Assessment

C. OtherComisi6n Nacional de la Mujer. Informe de Avances de Ejecuci6n. 8 de marzo, 1999.Comisi6n Nacional de la Mujer. Informe Nacional sobre el Grado de Avance de la Plataforma de Acci6n:

Pekin+5. M6dulo 1: La Mujery la Pobreza, 1999.Comisi6n Nacional de la Mujer. Memoria del Taller de Andlisis de Genero y Politcas Putblicas. 29 y 30 de abril,

1997.De Silva, Samantha. Community-based Contracting: A Review of Stakeholder Experience. The World Bank:

Washington, DC. January 2000.Gender and the Argentinean Economy, Studies on Gender in Education, Labor Markets, Microenterprise, and

Land. LCSPR.Poor People in a Rich Country.Reporte del Proyecto de Fortalecimiento Institucional en Genero. 15 de noviembre, 1999.Secretaria del Trabajo y Previsi6n Social. Memoria del Seminario Nacional Tripartito para el analisis del Plan

de Accion - Mas y mejores empleos para las mujeres en Mexico. Octubre 1998.

*Including electronic files.

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Annex 8

CAS Annex B8 (IFC) for Argentina

ArgentinaStatement of IFC's

Held and Disbursed PortfolioAs of 7/31/2001

(In US Dollars Millions)

Held Disbursed

FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic2000 ASF 20 0 0 0 0 0 0 01998 AUTCL 5.22 0 0 0 5.22 0 0 01994 Aceiteta Chabas 0 3.1 0 0 0 3.1 0 01994 Aceitera General 5 6.9 0 0 5 6.9 0 0

1960/95/97/99 Acindar 48.61 0 0 0 48.61 0 0 01994/95/96 Aguas 0 0 0 0 0 0 0 01977/84/86/88/94/96 Alpargatas 10 0 0 40.5 10 0 0 40.5

1999 American Plast 9 0 0 0 9 0 0 01993 Arg Equity 1nv. 0 2.84 0 0 0 2.84 0 02000 Argentina SMMC 50 12.5 0 0 0 12.5 0 0

1989/91/96 BBV Bco. Frances 1.27 0 0 0 1.27 0 0 01994/99 BGN 0 0 33 0 0 0 33 0

2001 BSFE 20 0 0 0 3.3 0 0 01996/9S Banco Galicia 0 0 0 45 0 0 0 45

1996 Bansud 2.64 0 0 0 2.64 0 0 02000 Bco Hipotecario 25 0 0 102.5 25 0 0 102.51996 Brahina - ARG 5 0 8.5 9.9 5 0 8.5 9.91997 Bunge-Ceval 11.79 0 5 0 11.79 0 5 01996 CAPSA 7.64 0 5 21 7.64 0 5 211999 CCI 0 20 20 0 0 20 6 01995 CEPA 6.67 0 3 1.2 6.67 0 3 1.22000 Cefas 10 0 5 0 6 0 5 01999 Correo Argentino 63 6.82 5.18 0 63 6.82 5.18 01999 DI TELLA 9 0 0 0 0 0 0 0

1994/95 EDENOR 0 0 0 0 0 0 0 01998 F.V. S.A. 9.75 0 4 0 9.75 0 4 01998 FAID 0 2.75 0 0 0 2.75 0 02000 FAPLAC 10 0 5 0 10 0 5 01992 FEPSA 1.65 0 2 0 1.65 0 2 01997 FRIAR 10 0 2.5 7 10 0 2.5 71996 Grunbaum 6 0 2 3.33 6 0 2 3.33

1995/97 HSBC Argentina 28 0 0 0 28 0 0 01998 Hospital Privado 9.6 0 0 0 7.5 0 0 01992 Huantraico 0 10 0 0 0 0 0 0

1995/97 Kleppe/Caldero 6 0 0 0 6 0 0 01996 MBA 0 0.16 0 0 0 0.16 0 0

1992/93/96 Malteria Pampa 2.5 0 1 0 2.5 0 1 00/97 Milkaut 6.25 0 10 2 6.25 0 10 21978/81/86/87/91/93/96/99 Minetti 30 0 14 100 30 0 14 1001993/94 Molinos 0 1.24 0 0 0 1.24 0 0

1995 Nahuelsat 12.5 5 0 0 12.5 5 0 01996/99 Neuquen Basin 0 5 0 0 0 0 0 0

1993 Nuevo Central 1.88 3 0 1 25 1.88 3 0 1.251992 OleaginosaOeste 0.76 0 1.25 0.31 0.76 0 1.25 0.31

1992/95 PAE - Argentine 5.45 0 0 10.91 5.45 0 0 10.911998 Patagonia 3.5 0 1 0 3.5 0 1 01998 Patagonia Fund 0 19.97 0 0 0 7.5 0 01996 Pecom 9.09 0 0 9 9.09 0 0 9

1990/94 Petroken 7.95 0 0 1.14 7.95 0 0 1.141994 Quilmes 5.57 0 0 0 5.57 0 0 01992 Rioplatense 5.33 1 0 1.67 5.33 1 0 1.671999 S.A. San Miguel 8.24 0 0 0 8.24 0 0 01995 SIDECO 0 15 0 0 0 15 0 01995 SanCor 10 0 20 3 10 0 20 31995 Socma 6.26 0 0 15 6.26 0 0 15

1997/98 Suquia 35 0 0 25 35 0 0 251997 T61 8.89 0 5 22.5 8.89 0 5 22.5

1987/89/90/96/97 Terminal 6 8.89 0 0 9.75 8.89 0 0 9.751995 Terminales Port. 5.5 0 0 0 5.5 0 0 0

1995/00 Tower Fund 0 5 0 0 0 3.44 0 01995 Tower Fund Mgr 0 0.14 0 0 0 0.14 0 01996 Transconor 21.23 0 18.5 166.17 21.23 0 18.5 166.172001 USAL 10 0 0 0 4 0 0 01997 Vicentin 19.38 0 0 4 19.38 0 0 4

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1993 Yacylec 4.4 5.04 0 1.6 4.4 5.04 0 1.61996 Zanon 17.67 0 0 0 17.67 0 0 0

Total Portfolio: 637.08 125.46 170.93 603.73 529.28 96.43 156.93 603.73

Approvals Pending CommitmentLoan Equity Quasi Partic

1999 American Plast 0 350 0 02000 ALEF 25000 0 0 1500002000 Hipotecario USCP 25000 0 0 02000 Argentina SMMC 50000 37500 0 4500002001 Gasnor 20000 0 0 200002001 Edenor SME 20000 0 0 02001 Eki 9500 0 2500 02001 ITBA 7000 0 0 0

Total Pending Commitment: 156500 37850 2500 620000

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CAS Annex Bt - Argentina

Status of Bank Group Operafions (Operations Portfolio)

As Of Date tI)e12ta

Closed Projecta 76

IBRDIDA-Totl Disbursed (Adte) 2,408.30

olfwN.h has been re-aid 290.91Total Disbursed (Closed) 12.493.40

of which hes boen repaid 5,333.40

Total Di.bursed (AcW. . Closed) 14,901.69

of which hes boon rerpid 5,624.33

Total Undisbu.ned (Atve) 2,060.07Total Undslbursed (Closed) 12.14Total Undsbr-d (Aetv. . Closed) 2,072.21

Active Prriects Diffeence BetweenLast PSR Expected and Actual

Supervision Rating Onainal Amount in US$ Millions Disbursements s

Project ID Project Name Develooent lmolermentation Fiscal Year IBRD IDA GRANT Cancel. Undisb. Or4g. Frm Revd

P039787 AR BIODIVERSITY CONSE S S 1998 10.1 8.2 0.6P044447 AR Calamarca Provinaal Rt S S 2001 70 44.3P068344 AR Cordoba PRL5 S S 2001 303 200P057473 AR INDIGENOUS COMMUI S S 2001 5 5 0.3P050713 AR MODEL COURT DEV. S S 1998 5 3.5 3.5P046821 AR PENSION TA S S 1997 20 5.9 5.9P006018 AR PROV DEVTrII S HS 1995 225 39.1 6.6P037049 ARPUB.INV.STRENGTHGS S 1996 16 5.5 5.8 11.3P073591 AR SAL 1 2002 400 200P055461 AR SOC&FISC NTL ID SYE HS S 1999 10 4.7 4.7P069913 AR Santa Fe Provincal Refr # 2002 330 176.7P057449 AR State Modemization S S 1999 30.3 25.2 25.2P057459 AR Sustainable Fishenes M S S 2001 5 5 0P064614 AR- Second Secondary Edi S S 2001 57 56.4 -0.6P043418 AR-AIDSANDSTDCONTFS S 1997 15 2.2 2.2P03388 AR-HEALTH INSURANCE IS U 2000 4.9 4.9 3.6P034091 AR-HIGHER ED. REFORMS S 1996 165 57.6 57.6 10.3P006059 AR-MATERNAL & CHILD H S S 1997 100 49.7 14.7P006030 AR-PROV. HEALTH SECT(S S 1996 101.4 14.3 10.6 24.9P055482 AR-PUB. HLTH. SURV. & I S S 2000 52.5 47.7 25.6P006057 AR-SECONDARY ED 2 S S 1996 115.5 41.4 41.4P050714 AR-SECONDARY EDUCAIS HS 1998 119 11.8 11.8P049269 AR-SOCIAL PROTECTION S S 1998 284 19.9 19.9P006058 AR-SOCIAL PROTECTION S S 1999 90.8 65.2 29.5P039584 B.A.URB.TSP U U 1997 200 125.9 95.9 2.9P055935 EL NINO EMERGENCY FL S S 1998 42 23.1 23.1 23.1P006052 FLOOD PROTECTION S S 1997 200 138.8 127.8 10608P006040 FORESTRY/DV S S 1996 16 6 3 4.9P006060 MUNIC DEVT II HS HS 1995 210 2.9 49.6 -3P040808 N.FOREST/PROTC S S 1997 19.5 11.7 1P052590 NAT HWtY REHAB&MAINT S S 1998 450 161 2 124.7P006050 POLLUTION MGT. U U 1998 18 16.8 13.1 6.7P006010 PROVAGDEVTI S U 1997 125 110.7 54.9 26.4P005980 PROV ROADS S S 1997 300 222.9 193.9P005920 REDUCTION OF OZONE C S S 1997 25 11.2 -10.5

a. Inlended disbursements to date minus actual disbursements to date as projected at appraisal.

P006043 RENEWENERGY R.MKTS S S 1999 30 28.4 8.5

P045048 RENEWENERGY R MKTS S 1999 9.2 8.6 2.7

P005968 SEGBAV U U 1987 276 10,5 17.2 27.7 2.9

P006041 SMALL FARMER DV S S 1998 75 38.2 30.4 30.4

P006046 WATER SCTR RFRM S U 1999 30 27 19.5

Overall result Result 4515.8 44.3 33 2 2088.1 650 209.5

aed

a Intended disbursements to date minus actual disbursern ents to date as projected at appraisal.

Annex )

Argentina

PRICES and GOVERNMENT FINANCE1980 1990 1999 2000 Inflation

Domestic prices(%(% change) 6Consumer prices 100.8 2,314 0 -1.2 -0.8 1 4Implicit GDP deflator 90.8 2,076.8 -1 9 1.1 2_ _

Government finance(% of GDP, includes current grants) -2Current revenue 8.1 14.4 19.7 19.7 4Current budget balance 3.1 -1.5 -1.5 15 GDP deflator -OCPIOverall surplus/deficit -2.5 -2.5 -2.6 -2.4

TRADE

(US$ millions) 1980 1990 1999 2000 Export and import levels (US$ mill.iTotal exports (fob) . 12,488 23,315 26,244 40,000

Food . 1,374 2,063 2,322M eat 873 829 933 30,000Manufactures .. 3,364 6,952 7,825

Total imports (cif). 4,197 25,538 25,157 2,5Food.. ....

Fuel and energy 423 730 719 2Capital goods .. 1,338 11,902 11,724

64 05 66 97 08 66 00Export price index (1995=100) 80 88Import price index (1995=100) 85 83 O Exports F ImportsTerms of trade (1995=100) 94 106

BALANCE of PAYMENTS1980 1990 1999 2000 CurrentaccountbalancetoGDP(%)

(hiss mrllions)Exports of goods and services 9,893 14,727 27,836 31,005Imports of goods and services 13,081 6,954 32,687 32,685 1Resource balance -3,188 7,773 -4,851 -1,679

Net income -1,609 -6,203 -7,473 -7,517Net current transfers -101 71 379 287 -3

Current account balance -4,898 1,641 -11,945 -8,909 4

Financing items (net) 6,776 1,352 13,146 8,470 sChanges in net reserves -1,878 -2,993 -1,201 439 -6 -

Memo: 1Reserves including gold (US$ millions) . 10,814 27,831 26,465Conversion rate (DEC, local/US5) 4.99E-08 0.5 1.0 1.0

EXTERNAL DEBT and RESOURCE FLOWS1980 1990 1999 2000

(US$ millions) Composition of 2000 debt (USS mill.)Total debt outstanding and disbursed 27,157 62,232 145,994 146,395

IBRD 404 2,609 8,596 8,789 A 8,789IDA ° ° ° ° G: 31,545 C: 5,056

Total debt service 4,182 6,158 27,900 26,500 D: 11,633IBRD 71 414 982 1,239IDA 0 0 0 0 E ,9

Composition of net resource flows . ........-. ....Official grants 2 21 6 6 ..... ..Official creditors 58 456 1,538 1,957Private creditors 6,038 -974 3,478 -4,204Foreign direct investment 678 1,836 8,236 10,696Portfolio equity 0 13 -112 15 F: 85,073

World Bank programCommitments 27 0 132 441 A-IBRD E - Bilateral

Disbursements 71 405 1,573 1,020 8 -IDA D-Othermultilateral F-PrivatePrincipal repayments 34 233 445 538 C - IMF G- Short-term

Net flows 37 172 1,128 482 1 1

Interest payments 37 182 537 701Net transfers 0 -10 591 -219

Development Economics 9/13/01

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