IFAD’S EXPERIENCE IFAD’S EXPERIENCE

WITH COMMUNITY WITH COMMUNITY

DEVELOPMENT FUNDSDEVELOPMENT FUNDS

1. Introduction

2. Key areas of concern

Community-level processes

Institutional linkages

Financing

3. Critical success factors

demand decision making/roles of CBOs inclusion/exclusion

local government higher-level planning

community contributions credit vs grants

A

B

C

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

SourcesSources

Review on CDF (H.Perret, 2003)

Literature review

Dynamics of inclusion/exclusion

Decision-making processes at community level

CDD in WCA(R.Pantanall)

IMI-Study on Targeting & CDF

CDF & Credit(2002)

Document review of 10 projects

Interviews with UNOPS/LAC

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

Scope

Community DrivenDevelopment

Community DevelopmentFunds

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

DefinitionDefinition

“The term 'Community Development Funds (CDFs)' is used to refer to a

range of typically demand-driven

mechanisms (such as Social Funds,

Social Investment Funds, Local

Initiatives Funds) which normally

channel grant funds to communities or

groups for small projects they have

identified.”  

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

Key areas of concern – Community level processes

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

Mobilisation/formulation of demand can be:

RushedUninformed (Government) short-circuited(NGO) influencedSupply-drivenOver-promotedAmbiguous (consultation vs empowerment)

A

Key areas of concern – Community level processes (cont.)

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

Unrealistic assumptions on:

Community cohesivenessCBO inclusiveness

A

Inadequate attention to who decides, how and where

Disproportionate benefits to better-off (men) due to:

Prevailing power and gender relationsLack of capacity and informationUnaffordable contributionsType of micro-projects

Key areas of concern – Institutional linkages IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

Limited information on:CDF impact on institutional change Presumed demonstration effect

Political and/or institutional environment sometimes unsupportive

Tendency to by-pass government

Potential interference with area planning

Conflict public vs private goods and unclear division of responsibilities between public and private sectors

Institutional location of Fund and sustainability unclear

B

Key areas of concern – Financing modalities

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

C

1. Beneficiary contributions (cash, labor, local material)

Upfront contributions considered as proof of commitmentActual contributions less than expected Contributions often unaffordable/unavailableNo time (for labour & participation)Affected by community size

Should communities re-distribute?Should communities re-distribute?

Key areas of concern – Financing modalities (cont.)

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

C

2. Credit vs grants

Undermining ‘credit culture’ Artificial groups forming to access CDF fundingSubsidies are groups-based, benefits are often individualProductive vs non-productive collective investments

Can production grants be used to “kick start” development?Can production grants be used to “kick start” development?

CRITICAL SUCCESS FACTORS - Community level processes

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

A

Clear empowerment goal

Strong poverty, gender and institutional analysis(before and during implementation)

CBO representativity and democratic decision-making, analysed, supported and monitored

Major up-front investment in information and capacity-building (individuals, organisations, field staff and institutions)

…combined with mobilising entry-point activities

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

BCRITICAL SUCCESS FACTORS - Institutional linkages

Careful institutional analysis and monitoring

Clarify public/private roles

Develop partnership with local government

Clear CDF institutional location and arrangements

Attention to promotion of CBO clusters & associations

CRITICAL SUCCESS FACTORS - Financing modalities

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

C

Contributions:Contributions:

Flexible

Verified through consultation

Deferred, if needed

Sensitive to social/gender differences

Credit:Credit:

Separate windows

Clarify concept of “group initiative”

Set clear eligibility criteria for “production grants”

IFAD’s experience with Community Development FundsIFAD’s experience with Community Development Funds

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