Regional Network of Social Investment Funds in

Europe and Central Asia

Anush BezhanyanAnush Bezhanyan

For the ESSD Week For the ESSD Week

Washington DC, Washington DC,

March 30, 2005March 30, 2005

Outline Social Fund ObjectivesSocial Fund Objectives

ECA Portfolio of SFsECA Portfolio of SFs

ECANet Background ECANet Background

ECANet Activities ECANet Activities

Lessons LearnedLessons Learned

Future DirectionsFuture Directions

SF Objectives

• Provide small scale grants to targeted Provide small scale grants to targeted communities for their development objectives communities for their development objectives on the demand basison the demand basis

• Subprojects implemented by communities in a Subprojects implemented by communities in a participatory mannerparticipatory manner

• Short term objectives: improved access to Short term objectives: improved access to economic and social infrastructure and services; economic and social infrastructure and services; capacity development; and creation of capacity development; and creation of temporary jobs temporary jobs

• Long term objectives: contribution to Long term objectives: contribution to decentralization agenda; development of social decentralization agenda; development of social capital and partnerships in the community; pilot capital and partnerships in the community; pilot testing innovations and contributing to evolving testing innovations and contributing to evolving policy development through lessons learnedpolicy development through lessons learned

Europe and Central Asia Region SF Portfolio

• Over 30 Projects in 14 Countries (Albania, Over 30 Projects in 14 Countries (Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Armenia, Azerbaijan, Bulgaria, Georgia, Kosovo, Kyrgistan, Macedonia, Moldova, Kosovo, Kyrgistan, Macedonia, Moldova, Romania, Slovakia, Tajikistan, Turkey, Ukraine)Romania, Slovakia, Tajikistan, Turkey, Ukraine)

• About US$ 900 millions of which more than About US$ 900 millions of which more than US$ 500 millions World Bank financingUS$ 500 millions World Bank financing

• Significant co-financing by other donors (EU, Significant co-financing by other donors (EU, DfID, Sida, KfW). DfID, Sida, KfW).

• Growing portfolio – from appr. US$ 150 million Growing portfolio – from appr. US$ 150 million in 1998 to almost US$ 900 million in 2004in 1998 to almost US$ 900 million in 2004

ECANet Background

• Created in 1998 at the first regional Created in 1998 at the first regional conference in Armenia by SFsconference in Armenia by SFs• WB support - IDF grant US $285,000WB support - IDF grant US $285,000• ECANEt Secretariat established ECANEt Secretariat established • Coordinating committee comprised of Coordinating committee comprised of executive directors makes major decisionsexecutive directors makes major decisions• Started with seven countries, now has 14 Started with seven countries, now has 14 membersmembers

ECANet Activities

• Annual conferences (Macedonia 2004, Annual conferences (Macedonia 2004, 2005 planned in Armenia)2005 planned in Armenia)• Development of the web-siteDevelopment of the web-site• Training seminars and workshopsTraining seminars and workshops• Internship program Internship program • Study toursStudy tours• E-bulletin and publication of papersE-bulletin and publication of papers•Cross regional exchange (LAC, MENA Cross regional exchange (LAC, MENA networks of SFs) networks of SFs)

Lessons Learned• Established horizontal links between Established horizontal links between

participating fundsparticipating funds• Effective mechanism for regional cooperation, Effective mechanism for regional cooperation,

learning and exchange of informationlearning and exchange of information• Secretariat – moves to the country of elected Secretariat – moves to the country of elected

President of the ECANet (currently Turkey)President of the ECANet (currently Turkey)• Financing is an issue (IDF closed in 2004, Financing is an issue (IDF closed in 2004,

Turkey SSF received a UNDP grant)Turkey SSF received a UNDP grant)• WB has no good instrument for supporting WB has no good instrument for supporting

regional activity like thisregional activity like this• ECANet needs a sustainability strategyECANet needs a sustainability strategy

Future Directions• Sustainability is a key issue for the futureSustainability is a key issue for the future• Right now there is no WB funding but other Right now there is no WB funding but other

donors are involved (UNDP, DFID, USAID)donors are involved (UNDP, DFID, USAID)• The ECANet needs an donor exit strategy and the The ECANet needs an donor exit strategy and the

members are suggesting to introduce a members are suggesting to introduce a membership fee, but this is still debatedmembership fee, but this is still debated

• ECANet should break out of the SIF circle and ECANet should break out of the SIF circle and reach out to other programs (including non WB reach out to other programs (including non WB financed)financed)

• The membership can be open to other community The membership can be open to other community organizations and foundationsorganizations and foundations

Resources

• Website Website www.eca-net.org• ECANet E-bulletin • Published papers for annual conferences• WB website

www.worldbank.org/socialfunds

or type “social funds” in Intranet