1. IFAD’S EXPERIENCE WITH COMMUNITY DEVELOPMENT FUNDS

2. 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 Funds

3. Sources Review on CDF (H.Perret, 2003) Literature review Document review of 10 projects Interviews with UNOPS/LAC Dynamics of inclusion/exclusion Decision-making processes at community level CDD in WCA (R.Pantanall) IMI-Study on Targeting & CDF CDF & Credit (2002) IFAD’s experience with Community Development Funds

4. Scope Community Driven Development Community Development Funds IFAD’s experience with Community Development Funds

5. Definition “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 Funds

6. Key areas of concern – Community level processes IFAD’s experience with Community Development Funds Mobilisation/formulation of demand can be: Rushed Uninformed (Government) short-circuited (NGO) influenced Supply-driven Over-promoted Ambiguous (consultation vs empowerment) A

7. Key areas of concern – Community level processes (cont.) IFAD’s experience with Community Development Funds Unrealistic assumptions on: Community cohesiveness CBO inclusiveness A Inadequate attention to who decides, how and where Disproportionate benefits to better-off (men) due to: Prevailing power and gender relations Lack of capacity and information Unaffordable contributions Type of micro-projects

8. Key areas of concern – Institutional linkages IFAD’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

9. Key areas of concern – Financing modalities IFAD’s experience with Community Development Funds C 1. Beneficiary contributions (cash, labor, local material) Upfront contributions considered as proof of commitment Actual contributions less than expected Contributions often unaffordable/unavailable No time (for labour & participation) Affected by community size Should communities re-distribute?

10. Key areas of concern – Financing modalities (cont.) IFAD’s experience with Community Development Funds C 2. Credit vs grants Undermining ‘credit culture’ Artificial groups forming to access CDF funding Subsidies are groups-based, benefits are often individual Productive vs non-productive collective investments Can production grants be used to “kick start” development?

11. CRITICAL SUCCESS FACTORS - Community level processes IFAD’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

12. IFAD’s experience with Community Development Funds B CRITICAL 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

13. CRITICAL SUCCESS FACTORS - Financing modalities IFAD’s experience with Community Development Funds C Contributions: Flexible Verified through consultation Deferred, if needed Sensitive to social/gender differencesCredit: Separate windows Clarify concept of “group initiative” Set clear eligibility criteria for “production grants”

14. IFAD’s experience with Community Development Funds END