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COMMUNITY-DRIVEN DEVELOPMENT: A WAY OF DOING BUSINESS

What is CDD?. When is it appropriate?. The exercise of community control over decisions and resources directed at poverty reduction and development. Principles of subsidiarity as corrective of legacy of over-centralization. In settings/sectors where community groups have comparative advantage

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COMMUNITY-DRIVEN DEVELOPMENT: A WAY OF DOING BUSINESS

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  1. What is CDD? • When is it appropriate? • The exercise of community control over decisions and resources directed at poverty reduction and development • Principles of subsidiarity as corrective of legacy of over-centralization • In settings/sectors where community groups have comparative advantage • Not panacea: many services better provided by private sector or national public sector • Enabling environment: • Broader policy and institutional reform (including decentralization) • Why is it important? • Community access to markets and information (including ICT) • Links to elected local governments • Complements competitive economy and national public sector programs • Increases service efficiency, effectiveness and sustainability • Trusting communities with management of resources enables scaling-up • Strengthens local governance • Support for community actions COMMUNITY-DRIVEN DEVELOPMENT: A WAY OF DOING BUSINESS

  2. SIGNIFICANT PART OF PORTFOLIO • Estimates of pipeline: • $1.5 billion in FY01 • $2.0 billion in FY02 • Largest in SA, AFR, LCR, EAP • Growing in ECA, MNA

  3. “Way of doing business” for services where community groups can have comparative advantage • Help demonstrate success is possible when scaling-up CDD • Get immediate and lasting results at the grass-roots • “Growth” or “opportunity” services – examples: • Surface irrigation • Feeder roads • Micro-finance • “Human capital” services – examples: • Primary education • Water supply and sanitation • Preventive health care • “Empowerment” – move from beneficiary participation to communities as deciders and implementors • Frontier investment loans • Help get policy and institutional environment right for CDD, including decentralization reform and sector-specific “rules of the game” • Program lending FIT WITH THEMES AND INSTRUMENTS OF STRATEGIC FRAMEWORK

  4. Our starting point • Our challenge • FY01-02: 44 operations; $700 million CDD • Mostly sector-specific and project-based; led to mixed success • Fragmented community impact • Limited institutional sustainability • Multi-sectoral effort • Consolidated approach to lending • Fungible resources at community level • Linked to inter-governmental reforms AFRICA: OUR STARTING POINT AND OUR CHALLENGE

  5. AFRICA: OUR LONG-RUN VISION • 3 inter-related programmatic credits • Local Empowerment Credit • Fungible, demand-driven to communities • Sectoral expertise in response to demand • Local government capacity building • Poverty Reduction Support Credit • Inter-governmental policy reforms • Sector policy reforms • Public Sector Capacity Building Credit • Cross-cutting processes • Sectoral: “blue collar” to “white collar” • …Uganda and Guinea as good practice…

  6. AFRICA: OUR PROGRESS • $1.3 million of BB to multisectoral steering team…to shape country programs… • $15k for any requesting country sub-team if…multisectoral team which examines… • New opportunities at community level • Opportunities for consolidating efforts • Current efforts on decentralization • ...17 country teams participate • Up to $100k 2nd round proposals to re-engineer country programs through CDD lens • 11 country teams participate • 3 of the 11 initiate more community-level work • 7 of the 11 harmonize implementation processes • 8 of the 11 intensify intergovernmental work

  7. GROWING COMMITMENT TO DOING “MORE AND BETTER” – PROGRESS BY REGIONS • Growing importance in project and AAA pipeline • Growing part of country dialogue and support for policy and institutional reform • Impact/effectiveness studies launched (MNA, EAP) • Large TF activities (Norway TF Social Window, Japan Social Development Fund, others) • Client/staff workshops on lessons learned and good practices • Leadership by cross-sector regional teams

  8. GROWING COMMITMENT TO DOING “MORE AND BETTER” – PROGRESS BY NETWORKS • PRSP sourcebook chapter and Web site being launched • Support to PRSP teams (jointly with Governance and Participation anchors) • Quality and quantity metrics • Lessons learned/good practices led by TGs in PSI, ESSD, HD, PREM • Clinics and training with WBI • Simplified application of procurement, financial management, safeguards • Cross region/network CDD group • CDD anchor housed in SDV/ESSD, supported by RDV, INF, SP, PREM • Bimonthly reviews with Shengman Zhang

  9. Governments and other partners ask us to be involved because of WBG’s: • Financing capacity • Scaling-up requires large amounts of public finance • Pure private sector model not relevant for many CDD-type services • Ability to support “enabling environment” • For relevant policy and institutional reform • WBG’s involvement seen as important endorsement of economic and social benefits GROWING CLIENT DEMAND & FIT WITH OUR COMPARATIVE ADVANTAGES

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