Introduction

1. Introduction Title: Area Based Development Programme Time frame: 2005- 2010 Partner: Local authorities and Ministry of Economy Budget and Donors: EU (7,500,000 Euro) + 3,750,000 TRAC Main goals: improve lives in 250 communities in 30 of the poorest districts of Karakalpakstan, Kashkadarya and Fergana Valley By: • Improving capacity for strategic regional development planning • Mobilizing community & ensuing participation in local development • Supporting low income population including small farmers to improve livelihoods.

2. Major achievements to date • 400 local partners in central and local institutions trained on regional strategies and participatory development • 4 regional living standards assessments and 30 districts development plans • 150 community MDG baselines • 203 community projects (e.g. water, gas medical points) benefiting 360,000 people • 17 local resource centres supporting community projects and access to business opportunities • Over 5,000 people trained on MDGs, participatory techniques, project development and monitoring • Over 200,000 USD worth of microcredits disbursed to 2,000 people (70% rural women) • 10 farmers enterprises established, trained and equipped • 200 farmers trained in business planning and improved farming techniques.

3. Lessons learned • In order to remain relevant to the local context, the project scope must remain within the framework of the national development strategy, and donors’ support to achieve its gaols and the MDGs • Community infrastructure projects are an effective tool for improved local governance and ensure community participation • Support to small business and local entrepreneurship is key to improve local economic development and contribute to improved living standards

4. Challenges • Project scope and time frame are usually too short to sustain microcredit and support to local cooperatives • Long-term programme sustainability is difficult given the average project duration (2 years) and donors' annual planning • Limited donors diversification makes it difficult to create synergies and expand geographically • Community based organizations have limited capacity and resources to support project implementation • Local authorities have little flexibility to use their budget to complement and add on to project interventions • Low levels of local investment impact negatively on long term sustainability of interventions [rehabilitation of community infrastructure and support to small businesspeople, traders and entrepreneurs].