social development - world banksiteresources.worldbank.org/.../ida_social_dev_2010.pdf · social...

InternatIonal Development assocIat Ion

puttIng people FIrst

IDa

at W

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Social Development

september 2010sustaInaBle Development netWorK

d | IDA at WORK: Social Development

contents

Social Development: Putting People First 1

Strengthening Governance and Promoting Poverty Reduction in Indonesia 6

Cameroon: Community-driven Rural Development 8

Community Driven Development Delivers Impressive Results in Bangladesh 10

Nepal: Rural Communities Take the Driver’s Seat in Development 12

Social Development

IDA at WORK: Social Development | 1

puttIng people FIrst

Social Development

Social development adopts an approach that focuses on the need to “put people first” in develop-ment processes. Overcoming poverty is not just a matter of getting economic policies right – it is also about promoting social development which empow-ers people by creating more inclusive, cohesive, and accountable institutions and societies. An approach that integrates these principles is critical to address-ing some of the International Development Associa-tion’s (IDA) most challenging issues such as recon-structing post-conflict and fragile states, proactively adapting to climate change, promoting good governance and accountability, and reaching out to the poorest countries.

CHALLENGESustainable development requires balancing the

needs of present and future generations and has become a rapidly growing global concern. Three critical factors – economic, ecological, and social/political - take a central place in discussions of growth and poverty reduction. Social sustainability is a critical aspect of achieving long-term development that significantly improves the lives of the world’s poorest people.

There are several changes affecting the IDA countries: increased volatility in key markets affecting the poor and leading to the food, fuel and financial

‘crisis’ events of 2008-10; the increasing global consciousness of the challenge of climate action and its social dimensions; an increasing focus on the problems of ‘fragility’ – of countries, states and societies, and the implications for poor people; changes in the geo-political balance of aid, with the rising importance of large middle-income countries (particularly India and China) as regional and global development actors beyond their national boundar-ies; and increasing urbanization and its impact on developing societies. IDA has supported adapting to the changing environment through applied research and the development of tools and methods for understanding the social dimensions of global change. At the same time, there is a need to strengthen our understanding of the ways in which development action can build social resilience in the face of the negative impacts of change.

2 | IDA at WORK: Social Development

ApproACHTo meet these challenges, IDA is making a

substantial contribution through:i. Undertaking better social and political risk analy-

sis, including poverty and social impact analyses;ii. Building a greater understanding of the social

implications of climate change;iii. Building links between citizens and their govern-

ment representatives and promoting more responsive and responsible government struc-tures;

iv. Enhancing the capacity of communities for poverty reduction through the Community -Driven Development (CDD) approach;

v. Designing inclusive activities that increase societ-ies’ resilience to violent conflict;

vi. Ensuring that programs have robust social safeguards and that vulnerable groups, such as indigenous peoples and involuntarily displaced persons, are not only protected but also signifi-cantly benefit from the project and the develop-ment process.

rEsuLtsOne of IDA’s main contributions in recent years is

bringing attention to the important role that social analysis plays in promoting socially sustainable development. High quality social analysis is essential to fulfilling the World Bank’s mandate for effective poverty reduction. At the global level, social analysis underpins the Bank’s understanding of processes of social and political change that cross borders, includ-ing migration, conflict, and the social impacts of climate change. At the national level, this analysis is necessary to understand and identify the key socio-political barriers to sustainable poverty reduc-tion. At the local level, it is necessary to ensure that poor people benefit as much as possible from Bank projects and policies. Further, social development approaches focus on providing an understanding of the social and political risks that can obstruct the progress of development programs and that impede investment. They also focus on identifying adverse impacts during the preparation and implementation of projects.

IDa at WorK: social Development


Another of IDA’s goals is to ensure that projects deliver sustainable outcomes for poor people in contexts where IDA projects have the potential to cause disruption to their lives and livelihoods. Project design, appraisal and implementation processes support careful identification and address-ing of risks, mitigating adverse impacts and promot-ing positive impacts and development opportunities. The Bank’s performance ratings on addressing social development issues, including safeguards, during project preparation and appraisal has im-proved from 67 percent Moderately Satisfactory or higher in an Assessment in 1998 to 94 percent in an Assessment in 2009, both by the Bank’s Quality Assurance Group. With respect to the social safe-guard policies, in the 2009 Assessment the Involun-tary Resettlement Policy scored a moderately satisfactory or better rating of 83 percent, Indigenous Peoples Policy 82 percent and the Cultural Property Policy 81 percent. Nevertheless, the 2009 assess-ment also noted that satisfactory attention to social development issues at design was not matched by attention during supervision. Moreover, for projects with significant social safeguard issues there is considerable scope for addressing social opportuni-ties, impacts and risks beyond the narrow purview of the safeguard policies.

According to an internal World Bank evaluation, projects that addressed at least one social develop-ment dimension (such as community driven develop-ment, conflict, culture, gender, indigenous people, non-governmental organizations (NGOs)/civil society, participation, resettlement and social funds, etc.) were rated three to four percent higher on outcome, sustainability, and institutional development impact than the overall average of Bank projects over a 30-year period. Moreover, projects that addressed multiple social development dimensions had an even higher success rate.

The following examples demonstrate some of the results achieved by select projects funded by IDA:

Azerbaijan Rural Investment Project (AzRIP) (US$30 million) is a community-driven development operation that combines focus on economics and engineering with attention to social dynamics and environmental sustainability. Where AzRIP has rehabilitated rural roads, the travel time to school and markets has reduced by 47 percent and 26 percent respectively. The value of agricultural production has increased by more than US$1 million in areas where irrigation systems were rehabilitated and primary school enrollment has increased by 25 percent following rehabilitation of school buildings. The capacity of communities to engage in collective decision-making processes has increased to the extent that they are able to reach agreement on contribution rates for operation and maintenance of completed projects.

Nigeria Second National Fadama Develop-ment Project (US$125.4 million) is another CDD project that boosted the income of 2.3 million farm families in 12 Nigerian states. Real incomes of house-holds participating in agricultural project activities rose by 45 percent between 2005 and 2007 as



compared to income gains of non-beneficiary households with the poorest participants experienc-ing the largest increase of group-owned productive assets.

Poverty and Social Impact Analysis to support pro-poor water reform in Yemen (US$60,000): In Yemen, a Poverty and Social Impact Analysis (PSIA) was carried out in 2007 to analyze the impact and implementation constraints of the government’s 2005 water sector reform strategy in the groundwater, irrigation and rural water supply and sanitation sub-sectors. This study addressed the equity and political economy constraints of the National Water Sector Strategy and Investment Program (NWSSIP) by analyzing the program’s reforms in (i) water resources and irrigated agricul-ture, and (ii) rural water supply and sanitation. The PSIA took a multi-sectoral and spatial perspective, and used a participatory and incremental approach. The study made use of survey information, key informant interviews, focus group discussion, and political economy analysis. Findings suggested a need for institutional reforms in water resource management and irrigated agriculture, promoting

water productivity particularly for poorer farmers, and correcting the sequence of reforms. The PSIA also discovered a need to mobilize all stakeholders, strengthen ownership of NWSSIP, and improve productivity to restore incomes, particularly for the poor. Government, donors and stakeholders agreed to revise the reform strategy and implement priority PSIA recommendations through a multi-donor Water Sector Support Program.

BANk CoNtriButioNNew IDA lending commitments for social develop-

ment themes have averaged some US$700 million annually over the past six years (Chart 1). Over the past three fiscal years (FY), the amounts have declined in part due to several countries with large investments graduating from IDA to IBRD.

Between fiscal years 2005 and 2010, the compo-sition of IDA’s social development portfolio has continued to focus heavily on participation and civic engagement (which includes community driven development), accounting for half of the new com-mitments (Chart 2). Conflict prevention and gender were the next largest areas of new lending.

Source: World Bank Business Warehouse

$0$100$200$300$400$500$600$700$800$900

$1,000

FY05 FY06 FY07 FY08 FY09 FY10

$m

Chart 1: IDA Commitments with Social Development Themes (FY05-10)


pArtNErsIDA is well positioned to use its convening power

and wide range of partnerships to contribute to advance the social agenda. IDA has worked with several ministries including finance, social affairs, internal/home affairs, planning, public works, natural resource management, agriculture, and national coordinating bodies for poverty reduction. For its analytical work, it has partnered with academic and research networks globally and in-country. Work on fragility and conflict, gender, and climate change have involved partnerships with multilateral organiza-tions such as the United Nations (UN) and the Organisation for Economic Co-operation and Development (OECD) as well as bilateral develop-ment agency counterparts (U.K., U.S., Australia, Japan, Norway, Sweden, Finland). Global develop-ment NGOs, including environmental groups, indigenous people’s organizations, and humanitarian aid organizations, are also important partners in social development work

MoviNG ForwArd It is important to note the changing framing of

priorities related to IDA lending. The IDA16 Replen-ishment will be guided by three strategic priorities, all of which are of compelling relevance for the Bank’s forward strategy in Social Development: gender equity, country fragility, and climate change. The development of a window for ‘crisis’ lending in IDA is also a significant development as it recognizes that lending priorities need to take account of crisis and vulnerability, as well as the concerns with strong policy and institutional frameworks which have driven IDA allocation criteria for the past decade. The development of new instruments for climate finance (such as payment for carbon sequestered in biomass through the United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+) and other developing initiatives) is likely to continue to increase demand for expertise in designing socially sustainable operations – as many of these operations will require great sensitivity to changes in the livelihoods of forest-dependent peoples in order to be effective.

Source: World Bank Business Warehouse

Indigenous peoples3%

Chart 2: IDA Commitments with Social Development Themes (FY05-10)Social

analysis 1%

Other social dev9%

strengthening Governance and promoting poverty reduction in indonesia

ChallengeWhile recovering from the economic, political and environmental shocks of the past, and dealing with a series of natural disasters including the 2004 tsu-nami, earthquakes, and wide-spread floods; Indone-sia has embarked on a longer-term program to strengthen governance and reduce poverty.

ApproachThe Government has undertaken a massive decen-tralization program and is to transfer some 60% of the development budget to district governments. The IDA-supported Second Kecamatan Development Project aims to support participatory planning and development management and enable the construc-tion of social and economic infrastructure in poor villages. The project has also worked to strengthen local formal and informal institutions by making them more inclusive, accountable, and effective at meeting villagers’ self-identified development needs. IDA funding covered 22,010 of the poorest villages in Indonesia across 246 districts in 30 provinces.

resultsKDP2 funded some 81,464 infrastructure, economic and social activities across 246 districts in 30 provinces. Over 90% of the infrastructure built under the project meets quality standards and the cost of construction was 56% less on average than equivalent works built through government and ministry con-tracts. EIRRs for KDP infrastructure ranged from 39% to 68% (on average 53%).


Highlights:• In22,010ofthepoorestvillagesinIndonesia,

project processes have ensured high participation of the poor, who made up 60-70% of total participants.

• Economicinfrastructurecreatedincludes12,944kms of roads built or upgraded, 3,298 bridges built or reconstructed, 2,068 irrigation systems built, 4,400 clean water supply units and 1,760 sanitation units built.

• Thesocialinfrastructurecreatedincludestheconstruction and renovation of 2,650 schools, 2,067 “packages” of school equipment and materials, 88,750 individual educational scholar-ships, and the construction and renovation of 2,051 village health units and posts.

• Workonvillageinfrastructureprojectsprovidedalmost 1.7 m villagers with 20.2 million person days of labor.

• 90%oftheinfrastructurebuiltundertheprojectmeets quality standards.

• VillageinfrastructurebuiltthroughKDPmethodscosts 56% less on average than equivalent works built through government and ministry contracts.

• EIRRsforKDPinfrastructurerangedfrom39%to68% (on average 53%). In most cases, these very large benefits resulted from either entirely new economic activities that were made possible by KDP infrastructure or latent production capacity that was finally able to be channeled to local markets.

• Therearealmost808,000loanbeneficiariesandentrepreneurs participating in KDP credit & business activities.

• KDP2provedtobeaveryrobustinstrumentforsupporting post-tsunami efforts in all sub-districts of Aceh and Nias reaching more than 6,000 villages. Other areas where KDP responded


rapidly to unexpected disasters and conflicts include Jogjakarta and Central Java (earthquake), Papua (earthquake), Maluku (conflict), and Bali (bombing).

idA Contribution• IDAcontributedUS$111.30millionandIBRD

208.90. A total of US$ 258 million went to communities for the creation of social and economic infrastructure.

• Basedontheproject,thecommunity-baseddevelopment approaches have been adopted by the national and district governments through the National Program for Community Empowerment.

• GovernmentinterestinKDP’sM&Esystemshave(in part) led to a much broader use of mixed methods evaluations to make policy decision.

partnersThe government, local communities, and a large number of donors including Japan, AusAid, Danida, New Zealand, CIDA, DFID, and the Netherlands partnered with the project.

Next stepsKDP2 was succeeded by KDP 3 (a) and KDP 3(b), which together contributed an additional $240 million of WB assistance. In 2007, the GOI announced that a National Community Empowerment Program (PNPM-Mandiri), built on the KDP program. Financed with an annual allocation of at least US$ 1.2 billion for the next three years, GOI plans to extend the program until 2015.

KDP2 funded some 81,464 infrastructure,

economic and social activities across 246

districts in 30 provinces. Over 90% of the

infrastructure built under the project

meets quality standards and the cost of

construction was 56% less on average

than equivalent works built through

government and ministry contracts.



Cameroon: Community-driven rural developmentIDa at WorK: social Development

ChallengeThe Government of Cameroon signaled its strong interest in promoting decentralization more than three decades ago, but progress achieved toward this objective has been slow. Efforts to empower rural communities have been hampered by the absence of a common vision for local development, lack of appropriate planning and budgeting tools, and weak capacity at the local level. Communal elected officials have not been sufficiently empowered to manage local development and have had limited accountabil-ity toward their constituents. Investments channeled to local communities have often been influenced by politically well-connected elites and have not neces-sarily taken into account local priorities. Last but not least, the flow of resources to the local level has been inefficient due to lengthy and non-transparent administrative procedures and poor tracking sys-tems, leading to delays in implementation of invest-ments at local level.

ApproachThe Community Development Program Support Project (PNDP) was designed to support decentral-ization and local development by removing or reducing some of these obstacles, with the goal of improving basic social services delivery and estab-lishing a decentralized financing mechanism for local development. The project transferred resources directly to communes through a phased process designed to put in place a sustainable mechanism for channeling funds to rural communities to finance prioritized collective infrastructure projects and service delivery programs. Establishment of a sustainable and decentralized financing mechanism capable of operating with full participation of rural communities was seen as a long-term objective, so the project was designed as an Adaptable Program Loan (APL) to be implemented in three phases over a twelve-year period.

resultsThe project achieved important results in three main areas:

Established a system for channeling resources to rural communities and increased access to basic social services in rural areas. The project successfully transferred nearly US$24 million (US$6.6 million from IDA and US$17 million in the govern-ment’s own funds) to communes and community-based organizations for the co-financing of subproj-ects. These resources, which were transferred securely into the bank accounts of communes and communities, were used to finance 691 subprojects. More than 1.6 million people benefitted directly from infrastructure financed through the project: • 98,415peoplehaveimprovedaccessto

education facilities • 116,916peoplehaveimprovedaccesstohealth

facilities• 89,629peoplehaveimprovedaccesstoenergy• 164,778peoplehaveimprovedaccesstowater

and sanitation• 21,780youthhaveimprovedaccesstosportand

leisure facilities• 45,861peoplehaveimprovedaccesstomarket

Strengthened the capacity of communities and local governments to plan and manage their own development. During the course of providing support to approximately 3,100 community-based organizations in the preparation of their local develop-ment plans, the project greatly strengthened the ability of rural communities to manage public resourc-es. The project also supported the preparation of communal development plans in 135 communes.

Improved the legal and regulatory framework for decentralized rural development. The project has made a significant contribution to improving the


More than 1.6 million people benefitted

directly from infrastructure financed

through the project.

legal and regulatory environment of decentralization, thus providing communes with an adequate frame-work for improved local development planning, financing and management.

idA ContributionIDA support has consisted of US$20 million ap-proved in 2004. The IDA resources have been used to leverage an even larger contribution of the government’s own resources, bringing the total to over US$50 million, including US$24 million from French Heavily Indebted Poor Countries (HIPC) funds.

partnersThe government was successful in forging a strong partnership with IDA and other development partners (Agence Française de Développement, AFD, Ger-many’s development bank KFW and the German Agency for Technical Cooperation, GTZ) in preparing and successfully managing this project. The govern-ment provided critical support to the National and Provincial Project Units, and directed sector minis-tries to work with decentralized local governments in the planning and management of local development.

Next stepsThe project has contributed to decentralized local development through its support to the elaboration of the development plans, through its financing of capacity building activities, and by setting up a system for channeling resources to implement priority activities in the development plans. The project has now set the stage to expand and consolidate these achievements during the subse-quent phases, with the ultimate goal of setting up a sustainable mechanism for channeling funds to communities and communes for financing local development.


Community driven development delivers impressive results in Bangladesh IDa at WorK: social Development

ChallengeIn Bangladesh, half of its 160 million people still live below the poverty line, with about 80 percent of the poor in rural areas. While the country is renowned for its micro-credit initiatives, the poorest people had not yet been reached.

ApproachFinanced by the International Development Associa-tion, the Social Investment Program Project was launched in 2003 to directly benefit the poorest by improving their access to local infrastructure, basic services, and livelihood opportunities. It started as a small-scale pilot project targeting two of the poorest districts, Jamalpur and Gaibandha. The project used an approach called community-driven development (CDD), which helped villagers form their own institu-tions and provided direct financing for investments directly into their hands. In 2007, the project was rapidly expanded to eight more districts affected by devastating floods and Cyclone Sidr, using the CDD approach.

Under this program, elected committee members in villages decide on and oversee what needs to be done in their communities. Women hold 80 percent of all the program’s decision making positions. The program’s approach comprised:• Strengtheningparticipatorycommunityorganiza-

tions that would work directly with both local governments and the private sector;

• Promotingandfundingparticipatoryplanningsothese community organizations could prioritize, implement, and manage demand-driven invest-ments;

• Enhancingtheskillsofruralpeople,especiallyvulnerable women and youth, to help them generate income and get jobs; and

• Promotingsavingsandlendingamongthepoortogradually build livelihood assets.

resultsOver 200,000 households (almost two million people) in about 1,000 villages in the poorest and most disaster-prone districts of Bangladesh have benefited from community infrastructure and productive investments, such as drinking water; access roads and bridges; and means to credit, markets, and income generation. Anoth-er 150,000 households in the cyclone- and flood-affected areas also received benefits.

Highlights:• Communityorganizationsblossomed.Theproject

established 950 community-level, pro-poor institutions; 18,000 small savings and credit groups; and 1,600 youth groups, all deciding their own priorities and managing project funds in a transparent way. Poor women occupy most decision-making positions.

• Communityinfrastructureandsocialservicesaddressed connectivity needs of the poor. About 1,300 infrastructure subprojects such as schools, rural roads, culverts, bridges, boreholes, and drinking water have improved quality of life of the poor. Communities implement and maintain these infrastructure investments.

• Womenexpandedsavingsgroups.Eightypercentof target beneficiaries have formed nearly 15,000 savings groups, with 80 percent female member-ship. Ninety percent of these groups have started small-scale internal lending to members; almost US$1 million has been mobilized.

• Flood-protectionsubprojectsbenefitedthousands.About 90 flood risk rehabilitation infrastructure subprojects have been established in the flood-affected area, and potentially 30,000 families could benefit from the enhanced quality of life and risk reduction measures.


Over 200,000 households (almost two

million people) in about 1,000 villages in

the poorest and most disaster-prone

districts of Bangladesh have benefited

from community infrastructure and pro-

ductive investments, such as drinking

water; access roads and bridges; and

means to credit, markets, and income

generation.

idA ContributionThe Social Investment Program Project was launched as a pilot in 2003. The total project cost was US$22.5 million, with IDA financing US$18.2 million. An additional US$1.6 million came from the Government of Bangladesh, and US$2.7 million came from the communities themselves in cash or in-kind. The first additional financing to consolidate project success cost US$9.45 million, with US$8 million from IDA. Through emergency funding and special reallocation from existing programs, IDA financed both the US$50 million for the cyclone victims and US$25 million for flood-affected commu-nities.

partnersIDA’s aid coordination in Bangladesh is a crucial function, given the very large number of donors working in the country. The main mechanism for in-country donor coordination is the Local Consulta-tive Group (LCG), composed of 32 bilateral and multilateral donors and the External Relations Division of the Ministry of Finance. The LCG’s goal is to ensure effective and efficient use of external aid in line with the government’s Poverty Reduction Strategy Paper.

Next stepsInitial success, coupled with urgent needs stemming from a series of natural disasters, led to rapid project expansion in areas affected by Cyclone Sidr and the floods of 2007. These new communities are benefit-ing from the full project approach, which is equipping them with new tools to improve their livelihoods. During initial discussions, one local woman remarked that the program would bring new life (notun jibon) to those who had endured abject poverty for so long. Thus, the additional financing for cyclone recovery is known locally as Notun Jibon.




ChallengeNepal is a landlocked country of 28 million people with a per capita income of about US$340, among the lowest in the world. Political turbulence and a Maoist insurgency have dogged its recent history (1996-2006), imposing high costs in terms of foregone growth and poverty reduction. Nepal has highly stratified societies with many marginalized social groups. Low economic development, landless-ness and poverty are widespread. The poverty rate in rural areas is much higher (35 percent) than in urban centers (10 percent). Nevertheless, Nepal has made important progress in bringing its overall poverty rate down to 31 percent from 42 percent over the last ten years, although the gains in urban areas have been greater than those in rural areas.

ApproachThe Poverty Alleviation (PAF) program, financed by IDA, is addressing both income and non-income dimensions of rural poverty, with special attention to groups that have traditionally been excluded by reasons of gender and ethnicity. The project focuses on the rural poor by: (a) targeting disadvantaged and marginalized groups; (b) taking action on the commit-ment to reach poor and excluded groups as articu-lated in the Poverty Reduction Strategy Paper; (c) improving coordination of poverty programs; (d) increasing employment and income opportunities through community-driven sub-projects; and (e) building the capacity of various stakeholders, including beneficiary groups and local bodies.

resultsThrough income-generating activities and community infrastructure projects, the PAF has reached over one million rural Nepalese in 25 districts since it began operations. Incomes for beneficiary families have increased by some 15 percent. More than 15,600 households now

have road access for the first time, and water supply, bridges, and sanitation have been provided for more than 32,000 households.

Communities have reported increased income generation through livestock purchases, increased local employment opportunities and higher income, through vegetable production, and the rehabilitation of community assets such as trails, foot bridges and tap stands.

The results estimate a sustained increase in income to these households of about 15 percent, which translates to about a 20-25 percent rate of return. If there were no PAF, the only finance available to these households would be through informal credit markets charging interest rates close to 30-40 percent.

Thirty percent of beneficiary group members come from targeted female-headed, which are the poorest of poor households.

idA ContributionTotal project cost for the first phase was US$15 million. The second phase of the program, backed by IDA, was approved on December 6, 2007, with a total project cost of US$100 million. The project is now expanded to cover all of Nepal’s 75 districts, benefiting around one million households.

Next stepsThe first phase of the PAF was intended as a pilot operation, and many lessons have been learned in its implementation in the six original districts. The second PAF phase drew on international and regional experience in the design and implementation of rural CDD programs. Global experience suggests that sustainable community development is a long-term process, with the need for consistent inputs and support over time in order to build capacity and leave behind workable ‘capital’ (human, social, financial) at the local level.

Nepal: rural Communities take the driver’s seat in development

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