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Besley, Pande & Rao (2005) Decentralisation and NGOs munity organisations and NGOs and the private sector. The local commu- nity (often assisted by NGOs) help identify, design and implement social projects which match their needs. These range from crisis containment measures such as public work schemes to projects with longer term devel- opment goals such as building schools, Health centres and roads, improv- ing water supply and promoting micro-enterprises. Key feature is that local communities identify where interventions are needed and participate directly in design and implementation. Local in- formation and capacity is thus directly drawn upon to better tailor project design to local needs and direct participation of the local community helps to improve the sustainability and targeting effectiveness of projects. The government provides financing, monitors the projects and ensures that the operation and maintenance of projects is adequate. By deciding where social funds are invested, it also retains its redistributive function.
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Unformatted text preview: Private sector provides technical expertise, materials, labour and organi-sation skills to implement the projects. Through competitive bidding be-tween private Frms to provide these inputs, project costs are kept down. Experience with social funds in Bolivia helps to illustrate their usefullness in containing the crisis and in promoting longer term social protection ob-jectives. Phase I : the Emergency Social ±und was set up in 1986 and concentrated on employment programmes as a means of dealing with the extreme social consequences of structural adjustment. Phase II (1991-1993), as the crisis abated, the Emergency Social ±und was transformed into a Social Investment ±und where the focus was on ex-tending the quality and coverage of basic health and education services as a means of alleviating poverty More recently the fund has expanded its range of development projects. Development Economics, LSE Summer School 2007 250...
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