This document describes the findings from the interim evaluation survey conducted between October and December 2007, after 15 to 18 months of Generasi implementation in 129 treatment sub districts. Since one full year's project cycle had been completed, authors refer to this survey as the one-year interim evaluation survey. A final evaluation survey is planned for October-December 2009, after the program will have been in operation for 27-30 months. The Generasi project is focused on 12 indicators of maternal and child health behavior and educational behavior. These indicators were chosen by the government of Indonesia to be as similar as possible to the conditions for the individual household conditional cash transfer program being piloted at the same time as Generasi. They are in the same spirit as the conditions used by conditional cash transfer programs in other countries, such as Progresa in Mexico. These 12 indicators respond to those seeking health and educational services that are within the direct control of villagers-such as the number of children who receive immunization, prenatal and postnatal care, and the number of children enrolled and attending school-rather than long-term outcomes, such as test scores or infant mortality. This study provides strong evidence that in this context, community incentives work and are more effective for focusing impacts on the poorest quintiles and increasing providers' efforts. The policy implications are that poverty programs may wish to experiment more with embedding incentives into their designs. The Generasi project is implemented by the government of Indonesia's Ministry of Home Affairs, and is funded in part with loans from the World Bank and grants from the Netherlands Embassy.
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