Social funds: an effective instrument to support local action for poverty reduction?

Abstract

Abstract This paper discusses whether social funds can help to support local action for poverty reduction. It focuses not on the specific poverty‐related projects that are supported by social funds, but the way social funds channel resources. In this context, this paper emphasizes the importance—and limitations—of the underlying poverty analysis informing the design of social funds, particularly the identification of beneficiaries. The paper describes the organizational characteristics social funds help to set up, and the relevance of decentralized organizations for community participation. The concluding section focuses on the implications of the tendency of social funds to create parallel structures. Copyright © 2002 John Wiley & Sons, Ltd.

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