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Abstract This paper, based on a recent OED review of World Bank social fund projects, presents findings relating to two aspects of social fund performance that have been relatively under‐researched in the social funds literature—the sustainability of benefits and the institutional development impacts. On sustainability, the review found that social fund facilities generally had staffing and equipment levels better or equal to those in comparator facilities although both types of facilities suffered from shortages. While there has been a learning curve, deficiencies were found in the requirements for ongoing operations and maintenance over the operational life of the investments. On institutional development impact, the review found that social fund agencies have developed capacity as effective and innovative organizations. Wider impacts on existing institutions, both positive and negative, need greater attention. Copyright © 2002 John Wiley & Sons, Ltd.
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