NGO involvement in World Bank-financed social funds : lessons learned

Abstract

The purpose of this paper is to review the involvement of nongovernmental organizations (NGOs) in Bank-financed social funds (SFs), to outline lessons learned and to make recommendations for improved collaboration with NGOs. For the Bank and borrowing governments, social funds represent an innovative model for financing small-scale, demand-driven and participatory development projects. For NGOs and CBOs (community-based organizations), social funds represent a mechanism for accessing Bank funds to support community level development activities. NGO involvement in social funds can potentially serve to: promote pluralism, provide alternative perspectives on policy issues, contribute local knowledge, improve project design, extend project reach to poor and isolated communities, enhance community participation, and contribute to subproject sustainability. The paper suggests the potential forms that NGO involvement can take, presents the strengths NGOs have demonstrated, discusses risks associated with NGO involvement in social funds, and looks into the factors that should be taken into account in selecting individual NGO partners. It also makes recommendations for social funds and for NGOs to achieve improved NGO collaboration in social funds.

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