Community-driven development decision tools for rural - IFAD

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A larger CDD content is achieved by involving the MCs of the subproject in all the steps ofproject implementation which, in the most advanced cases, includes handling project cash to paylocal contractors and suppliers. Only small amounts of cash advances are required and onlywhen the transaction does not involve technologies that are beyond the reach of the MCmembers (in which case the project procures and directly pays the selected enterprise) – forexample technologies that require contracting outside the community, such as for a tubewell, orpurchases of imported equipment not readily available in the national market.While IFAD projects in Africa have not allowed community CBOs to handle cash advances,the practice has been extensively tested in Latin America. The experience suggests that the risk ofTable 3Actors perform key tasks for community projectsDemand CDD projects Project exit-drivenobjectives of largeprojectsCDD contentTasks Moderate Large CDDCDD contentcontentInvestment phase:MCs of the community Members Members Members Memberssubprojects elected of the CIG of the CIG of the CIG of the CIGTraining the MCs Project recruits Project recruits Project recruits All MCs trained;service providers service providers service providers New CIG knowshow to get their MCstrainedDesigning Technical MCs participate MCs participate MCs know how toinfrastructure service contract technicalprovider;advisorsrecruited by theTendering for project (local No MCs MCs participate MCs have learnedconstruction government participate to do it, with theor private)help of advisorsif necessarySelection and contracting No MCs MCs participateof suppliersparticipateSupervision of contractors MC may MCs participateparticipateControl of social, safetyand environmentalsafeguardsGovernment technical officers (district level)Clearance of payments PMU or technical service providers MCs MCs have learned toto contractors if sub-contracting envisaged undertake itand suppliersPayment of contractors The PCU The PCU • CSOs of public MCs have learned theand suppliers Financial Financial utility may be procedureController Controller authorized• VDCs may be Can be entrusted withgranted authority the fundsand transferredsmall fundsPost-investment phase:Management of operationand maintenanceThe MC of the CIG sponsoring the project69
allowing CBOs to handle cash advances is marginal, given the small amounts of cash involvedand the transparency of the community organizations. Further, the practice greatly facilitatesmobilizing local procurement, stimulates adopting local technologies that result in considerablylower costs of small infrastructure construction, accelerates disbursement of project funds, cutsthe risk of corruption inherent in large contracts and reduces the cost of project administration.These practices can only be followed if they are accepted government practices or if the borrowerand the management of the external financial agency agree.Project exit arrangementsProject exit arrangements represent an important “acid test” for a project’s CDD approach. At theend of a CDD project, a target number of CBOs should be able to identify their ownmicroproject ideas, mobilize support for designing them, collect local resources to financeimplementation, procure the necessary technical advice in the national market and implement,operate and maintain their own microproject. In most developing countries, where the districtadministration is still weak, the capacity that an advanced CDD project may wish to build at thecommunity level is not yet available at the district level.Community-level development activities are less complex than those at the district level andgenerally require much less know-how. Also, procedures at the community level are much easierto master than procedures designed for the higher level. This issue raises the need for having afriendly institutional environment, which was addressed in Chapter II.The chances of building community-level capacity depends on the extent to which the CBOshave participated in and been responsible for implementing their own projects and have learnedby doing and by making mistakes. Given the very limited cost of most community-level projects,the financial risk of allowing CBOs to handle cash advances is usually minimal compared withthe likely positive impact on developing the capability of the CBOs.It is legitimate to ask whether and under what conditions the desired exit arrangements can beeffectively established within the time horizon of a single project. At least three conditions arelikely to influence this:• whether the MCs of the CBOs have been involved in all the steps of the project and whetherthey have been adequately trained to manage small contracts, operate and maintain newlyconstructed facilities and effectively mobilize the resources required for O&M;• whether a sufficient number of people in the community have acquired the necessaryminimum training and experience. This would probably require that the project fund morethan one community-level project in each village, which is not always a practical option inthe short time horizon of a single project;• whether there are private service providers that can help the CBOs design projects requiringa minimum of technology and procure equipment that is available in the national marketbut not in the communities. In the middle-income countries of Asia and Latin America,there is no scarcity of private technicians who can be contracted by the CBOs. In poorestcountries, especially in Africa, this is a condition that generally takes time to develop.70
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Community-driven developmentdecisio
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The opinions expressed in this publ
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PART B. CDD PROJECT DESIGN DECISION
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ForewordThe CDD Decision Tools is t
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What is CDD?A definition of communi
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mechanisms on a list of priority ne
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Figure 1Example of decision tree on
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ICDD’s emphasis on communitiesand
Page 19 and 20: The answer to the second question i
Page 21 and 22: IICDD and local governanceDefinitio
Page 23 and 24: communities and local governance in
Page 25 and 26: IIIPoverty focus of CDDIFAD’s spe
Page 27 and 28: The way that partnership is negotia
Page 29 and 30: Risk of elite captureNon-exclusion
Page 31 and 32: Elite capture by local, professiona
Page 33 and 34: Box 17Lessons learned about targeti
Page 35: Poverty and poor resilience against
Page 38 and 39: espect. For the political setting t
Page 40 and 41: IFAD’s CDD projects do not need g
Page 42 and 43: domain of a community or a small cl
Page 44 and 45: Government procedures andprocesses
Page 46 and 47: Part B.CDD project design decisions
Page 48 and 49: To link community development and t
Page 50 and 51: CDD and production and marketing in
Page 52 and 53: Table 2Degrees of CDD in rural fina
Page 54 and 55: Partnership issues in CDD projectsV
Page 56 and 57: eduction when there is government d
Page 58 and 59: The government ideally should inclu
Page 60 and 61: the CBOs (i.e. VDCs and different t
Page 62 and 63: territory that may include several
Page 64 and 65: Implementation arrangementsfor CDD
Page 68 and 69: • conformance with conditions imp
Page 72 and 73: Sustainable arrangements tofinance
Page 74 and 75: contribution to building a sustaina
Page 76 and 77: Financing projects through CSOs of
Page 78 and 79: Managing CDD projectsXIMost common
Page 80 and 81: Managing expectations about paceDur
Page 82 and 83: management. In many cases, the meth
Page 84: political or project management int
Page 87 and 88: A note on fiscal decentralization1.
Page 89 and 90: to use the money in the way it deci
Page 92 and 93: Appendix 291
Page 94 and 95: targeting around 30 per cent of the
Page 96 and 97: In both Mali and Guinea, the interv
Page 98 and 99: 25. Mansuri, G.; Vijayendra Rao. 20
Page 101 and 102: CONTACTSMohamed ManssouriCountry Pr
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Community-driven development decision tools for rural - IFAD

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