Providing aid through projects
Characteristics of a project:
Project: Three types of activities:
Different Projects:
Development Projects: Critique
Technical cooperation
transfer of knowledge and skills (technical, economic, organisational..) - focuses on strenghtening capacity to promote development rather than simply providing money or other benefits.
Infrastructure projects: model of early aid industry, efforts after disasters
Critique: technical assistance has often become island of excellence.Strong focus on outputs → donor projects have contributed little to broader government strategies.
Rural projects
Critique:
Micro-finance
= target finance to poor people
Critique: problems with targeting poor (inclusion error=people who are not poor get benefits) (exclusion error=people who are poor do not get benefits). The poorest may be excluded either by the project staff or the groups themselves - especially in high pressure for repayment. + negative social consequences (e. g. inabilities to pay the loans)
Social Funds
fixing economic crises. Often co-financed. Primarily channeling resources to small-scale projects for poor and vulnerable groups. Appraise, finance and supervise implementation of small-scale projects - but do not implement them. Operating institutionally and organizationally separately from governmental policies and services.
Critique: (Social funds and other) support provided to communities - can increase corruption
Potential conflicts between efficiency goals and the need for time-consuming/costly processes of community ownership and decision making. There are potential tradeoffs among reaching the poor and demand-led approaches, the varying interests involved, and the need to enhance the capacities of the communities to participate. Only small proportion of the funds could be categorised as really demand oriented, and reviews have raised questions regarding the adequacy of the methodology to formulate community needs. Social funds tend to create new structures rather than working to reform existing governmental institutions. Phasing out or integrating of social funds into existing structures also does not seem to be a focus at planning stages. Creating parallel structures. Establishing funds may displace other sources of funding.
Fungibility=the risk that ministries reduce their allocations to areas that are targeted by social funds.
Fungibility
=the risk that ministries reduce their allocations to areas that are targeted by social funds.
inclusion error
=people who are not poor get benefits
exclusion error=
people who are poor do not get benefits