The Use of Social Investment Funds as an Instrument for Combating Poverty: Sector Strategy (1998)

Abstract

This strategy (GN-1930-2) sets objectives and gives recommendations on the use of social investment funds taking into account that they have evolved from ad hoc responses designed to ameliorate the effects of the structural adjustment crises to become one of the permanent instruments the Inter-American Development Bank uses in its fight against poverty. As a guiding principle Social Investment Funds should promote rather than replace needed social reforms. The strategy recommends: 1) Increased Flexibility in the Project Menu given to add adaptability to local conditions. 2) Better Targeting to ensure that they reach the poorest of the poor. 3) Improve Impact Evaluation. 4) Beneficiary Participation and Community Development. 5) Improve Project Sustainability. 6) Integrate into Larger Processes of Modernization of the State.