By Philip J. Glaessner
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Extra info for Poverty alleviation and social investment funds: the Latin American experience
Glaessner Kye Woo Lee Anna Maria Sant'Anna Jean-Jacques de St. W. C. A. All rights reserved Manufactured in the United States of America First printing September 1994 Second printing April 1997 Discussion Papers present results of country analysis or research that are circulated to encourage discussion and comment within the development community. To present these results with the least possible delay, the typescript of this paper has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors.
The risk that the line ministries are less likely to carry out institutional reforms, because the funds have become semipermanent institutions can be minimized by formalizing the funds' takeover of ministry functions in those areas where they have a clear comparative advantage. Donors should stress the importance of governments developing long-term strategies for poverty alleviation and administrative reforms to be carried out in parallel with the funds' activities. The danger of the funds becoming bureaucratized and politicized can be minimized by extending their life for limited periods and making extensions subject to the results of independent reviews and by having close donor supervision.
It has enabled them to furnish accurate, up-to-date information to the government and the press as well as to beneficiaries and donor agencies. Another device that has helped establish the transparency of the funds has been the use of objective, technical rather than political criteria in project evaluation and approval and in targeting. These criteria are laid out in detailed operational manuals. They have been widely disseminated and strictly adhered to. Finally, the funds have undergone periodic (often quarterly) financial audits frequently conducted by external auditing firms.
Poverty alleviation and social investment funds: the Latin American experience by Philip J. Glaessner