The role and relevance of Social FundCommunity-Driven Development (SF/CDD) has been highlydebated in the international development community. Someconceive these programs only as parallel and temporaryarrangements that can ensure short-term delivery ofdevelopment benefits. Others emphasize the flexibility ofthe SF/CDD instrument in adopting different institutionalforms depending on the country context, and theircontributions to long-term development challenges. The aimof this study is to provide guidance on the question ofsocial fund relevance. The report is organized into sixchapters and a set of annexes. Chapter 1 defines socialfunds and their main rationales. Chapter 2 provides anoverview of their origins in ECA, basic facts about the Bankoperations and SF performance, and develops a typology basedon policy objectives. Chapter 3 summarizes the institutionalarrangements of social funds in the Region and then reviewsthem within the wider vision of optimal public sectorarrangements. Chapter 4 looks at local infrastructure andgovernance funds, evaluating their design against a set ofgood practice benchmarks for promoting local governance, anddrawing implications for the future. Chapter 5 conducts asimilar exercise but for social inclusion funds. The finalchapter summarizes the main answers to the study questionsand elaborates a set of options for future engagement withsocial funds, taking into account different countrycontexts. In the Second Volume, Annexes provide moredetailed background material.
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