Social Funds: a review of public sector management and institutional issues

Mukhmeet Bhatia

No 32739, Social Protection Discussion Papers and Notes from The World Bank

Abstract: While acknowledging the role of Social Funds in making effective investments to meet community needs, this study focuses on another crucial dimension: their impact on overall public sector management. The key question addressed is the role of social funds in building institutional capacity for designing, implementing, and delivering economic and social services. The areas considered for analysis include autonomy, budgetary issues, accountability, political interference, the effects on decentralization, the long-term role of social funds, and exit strategies. The study reveals that a clear vision of the role of social funds with respect to other public and private institutions, can help in a program design that integrates public sector management and institutional issues into all stages of the project cycle. More specifically, the study recommends that social funds be designed to act as catalysts toward public sector reforms, by grafting their positive features and incentives onto government structures.

Date: 2005-05-01
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