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The Economic and Social Fund for Development (ESFD):

Ten Years of Partnership with Local Authorities

Tunis, November 20, 2012

Outline

Part I: General Overview.

Part II: ESFD Components and Mechanisms.

Part III: Impact Assessment and Lessons Learnt.

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Part I:

General Overview

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Economic & Social Fund for DevelopmentCreation, Duration and Objective

The ESFD project is part of the Euro-Med Partnership between the EU and GOL.

The Fund started in 2002- linked to Council for Development and Reconstruction (CDR).

The ESFD is supposed to become permanent and fully autonomous.

The ESFD has one aim: to reduce poverty in Lebanon.

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ESFD Resources

2002-2008

2002..

LBN/B7-4100/IB/99/0225

Main Stream

ϵ 31m

ϵ 15 m revolving

2008-2010

2008…

MED/2006/018-303

Post 2006- War Recovery

ϵ 5.7 m

ϵ 4.4 m revolving

2010-2012 UNDP Art Gold Lebanon

Guarantee Fund

$ 1.5 m

2009-2013 Europeaid/129374/D/SER/LB

Akkar Project

ϵ 2.5 m

Part II:

ESFD Components

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Economic & Social Fund for DevelopmentComponents

1. Job Creation Component: strengthens the individual by supporting micro/ Small and Medium Enterprises (SMEs).

2. Community Development Component: strengthens the communities by planning & implementing development projects in the poorest areas.

The Job Creation component

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Job Creation ComponentMechanism and Purpose

Financing SMEs:

Access to credit for unbanked enterprises

Informal sector included

Financial inclusion

Business advisory services

Intermediaries: Commercial Banks

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The ESFD is Creating Jobs !

By end of September 2012:

6,882 financed projects

4495 new jobs created

2284 financed projects benefited from BDS

743 business start-ups

1108 female entrepreneurs

The Community Development component

The Community Development component

Objective

Ensuring improved access to basic services

and enhanced economic opportunities

through Partnering with Municipalities

providing Technical and Financial Assistance (Grants)

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Why Municipalities?

Municipal Councils are elected representative body of the community.

They have a comprehensive mandate and authority for decision-making and the management of local assets and resources

They are viable structures to institutionalize and sustain the projects The Municipal Law grants municipalities with tools for participatory

development:

Article 50 (partnership with civil society or private sector to establish or manage development projects)

Article 53 (establishment of specialized local committees from within or outside the Municipal Council to assist in planning and decision making)

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Implementation Cycle

Signature ofGrant Contract

Identification &Targeting of

Poverty Pockets

CommunitySelection of

Priority Projects

Implementation,Monitoring &Evaluation

Identification &Targeting of

Poverty Pockets

CommunitySelection of

Priority Projects

Implementation,Monitoring &Evaluation

Participatory LocalDevelopment

Planning

Participatory LocalDevelopment

Planning

CommunityMobilization & Ex-Ante Evaluation

Community-

Signature of

MOU

Mobilization & ExAnte Evaluation

Signature ofGrant Contract

Identification &Targeting of

Poverty Pockets

CommunitySelection of

Priority Projects

Implementation,Monitoring &Evaluation

Identification &Targeting of

Poverty Pockets

CommunitySelection of

Priority Projects

Implementation,Monitoring &Evaluation

Participatory LocalDevelopment

Planning

Participatory LocalDevelopment

Planning

CommunityMobilization & Ex-Ante Evaluation

Community-Mobilization & Ex

Ante Evaluation

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Targeting Poorest Communities

Strategy on Social Development in Lebanon, formulated

by ESFD, identified 80 poverty pockets in 2004.

Community Development Component (ESFD) target

communities living in these pockets.

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National Strategyfor Social Development

Poverty Map

The selection of partner communities is based on ESFD National Strategy for Social Development (NSSD).

The NSSD identifies 80 poverty pockets using objective “poverty” indicators

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Selection of poorest communities

P

roject’s life cycle

Targeting poorest

communities

Identifying and

Designing community

development projects

Elaborating a Local

Development Plan

Monitoring &

Evaluation

Implementing

community

development projects

Elaborating Socio-

economic Profile

Eligible communities are called to submit Request for Partnership (RFP)

Criteria included the existence of economic opportunities, cultural diversities, minimum of experience with project management…

An evaluation committee is set up to evaluate the applications

Selected communities sign Memorandum of Understanding with ESFD

Planning Phase (1)

Analysis and Diagnosis Phase:

Community mobilization: community leaders, women, youth, NGOs, etc...

Creation of dialogue structures- Local committees representing socio-economic characteristics of the community.

Information collection and analysis: local committees entrusted with gathering data related to their sectors (Village

Profiles).

Stakeholders analysis: analysis of needs, interests and potential.

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Problem and Objective Setting:

Presentation to the larger community.

Problem analysis- Logical Framework Approach: participatory workshop sessions for the identification of community problems and the mapping of a “Problem Tree” structured along cause-effects relationships

Objective setting “Problem Tree” inverted into “ Objective Tree” of the Local Development Plan. Cause-effects are transformed into Means-Ends relationships identifying actions/activities.

Identification of activities → Projects

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Planning Phase (2)

Implementation Phase

Grant Contracts with Local Authorities.

Implementation is Beneficiary’s responsibility.

ESFD Role: supports, monitors and audits.

Impact Assessment: re-measuring of indicators.

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The Community Development component

Achievements

30 local development plans

39 partnership agreements for a value of EUR 10 M

64 projects implemented from 2004 to 2011

About 350,000 beneficiary in 100 communities have been targeted

Type of Projects by Sector

Sanitation7%

Solid Waste7%

Agriculture and Irrigation

46%

Rehabilitation Roads &

Infratructure6%Health Sector

16%

Sports Facilities4%

Social Development &

Vacational Teaching

14%

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Part III:

Lessons Learned

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CD Program Impact Assessment 2011

EC Delegation mobilized external evaluator.

A sample of 18 ESFD projects were evaluated.

After 2 years: two thirds of the projects active and one

third inactive.

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Findings: Strengths

Municipalities empowered to seek funding.

Ownership around a collective vision built at local level.

Hands-on exposure to local authorities on improved standards

of transparency and accountability.

Beneficiaries turned into “development hubs”.

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Findings: Risks andLessons Learned

Tendency of participatory approach towards coming up with non feasible projects / competing with private

sector.

Design of sub-projects not immune to changes in Municipal leadership.

Design of projects’ sustainability to be given more emphasis.

Support of ESFD to communities should be extended beyond implementation to include at least one full

operational cycle.26

Final Evaluation of ESFD- April 2010

Shorten the CD Cycle.

Improve technical analysis of projects at the planning phase.

Reduce complexity in contracting mechanisms.

Improve impact monitoring.

Improve networking with other stakeholders.

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For further information check our website

www.esfd.cdr.gov.lb