By Philip J. Glaessner
ISBN-10: 082133025X
ISBN-13: 9780821330258
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Additional resources for Poverty alleviation and social investment funds: the Latin American experience
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Chile - Solidarity and Social Investment Fund (FOSIS) 58 12. Haiti - Fond d' Assistance Economique et Sociale (Economic and Social Assistance Fund) (FAES) 60 Tables 1: World Bank Loans (L) and IDA Credits (C) to Social Investment Funds in Latin America and the Caribbean 8 2: Percentage of FHIS Funds Allocated by Poverty Level 16 Page v Foreword In the second half of the 1980s, many governments in Latin America and the Caribbean created Social Investment Funds (SIF) to alleviate the negative impact on the poor of the debt crisis and the structural adjustment measures.
Available information indicates that these costs, of which less than 30 percent represent wage payments, have ranged from US$270 to US$320 dollars in Bolivia, Honduras, and Nicaragua, doubtless reflecting differences both in wage levels and the types of projects financed. These costs are substantially lower than the costs of creating permanent jobs in manufacturing. Unlike make-work projects in the public sector, such as those of the Chilean employment program of the early 1980s, most of the projects the social investment funds financed to generate employment resulted in the rehabilitation or construction of economic and social infrastructure in the countries' poor areas, including areas that had virtually no access to social services because of the lack of such infrastructure (Cisneros 1993; Khadiagala 1994; Mesa-Lago 1993).
This has, in many cases, led to an unprecedented degree of involvement and participation by local community groups in the choice, design, execution, operation, and maintenance of basic education, health, nutrition, water supply, and sanitation projects. It has also stimulated regional, especially municipal, governments to play a more active role in the preparation and implementation of social projects. Finally, the willingness of most funds to involve 1. Note that the salary caps the Guyanese authorities imposed on the Social Impact Amelioration Program and Agency have made it practically impossible for that fund to recruit and retain competent engineers, which has impaired its ability to appraise and supervise water and drainage projects effectively (Optima, Inc.
Poverty alleviation and social investment funds: the Latin American experience by Philip J. Glaessner
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