Mexico - Decentralization of the Family Integrated Development System Project

Report No. PID8095 Project Name Mexico-Project to Support the ... Decentralization of the Sistema Nacional para el Desarrollo Integral de la Familia(DIF) Region Latin America and the Caribbean Sector Social Protection Project ID MXPE57257 Implementing Agency Desarrollo Integral de la Familia (DIF) Date Prepared August 24, 1999 Project Appraisal Date May 1999 Project Board Date TBD Country and Sector Background.- One of the most significant developments in the Mexican Government over the past four years has been the transfer of authority, responsibility, and resources from the Federal Government to states and municipalities, primarily for social development. Mexico has a long history of commitment to social assistance programs. Traditionally, these programs have been designed, financed, and managed in a centralized manner at the federal level. The project will support the Government's decentralization initiative specifically as it pertains to social assistance under DIF. Project Objectives.- The main objectives of project are: a) to develop and implement on a pilot basis a program to strengthen the capacity of state and municipal DIFs to: i) identify, develop strategies for, and implement programs in the areas of social assistance and human development in a participatory manner, that ii) will be financed and implemented through public/private/NGO partnerships; and, b) based on the lessons and products of the pilot, develop a cost- effective strategy of support for municipalization of DIF social assistance nationally. Project Description.- Over the period of about 18 months, this pilot project will assist DIF to design and implement a program of diagnosis, training, support, financing, and best practice dissemination for state and municipal DIFs to help them implement Mexico's decentralization program under Ramo 33. The project is expected to yield useful information and experience for the World Bank in working for sub-national governments in the social sectors through Ramo 33 (a key element of Mexico's decentralization) and it would have the following components: (a) Project Management, US$1.393 million. Under this component, the federal DIF and long-term consultants will manage the project. They will also undertake a variety of substantive activities that are required for the components, such as: development of a system to assess the capacity of the 40 pilot municipalities; develop and revise the training program and training  materials; develop the system to award, disburse, monitor the use of sub- project funding; supervise participating state and municipal DIFs; develop a system to disseminate best practice in social assistance; and design a national diagnostic, training, and funding programs based on this project's experience. (b) Development of Municipal Social Assistance Capacity. US$1,086. Under this component the federal DIF, assisted by state level DIFs, will assess social assistance capacity in the 40 pilot municipalities; develop and revise the training program and training materials; develop the system to award, disburse, and monitor the use of sub-project funding; supervise participating state and municipal DIFs; develop a system to disseminate best practice in social assistance; and design a national diagnostic, training, and funding program based on this project's experience. (c) Development of Municipal Social Assistance Capacity. US$1.086. Under this component the federal DIF, assisted by state level DIFs, will assess social assistance capacity in the 40 pilot municipalities. (d) New Financial Instruments for Decentralized Social Assistance. US$2.225 million. The federal DIF will develop a system to finance sub-projects in which municipal level actors will compete for funding they will use to undertake new social assistance initiatives. (e) Communication and Dissemination. US$0.651 million. During the first four months of this project, the federal DIF, assisted by long-term consultants, will develop a plan for an extensive communication and dissemination activity. (f) External Evaluation. US$0.760 million. An external, impartial organization with extensive experience in social assistance project evaluation will conduct an ongoing evaluation over the course of the project. (g) Development of a National Program. US$0.30 million. The federal DIF, assisted by long-term consultants, will design an APL proposal that would extend program coverage to the entire country. This proposal would take into account the findings of the external evaluation, economic and financial assessments, and the fact that a significant extension in coverage would require adaptations. Project Costs and Financing.- The project has an estimated cost of about $6.2 million with IBRD financing of $5.0 million. Project Implementation.- DIF will be the executing agency of the project. However, because much of the learning and innovation will come at sub-national levels, implementation will require coordination across states and municipalities. Sustainability.- The goal of this project is to improve the design, implementation, and financing of social assistance projects locally. It will realize this goal - 2-  by training municipal-level social assistance actors in these subjects, by disseminating information on best practice project designs, and by providing funds on a limited basis so that the learning takes place by doing. Lessons Learned from Past Operations in the Country/Sector.- There have been no previous World Bank-financed projects in social assistance in Mexico. While this project is focused on institutional strengthening for decentralization, a Poverty Assessment that is being undertaken concurrently will develop more clearly some of the policy issues and options that could be added in a larger follow-up operation. The Decentralization and Regional Development II (DRDII), is the only project which has directly addressed the issues raised by Ramo 33 in the same manner as this LIL. Seminars sponsored by DRDII have provided information about options for decentralization based on the international experience and some of the initial experiences in Mexico. These have been shared with the project team and with DIF. The education and health projects have focused on strengthening state-level ministries and, to a lesser degree, strengthening management and coverage at the point of service. Environmental Aspects.- The project has no environment effects and is proposed to receive an environmental rating of "C". Program Objective Category: SA, Social Funds and Social Assistance. Poverty Category: PA, Poverty Reduction Program of Targeted Intervention (PTI): Not applicable Contact Point InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone No. (202) 458 5454 Fax No. (202) 522 1500 Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. Processed by the InfoShop week ending September 3, 1999. - 3 -