Ghana - Community Development Project

Report No. PID7298 Project Name Ghana-Community Development Project Region Africa Sector SS - Social Sector Project GHPE40659 Borrower(s) Government of Ghana Implementing Agency National Development Planning Commission Environment Category C Date PID Prepared January 13, 1999 Project Appraisal Date February 15, 1999 Project Board Date March 30, 1999 1. Country and Sector Background Despite a mixed experience with fiscal adjustment since 1994, Ghana has made strides in restoring/maintaining macroeconomic stability. Real GDP growth continues to be strong at 4.5%, but poverty and malnutrition continue to be a hindrance to sustainable and broad-based development. Recent poverty assessments estimated that some 32% of the total population lived in poverty. This is overwhelmingly a rural phenomenon, with over 72% of the poor living in rural areas. However, urban poverty is becoming more pronounced. For a large segment of the Ghanaian population the quality of life is poor, with high levels of malnutrition and infant and child mortality, low life expectancies, low levels of education and literacy and limited access to employment and economic services. 2. Objectives The project proposes to (a) test approaches and mechanisms for delivering, coordinating, monitoring and evaluating poverty reduction programs; (b) build capacity for TCOP/NDPC to coordinate and monitor cross-sectoral poverty reduction programs carried out by different line ministries and at decentralized district and community levels; (c) strengthen collaboration between government and NGOs in targeted service delivery, with NGOs providing the actual services and government providing supervision and support; and (d) strengthen collaboration between the Bank and the UNDP and other development partners in supporting the government's poverty reduction programs. 3. Rationale for Bank's Involvement The project objectives grow out of the Ghana Country Assistance Strategy (CAS), specifically the reduction of poverty and improvement of quality of life indicators. The project would help test approaches and build capacity to organize, coordinate, monitor and evaluate the diverse activities in Ghana's poverty reduction programs. The project is proposed as a Learning and Innovation Lending (LIL) operation because what Ghana needs at present is not so much financial resources per se but to learn how best to coordinate and utilize its available resources and existing facilities. Successful  experiments tested by the LIL could be financed by available resources elsewhere (such as the UNDP/ADB financed Social Investment Fund), or they could be followed up with an investment loan on a larger scale if additional resources prove to be needed. 4. Description The project has identified three areas of specific focus - community-based nutrition and food security, street children, and poverty measurement and monitoring. It will test, in selected districts and urban centers, strategies and operational modalities to: - strengthen the capacity of communities and districts to take action against the local causes of malnutrition and to improve nutrition and food security especially for children under five and pregnant and lactating mothers; - meet the needs of various groups of street children and deepen public awareness and understanding of the street children phenomenon; and - build the capacity of the districts to measure and monitor changes in welfare at household and community levels. 5. Financing Total ( US$m) Government 0.5 IBRD 0 IDA 5.0 Total Project Cost 5.5 6. Implementation The project is expected to be implemented over a period of 3 years beginning in June 1999. 7. Sustainability The project emphasizes sustainability through: (a) strengthened capacity of government and non-governmental institutions to design and deliver effective social services to the poor; (b) better coordination and utilization of resources for poverty reduction through improved collaboration between government and other development partners at the central and local levels; (c) lessons learned to feed into the design of larger scale poverty reduction program. 8. Lessons learned from past operations in the country/sector Experience from past operations supported by the Bank and other development partners (eg. the UNICEF Iringa model for nutrition activities) indicate the following lessons. 1.) Communities should actively participate in the design and implementation of project interventions. This gives them a greater sense of ownership and leads to more sustainable results. Project preparation and implementation - 2-  should be based on strong co-ordination and consensus-building mechanisms, allowing for flexibility based on community readiness. 2.) There are plenty of resources available for infrastructure development from ongoing Bank operations and from other external sources. However, these resources are generally poorly coordinated and not effectively used. Also, the "software" aspects - how to do what needs to be done - have been underfunded. These are the aspects that need to be strengthened if investments in infrastructure are to be effectively used and sustained. 9. Program of Targeted Intervention (PTI) Yes 10. Environment Aspects (including any public consultation) Issues The project will have no negative environmental impact. It is a category C project requiring no further environmental analysis. 11. Contact Point: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone No. (202)458 5454 Fax No. (202) 522 1500 Task Manager Shing-Fan Josephine Woo Processed by the InfoShop week ending February 5, 1999. Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. - 3 -