(Ethiopian Social Rehabilitation and Development Fund)

ECONOMIC RECOVERY AND RECONSTRUCTION PROGRAMME

The pilot Ethiopian Social Rehabilitation Fund (ESRF) started operation in December 1992 as a component of the National Programme on Ethiopian Recovery and Rehabilitation (ERRP) in three pilot regions, with an initial phase to last for 30 months.

The aim is to provide financial and technical support for small community initiated projects, in which communities would invest at least 10% of the total micro-project cost, and take responsibility for management and subsequent maintenance of assets. The social fund mechanism was thought to permit better multi-sectoral coordination than projects designed and managed by public sector agencies. It can also contribute to community-based development by building local management skills, encouraging community decision making on the creation and maintenance of infrastructures and developing a sense of achievement and self reliance.

The start-up funding for ESRF was provided by the Government of Ethiopia, local communities, the World Bank, UNDP and the Canadian International Development Agency (CIDA). Until December 1995, ESRF received 1,026 micro-projects submissions, from which 219 were selected for funding.

A joint mid-term review in October 1994 by the Government and the World Bank found the ESRF to be successful in achieving the objectives for which it was established and recommended it for a country wide expanded programme.

Based on the recommendations of the pilot phase, the Government decided to expand the programme, renamed as the ESRDF, to cover all regions of the country and to continue making it part of its poverty reduction programme. As a result, ten regional offices (and three regional sub-offices in the bigger regions) have been established, and key personnel put in place.

The Ethiopian Social Rehabilitation and Development Fund (ESRDF)

The Ethiopian Social Rehabilitation and Development Fund (ESRDF) is a poverty reducing programme operating within the overall poverty alleviation strategy of the Ethiopian Government. ESRDF is primarily a funding agency whose main function is to fund and monitor projects that meet its criteria.

ESRDF is a countrywide programme focusing on poor communities, mainly in rural areas throughout Ethiopia, and with special focus on women. It is a five year programme which will provide financial and technical support to communities to construct or rehabilitate, and maintain basic social and economic infrastructure and services that the community has prioritised, and in which it is willing to invest.

The main objectives of ESRDF are to improve the living conditions of poor communities through the provision and strengthening of basic social services, to enhance the income generating capacity of poor communities through the creation of economic assets and provision of essential economic services, and to assist the communities and grassroots organisations to increase their technical and managerial skills through the provision of training. ESRDF funds feasible, relatively small and technically simple projects with the shortest lead time. Only demand driven and community-based activites are assisted in order to promote a bottom-up approach for planning an implementation, thus responding to the needs as perceived by the beneficiary communities. On the other hand, ESRDF does not directly implement projects, but does so through its partner implementing agencies.

The Programme takes into consideration that the situation of communities throughout the country varies considerably in terms of resources and initiatives, organisational and technical capabilities, and knowledge of development options. Consequently, the ESRDF staff and other facilitators, including regional and local government staff, will need to be active in promoting, encouraging and supporting community efforts.

UNDP Support to ESRDF

UNDP's role in this programme is to support the capacity building efforts of ESRDF interventions. ESRDF operates in all regions of Ethiopia with a decentralised management structure. Most of the decisions regarding micro-project appraisals, approval and implementation procedures are undertaken at the regional level. The central office plans and manages financial transfers, monitors and evaluates project implementation and oversees the smooth implementation of the programme.

The mandate and activities of the ESRDF required building capacities on five separate but interlocking levels: the centre; the region; intermediaries; and beneficiaries.

A total of US$ 4.75 million was earmarked from UNDP, and the following six capacity building targets were identified, to :

Strengthen the ESRDF management;

Upgrade and develop the skills of the ESRDF

staff at central and regional levels;

Develop sufficient capacity in the ESRDF for

community outreach;

Develop and/or strengthen the capacity of

benefiting communities;

Strengthen rural micro-finance institutions;

and

Increase the knowledge base of the ESRDF's

activities through improvement of the

ESRDF's capacity for analyses and research.

In order to fill the resource gap of the ESRDF, the UNDP is also assisting in its resource mobilisation efforts. In cost-sharing arrangement with UNDP, the Royal Norwegian Government has contributed US$ 2.3 million towards the identified six capacity building targets, bringing the external resources available for this purpose to over US$ 7 million.