Social funds
Sidestepping the bureaucracy
A "social fund" is an organization which channels
resources into mostly small-scale projects for eligible poor and vulnerable groups. It
covers various programmes designed to play both adistributive role - to reduce the
impact of poverty - and a risk reduction role - to protect individuals,
households and communities against unexpected and uninsured income and consumption risks.
A brief overview
Since the first social fund was set up in Bolivia in 1987,
they have become a popular and high-profile instrument of social policy. They are
introduced into a variety of situations and in countries with diverse socioeconomic
backgrounds. Originally designed and implemented as a short-term emergency response to
alleviate the negative social consequences of economic reform and structural adjustment
policies - particularly in Latin America and Africa - over time their focus has shifted
towards achieving the longer-term objectives of poverty reduction and the delivery of
social services on a permanent basis.
Critical policy issues
The evolution from palliative short-term programmes to
mainstream and permanent instruments raises a number of important and multi-faceted policy
issues relating, inter alia, to national poverty-reduction strategies, effectiveness in
reaching the poor, social participation and partnerships, and sustainable approaches to
the delivery of services. Paradoxically, while it is recognized that women bear the brunt
of economic reform and globalization, the gender dimensions of social funds have received
scant attention.
Unique and flexible
Although different and changing terminology
is often used to describe social funds, the ILO has identified a number of common
characteristics and features associated with them, including their reliance on external
funding (see Table below), their unique ability to be multi-sectoral but have one funding
agency, and their demand-driven approach, high profile and visibility. In addition, social
funds usually have an exceptional institutional setup, since they are located outside of
government bureaucracy, and thereby enjoy a substantial degree of autonomy.
Notwithstanding these common features, their objectives, target groups, scope of
operations and programme components are subject to wide variations.
Social Funds - By Per Cent of External
Funding
| Category |
No. of Countries |
% |
| I (>80% external funding) |
18 |
51 |
| II (50%-80% external funding) |
16 |
46 |
| III (<50% external funding) |
1 |
3 |
Source: Awad, Azita Berar: Social Funds
Revisited. An overview with a particular focus on employment and gender dimensions
(ILO, 1997).
The gender dimensions of social funds: An international
response
Despite the wide recognition of the social costs of
structural adjustment and the trend towards the feminization of poverty, there still
remains little awareness of the different ways in which economic reform and structural
adjustment programmes affect men and women. Little attention has been paid to the gender
dimension of social funds. In response to this, the ILO undertook an action programme to
respond to twoimportant issues raised during the Fourth World Conference on Women in
Beijing: combating the feminization of poverty, and integrating a gender perspective into
the debate and action on macroeconomic reforms. The ILO commissioned case studies to
initiate national dialogue and raise awareness of the need to improve the performance of
existing social funds in terms of their gender dimension.
Major hurdles
- While women, especially those living in poverty, are
considered a priority target for the social fund programmes, systematic measures to
translate this priority into action have not been taken, and achievements are seriously
lagging behind stated objectives
- Systematic and regular collection of gender-disaggregated
data (i.e., data broken down by gender) is not common, demonstrating the lack of
importance attached to the gender perspective
- Women represent a higher percentage of
"beneficiaries" falling into social welfare sector activities, while men are
viewed as primary targets for employment promotion programmes
- The participation of women in the demand-making process, and
their decision making ability at community levels, is seriously limited
- The infrastructure development programmes which do include
women, apply a different recruitment pattern and a different wage structure for men and
women
- Programmes largely perpetuate and reproduce gender-based
unequal and discriminatory patters of employment and social participation. social funds
have not attempted to promote social reform in this area
The ILO is currently preparing guidelines on gender issues
in social funds, and in the year 2000 will support national activities to strengthen the
gender and employment dimensions of selected funds.