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Social Investment Funds

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Social Funds (SFs) are an important instrument for poverty alleviation and local development in Europe and Central Asia (ECA) region. SFs are an effective institutional mechanism to deliver services to poor and disadvantaged communities and vulnerable population groups with community and NGO participation. SFs finance demand-driven small scale community-based social and economic infrastructure and services; income and employment generating activities; community and local government capacity development with the emphasis on community participation. Benefits range from better schools managed by the parents and teachers associations with improved teaching methodologies and innovative programs; improved primary health facilities and social care services for street children and other disadvantaged population groups (elderly and abused women etc.); micro-credit for new entrepreneurs and farmers; improved roads and bridges that provide better access to market place and social services; improved water supply and environment that contribute to better quality of water and improved health indicators. There are currently ongoing SFs operations in 12 countries in the ECA region (Albania, Armenia, Bosnia and Herzegovina, Bulgaria, Georgia, Kosovo, Macedonia, Moldova, Romania, Tajikistan, Turkey and Ukraine). As the SFs/CDDs in the region grew in number and gained experience there has been considerable interest among the ECA countries to learn from each others’ experiences, failures and successes. The SF projects have established a regional network (ECANet) (http://www.eca-net.org/) with the objective of learning and exchange of experience and information among SFs and other local development programs.

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Silvia Tsurcanu, Mayor of Chiscareni village (population 4,500) located in located in northern part of Moldova says in a conversation: “The most valuable thing that we have learned from the collaboration with MSIF is the importance of creating a strong partnership in the community between the local government, NGOs, economic agents, church and citizens and to actively involve all community partners in the solution of local problems.” Indeed, the community life is very vibrant in Chiscareni. There are over 10 different community organizations there. Three of them have been supported under the MSIF project (e.g. school PTA, the Water Users Association and the road users group). These groups are now actively promoting new ideas in the community (e.g. creation of a community centre for information and training, planting a park in the center of the village, creation of a professional formation center, liquidation of damping sites, publication of the Terra newspaper, organization of competitions for the best arranged street, for the best arranged well, etc). Such a demonstration of citizens’ commitment to their own community has put pressure on local government which has allocated US$ 13,000 for these projects. To have effective means for communication with the community members and increase the community awareness and transparency the mayor initiated creation of a local radio station which now also serves other community needs. “All groups of citizens are involved in community affairs”, says Silvia Tsurcanu, “Youth and children are also active agents for development in the community. They have created the Children Counsel, have elected a mayor on their behalf, and alongside with the mayor’s office advisers participate in decision making, get involved in implementation of various projects. A vivid example of this kind is the bicycles parking created by children”.

 




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