Poverty in Benin, like in a number of other African countries, is more widespread and severe in rural areas than in cities. The main determinants of poverty are access to basic socio-economic infrastructures (education, health, and water), unemployment, and also access to financial resources to undertake income generating activities. In Benin, differences among regions are observed as poverty increases from south to north. Education in Benin is characterized by high adult illiteracy (68 percent), low school attendance and high repetition and dropout rates. Health services, hampered by a shortage of qualified health staff in poor and remote areas, are inadequate. Rural households still rely on natural water sources for water and many lack latrines.

Thousands of poor communities have improved their access to basic services and learned to plan and execute projects that will benefit local development.

Highlights:
- As of June 2009: (i) 62 percent of the 74 communes – local governments -- have executed their communal sub-projects, for a total amount of US$3.5 million; (ii) 1,025 out of the 1,515 targeted poor communities have executed their community sub-projects (construction or rehabilitation of schools, health centers, markets facilities, latrines, wells, etc.), for a total amount of US$30 million.

- By December 2009, all 1,515 targeted poor communities will have received basic training in project management and 74 communes and the 12 prefectures will have completed training on integrating the CDD approach in their programs.

- Access to basic infrastructure by the poorest communities has improved. The program has supported for example the construction of 1,446 classrooms, 49 heath centers and 39 water and sanitation systems which have made facilities more available and closer to communities. A beneficiary assessment which is on its way will provide more information on program impact. It is expected that program results will contribute towards achieving the Millennium Development Goals related to education, health, water and sanitation, and gender equity.

- Access of the poorest to financial institutions and credit for income-generating activities has increased. A partnership was established with 6 micro-finance institutions, and 63 percent of the targeted communities received technical advice for starting income-generating activities. Over 2,600 community groups received funding from the partner micro-finance institutions and have started their economic activities.

- Capacity of the ministries, communes, and grassroots community organizations to implement CDD operations was strengthened. Capacity to use participatory planning methodologies at all levels, as well as procurement and fiduciary management, have improved.

- The project helped line ministries (such as education, health, water and sanitation, agriculture, livestock and fisheries) delegate responsibilities to local governments which in turn, delegated some of these responsibilities to beneficiary communities. Communities were able to gain new skills and hold government accountable.

- The project has had a strong impact on the decentralization process, building capacity, improving communication and trust, with mutually beneficial results with respect to local development.

French Development Cooperation, the European Commission, the German Agency for Technical Cooperation (GTZ) and the Dutch are supporting the government’s decentralization program, working with communes and communities. IDA collaborates, in particular, with the Dutch and UN agencies on developing capacity. IDA expects to work closely with a group of donors working on decentralization issues in the preparation of the follow-on program in order to align implementation methodologies.