The decentralized approach to development that has been heavily promoted in World Bank operations since the late 1980s promotes a large quantity of very small projects. These are well adapted and flexible to encourage local initiatives for economic growth and poverty alleviation. This can, however, create environmental and social challenges in two ways:
- cumulative impacts, and
- inclusion of high-risk projects (regardless of project size)
Capacity to identify, prevent, mitigate and monitor these impacts needs development at the local, district and provincial levels or their equivalent in the institutional infrastructure of our client countries. Developing this capacity gradually and cost-effectively during project implementation is considered 'good practice' which is demonstrated by many Bank-funded projects throughout the world.
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