Throughout the years the World Bank has played a leading role in assisting Yemen towards development. In 1997, the Social Fund for Development (SFD) was established with an IDA credit of US$30 million. Through this project, the World Bank brought its global, regional and country experiences on social funds and microfinance to Yemen. Two more IDA credits were provided to further support the SFD in 2001 and 2005. Other donors also started supporting the successful SFD. By 2005, the SFD had substantially improved basic services for nearly 10 million direct beneficiaries in remote mountain villages. Of these, 2 million people got improved water supply services. 

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Population: 19.8 million Urban: 25% Rural: 75% Annual Growth Rate: 3.0% Life expectancy: 59 years Area: 528,000 km2 GNI per capita: $570 USD Below Poverty Line: 42% HDI Ranking: 151 out of 177 Improved Water Access: 69% Improved Sanitation Access: 21%

Social fund for development
This SFD aimed to reduce poverty in the Republic of Yemen by improving living conditions and creating income-generating activities for the poor. The project involved Non Governmental Organizations (NGOs), community groups, and the private sector in creating small-scale multisectoral development sub-projects chosen by the communities. These subprojects not only provided basic services  in disadvantaged communities but also created job opportunities and temporary employment to the poor. In addition the project supported the development of small and micro enterprises through technical assistance, training, and access to credit. Another major focus within SFD was capacity building. Capacity building activities targeted local associations and groups to develop and execute development projects and to expand the ability to run sustainable micro enterprise programs. Training for small contractors and consulting firms aimed to improve sustainability and poverty monitoring. 

A flexible drive for results
The Yemen Social Development Fund developed a very good track record in project implementation. Commitment, action, a strong drive for results and flexibility to respond to evolving needs enhanced project effectiveness.  Clearly defined procedures and manuals were followed. The alignment of capital investments with capacity development created a stream of benefits. Both beneficiaries and project managers were learning by doing.

Reaching out to remote communities
Branch offices were established to reach out to remote communities. They proofed crucial to ensure meaningful community participation. Social fund regional office staff provided technical assistance to local authorities, communities, NGOs and potential micro and small entrepreneurs. The branch offices brought the project to the people, who were able to present and defend their requests at the local level. Ownership of projects was further increased by the substantial contribution that beneficiaries made to projects.

Monitoring provides a base for targeting the poor
Monitoring and evaluation systems were set up to track overall project performance and results achieved on the ground. Data availability increased responsiveness to priority needs of the target population. Well-designed targeting mechanisms facilitated the effective channeling of project resources to benefit poorer and marginalized segments of society. 

Transparent implementation arranagements
Transparent and clear contract procedures, as well as quick payments proved to be essential element for a cost efficient implementation of projects. Contracting for smaller civil works was done by the communities or by NGOs, while the SFD regional branch offices were responsible for larger contracts. Supervision of executing agencies followed strict rules. 

The second phase confirmed the potential of the SFD becoming an important part of poor people’s safety net and providing coping mechanisms and long-term development opportunities by investing in social and economic development. A third phase - started in 2005 - massively scaled up the Fund’s operations. The project cost is US$ 400 million to be implemented in 4 years. The SFD is set to reach about 40% of Yemen’s poor population with basic services. The third phase is implemented in partnership with 11 other donor agencies. IDA contributes only US$60 million.

Social Fund for Development   Social Fund for Development II Social Fund for Development III SFD Yemen website Â

Since 1998 the SFD funded a total of 5,224 projects. The majority were community development projects that provided improved basic social and economic services to 13 million people of which 9.7 million are direct beneficiaries. Around 70% of the total funds were spent in the education, health and water supply (see table). Nearly one million individuals from a wide range of stakeholders including NGOs, community groups, micro-entrepreneurs and contractors, received training. Furthermore, the micro enterprise programs provided close to 100,000 loans. 

 

Up till the end of 2005, the SFD supported 772 water supply subprojects benefiting around 1.9 million people. The SFD designed a special program for water harvesting systems in order to increase water supply during the dry season. Water quality was improved through fencing of cisterns and the introduction of sand filters and hand pumps.

Water Supply and Sanitation Rural Water Supply & Sanitation Water in Middle East & North Africa World Bank in Yemen Â