3. Social Funds (SFs)

After a history of funding environmentally costly megaprojects, the World Bank now claims that it is trying to become a leading force for sustainable development. For more than a decade, nongovernmental organizations (NGOs) and grassroots movements have formed transnational coalitions to reform the World Bank and the governments that it funds. The Struggle for Accountability assesses the efforts of these groups to make the World Bank more publicly accountable. The book is organized into four parts. Part I describes the NGOs and grassroots movements that are the book's central focus. Part II presents case studies of four projects that provoked the emergence of transnational advocacy coalitions: Indonesia's Kedung Ombo dam, the Mt. Apo geothermal plant in the Philippines, Brazil's Planaforo Amazon development project, and the remarkable campaign of Ecuador's indigenous people to influence national economic policy that led to their participation in the design of a development loan. Part III looks at the origins and politics of reform in four areas of broader World Bank policy: the rights of indigenous peoples, involuntary resettlement, water resources, and the World Bank's institutional reforms that are supposed to encourage public accountability. In the last section, the editors discuss issues of accountability within transnational coalitions and assess the impact of advocacy campaigns on World Bank projects and policies. Contributors L. David Brown, Jane G. Covey, Jonathan A. Fox, Andrew Gray, Margaret E. Keck, Deborah Moore, Antoinette Royo, Augustinus Rumansara, Leonard Sklar, Kay Treakle, Lori Udall, David A. Wirth.

Nongovernmental organizations (NGOs) are important to the Bank because of the skills and resources they bring to emergency relief and development activities. In addition, they foster participation in the development process. The strength of the World Bank's collaboration with NGOs has grown since the late 1980s. In recognition of the added value that NGOs bring to Bank-supported projects, there have been intense efforts to include them. However, this report identifies a gap between promise and performance. The report concludes that the Bank's guidelines on working with NGOs are sound but that existing guidelines need to be used more effectively. The report makes recommendations to improve these partnerships and increase their benefit to development projects. It is written in English, French, and Spanish.

This paper explains why tough public sector reform and a sound macroeconomy are essential to sustained growth. It provides a strategy to help countries evaluate how well their governments' policies work. Decisionmakers will learn ways to build an evaluations program that can make governments more accountable and improve their performance. Some options could include making central banks independent, eliminating earmarked funds, and balancing the national budget. The author suggests which government offices should oversee and develop evaluation policies to get the best results, and explains why evaluation results must be linked with all budget decisions. He describes the political and economic environment that allows the evaluation process to develop freely. Also discussed is the role that the World Bank and other insti- tutions should play in supporting evaluation programs. The study examines how sound evaluation can lead to more consistent international policies and better international governance.

Nongovernmental organizations provide development projects with motivation, education, and organization. They should be involved earlier in project development. Successful operations depend on well- designed linkages between NGOs and government.