THIS PAPER ANALYZES the experience of community participation of PRODEL (the Local Development Programme) in Nicaragua during the period 1994-1998 in the provision of urban services, infrastructure, housing improvement and micro-enterprises lending, and the implications for the sustainability of social programmes.

The first section of the document describes the socio-economic conditions prevailing in the cities where PRODEL works. Then, it summarizes the objectives, strategy and rationale used to involve communities and end-users in the different phases of the components of the programme. The document evaluates the efficiency and effectiveness of community participation in the infrastructure, housing improvement and micro-enterprise lending...

NICARAGUAN SOCIETY EXPERIENCED major changes during the 1990s. From a situation of war and political polarization, progress was made in the process of national reconciliation and democratization. From a collapsed, centrally managed economy with record levels of hyper-inflation and the highest foreign debt in the region (700 per cent of its GDP), it was transformed into a market economy with incipient growth, relative financial stability and a significant reduction in the fiscal deficit.⁽²⁾ This economic transformation required the adoption of a series of structural adjustment measures which had a negative impact on the poorest sectors of society. Unemployment and under-employment...

DURING THE FIRST phase (1994-1997), the programme operated in three mid-sized cities (León, Chinandega and Estelí) and two small cities (Somoto and Ocotal). These cities had experienced serious problems associated with rapid population growth as a result of internal displacements caused by the civil war and the return of refugees from neighbouring countries, increased levels of unemployment and under-employment, poverty and the lack of basic services and infrastructure. During the second phase (1998-2001), two new mid-sized cities (Matagalpa and Jinotega) and one small city (Chichigalpa) were incorporated.

According to the 1995 national census, the population of the eight municipalities was...

SINCE IT BEGAN operations in April 1994, the development objective of the programme has been to improve the physical environment and the socio-economic conditions of the poor population, especially of women and other vulnerable groups, in the cities where it operates, through methods that can be sustainable over time. To achieve these goals, three investment components and a technical assistance and institutional development component have been structured (see Box 1 for a summary of the principal characteristics of the investment components of PRODEL). These are:

infrastructure and community works which included the introduction, expansion, repair and improvement of infrastructure and...

THE PRODEL COMMUNITY participation model is based on the premise that families who participate in decision-making processes and the administration and execution of infrastructure and housing improvements increase their commitment to co-finance and maintain the projects. This ensures the sustainability of the social investments over the long term. This section describes and analyzes the process of participation in the infrastructure, housing improvement and micro-finance components (see Annex 1 for a summary of the model and its evaluation).

INIFOM signs a framework agreement with the municipal governments defining the incentives, responsibilities and contributions of each party to the execution of the...

THIS PAPER HAS considered the link between poverty reduction, participation and sustainability. It has shown that there are methods and processes that serve poor people and that may help to lift them out of poverty. It has also illustrated how poor groups can receive support from external cooperation and obtain the benefits from these programmes. The paper has also illustrated some key pre-conditions that are necessary for successful poverty reduction programmes, which include recognizing the different needs and resources available within low-income groups.

The experience gained by PRODEL in eight Nicaraguan municipalities has yielded important lessons regarding the potentials and...