CHAPTER 3 Past Studies on the Effects of Fadama II T


his chapter describes the progress of Fadama II implementation based mainly on the MTR completed in May 2007 (World Bank 2007a). Although this MTR assessed many aspects of the implementation of Fadama II, here we focus on the outcomes analyzed in our study.


Advisory Services


Fadama II has implemented a pluralistic advisory service in which both pri- vate and public entities provide services and funds. Advisory service provid- ers are largely private, with only 5 percent of the services offered by public providers. However, funding of the advisory services is mainly public: project beneficiaries pay 10 percent of the cost and the project pays 90 percent. Thus Fadama II has created a foundation for developing demand-driven advisory services using a pluralistic approach, which is an important step in establishing sustainable services.


The MTR states that the advisory service component achieved most of its objectives, although it is not clear how those achievements were measured. For example, the report states that 1,700 advisory services were provided to 1,026 FUGs. However, that achievement affected only 12 percent of the 8,577 FUGs. It is not clear why about 88 percent of the FUGs did not receive advisory services. The MTR also observed collusion between advisory service providers and FCA/FUG officials. This collusion has compromised the in- dependent recruitment of providers and serves as one example of elite cap- ture in CCD projects in developing countries (Mansuri and Rao 2004).


Support for Pilot Productive-Asset Acquisition


According to the MTR, the pilot productive-asset acquisition (PAA) com- ponent was readily accepted by beneficiaries, because they obtained tan- gible near-term benefits from the project, whereas with other components, like infrastructure development, capacity building, or advisory services, the


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