Rural Poverty Reduction Project - Rio Grande do Norte

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The Second Rural Poverty Reduction Project in the State of Rio Grande do Norte, will improve the well-being and income of the rural poor, through better access to basic social, and economic infrastructure, and services, and by increasing the social capital of rural communities through collective organization. The two main components will: 1) provide matching grants to rural community associations to finance infrastructure development through productive subprojects, to be managed, implemented, operated and maintained by community associations. Three subprograms will assist communities: a) under the State Community Schemes, investment proposals will be submitted for approval by the State Technical Unit (STU), and release of funds. While this program was initially predominant, its importance receded as decentralization progressed; nonetheless, it will be retained as an option in case of municipal councils' failure; b) under the Municipal Community Schemes program, decision-making on investment proposals is delegated by the State to Municipal Councils, who after recommendations, disburse funds to community associations; and, c) under the Pilot Municipal Community Funds program, funds approved by the STU are transferred to the Council, responsible for subproject management, and implementation; and, 2) finance technical assistance, and training to increase capacity of implementing agencies, and community associations, state modernization, and reforms relevant to poverty reduction, as well as piloting information technology development. Incremental costs, supervision, and monitoring will be financed, and, counterpart funding from the State Government, will also be provided.