Projects’ sustainability II

Institutional capacity provides funds
 

· Economic and financial conditions
The project’s sustainability requires financial assets in order to enable functioning and eventual repairs of the equipment, salaries of the personnel engaged etc. If these expenses are inappropriate to the economic conditions in the place where the project is carried out, sustainability is low, too.

Projects should fit into the context, into the existing political, economic, institutional and cultural conditions. These external factors are often out of the influence of the development intervention, but they can also support it or obstruct it.

Providing projects’ sustainability is a complex thing and it requires many analyses and evaluations, as well as some good knowledge of the conditions in the place where the intervention is carried out. Therefore, depending on the complexity of the development intervention and the objectives that need to be achieved, there are several different levels of sustainability.

· Target group level
The target group can continue with the products and services delivered with the support.

For example: farmers use the advanced ways of cattle breeding, entrepreneurs continue using the way of marketing their products, water from the built water supply system is used by all citizens etc.

In order to be able to provide this level of sustainability, the target group is necessary to be interested, expenses for maintaining to be adjusted to the economic condition of the target group, there should be a sufficient technical financial and managing capacity.

· Level of commercial support of the target group
Organisations that have been involved in the delivery of products and services can continue delivering even when the project has been completed.

For example: possibility for credits, distribution of fodder, water supply system maintenance etc.

Necessary conditions for providing this level of sustainability are: interest of the target group in the products and services, professional interest of the organisation, existence of favourable relations based on real prices acceptable for the target group, sufficient technical, financial and managing capacity of the organisation to continue working.

· Level of non-commercial support of the target group
Involved organisations in the project can continue with their non-commercial services for the target group.

For example, training for the managers, marketing of the products, advice for water supply system management etc.

Necessary conditions are: interest of the target group in the services, professional interest of the involved organisations, technical and managing capacity, efficient and effective delivering system, combined with financial mechanism, e.g. target group participation, substitutions by the government etc.

· Level of institutional development
The activities of sustaining and expanding development intervention continue being carried out independently after the project completion, (identification, formulation, observation and evaluation).

Necessary conditions are: professional interest of the involved organisation, managing capacity for development of strategies and implementation, efficient and effective administration, efficient mechanism for financing the expenses for administrating and managing favourable (remunerative) financial relations.

CONCEPT PAGE

Institutional development is creating and strengthening a network of organisations for effective creating, giving and using human, material and financial resources thus achieving special objectives upon sustainable basis.

Organisational strengthening are measures for improving the performances of an organisation, that is for improving the organisation’s capability to carry out chosen activities striving to achieve the aims of that intervention.

Criteria for successful organisation are legitimacy, suitability, efficiency, effectiveness, flexibility and sustainability.