“One size fits all” is not appropriate for poverty reduction, because con- ditions are different and because governments’ abilities are different. FOSIS in Chile, a fund that was not supported in any major way by the IDB, is a central part of the government’s machinery for poverty allevia- tion and is extremely flexible. The fund concentrates on productive projects, supports substantial microcredit activities, and imparts sub- stantial training to communities. It is also crucial that governments increase their contributions to the resources allocated to social funds if the funds are going to be perma- nent. The funds are a way to direct more government goods and ser- vices to the.
