Social funds should not replace the public sector in tasks that are the government’s inherent responsibility. To do so can undermine ongoing public sector reform and institution-building programs. The objective of funds should be to reinforce and broaden, rather than supplant, the role of state institutions in the social field. Undoubtedly, in many countries, fund portfolios are going to continue to have schools and health posts and other such social projects because funds have been shown to be effective in that role. However, that is really an interim solu- tion until the management and operational procedures developed by funds can be transferred to the social ministries or to the.
