Process Evaluation of the Investment Fund for Local Economic Development in Nicaragua

The United Nations Capital Development Fund (UNCDF) is a special purpose fund for small­scale investment aimed at reduc­ing poverty in the least developed coun­tries affiliated with the United Nations Development Program (UNDP). In 2007, UNCDF collaborated with the Government of Nicaragua to initiate the Decentralization and Millennium Development Goals Localization Support Program (PADETOM). PADETOM's main component, the Investment Fund for Local Economic Development (FIDEL), aims to provide financial support to local governments for LED projects with an emphasis on food security, the capitalization of small farm­ers, and rural enterprises. UNCDF request­ed a Capstone team to assess FIDEL's impact on local and national institutions' planning policies, uncover cross­influ­ences between FIDEL and a pre­existing food security initiative, Hambre Cero, and provide a set of recommendations for the global strategy for Local Economic Development Promotion (LEDP). The Capstone team conducted a series of interviews in Nicaragua with a broad spec­trum of stakeholders including local UNCDF personnel, national and local gov­ernment officials, civil society representa­tives, and direct beneficiaries. The information collected was subsequently compiled and analyzed to produce a report on UNCDF's approach to building local partnerships and structuring responsibilities in projects.