Program Implementation
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Model 2: Flow of funds in a decentralized delivery system—alternative channels. A decentralized delivery system can have several alternative channels through which funds flow from the government to the village-level implementing agencies. Figure 5.3 illustrates each of the channels as follows: • In Option a, funds are routed from the central government to each of the government-level structures—that is, state, district, and local government levels or local elected authorities. The latter distribute funds to the corresponding implementing agency. • In Option b, the central government provides the funds directly to the district-level government, which then distributes the resources to the local governments or elected leaders.
Figure 5.3 Flow of Funds in a Decentralized Delivery System
Central government
External donors
a
b
c
State government
District authorities
d Local government/local elected bodies
Village-level implementing agencies (NGOs, village institutions) small and medium contractors