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Abstract
This paper examines the relationship between community participation and the
efficacy of interventions designed to reduce poverty. We develop some simple analytics
that are used to structure a review of the extant literature and motivate the analysis of the
impact of participation on the efficacy of public works interventions in South Africa.
These analytics suggest that because communities possess informational advantages
unavailable to outsiders, community participation offers the prospect of lowering the cost
of antipoverty interventions. In cases where the outcomes of interventions are difficult to
measure, community participation is attractive because it is more likely to produce a set
of outcomes actually desired by the community. However, this observation should not be
taken to imply that these outcomes are desired by all members of the community, nor by
those who finance these interventions. These arguments are supported both by a review
of the extant literature and also by a multivariate analysis of the impact of community
participation on public works projects in South Africa. We find that increasing
community participation lowers the ratio of project to local wages, increases the labor
intensity of projects that provide community buildings, roads or sewers, and lowers the
cost of creating employment and of transferring funds to poor individuals. We find no
evidence that community participation increases cost overruns in these projects.