the economic differences appear to persist into 2013, although this may be due to many control areas from Phase I being treated in Phase II. One challenge in detecting economic impacts is the relatively small sample size, which is clustered in communes, such that standard errors are imprecisely estimated.

For early childhood development outcomes, we do not see INDH program impacts. It may take even longer than the number of years from program implementation to 2013 for additional economic impacts and infrastructure to affect human development, but the fairly substantial time span covered makes this unlikely. We are, however, limited in the outcomes we can assess given the available impact evaluation data. We are also limited by the relatively small sample size of children within the survey. Additionally, as is discussed below, challenges in implementing the INDH program may limit the generalizability of these findings to contexts with similar challenges in implementation; greater impacts might be observed with alternative program designs and organization.

# _6.3 Challenges in Implementation of the INDH_

Actual program implementation helped us identify certain obstacles at the local level; coordination between the local and national level may have limited the program’s impact. There is not much decentralization of decision making in the various public sector departments in Morocco, which led to redundancies in investments (World Bank, 2012b). This situation poses two major challenges to improving the impact of the INDH. The first involves the need for rapid, flexible coordination between the local and central authorities in each government department. The second has to do with intersectoral coordination on local projects. Additionally, elite capture may be a problem with the CDD design of the INDH (Bergh, 2012; Economic Social and Environmental Council, 2013; World Bank, 2012b). The sustainability of the INDH projects is often mentioned as one of the challenges to be overcome and may be why we see fade-out of program effects in the results (World Bank, 2012b). This challenge should be fully considered in the selection and approval stage of future projects.

# _6.4 ECD in Community Development_

The evaluation demonstrated that the INDH had no impact on ECD outcomes. However, there are CDD programs that have had positive impacts on ECD that could serve as models for modifying the INDH. For instance, Indonesia’s incentivized community block grant program, PNPM Generasi, began as an experiment to adapt a CDD program to focus on education and health targets that were not being addressed sufficiently in the existing program. Each year participating communities received a block grant, which had to be used to reach 12 education and health targets related to maternal and child health and education. To determine the use of the grant, communities, with support from trained program facilitators and service delivery workers, conducted social mapping and participatory planning. They chose from a list of service options (such as health centers, playgroups, formal kindergartens, and community centers with integrated ECD services, and outreach such as home visits, community-based teachers, and advocacy activities to sensitize the community about the benefits of ECD). To incentivize communities to focus on the most effective options, the size of the block grant for the subsequent year was based partly on the communities’ performance on the targeted indicators (Olken, Junko, & Wong, 2011).

Findings from an evaluation conducted between 2007 and 2010 show that Generasi had positive impacts on all the 12 indicators it targeted, particularly those related to the utilization of 32