16 PHN 1991 Sector Review 3.25 _Management and Dswibutdon of Resoures._ Proper management of physical, human, and financial resources will improie the effecwvenus and efflclency of P-N sector activities and ensure that resources are used in compliance with stated policy and strategy. _PJysical resource_ management can be improved by establishing or strengthening appropriately decentralized maintenance programs for buildings, equipment, and vehicles; by improving the planning of new infrastructure; and by setting up better systems for replenishing drugs and other essential supplies. The Tbnisia PCR highlights the importance of building and equipment maintenance to project sustainability.

3.26 Management of _human resourcte_ requires a clearly articulated strategy and capacity in manpower planning, recruitment, deployment. It also calls for weli defined pre-service and n-servie training programs focused on the provision of basic services, and skills for interacting with the community. The quality of staff performance and their motivation can be improved through a well-managed program of re ar supervision, the definition of professional at as and performance criteria, and the estabUshmeAt of incentives and career development paths. iTe India ¶lmil Naac PCR provides useful guidance on a system of management of local health workers that has met with great success. Key features suggested for replication include carefully defining recruitment criteria, limiting tasks to those that are manageable and high in priority, and specifying work routines. Furthermore, tus project has demonstrated that health worker skills can be effectively upgraded and sufficiently maintained by decentralizing training activities to an appropriate level, estabUlshing supervision ratios that facilitate on-the-job training, using MIS to track performance closely, and reporting of performance to clients and workers.

3.27 FInall, the management of _fnancial resoures_ has a substantial impact on the realization of poverty alleviation objectives in the PHN sectors. Resource mobilization, including aid coordination and cost rewvery schemes, is important for protecting the poor and promoting optimal use of essential preventive and curative services. Resource allocation within and across sectors should favor basic seAvices for the poor and vulnerable in order to be most cost effective and have the most impact on poverty. Also important is the development of strong financial management skills, including planning, budgeting, accounting, and cost containment. 'Me "Poverty Handbook<sup>1</sup> "m provides useful guidance on the use of Public Expenditure Reviews (PERs), Public Investment Reviews (PIRs), and other instruments to strengthen the fnacial sustainabllity of projects.

3.28 _Project Development and Management._ How policies and strategies are translated into implementable programs and projects also affects how well poverty alleviation objectives are achieved. As donor support to the PHN sector continues to move away from specific investiment projects toward broader support of sector policy, national governments, rather than the Bank or other donors, become increasingly responsible for the management and oversight of project development and implementation. Acvities financed through sector funds (para 24) and sector adjustment operations (see Sections C_2.a and c of this chapter), which transfer significantly increased responsibility for project analysis and management to national governments, in particular, require a strong national capacity in project identification, proposwd writing. outreach, appraisal, and supervision of subprojefts involving community and NOO initiatives. Other needed project management skills include procurement, disbursement, accounting, financial management, aid coordination, monitoring, evaluation, and reporting AFISP has recently issued guidelines for the design and implementation of socioeconomic development funds, which provides insight on these issues based on project experience.n

# _2 Lessons of Deg and Mcess an4 Some Useil Tooh_

3.29 Several of the lessons learned from Bank experience concern design features and processes, that seem to have a significant impact on the success and sustainability of Bank interventions. Many of them apply to the achievement of poverty alleviation objecives and are worth presenting here, however briefly. Some of these lessons apply to nonproject assistance (sector work and dialogue), some to project development and implementation, and some to both categories of assistance. TMe recommendations, while derived primarily from OED's two reviews of project sustainabilityu are corroborated by the findings of all seven PCRs produced this year.