The Local Initiatives Fund (LIF) in one of the local development tools created by the Participatory Development Programme in Urban Areas (PDP) for Poverty alleviation.

The LIF provides funds to local communities for simple, small and highly visible projects, which generate tangible solutions to local priority needs. They are active examples of grassroots community approaches to improve the living conditions in neighbourhoods and to alleviate poverty through participation in the planning process.

The ideas for the local initiatives come from local community groups themselves and prove to correspond to their most urgent needs. The ideas are discussed in local meetings with community leaders and supporting NGOs in the presence of the District Chief and in some cases the Governor. Through consensus, the community selects one local project. All initiatives must have the approval and support of the local authorities.

Local community groups plan the execution, estimate the costs and mobilise the resources either financial or in kind from the local administration and businesses. They also provide a convincing sustainable management concept. In all steps of project identification, planning and implementation, local community groups are assisted by professional NGOs.

Directly after the execution, the finances are audited independently. A year after the implementation, an impact evaluation is conducted.