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And finally, while the World Bank gave them a B in targeting, in com- parison to other programs, the IDB probably would give them a B+, because they have really been very good at targeting the poor. Nicaragua’s social fund has projects in every town, in every backward part of Nicaragua, and this is fairly commonplace. Social funds are very good at targeting. There is, however, one issue with targeting. Should social funds attempt to reach the maximum number of people or the maximum number of very poor people, which may actually be in the cities? Or should they attempt to reach the most isolated regions? This dilemma has. | ZURICH What is the role of insurance in economic development Lael Brainard 124935A01.indd 2 14 1 08 14 49 06 Author Dr. Lael Brainard Bernard L. Schwartz Chair in International Economics at the Brookings Institution and Zurich Financial Services International Advisory Council member. This paper has benefited from the helpful comments of Robert Gibbons Daniel Hofmann and Roy Suter. This is the second paper in the Zurich Government and Industry Affairs thought leadership series. To request other papers in the series or additional copies please call 41 44 625 27 37. 124935A01.indd 3 14 1 08 14 49 .