Building on the previous programme (National Compensation Policy I), the FC measure is an open programme that was handled by the Bolivian social investment fund FPS. The programme mainly focused on strengthening municipal selfgovernment structures in order to improve public services at a local level. It also focused on poverty alleviation, primarily among the extremely poor and mostly indigenous population. Due to its heavy focus on poverty reduction, the programme addressed the poorest communities. GIZ (known then as GTZ) advised both the FPS in relation to improving the transparency of its processes vis-à-vis local governments as well as the municipalities themselves. Given the delays to the start of the programme under evaluation, cooperation with GIZ could not be completed as planned.