Guidance notes for institutional analysis in rural development ... - IFAD
Guidance notes for institutional analysis in rural development ... - IFAD
Guidance notes for institutional analysis in rural development ... - IFAD
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<strong>Guidance</strong> <strong>notes</strong> <strong>for</strong> <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong><br />
<strong>in</strong> <strong>rural</strong> <strong>development</strong> programmes<br />
Enabl<strong>in</strong>g poor <strong>rural</strong> people to overcome poverty
About these guidance <strong>notes</strong><br />
A realignment of the role governments play <strong>in</strong> service provision today is open<strong>in</strong>g up excit<strong>in</strong>g<br />
opportunities, <strong>in</strong>clud<strong>in</strong>g greater <strong>in</strong>volvement by the private sector and civil society. However,<br />
clear def<strong>in</strong>itions are needed to delimit the roles of government, and of public and non-public<br />
<strong>in</strong>stitutions, at various levels of service delivery. Experience has shown that unless service<br />
commission<strong>in</strong>g is kept separate from service provision there will be little real responsiveness to<br />
demand, limited downward accountability, and ultimately only m<strong>in</strong>imal scope <strong>for</strong> change. These<br />
concerns lie at the very heart of one of <strong>IFAD</strong>’s core objectives, namely that of strengthen<strong>in</strong>g<br />
the voice and choices of poor <strong>rural</strong> people through local <strong><strong>in</strong>stitutional</strong> <strong>development</strong>.<br />
Institutions have been an endur<strong>in</strong>g concern <strong>for</strong> the social sciences s<strong>in</strong>ce time immemorial,<br />
especially <strong>in</strong> the realm of political science. With respect to the challenges of <strong>rural</strong> and agricultural<br />
<strong>development</strong>, sociologists have constantly rem<strong>in</strong>ded us that poor <strong>rural</strong> communities cannot<br />
be empowered <strong>in</strong> a susta<strong>in</strong>able way if their <strong>in</strong>stitutions are not taken <strong>in</strong>to account. If, <strong>for</strong> the<br />
sake of simplicity, we assume that <strong>in</strong>stitutions are the rules of the game, and organizations are<br />
the players, it soon becomes apparent that <strong>for</strong> too long <strong>rural</strong> <strong>development</strong> ef<strong>for</strong>ts have focused<br />
exclusively on the players, strengthen<strong>in</strong>g their capacities but overlook<strong>in</strong>g the wider context<br />
<strong>in</strong> which these capacities are to be used. This has often diluted the impact of our ef<strong>for</strong>ts,<br />
especially over the long run.<br />
<strong>Guidance</strong> <strong>notes</strong> <strong>for</strong> <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> <strong>in</strong> <strong>rural</strong> <strong>development</strong> programmes provides<br />
a synthesis of the tra<strong>in</strong><strong>in</strong>g materials developed as part of the Institutional Analysis (IA)<br />
methodology. They propose that we reth<strong>in</strong>k how we conceptualize and promote <strong><strong>in</strong>stitutional</strong><br />
change, particularly <strong>for</strong> pro-poor service delivery. They provide a framework and the analytical<br />
tools <strong>for</strong> design<strong>in</strong>g programmes and projects that feature implementation modalities based<br />
on some of the core pr<strong>in</strong>ciples of good governance, focus<strong>in</strong>g on “pro-poor governance” and<br />
systemic susta<strong>in</strong>ability at the micro and meso levels.<br />
It is our hope that – given current trends such as decentralization, <strong>in</strong>novation, commodity<br />
cha<strong>in</strong> <strong>development</strong> and public-private partnerships, as well as the harmonization and alignment<br />
agenda and the emergence of sector-wide approaches – the IA methodology will make a<br />
timely contribution to the set of tools available to the <strong>development</strong> community. The present<br />
methodology has already proven its value dur<strong>in</strong>g <strong>IFAD</strong> implementation support missions; it will<br />
be <strong>in</strong>creas<strong>in</strong>gly relevant as <strong>IFAD</strong> moves towards direct supervision and as we strive to further<br />
enhance the impact and susta<strong>in</strong>ability of our activities.<br />
I would like to thank all those who contributed: David K<strong>in</strong>gsbury and Sylvie Marz<strong>in</strong>, who<br />
<strong>in</strong>itiated this ef<strong>for</strong>t; Dermot Shields, who carried it further; Rath<strong>in</strong> Roy and Philip Townsley,<br />
the tra<strong>in</strong>ers, who also prepared the tra<strong>in</strong><strong>in</strong>g materials; Tom Anyonge, the peer reviewers<br />
and the Communications Division; and f<strong>in</strong>ally the three ma<strong>in</strong> authors, Philip Townsley, Ala<strong>in</strong><br />
Onibon and Norman Messer, the latter hav<strong>in</strong>g also successfully managed this Initiative <strong>for</strong><br />
Ma<strong>in</strong>stream<strong>in</strong>g Innovation (IMI) project.<br />
Mohamed Béavogui<br />
Director, Western and Central Africa Division
Institutional <strong>analysis</strong>: an overview<br />
As has become <strong>in</strong>creas<strong>in</strong>gly recognized, the multidimensional<br />
nature of poverty calls <strong>for</strong> more holistic solutions that address<br />
not only its symptoms, but also its structural causes.<br />
As our understand<strong>in</strong>g of poverty has grown more<br />
sophisticated, the ways <strong>in</strong> which <strong><strong>in</strong>stitutional</strong> factors can<br />
affect poverty, both positively and negatively, have become<br />
more apparent. However, the tools available <strong>for</strong> analys<strong>in</strong>g<br />
such <strong><strong>in</strong>stitutional</strong> factors have often been lack<strong>in</strong>g or have<br />
focused on specific aspects of <strong>in</strong>stitutions, exclud<strong>in</strong>g others.<br />
The process set out <strong>in</strong> these pamphlets, and developed<br />
<strong>in</strong> more detail <strong>in</strong> A Practitioner’s Guide <strong>for</strong> Institutional Analysis<br />
of Rural Development Programmes, aims to provide <strong>development</strong><br />
workers with a comprehensive approach <strong>for</strong> carry<strong>in</strong>g out<br />
<strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> <strong>in</strong> the context of <strong>rural</strong> <strong>development</strong><br />
programmes. This overview summarizes the key steps <strong>in</strong><br />
this process.<br />
What does <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> address?<br />
Institutional <strong>analysis</strong> <strong>for</strong> <strong>rural</strong> <strong>development</strong> should focus<br />
on the ways <strong>in</strong> which <strong>in</strong>stitutions <strong>in</strong>fluence poverty and the<br />
livelihoods of poor people. In order to arrive at such an<br />
understand<strong>in</strong>g, we need to understand the poor and recognize<br />
that they are not homogeneous but rather an extremely diverse<br />
group with different key characteristics. Gender, age, social<br />
and economic class, ability, ethnic background, history and<br />
geographic location are among the characteristics of different<br />
groups of poor people that must be taken <strong>in</strong>to account.<br />
Institutions take many <strong>for</strong>ms, but concretely we can<br />
identify two types of <strong>in</strong>stitutions that are of critical importance<br />
to poor people – service providers that provide goods and<br />
services, and enabl<strong>in</strong>g agencies that establish the policy and<br />
legal framework, set the rules and determ<strong>in</strong>e how resources<br />
are distributed. In order to understand these, we need to<br />
understand not just the structures and capacities of the<br />
organizations and agencies that fall <strong>in</strong>to these two categories,<br />
but also the quantity and quality of relationships between<br />
these <strong>in</strong>stitutions and poor people. This <strong>in</strong>itial focus of<br />
<strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> is clarified <strong>in</strong> pamphlet 1.<br />
Understand<strong>in</strong>g poor people and their livelihoods<br />
Understand<strong>in</strong>g the livelihoods of the poor is essential to<br />
understand<strong>in</strong>g how <strong>in</strong>stitutions affect those livelihoods.<br />
The Susta<strong>in</strong>able Livelihoods Framework provides a useful<br />
framework <strong>for</strong> understand<strong>in</strong>g the livelihoods of the poor.<br />
It focuses on their strengths, capacities and assets and the<br />
vulnerabilities they have to deal with, and how these shape<br />
their aspirations and their perceptions of opportunities.<br />
It also seeks to understand how these shape the actions or<br />
strategies that people adopt and the outcomes they achieve.<br />
The livelihoods of the poor cannot be understood if poor<br />
people themselves are not <strong>in</strong>volved <strong>in</strong> the process of analys<strong>in</strong>g<br />
what they do and why they do it. This is particularly important<br />
when it comes to identify<strong>in</strong>g avenues <strong>for</strong> change to make<br />
<strong><strong>in</strong>stitutional</strong> structures and processes more supportive of<br />
poor people. Proper consultation and participation by poor<br />
people themselves as “subjects” of the <strong>analysis</strong> are essential <strong>for</strong><br />
establish<strong>in</strong>g the criteria <strong>for</strong> identify<strong>in</strong>g appropriate outcomes,<br />
or results <strong>for</strong> future changes.<br />
In pamphlet 2, the Susta<strong>in</strong>able Livelihoods Framework and<br />
Approach, and some of the key elements <strong>in</strong>volved <strong>in</strong> this first<br />
step, are described <strong>in</strong> more detail.<br />
Focus<strong>in</strong>g on results<br />
The livelihood outcomes that poor people currently achieve,<br />
and the improved outcomes that they aspire to achieve,<br />
constitute the central concern of an <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong>.<br />
Whatever improved <strong><strong>in</strong>stitutional</strong> process that the <strong>analysis</strong><br />
generates should aim at help<strong>in</strong>g poor people to achieve these<br />
aspirations and satisfy basic standards of liv<strong>in</strong>g and well-be<strong>in</strong>g.<br />
The extent to which service providers support or h<strong>in</strong>der<br />
poor people <strong>in</strong> creat<strong>in</strong>g their livelihoods, by provid<strong>in</strong>g the<br />
goods and services they need, can be thought of as a set<br />
of delivery results, which may be more or less appropriate.<br />
Improv<strong>in</strong>g these results may be one way of improv<strong>in</strong>g<br />
livelihood <strong>in</strong>puts and outcomes <strong>for</strong> the poor.<br />
Enabl<strong>in</strong>g agencies should produce governance results<br />
that might <strong>in</strong>clude the equitable and efficient distribution of<br />
<strong>development</strong> resources, an effective representation of poor<br />
people’s <strong>in</strong>terests by creat<strong>in</strong>g supportive policies and laws,<br />
ensur<strong>in</strong>g that service providers are accountable to the people<br />
that depend on them, and the establishment of transparent<br />
decision-mak<strong>in</strong>g processes. Failure to do this can constitute<br />
a constra<strong>in</strong>t on the capacity of poor people to generate viable<br />
livelihoods <strong>for</strong> themselves.<br />
If an <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> is to contribute to poverty<br />
reduction, clear criteria <strong>for</strong> assess<strong>in</strong>g these delivery and<br />
governance results, and the livelihood outcomes of the poor<br />
to which they contribute, need to be established. The process<br />
by which these criteria are developed is critical. It should draw<br />
on the aspirations of poor people themselves as well as on<br />
recognized standards of well-be<strong>in</strong>g, the satisfaction of basic<br />
needs and recognition of human rights.<br />
This focus on results is discussed <strong>in</strong> more detail <strong>in</strong> pamphlet 3.
Mapp<strong>in</strong>g action arenas<br />
The next step <strong>in</strong> the process is to understand how these various<br />
results – whether livelihoods, delivery or governance – are<br />
generated. This can be done by tak<strong>in</strong>g results and trac<strong>in</strong>g<br />
back to the specific actions per<strong>for</strong>med by enabl<strong>in</strong>g agencies<br />
and service providers that have produced these results. The<br />
comb<strong>in</strong>ation of actions that generate each of these results can<br />
be thought of as an action arena. The <strong>analysis</strong> of these arenas<br />
can be carried out both <strong>for</strong> exist<strong>in</strong>g results, to identify what<br />
is caus<strong>in</strong>g them, and <strong>for</strong> desired future results, to identify<br />
the changes <strong>in</strong> <strong>in</strong>stitutions and processes that could produce<br />
them. These arenas are of particular importance because they<br />
<strong>in</strong>clude many of the features of <strong>in</strong>stitutions that are most easily<br />
<strong>in</strong>fluenced and changed.<br />
The process of mapp<strong>in</strong>g these action arenas <strong>in</strong>volves l<strong>in</strong>k<strong>in</strong>g<br />
each of the actions that make up a particular action arena to:<br />
O the different actors <strong>in</strong>volved <strong>in</strong> per<strong>for</strong>m<strong>in</strong>g these actions;<br />
O their respective roles and responsibilities (or mandates);<br />
O their capacity to per<strong>for</strong>m the responsibilities they have<br />
been assigned;<br />
O the relationships between these different actors;<br />
O the rules and <strong>in</strong>centives that <strong>in</strong>fluence these different actors<br />
<strong>in</strong> per<strong>for</strong>m<strong>in</strong>g the actions lead<strong>in</strong>g to the results observed.<br />
The process of mapp<strong>in</strong>g action arenas is described <strong>in</strong> more<br />
detail <strong>in</strong> pamphlet 4.<br />
Understand<strong>in</strong>g the <strong><strong>in</strong>stitutional</strong> context<br />
Mapp<strong>in</strong>g the action arenas will enable us to understand some<br />
of the essential elements <strong>in</strong> the <strong>in</strong>stitutions that <strong>in</strong>fluence<br />
the livelihood outcomes of the poor. However, the way <strong>in</strong><br />
which these elements are def<strong>in</strong>ed will depend not only on the<br />
agencies and people <strong>in</strong>volved themselves but also on:<br />
O the policy factors, <strong>in</strong>clud<strong>in</strong>g the policies themselves, the<br />
way <strong>in</strong> which those policies are generated, the mechanisms<br />
by which they are implemented, the feedback mechanisms<br />
that allow us to understand their impacts, and the degree<br />
to which conflict or harmonization exists between<br />
policies <strong>in</strong> different sectors;<br />
O the legal framework, <strong>in</strong>clud<strong>in</strong>g the different sorts of<br />
laws, rules and regulations that are <strong>in</strong> place as well as the<br />
processes by which these are established and en<strong>for</strong>ced;<br />
O the resource and <strong>in</strong>centive structures that support<br />
pro-poor <strong>in</strong>vestment will play a major role <strong>in</strong> determ<strong>in</strong><strong>in</strong>g<br />
the extent to which <strong><strong>in</strong>stitutional</strong> processes support the<br />
poor or otherwise.<br />
Traditionally, many of these elements of the <strong><strong>in</strong>stitutional</strong><br />
context have been thought of as “givens” that could not be<br />
addressed or changed by <strong>rural</strong> <strong>development</strong> programmes.<br />
However, part of the task of an <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> should<br />
be to understand these factors <strong>in</strong> more detail and expand the<br />
action arenas by identify<strong>in</strong>g ways of <strong>in</strong>fluenc<strong>in</strong>g and chang<strong>in</strong>g<br />
them <strong>in</strong> order to create a pro-poor <strong><strong>in</strong>stitutional</strong> context. The<br />
processes required to br<strong>in</strong>g about these changes are often long<br />
and complex and may require a far more strategic approach<br />
beyond the capacity of a s<strong>in</strong>gle project, programme or<br />
<strong>development</strong> agency to implement.<br />
How these elements can be understood and analysed is<br />
dealt with <strong>in</strong> pamphlet 5.<br />
Understand<strong>in</strong>g power and processes<br />
Beh<strong>in</strong>d the policy and legal frameworks presented <strong>in</strong><br />
pamphlet 5, and often play<strong>in</strong>g a key role <strong>in</strong> shap<strong>in</strong>g them and<br />
determ<strong>in</strong><strong>in</strong>g how they work, are broader and more deeplyrooted<br />
processes. These processes may not be reflected at all<br />
<strong>in</strong> the <strong>for</strong>mal spheres of policy, law-mak<strong>in</strong>g and allocation of<br />
resources, but they will frequently play an even more important<br />
role <strong>in</strong> determ<strong>in</strong><strong>in</strong>g what actually happens and the power<br />
relations between different <strong><strong>in</strong>stitutional</strong> actors. Pamphlet 6<br />
focuses on these issues.<br />
Processes that are likely to play a key role <strong>in</strong> determ<strong>in</strong><strong>in</strong>g<br />
power relations and livelihood outcomes <strong>in</strong>clude:<br />
O the “rules of the game” that establish how relationships<br />
between different actors are played out;<br />
O politics and the way <strong>in</strong> which the political system and<br />
arrangements manage power with<strong>in</strong> the country and<br />
determ<strong>in</strong>e what gets done;<br />
O culture and tradition, which establish norms that<br />
are accepted throughout society, from the poor to people<br />
with<strong>in</strong> <strong>in</strong>stitutions such as enabl<strong>in</strong>g agencies and<br />
service providers;<br />
O values that <strong>in</strong>fluence what people, <strong>in</strong>clud<strong>in</strong>g poor people<br />
and <strong><strong>in</strong>stitutional</strong> actors, regard as important and the<br />
priorities they have <strong>for</strong> change;<br />
O the rights that are recognized <strong>in</strong> society, <strong>in</strong>clud<strong>in</strong>g the<br />
rights of various social groups (such as women, children,<br />
the aged, the less able or different ethnic and religious<br />
groups) and universal rights to have basic needs met and<br />
services provided.<br />
Develop<strong>in</strong>g strategies <strong>for</strong> <strong><strong>in</strong>stitutional</strong> change<br />
Develop<strong>in</strong>g effective strategies <strong>for</strong> <strong>in</strong>itiat<strong>in</strong>g and susta<strong>in</strong><strong>in</strong>g<br />
processes of pro-poor <strong><strong>in</strong>stitutional</strong> change requires:<br />
O stay<strong>in</strong>g focused on the desired end result; positive change<br />
<strong>in</strong> the livelihood outcomes of the poor;<br />
O us<strong>in</strong>g knowledge about <strong>in</strong>stitutions to def<strong>in</strong>e, as accurately<br />
as possible, the changes needed at different <strong><strong>in</strong>stitutional</strong><br />
levels to achieve positive change;<br />
O mak<strong>in</strong>g strategic choices about what can and cannot<br />
be achieved;<br />
O systematically def<strong>in</strong><strong>in</strong>g what needs to be done to achieve<br />
changes at different levels, and the actions required to<br />
susta<strong>in</strong> those changes;<br />
O a careful assessment of the capabilities of different<br />
<strong><strong>in</strong>stitutional</strong> actors to lead and participate <strong>in</strong> the process<br />
of pro-poor <strong><strong>in</strong>stitutional</strong> change.<br />
This is dealt with <strong>in</strong> more detail <strong>in</strong> pamphlet 7.<br />
Us<strong>in</strong>g Institutional Analysis<br />
Pamphlet 8 discusses the k<strong>in</strong>ds of conditions and contexts <strong>in</strong><br />
which the process of <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> discussed <strong>in</strong> these<br />
guidance <strong>notes</strong> might be used. Particular reference is made<br />
to the k<strong>in</strong>ds of circumstances faced by <strong>IFAD</strong> as an organization<br />
and the stages of the <strong>IFAD</strong> programme and project cycle at<br />
which <strong><strong>in</strong>stitutional</strong> <strong>analysis</strong> can make a contribution.
Enabl<strong>in</strong>g poor <strong>rural</strong> people<br />
to overcome poverty<br />
International Fund <strong>for</strong><br />
Agricultural Development<br />
Via Paolo di Dono, 44<br />
00142 Rome, Italy<br />
Tel.: +39 0654591<br />
Fax: +39 065043463<br />
E-mail: ifad@ifad.org<br />
www.ifad.org<br />
www.<strong>rural</strong>povertyportal.org<br />
For more <strong>in</strong><strong>for</strong>mation, please contact:<br />
Tom Anyonge<br />
Senior Technical Adviser - Rural Institutions<br />
Technical Advisory Division<br />
<strong>IFAD</strong><br />
Via Paolo di Dono, 44<br />
00142 Rome, Italy<br />
E-mail: t.anyonge@ifad.org<br />
Norman Messer<br />
Country Programme Manager<br />
Western and Central Africa Division<br />
<strong>IFAD</strong><br />
Via Paolo di Dono, 44<br />
00142 Rome, Italy<br />
E-mail: n.messer@ifad.org<br />
March 2009