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The design of new projects or programmes that aim at capacity development should
acknowledge, and seek to avoid, these potential pitfalls. This, however, can be a substantial
and sometimes vexing challenge. Every situation is different, and no universally applicable
solution is available. In Afghanistan, for example, international agencies attempted to
comply with a code of conduct for pay scales, but this did not prevent salary inflation. 51
An approach that has witnessed more success is to pair international experts with
local staff and make “capacity transfer,” with measurable indicators, a key deliverable for
international experts. Continuous monitoring of capacity profiles and turnover in national
and local institutions can enable targeted responses. The transition from external
capacities to domestic capacities is faster when resources are allocated and reforms are
undertaken so as to improve the conditions of service in national and local institutions.
Advocating and supporting progress in this area is therefore important. A plan for
integrating externally funded national staff into the national system over the
long term can help with sustainability. Such sustainability was achieved successfully in
a capacity development programme in Afghanistan, during the course of which the
Treasury hired university graduates as interns with World Bank funding and later hired
them as civil servants. 52
For additional information on Capacity Development, please see discussion paper
24. Capacity Development for Strategic Management of Post Crisis Recovery and
Development Assistance in Annex.
5.2 Support for Good Governance
5.2.1 Introduction
The concept of governance encompasses the exercise of political, economic, and administrative
authority in the management of a country’s affairs at all levels. This section
starts with a discussion of the importance of governance for livelihoods and economic
recovery, the impact of crises on governance, and UNDP’s role in supporting governance in
crisis and post-crisis situations (subsections 5.2.2 through 5.2.4). This section then explores
priorities for governance programming in the assessment and early recovery stage (subsection
5.2.5). With a focus on governance interventions that make processes, institutions,
and policies more conducive to long-term employment creation and inclusive economic
growth, the section concludes with a discussion of programming priorities and options
for inclusive and participatory processes, the development of governance institutions,
and responsive, pro-poor policy development (subsections 5.2.6 through 5.2.8).
5.2.2 Relevance of governance to livelihoods and economic recovery
Effective systems of governance support livelihoods and economic recovery directly,
through investments in security, infrastructure, and basic service delivery, and indirectly
by creating an enabling environment for private investment. An enabling environment
requires policy and regulatory frameworks that minimize barriers to the start-up and
operation of businesses. Such an environment also requires legal frameworks and institutions
to uphold justice and the rule of law. (See Box 5.1 for the United Nations’ definitions
of justice and the rule of law.) Livelihood assets can translate into sustainable livelihoods
and economic recovery only if access to these by individuals is protected by law and
References and suggested further reading:
Capacity development
• African Capacity Building Foundation.
“Reconstruction and Capacity Building in
Post-Conflict Countries in Africa: A Summary
of Lessons of Experience From Mozambique,
Rwanda, Sierra Leone and Uganda.” Occasional
Paper No. 3, 2004.
• Ammitzboell, Katarina. “The Host Economy,” in
Unintended Consequences of Peacekeeping Operations.
A. Chiyuki, C. Cedric and T. Ramesh,
Eds. United Nations Press. 2007.
• Paris, Roland and Timothy D. Sisk, eds.
Dilemmas of Statebuilding: Confronting the
contradictions of postwar peace operations.
London: Routledge, 2008.
• Sailendra Pattanayak. “Sustainability in PFM
Capacity-Building in Post-Conflict Countries:
Afghanistan’s Experience.” IMF Public Financial
Management Blog. August 21, 2009.
http://blog-pfm.imf.org/pfmblog/2009/08/
sustainability-in-pfm-capacitybuildingin-postconflict-countries-afghanistansexperience.html
• UNDP. Capabilities for Greater Resilience:
Institutions in the Africa Region. 2009.
• UNDP. National Human Development Report
2006: Liberia. Mobilizing Capacity for Reconstruction
and Development. 2006.
• UNDP. Practice Note on Capacity Development.
October 2008.
• UNDP BCPR. Post-Conflict Economic Recovery:
Enabling Local Ingenuity. 2008.
• World Bank. “Improving Capacity Building in
Post-Conflict and Fragile Settings—African
Ministers Share their Experience.” 2009.
http://go.worldbank.org/I07UX83S30
51 See Ammitzboell, Katarina. “The Host Economy,”
Unintended Consequences of Peacekeeping
Operations. A. Chiyuki, C. Cedric and T. Ramesh,
Eds. United Nations Press. 2007.
52 Sailendra Pattanayak. “Sustainability in PFM
Capacity-Building in Post-Conflict Countries:
Afghanistan’s Experience.” IMF Public Financial
Management Blog. August 21, 2009. http://blogpfm.imf.org/pfmblog/2009/08/sustainability-inpfm-capacitybuilding-in-postconflict-countriesafghanistans-experience.html
Livelihoods & Economic Recovery in Crisis Situations