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Case stories on capacity development and sustainable results

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<str<strong>on</strong>g>Case</str<strong>on</strong>g><str<strong>on</strong>g>stories</str<strong>on</strong>g><strong>on</strong><strong>capacity</strong><strong>development</strong><strong>and</strong><strong>sustainable</strong><strong>results</strong>CAPACITYR ESULTSEditedby:TOM WOODHATCHALESSANDRACASAZZABRIANLUCASFRANSWERTERLenCDLearningNetwork<strong>on</strong>CapacityDevelopment


About LenCDLenCD is an informal <strong>and</strong> open network of individuals <strong>and</strong> organisati<strong>on</strong>ssharing a comm<strong>on</strong> interest in improving <strong>capacity</strong> <strong>development</strong> practice.The network aims to promote <strong>and</strong> facilitate the sharing of less<strong>on</strong>s <strong>and</strong>learning across organisati<strong>on</strong>al boundaries, <strong>and</strong> to promote changes forbetter practice at the global, regi<strong>on</strong>al <strong>and</strong> local levels. Specifically, it aimsto:• Strengthen evidence <strong>and</strong> facilitate disseminati<strong>on</strong> of good practice;• Facilitate collective initiatives <strong>and</strong> processes needed to close “learningloops” <strong>and</strong> promote change;• Promote integrati<strong>on</strong> of CD into mainstream <strong>development</strong> policy; <strong>and</strong>• Support regi<strong>on</strong>al <strong>and</strong> local initiatives to help change in CD practice <strong>on</strong>the ground.The network emerged as a result of informal networking in the c<strong>on</strong>textof several streams of research efforts, workshops <strong>and</strong> c<strong>on</strong>ferences. Itwas established in Berlin in June 2004. The insight that brought the initialpartners together was that joining forces would not <strong>on</strong>ly give visibility tothe issue of <strong>capacity</strong> <strong>development</strong>, but also open many opportunities todo more than any individual actor would have been able to do al<strong>on</strong>e.Initially a network of <strong>development</strong> agencies, LenCD today has a broadc<strong>on</strong>stituency in the South <strong>and</strong> North, including global initiatives, regi<strong>on</strong>alnetworks <strong>and</strong> local instituti<strong>on</strong>s from government <strong>and</strong> civil society, bilaterald<strong>on</strong>ors, multilateral agencies <strong>and</strong> individual practiti<strong>on</strong>ers. LenCD bringstogether actors with diverse perspectives in an open forum for reflecti<strong>on</strong>,respecting pluralism rather than negotiati<strong>on</strong> for comm<strong>on</strong> positi<strong>on</strong>s.LenCD initiatives depend <strong>on</strong> energy from network members <strong>and</strong> partners,their shared interests <strong>and</strong> resources. Its initiatives include thematic <strong>and</strong>regi<strong>on</strong>al working groups, <strong>development</strong> of specific products, vetting ofresearch <strong>and</strong> policy <strong>development</strong>, <strong>and</strong> sharing of knowledge through<strong>on</strong>line resources, knowledge fairs <strong>and</strong> other mechanisms.For more informati<strong>on</strong> about the network, please visit www.LenCD.org.Participati<strong>on</strong> in the network is free <strong>and</strong> open to all.


CAPACITY ð RESULTS<str<strong>on</strong>g>Case</str<strong>on</strong>g> <str<strong>on</strong>g>stories</str<strong>on</strong>g> <strong>on</strong><strong>capacity</strong> <strong>development</strong> <strong>and</strong><strong>sustainable</strong> <strong>results</strong>Edited by:Tom WoodhatchAless<strong>and</strong>ra CasazzaBrian LucasFrans WerterLenCDLearning Network <strong>on</strong> Capacity Development


iiCapacity ð Results<str<strong>on</strong>g>Case</str<strong>on</strong>g> <str<strong>on</strong>g>stories</str<strong>on</strong>g> <strong>on</strong> <strong>capacity</strong> <strong>development</strong> <strong>and</strong> <strong>sustainable</strong> <strong>results</strong>Edited by: Tom Woodhatch, Aless<strong>and</strong>ra Casazza, Brian Lucas <strong>and</strong> Frans WerterThe views expressed in this publicati<strong>on</strong> are those of the authors of the <str<strong>on</strong>g>stories</str<strong>on</strong>g> <strong>and</strong> d<strong>on</strong>ot necessarily represent those of the Learning Network <strong>on</strong> Capacity Development orits members.All case <str<strong>on</strong>g>stories</str<strong>on</strong>g> copyright © the authorsReproduced by permissi<strong>on</strong>Published 2011 by the Learning Network <strong>on</strong> Capacity DevelopmentFor more informati<strong>on</strong> please visit www.LenCD.orgCover photo: Aless<strong>and</strong>ra CasazzaDesign <strong>and</strong> Layout: Florenio BambaoPrinting Coordinator: Helen Jimenez, IBON Internati<strong>on</strong>alPrinted by: IBON Foundati<strong>on</strong>, Inc.


iiiForewordAbout the publicati<strong>on</strong>AcknowledgementsTable of C<strong>on</strong>tentsJoint Statement <strong>on</strong> Results <strong>and</strong> Capacity DevelopmentALBANIA – Strengthening local government in the Kukës regi<strong>on</strong> 1ASIA AND THE PACIFIC – The Asia-PacificDevelopment Center <strong>on</strong> Disability 4BHUTAN – Building capacities to build revenues 7ETHIOPIA – Building <strong>capacity</strong> for aid management 10GUINEA-BISSAU – Supporting <strong>development</strong> of the educati<strong>on</strong> system 13KENYA – Nati<strong>on</strong>al <strong>capacity</strong> for policy analysis <strong>and</strong> research:the Kenya Institute for Public Policy Research <strong>and</strong> Analysis 16LAO PDR – Entrepreneurs driving productivity<strong>and</strong> <strong>capacity</strong> in smallholder rice farming 19Nigeria – The Interfaith Mediati<strong>on</strong> Centre 22Papua New Guinea – Creating <strong>capacity</strong> fordecentralized service delivery 25Paraguay – Improved coordinati<strong>on</strong> for poverty reducti<strong>on</strong> 28São Tomé e Príncipe – Building an effective healthcare system 31SIERRA LEONE – The improvement of service deliverythrough decentralizati<strong>on</strong> <strong>and</strong> <strong>capacity</strong> building in Sierra Le<strong>on</strong>e 34UGANDA – Using multi-stakeholder processesfor <strong>capacity</strong> <strong>development</strong> in an agricultural value chain 37ZAMBIA – Support to the water sector 40ZAMBIA – Building <strong>capacity</strong> of small <strong>and</strong> medium-sized businesses:the Zambia Chamber of Small <strong>and</strong> Medium Business Associati<strong>on</strong>s 43ivviviiix


ivForewordCapacity <strong>development</strong> leads to <strong>sustainable</strong> <strong>development</strong> <strong>results</strong>, <strong>and</strong> <strong>sustainable</strong> <strong>results</strong>are premised <strong>on</strong> investment in <strong>capacity</strong> <strong>development</strong>. Every year, members of theOrganizati<strong>on</strong> for Ec<strong>on</strong>omic Co-operati<strong>on</strong> <strong>and</strong> Development (OECD) c<strong>on</strong>tribute some$25 billi<strong>on</strong> to developing countries, much of which is aimed at delivering <strong>capacity</strong> <strong>development</strong>.It is vital that this support dem<strong>on</strong>strates that it can c<strong>on</strong>tribute to <strong>sustainable</strong>increases in the recipient’s countries ability to deliver <strong>and</strong> develop themselves.The <str<strong>on</strong>g>stories</str<strong>on</strong>g> in this collecti<strong>on</strong> have been prepared by different countries <strong>and</strong> <strong>development</strong>partners to showcase how endogenous investments in <strong>capacity</strong> <strong>development</strong>have led to short, medium <strong>and</strong> l<strong>on</strong>g-term <strong>sustainable</strong> <strong>results</strong> in the form of better performinginstituti<strong>on</strong>s <strong>and</strong> enhanced delivery of service or regulati<strong>on</strong> to citizens. We arestill learning how to identify <strong>and</strong> capture, in a balanced way, short-term, intermediate<strong>and</strong> l<strong>on</strong>g-term <strong>results</strong> so that visible <strong>results</strong> which are rather easily achievable –schools built, water pumps installed – do not overshadow the l<strong>on</strong>ger term <strong>results</strong> suchas <strong>sustainable</strong> learning for children <strong>and</strong> <strong>sustainable</strong> supply of water.Each c<strong>on</strong>tributi<strong>on</strong> to this publicati<strong>on</strong> tells a story about how investments in capacitiesfor local leadership <strong>and</strong> coaliti<strong>on</strong>s for change have led to increased performance of local<strong>and</strong> nati<strong>on</strong>al instituti<strong>on</strong>s, as well as how, over the l<strong>on</strong>ger term, better instituti<strong>on</strong>shave led to <strong>results</strong> such as improved health coverage, reduced poverty rate <strong>and</strong> inequality,better access to educati<strong>on</strong> services <strong>and</strong> other l<strong>on</strong>g-lasting <strong>sustainable</strong> <strong>results</strong>.In my country, Rw<strong>and</strong>a, we recognize that we need a str<strong>on</strong>g, capable workforce torebuild our country <strong>and</strong> achieve the transformati<strong>on</strong>al change we seek. The 1994 genocidewas not <strong>on</strong>ly a human tragedy; it also meant a huge loss of skills <strong>and</strong> experiencevital to rebuild the country. For this reas<strong>on</strong> we have put <strong>capacity</strong> <strong>development</strong> high<strong>on</strong> our agenda. It is a central pillar of our Visi<strong>on</strong> 2020 which sets out our ambiti<strong>on</strong> forRw<strong>and</strong>a to become a middle income country by 2020. We have established a specificunit in our Finance & Ec<strong>on</strong>omic Planning Ministry, dedicated to co-coordinating <strong>capacity</strong>building stakeholders <strong>and</strong> initiatives across Government <strong>and</strong> ensure that <strong>capacity</strong>building interventi<strong>on</strong>s are aligned to our <strong>development</strong> agenda.We have learnt a huge amount as part of this work. We have learnt that in <strong>capacity</strong><strong>development</strong>, we have to stay focused <strong>on</strong> our nati<strong>on</strong>al <strong>development</strong> priorities; that<strong>capacity</strong> building must be aligned to the delivery of Government identified prioritiesprograms, based <strong>on</strong> a thorough assessment of needs so that it is targeted to those areaswhere there are gaps. It must also be properly coordinated across all relevant agencies<strong>and</strong> stakeholders to ensure harm<strong>on</strong>y <strong>and</strong> sharing of best practices. These principlesnow underpin the <strong>capacity</strong> building work we are taking forward by c<strong>on</strong>tributing toGovernment delivery of real world outcomes for Rw<strong>and</strong>ans.The <str<strong>on</strong>g>stories</str<strong>on</strong>g> that you will find here provide evidence in support of the joint statement <strong>on</strong><strong>results</strong> prepared by the Learning Network <strong>on</strong> Capacity Development. The statementstresses that meaningful, <strong>sustainable</strong> <strong>results</strong> require <strong>and</strong> follow from investments in<strong>capacity</strong> <strong>development</strong>. We expect that the joint statement <strong>and</strong> the collecti<strong>on</strong> of <str<strong>on</strong>g>stories</str<strong>on</strong>g>that supports it will add to a c<strong>on</strong>structive debate about how <strong>results</strong>-based managementapproaches can balance the reas<strong>on</strong>able quest for visible short-term <strong>results</strong> with


vthe necessarily l<strong>on</strong>g-haul efforts to develop <strong>sustainable</strong> <strong>capacity</strong>. Being able to articulate,as the <str<strong>on</strong>g>stories</str<strong>on</strong>g> do, the multiple intermediate “stepping st<strong>on</strong>e <strong>results</strong>” <strong>on</strong> the way tolasting <strong>capacity</strong> <strong>and</strong> performance, will bring much needed nuance to how we workwith <strong>results</strong> <strong>and</strong> <strong>capacity</strong> in the future.Stella Ford MugaboExecutive SecretaryPublic Sector Capacity Building SecretariatMinistry of Finance & Ec<strong>on</strong>omic PlanningRw<strong>and</strong>a


viAbout the publicati<strong>on</strong>Results from investments in <strong>capacity</strong> <strong>development</strong> matter. They matter to those whoare at the receiving end of public services provided by state instituti<strong>on</strong>s in developingcountries, including health, educati<strong>on</strong>, water <strong>and</strong> sanitati<strong>on</strong>, transport, justice <strong>and</strong>many others. Results also matter for the achievement of the MDGs, when we are twothirds of the way towards the 2015 finishing line. Both developing countries <strong>and</strong> <strong>development</strong>partners agree <strong>on</strong> the importance of <strong>results</strong> <strong>and</strong>, over the years, have strived touphold, in policy <strong>and</strong> practice, the principle of managing for <strong>development</strong> <strong>results</strong>.While there is c<strong>on</strong>sensus <strong>on</strong> the importance of <strong>results</strong>, <strong>development</strong> actors in countries<strong>and</strong> in <strong>development</strong> organisati<strong>on</strong>s face challenges with capturing them. The <strong>results</strong>frameworks that are widely adopted in <strong>development</strong> practice are most often founded<strong>on</strong> ‘hard’ <strong>results</strong>. Results such as number of schools built, water wells dug, roads c<strong>on</strong>structed,<strong>and</strong> others alike, are easier to measure, can be achieved in a relatively shorttime <strong>and</strong>, most importantly, are easier to communicate to governments’ c<strong>on</strong>stituencies<strong>and</strong> tax-payers. However, such <strong>results</strong> frameworks have usually proven to be unsuitableto capture <strong>results</strong> deriving from l<strong>on</strong>ger <strong>and</strong> more complex processes of <strong>capacity</strong><strong>development</strong>, such as nurturing inclusive ownership, accountability <strong>and</strong> change inorganizati<strong>on</strong>al performance.Capacity <strong>development</strong> is at the core of <strong>development</strong>; it has to do with political processes<strong>and</strong> cultural <strong>and</strong> societal changes. These processes produce l<strong>on</strong>g-lasting transformati<strong>on</strong>,but they are also l<strong>on</strong>g-term <strong>and</strong> very complex in nature. While <strong>results</strong> fromthese processes take a l<strong>on</strong>g time to come about, they nevertheless manifest themselvesat different levels <strong>and</strong> at different times. Results frameworks that are designed for alimited set of shorter term <strong>and</strong> hard <strong>results</strong>, are not suitable to capture the more complexchanges that are rooted in investments in <strong>capacity</strong> <strong>development</strong>.Against the background of this discussi<strong>on</strong> about <strong>sustainable</strong> <strong>results</strong>, <strong>capacity</strong> <strong>development</strong><strong>and</strong> <strong>results</strong> frameworks, LenCD has prepared a joint statement <strong>on</strong> <strong>results</strong> <strong>and</strong><strong>capacity</strong> <strong>development</strong> (presented in this publicati<strong>on</strong>), which stresses that meaningful,<strong>sustainable</strong> <strong>results</strong> are premised <strong>on</strong> proper investments in <strong>capacity</strong> <strong>development</strong> <strong>and</strong>that these <strong>results</strong> materialize at different levels <strong>and</strong> at different times, al<strong>on</strong>g countries’<strong>development</strong> trajectory.To provide evidence in support of this statement, LenCD launched a call for submissi<strong>on</strong>of <str<strong>on</strong>g>stories</str<strong>on</strong>g>. The 15 <str<strong>on</strong>g>stories</str<strong>on</strong>g> featured in this publicati<strong>on</strong> have been selected by a fourmemberreview panel, through a rigorous appraisal process of over 40 <str<strong>on</strong>g>stories</str<strong>on</strong>g>, receivedas a resp<strong>on</strong>se to the LenCD call. The <str<strong>on</strong>g>stories</str<strong>on</strong>g> have been c<strong>on</strong>tributed by different countries<strong>and</strong> <strong>development</strong> partners <strong>and</strong> cover 14 countries in Africa, Asia <strong>and</strong> the Pacific,Europe <strong>and</strong> Latin America.The <str<strong>on</strong>g>stories</str<strong>on</strong>g> showcase how endogenous investments in <strong>capacity</strong> <strong>development</strong> have led,over time, to produce short, medium <strong>and</strong> l<strong>on</strong>g-term <strong>sustainable</strong> <strong>results</strong>. They tell howinvestments in leadership <strong>capacity</strong>, coaliti<strong>on</strong> for change, multi-stakeholder platforms,informati<strong>on</strong> management systems, knowledge <strong>and</strong> skills, accountability mechanisms<strong>and</strong> others, have led, over time, to better performing public instituti<strong>on</strong>s, local governments,communities, small enterprises <strong>and</strong> civil society organizati<strong>on</strong>s; <strong>and</strong> how these,


viiin turn, have c<strong>on</strong>tributed to better health services <strong>and</strong> outcomes, ec<strong>on</strong>omic policies,business envir<strong>on</strong>ments for small enterprises, educati<strong>on</strong> services <strong>and</strong> other <strong>sustainable</strong><strong>development</strong> <strong>results</strong> that have benefited the people.While these <str<strong>on</strong>g>stories</str<strong>on</strong>g> help to broaden the knowledge base <strong>on</strong> how investments in <strong>capacity</strong>lead to <strong>results</strong>, much more needs to be d<strong>on</strong>e, to capture the <strong>results</strong> from investmentsin capacities with frameworks that allow developing countries the time <strong>and</strong> the spaceto develop broad-based capacities <strong>and</strong> to bring these process to full fruiti<strong>on</strong>.We would like to thank all our partners that have supported <strong>and</strong> c<strong>on</strong>tributed this discussi<strong>on</strong>with their own <str<strong>on</strong>g>stories</str<strong>on</strong>g> <strong>and</strong> perspectives, <strong>and</strong> we look forward to bringing thisagenda forward together with LenCD partners, broadening the body of experiences<strong>on</strong> <strong>capacity</strong> <strong>and</strong> <strong>results</strong> <strong>and</strong> addressing the challenges that partners are still facingwith capturing such <strong>results</strong> with c<strong>on</strong>crete soluti<strong>on</strong>s.Mark Nels<strong>on</strong>LenCD Co-ChairApollinaire NdorukwigiraLenCD Co-Chair


viiiAcknowledgementsThis publicati<strong>on</strong> has been prepared by the Learning Network for Capacity Development(LenCD) <strong>and</strong> its members, including: the African Capacity Building Foundati<strong>on</strong>(ACBF), the Australian Agency for Internati<strong>on</strong>al Development (AusAID), the DanishInternati<strong>on</strong>al Development Agency (DANIDA), Development Gateway, IBON Foundati<strong>on</strong>,Instituto Marquês de Valle Flôr (IMVF), the Portuguese Institute for DevelopmentAssistance (IPAD), the Deutsche Gesellschaft für Internati<strong>on</strong>ale Zusammenarbeit(GIZ) GmbH/Federal Ministry for Ec<strong>on</strong>omic Cooperati<strong>on</strong> <strong>and</strong> Development (BMZ),Japan Internati<strong>on</strong>al Cooperati<strong>on</strong> Agency (JICA), Pact, the Government of Paraguay, theRw<strong>and</strong>an Public Sector Capacity Building Secretariat (PSCBS), the Netherl<strong>and</strong>s DevelopmentOrganisati<strong>on</strong> (SNV), the United Nati<strong>on</strong>s Development Programme (UNDP)<strong>and</strong> the World Bank Institute (WBI).This publicati<strong>on</strong> has been prepared under the overall supervisi<strong>on</strong> of the LenCD Co-Chairs, Apollinaire Ndorukwigira <strong>and</strong> Mark Nels<strong>on</strong>, with coordinati<strong>on</strong> by Aless<strong>and</strong>raCasazza <strong>and</strong> Brian Lucas <strong>and</strong> the support of Clementina Gentile Fusillo. The <str<strong>on</strong>g>stories</str<strong>on</strong>g>have been reviewed <strong>and</strong> selected by Adeboye Adeyemo, Aless<strong>and</strong>ra Casazza, BrianLucas <strong>and</strong> Frans Werter, <strong>and</strong> edited by Tom Woodhatch, Aless<strong>and</strong>ra Casazza, BrianLucas <strong>and</strong> Frans Werter. The Joint Statement <strong>on</strong> Results <strong>and</strong> Capacity Developmenthas been formulated through a c<strong>on</strong>sultative process led by Mark Nels<strong>on</strong>, Nils Boesen,Nicola Smithers <strong>and</strong> Aless<strong>and</strong>ra Casazza. The foreword has been written by StellaMugabo. The publicati<strong>on</strong> has been designed by Florenio Bambao, printing managedby Helen Jimenez <strong>and</strong> co-financing provided by IBON.LenCD wishes to thank the following for their c<strong>on</strong>tributi<strong>on</strong> to the preparati<strong>on</strong> of thispublicati<strong>on</strong>.From the ACBF team: Apollinaire Ndorukwigira, Adeboye Adeyemo, , Dieynaba T<strong>and</strong>ian,Nyawira Miano, Frans Werter, Moses Ikiara (KIPPRA) <strong>and</strong> Patience Sakuringwa(ZCSMBA). From the AusAID team: the staff from the Government of Papua NewGuinea <strong>and</strong> AusAID staff in Canberra <strong>and</strong> Post. From the DANIDA team: HenningNøhr, Pema Wangdi <strong>and</strong> Tek Bahadur Chhetri. From the Development Gateway team:Admasu Nebebe, Emily Kallaur <strong>and</strong> the staff of the Department of UN Agencies <strong>and</strong>Regi<strong>on</strong>al Cooperati<strong>on</strong>, Directorate of the Ministry of Finance <strong>and</strong> Ec<strong>on</strong>omic Developmentof Ethiopia. From the IBON team: Ant<strong>on</strong>io Tujan, Florenio Bambao <strong>and</strong> HelenJimenez. From the IMVF team: Filipa Petrucci Sousa, Maria Manuel Esperança <strong>and</strong> RitaCaetano. From the IPAD team: Fabio Sousa, Isabel Couto, Braima Embaló <strong>and</strong> OlímpiaMoura (Guinea-Bissau Ministry of Educati<strong>on</strong>), Rui L<strong>and</strong>im (the Nati<strong>on</strong>al Institute forEducati<strong>on</strong> Development of Guinea-Bissau), Luísa Neves (Instituto Politécnico de Vianado Castelo) <strong>and</strong> Susana Refega (Fundação Fé e Cooperação). From the GIZ/BMZ team:Eberhard Goll <strong>and</strong> Lothar Diehl. From the JICA team: Hiromi Nai <strong>and</strong> Kunitake Daiki.From the PACT team: Imam Muhammad Ashafa <strong>and</strong> Pastor James Wuye (InterfaithMediati<strong>on</strong> Center), Ahmed Mohammed, Angela Gasparetti, Ebele Achor, Jessica Bent<strong>on</strong>,Matt Reeves <strong>and</strong> Olga Yakimakho. From Paraguay: Ana Rojas Viñales<strong>and</strong> VerónicaSerafini Geoghegan. From PSCBS: Stella Mugabo. From the SNV team: DorothyNakimbugwe (Makerere University), Sietze Vellema (Wageningen University), Ber-


nard C<strong>on</strong>ilh de Beyssac, Jan Ubels, Nick Greenfield, Onyango-Om<strong>on</strong>di, Susan, RanjanShrestha, Robin van Kippersluis, the Ug<strong>and</strong>a Oilseed Producers <strong>and</strong> ProcessorsAssociati<strong>on</strong>, the Department of Food Science <strong>and</strong> Technology <strong>and</strong> the Department ofAgricultural Ec<strong>on</strong>omics <strong>and</strong> Agribusiness of Makerere University, Wageningen University<strong>and</strong> the Research Centre for Development Innovati<strong>on</strong>. From the UNDP team:Aless<strong>and</strong>ra Casazza, Alma Gj<strong>on</strong>i, Clementina Gentile Fusillo, Jayne Musumba, MaoKawada <strong>and</strong> Vladimir Malkaj. From the WBI team: Mark Nels<strong>on</strong>, Nicola Smithers <strong>and</strong>Tommaso Balbo di Vinadio.ix


xJoint Statement <strong>on</strong>Results <strong>and</strong> Capacity DevelopmentLearning Network <strong>on</strong> Capacity DevelopmentGETTING TO SUSTAINABLE RESULTS THAT MATTER►► Sustainability of <strong>results</strong> matters: Fordecades, internati<strong>on</strong>al cooperati<strong>on</strong>focused <strong>on</strong> delivering tangible, shortterm<strong>results</strong> – building schools, roads,health clinics etc. In far too many instancesthese <strong>results</strong> were not <strong>sustainable</strong><strong>and</strong> did not have lasting impactbecause attenti<strong>on</strong> was not paid tostrengthening the underlying broadcapacities required to maintain <strong>and</strong>upscale services.►► Sustainable <strong>results</strong> of aid are premised<strong>on</strong> country <strong>capacity</strong>, ownership <strong>and</strong>partnership: To be effective for <strong>sustainable</strong><strong>results</strong> aid <strong>and</strong> <strong>development</strong>cooperati<strong>on</strong> must support country effortsrather than replace them, building<strong>on</strong> existing <strong>capacity</strong> <strong>and</strong> inclusivecountry ownership. In effectivepartnerships, all partners c<strong>on</strong>tributeto <strong>sustainable</strong> <strong>results</strong>, while being resp<strong>on</strong>siblefor their own performance<strong>and</strong> jointly for the quality <strong>and</strong> effectivenessof the partnership.►► Results materialize at different levels,within different scopes <strong>and</strong> timehoriz<strong>on</strong>s– <strong>and</strong> they can be specifiedaccordingly. Developing a policy formaternal health is a result at <strong>on</strong>e level;strengthening the delivery <strong>capacity</strong>of the health system is a much higherlevel result, which requires l<strong>on</strong>gerterminvestments. Results-orientati<strong>on</strong>implies specifying the various levelsof <strong>results</strong>, clarifying the corresp<strong>on</strong>dingreas<strong>on</strong>able expectati<strong>on</strong>s <strong>and</strong> timescalesof change.►► Capacity <strong>development</strong> is a critical partof the chain from short to l<strong>on</strong>ger-term<strong>sustainable</strong> <strong>results</strong>. Capacity <strong>development</strong>leads to visible, intermediate<strong>results</strong>, like str<strong>on</strong>ger leadership forchange. In the medium term, str<strong>on</strong>ger<strong>capacity</strong> leads to enhanced performancein service delivery. Impact <strong>on</strong>people’s lives takes l<strong>on</strong>ger to materialize.Results at all these different levelscan be identified <strong>and</strong> m<strong>on</strong>itored.►► Managing for <strong>sustainable</strong> <strong>results</strong> requiresflexibility <strong>and</strong> careful adaptati<strong>on</strong>to the c<strong>on</strong>text. Results frameworksare most effective when they leaveroom for emergent <strong>capacity</strong> <strong>development</strong>,adaptati<strong>on</strong> <strong>and</strong> flexibility. Capacity<strong>development</strong> is about change,<strong>and</strong> change processes are rarely linear<strong>and</strong> predictable, particularly in fragilesituati<strong>on</strong>s.


xi►► Results focus is critical for learning:Results-orientati<strong>on</strong> in aid relati<strong>on</strong>shipsoften emphasize c<strong>on</strong>trol morethan feedback <strong>and</strong> learning. Capturing<strong>results</strong> from <strong>capacity</strong> <strong>development</strong>processes is foremost a meansfor feedback <strong>and</strong> learning about whatworks <strong>and</strong> in what circumstances, <strong>and</strong>so to improve underst<strong>and</strong>ing, practice– <strong>and</strong> <strong>results</strong>.►► Country leaders, managers <strong>and</strong> changeagents are key for getting to <strong>results</strong>:Systems, frameworks <strong>and</strong> indicatorscan underpin <strong>results</strong>-based management,but cannot drive change. Balancingshort <strong>and</strong> l<strong>on</strong>g term <strong>results</strong> realistically;<strong>and</strong> ensuring that services<strong>and</strong> capacities grow h<strong>and</strong> in h<strong>and</strong> depend,first <strong>and</strong> foremost, <strong>on</strong> the incentives,skills <strong>and</strong> values driving leaders,managers <strong>and</strong> change agents, in countries<strong>and</strong> <strong>development</strong> agencies. Moreattenti<strong>on</strong> is needed to these factors.►► Advancing <strong>results</strong>-focused <strong>capacity</strong><strong>development</strong> is important for aid <strong>and</strong><strong>development</strong> effectiveness. A global,nimble multi-partner facility shouldbe established to provide resources forcountry level actors to advance <strong>results</strong>focused<strong>capacity</strong> <strong>development</strong>, acti<strong>on</strong>research <strong>and</strong> peer-based learning.


xii


1ALBANIA – Strengthening localgovernment in Kukës regi<strong>on</strong>C<strong>on</strong>textThe Kukës Regi<strong>on</strong>, a mountainous area innorthern Albania, is the country’s poorestregi<strong>on</strong>. It has the lowest incomes, highunemployment, poorly managed <strong>and</strong> dysfuncti<strong>on</strong>alinfrastructure, <strong>and</strong> its l<strong>and</strong> isstill c<strong>on</strong>taminated by l<strong>and</strong>mines <strong>and</strong> unexplodedordnance from the 1999 Kosovo 1c<strong>on</strong>flict.Albania does not have a traditi<strong>on</strong> of localgovernance; however, decentralizati<strong>on</strong><strong>and</strong> regi<strong>on</strong>al <strong>development</strong> have been atthe top of the government’s agenda, as thecountry aspires to obtain EU membership.Devoluti<strong>on</strong> of power to local authoritiesin Albania dates back to 1999, when theStrategy for Decentralizati<strong>on</strong> <strong>and</strong> LocalAut<strong>on</strong>omy was followed by a new legislativeframework, regulating local aut<strong>on</strong>omy.However, devoluti<strong>on</strong> of power <strong>and</strong>delegati<strong>on</strong> of authority was not backed bysufficient capacities in local governmentsto exercise such powers <strong>and</strong> deliver <strong>on</strong>new resp<strong>on</strong>sibilities.Against this backdrop, in 2005, withthe support of the United Nati<strong>on</strong>s DevelopmentProgramme (UNDP), Albaniarolled-out the Area Based Developmentprogramme in the Kukës regi<strong>on</strong>to strengthen local instituti<strong>on</strong>s at the regi<strong>on</strong>al,municipal, <strong>and</strong> commune levels todrive their own <strong>development</strong> agenda. Theprogramme focused <strong>on</strong> developing localgovernments’ <strong>capacity</strong> to govern in a participatorymanner <strong>and</strong> <strong>on</strong> supporting theleadership <strong>capacity</strong> of local communitiesto promote their own <strong>development</strong>.Development <strong>results</strong>Greater openness of local governments topeoples’ participati<strong>on</strong> in decisi<strong>on</strong> makingprocesses has promoted citizens’ interest<strong>and</strong> <strong>capacity</strong> to play a greater role in localgovernance <strong>and</strong> support to local <strong>development</strong>,<strong>and</strong> improved the living st<strong>and</strong>ardsof the people in the Kukës Regi<strong>on</strong>. Sincethe programme has been rolled out, theResultsA 50 percent rise in the number of families withaccess to improved access to health centres.1,600 households are benefiting by access to anew main road.1,220 families have now access to irrigati<strong>on</strong>.The number of people that have access to safewater supplies has increased by 155 percent.One survey has shown a growth in publicsatisfacti<strong>on</strong> with the quality of local services.Independent assessments c<strong>on</strong>ducted in 2005<strong>and</strong> 2007 suggest that some 80 percent ofresp<strong>on</strong>dents believed that the relati<strong>on</strong>shipbetween communities <strong>and</strong> local governmentauthorities improved.1In accordance with UN Security Council Resoluti<strong>on</strong> 1244


2 Capacity: Resultsregi<strong>on</strong> has enjoyed a 50 percentrise in the number of familieswith improved access to healthcare centres. Almost 1,600 householdsare linked to markets, urbancenters <strong>and</strong> services by the accessto a new major road; <strong>and</strong> 1,220families are benefiting from irrigati<strong>on</strong>infrastructure. The numberof people with access to safedrinking water has also increasedby as much as 155 percent. Communityimprovement projectsimplemented by local enterpriseshave also generated employment<strong>and</strong> livelihood opportunities forlocal residents.Enhanced performanceA survey has shown a rise in public satisfacti<strong>on</strong>with the quality of local services,<strong>and</strong> independent assessments c<strong>on</strong>ductedCapacity <strong>development</strong> investmentsCD investments focus <strong>on</strong> the <strong>development</strong> ofnew policies, the introducti<strong>on</strong> of organizati<strong>on</strong>almechanisms, <strong>and</strong> the <strong>development</strong> of individualskills.Support to the establishment of 185 communitybased organizati<strong>on</strong>s.The introducti<strong>on</strong> of participatory practices haspromoted community participati<strong>on</strong> in localgovernance.A ‘Terms of Partnership’ document has clarifiedthe roles <strong>and</strong> resp<strong>on</strong>sibilities, <strong>and</strong> underpinnedthe participatory relati<strong>on</strong>ship between localgovernments <strong>and</strong> local communities.Public access centres have been createdto empower citizens to participate in localgovernments’ decisi<strong>on</strong> making process.Support to the leadership <strong>and</strong> projectmanagement <strong>capacity</strong> of the members ofcommunity based organizati<strong>on</strong>s <strong>and</strong> localgovernment staff.in 2005 <strong>and</strong> 2007 suggest that some 80percent of resp<strong>on</strong>dents believe that the relati<strong>on</strong>shipbetween communities <strong>and</strong> localgovernment authorities has improvedafter the programme was launched. Citizens’sense of ownership of infrastructureprojects funded by the programme hasalso increased, with more than 80 percentof resp<strong>on</strong>dents stating that the small communityprojects c<strong>on</strong>tributed greatly to thecommunity, <strong>and</strong> over 90 percent sayingthat they would c<strong>on</strong>tribute to the infrastructure’smaintenance. Overall, rates ofsatisfacti<strong>on</strong> with the government also increasedbetween 2005 <strong>and</strong> 2007.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsThe programme was designed <strong>on</strong> the basisof a working partnership between UNDP,the local governments in the Kukës Regi<strong>on</strong>,<strong>and</strong> community based organizati<strong>on</strong>s.The local governments designed<strong>and</strong> implemented policies <strong>and</strong> projectsin partnership with their communities.Public access centres have been createdto encourage <strong>and</strong> empower citizens’ participati<strong>on</strong>in local governments’ decisi<strong>on</strong>making process <strong>and</strong> a ‘Terms of Partnership’document was developed under


albania3the chairmanship of the Kukës Regi<strong>on</strong>alCouncil to clarify the roles <strong>and</strong> resp<strong>on</strong>sibilitiesof all stakeholders in the partnership.The Terms of Partnership hasbecome the basis for local ownership <strong>and</strong>sustainability of <strong>development</strong> outputs.Communes <strong>and</strong> municipalities establishedunits to facilitate the implementati<strong>on</strong>of the local projects <strong>and</strong> to developCommune Development Plans, coherentlywith regi<strong>on</strong>al <strong>and</strong> nati<strong>on</strong>al plans. Theyalso covered part of the project costs, tookownership of the projects, worked closelywith community based organizati<strong>on</strong>s intheir implementati<strong>on</strong>, <strong>and</strong> dem<strong>on</strong>stratedgreater resp<strong>on</strong>sibility in maintaining theinfrastructure developed by the projects.Development partners’ supportUNDP worked with local governmentsto strengthen policies, organizati<strong>on</strong>almechanisms, <strong>and</strong> individual skills. Supportto endogenous <strong>capacity</strong> <strong>development</strong>processes focused largely <strong>on</strong> promotingparticipatory approaches to local governance<strong>and</strong> for the prioritizati<strong>on</strong> of <strong>development</strong>needs; facilitating the building ofpartnerships between community organizati<strong>on</strong>s,local governments <strong>and</strong> otherstakeholders; developing leadership <strong>and</strong>project management capacities. UNDP’sengagement with the Kukës Regi<strong>on</strong> focused<strong>on</strong> strengthening the <strong>capacity</strong> oflocal governments to engage communitiesin decisi<strong>on</strong> making process <strong>and</strong> localFind out morePlease c<strong>on</strong>tact Vladimir MalkajHuman Security <strong>and</strong> Local Development ClusterManager, UNDP AlbaniaEmail: Vladimir.Malkaj@undp.orgPh<strong>on</strong>e: +355 (4) 2400 721Web: www.undp.org.algovernance, <strong>and</strong> to support communitybasedorganizati<strong>on</strong>s to take leading rolesin sustaining <strong>and</strong> improving the qualityof life in their respective communities.UNDP programme promoted <strong>and</strong> supportedthe voluntary establishment of185 community based organizati<strong>on</strong>s, totaling5,122 members. It also supportedthe <strong>development</strong> of the leadership <strong>capacity</strong>of the members of community basedorganizati<strong>on</strong>s <strong>and</strong> local government staff,by providing them with tools <strong>and</strong> training<strong>on</strong> civic participati<strong>on</strong> <strong>and</strong> organizati<strong>on</strong>almanagement; in total, 158 trainingsessi<strong>on</strong>s were held <strong>and</strong> over 3,660 peoplebenefited from them. The series of trainingsessi<strong>on</strong>s resulted in the formulati<strong>on</strong> of21 Commune <strong>and</strong> 2 Municipal DevelopmentPlans. The programme also trainedaround 650 local government staff <strong>on</strong> decentralizati<strong>on</strong><strong>and</strong> local governance, wholater led participatory <strong>and</strong> inclusive processesfor the <strong>development</strong> Commune/Municipal Development Plans.KukësRegi<strong>on</strong>alCouncil


4 Capacity: ResultsASIA AND THE PACIFIC –The Asia-Pacific DevelopmentCenter <strong>on</strong> DisabilityC<strong>on</strong>textThe Asia-Pacific Development Center <strong>on</strong>Disability (ACPD) Project with the supportof Japan Internati<strong>on</strong>al Cooperati<strong>on</strong>Agency (JICA), launched in 2002, encouragespeople with disabilities to empowerthemselves by supporting the <strong>capacity</strong> ofindividuals <strong>and</strong> organizati<strong>on</strong>s to network<strong>and</strong> form coaliti<strong>on</strong>s for change with local<strong>and</strong> regi<strong>on</strong>al governments, NGOs, <strong>and</strong>others. ACPD puts people with disabilitiesat the centre of its work, supportingtheir own efforts to empower themselves.It builds bridges between individuals,ResultsThe Asia-Pacific Development Center <strong>on</strong>Disability works with people with disabilitiesto develop their <strong>capacity</strong> to network with localgovernments, NGOs <strong>and</strong> the private sector, topromote a barrier-free society.In the Philippines, the Nati<strong>on</strong>al Council <strong>on</strong>Disability Affairs, the United Architects of thePhilippines <strong>and</strong> the Department of Social Welfarehave led the adopti<strong>on</strong> of a barrier-free approachto socio-ec<strong>on</strong>omic infrastructure.In Thail<strong>and</strong>, communities have been empoweredto work with local governments to transform awider range of community facilities <strong>and</strong> initiativesto make them friendlier to people with disabilities.governments, <strong>and</strong> the private sector, <strong>and</strong>aims to promote a barrier-free society thatdoes not discriminate against people withdisabilities.Development <strong>results</strong>Results have been achieved in manycountries, including the Philippines <strong>and</strong>Thail<strong>and</strong>, where the Asia-Pacific DevelopmentCenter <strong>on</strong> Disability has helpedto strengthen the relati<strong>on</strong>ships betweenpeople with disabilities <strong>and</strong> central <strong>and</strong>local governments, as well as NGOs <strong>and</strong>the private sector.In the Philippines, former participants ofthe APCD training <strong>on</strong> N<strong>on</strong>-H<strong>and</strong>icappingenvir<strong>on</strong>ments built a network with theNati<strong>on</strong>al Council <strong>on</strong> Disability affairs <strong>and</strong>the United Architects of the Philippines,applying the knowledge acquired in thetraining. The participants subsequentlydeveloped close relati<strong>on</strong>s with the Departmentof Social Welfare with support by theAPCD. As a result of this outreach, thesethree organizati<strong>on</strong>s led the adopti<strong>on</strong> of abarrier-free approach to socio-ec<strong>on</strong>omicinfrastructure with other government departments<strong>and</strong> local governments.Former participants of APCD trainingshavealso been empowered to interact withthe private sector <strong>and</strong> lobby for barrier-freeec<strong>on</strong>omic infrastructure. For example, <strong>on</strong>e


ASIA AND THE PACIFIC5training participantworked closely withthe president of a privatecompany operatingin the finance,banking, <strong>and</strong> realestate sectors to promotethe c<strong>on</strong>structi<strong>on</strong>of facilities includingshopping malls accessibleto people withdisabilities. The companyalso trained its250,000 employees inbarrier-free envir<strong>on</strong>ments,<strong>and</strong> trained itsguards <strong>and</strong> parkinglot attendants in helpingpeople with disabilities.In Thail<strong>and</strong> APCD piloted a project inthe Kh<strong>on</strong> Kaen province, where it workedwith communities to strengthen their collaborati<strong>on</strong>with local authorities to transforma wide range of community facilities<strong>and</strong> initiatives to make them friendlier topeople with disabilities.Enhanced performanceAPCD was established as a platform toempower people with disabilities to advocatefor barrier-free societies <strong>and</strong> to sensitisepolicy makers <strong>and</strong> administratorsto the needs of people with disabilities.Its human resource <strong>development</strong> comp<strong>on</strong>entcomprises training to governmentofficers <strong>and</strong> to leaders <strong>and</strong> members ofassociati<strong>on</strong>s of pers<strong>on</strong>s with disabilities.APCD also played a facilitator role, offeringadvice <strong>and</strong> recommendati<strong>on</strong>s tobeneficiaries who spearheaded initiativespromoting barrier-free envir<strong>on</strong>ments intheir respective countries. APCD leveragedits facilitating positi<strong>on</strong> to strengthenRegi<strong>on</strong>al networks, support the transferof resources from <strong>on</strong>e country to another,<strong>and</strong> provide a platform for sharing knowledge<strong>and</strong> experiences.APCD has invited policy-makers fromparticipating countries to its seminars,where government representatives haveshared their experiences <strong>and</strong> good practices.This knowledge sharing initiativehas allowed policy makers to gain an underst<strong>and</strong>ingof how improvements canbe made in their own countries, comparetheir countries’ performances againsttargets, assess the gaps, <strong>and</strong> identify opportunitiesfor improvement. The learningprocesses have helped senior officialsbecome more underst<strong>and</strong>ing of the needsCapacity <strong>development</strong> investmentsThe Asia-Pacific Development Center <strong>on</strong> Disabilityproject has been established as a platform toempower people with disabilities to advocatefor barrier-free societies <strong>and</strong> to sensitise policymakers <strong>and</strong> administrators to the needs of peoplewith disabilities.The Center has trained public administrators <strong>on</strong>the needs of people with disabilities <strong>and</strong> soluti<strong>on</strong>sto address them.A knowledge sharing platform allows publicadministrators to share experiences <strong>and</strong> goodpractices/less<strong>on</strong>s <strong>on</strong> how to develop barrier-freesocieties.


6 Capacity: ResultsFind out morePlease c<strong>on</strong>tact Megushi NishimuraSocial Security Divisi<strong>on</strong>,Human Development Department, JICAEmail: hmtss@jica.go.jpPh<strong>on</strong>e: 03-5226-8332Web: www.jica.go.jpof people with disabilities, <strong>and</strong> more committedto addressing such needs.Today APCD has the reputati<strong>on</strong> <strong>and</strong> recogniti<strong>on</strong>of being an internati<strong>on</strong>al organizati<strong>on</strong><strong>and</strong> regi<strong>on</strong>al hub for supporting capacitiesto promote barrier-free socieites.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsThe work in the Philippines has influencedboth the central government <strong>and</strong>local authorities to become more sensitive<strong>and</strong> resp<strong>on</strong>dent to the needs of peoplewith disabilities. For example, the Departmentof Public Works <strong>and</strong> Highwaysprepared a checklist with which to evaluatethe accessibility of its facilities. Up<strong>on</strong>request by the APCD’s training participants,the Department held an advisorymeeting that included private companiesoperating public transport systems toc<strong>on</strong>sider opti<strong>on</strong>s for improving accessibilityto primary, middle, <strong>and</strong> high schools,as well as universities. A special budgetallocati<strong>on</strong> to support the implementati<strong>on</strong>of the identified opti<strong>on</strong>s was agreed.In Thail<strong>and</strong>, the N<strong>on</strong>thanburi city hallhas recognised the <strong>capacity</strong> <strong>and</strong> dynamismof the N<strong>on</strong>thaburi IndependentLiving Center, whose goal of changingthe c<strong>on</strong>venti<strong>on</strong>al wisdom about peoplewith disabilities is underpinned by clearplans <strong>and</strong> programmes, by supportingthe center financially (providing fundingfor 100,000 baht). The N<strong>on</strong>thaburi IndependentLiving center has advocatedthe rights of people with disabilities <strong>and</strong>promoted improved accessibility of socioec<strong>on</strong>omicinfrastructure. A member ofthe Independent Living Center, a pers<strong>on</strong>with disabilities, ran for electi<strong>on</strong>, providinga role model of social participati<strong>on</strong>.The Ch<strong>on</strong>buri Independent Living Centercalled for a n<strong>on</strong>-h<strong>and</strong>icapping envir<strong>on</strong>mentwhen the City of Pattaya hosted aninternati<strong>on</strong>al game for disabled pers<strong>on</strong>s.The initiative resulted in an increased accessibilityof public spaces for people withdisabilities.Development partners’ supportThe Asia-Pacific Development Center <strong>on</strong>Disability was established with the collaborati<strong>on</strong>of the governments of Thail<strong>and</strong> <strong>and</strong>Japan, in c<strong>on</strong>necti<strong>on</strong> with the Asia PacificDecade of Disabled Pers<strong>on</strong>s (1993-2002).The Center was endorsed by the UnitedNati<strong>on</strong>s Ec<strong>on</strong>omic <strong>and</strong> Social Commissi<strong>on</strong>of Asia <strong>and</strong> the Pacific as a regi<strong>on</strong>al cooperativebase for the Decade. with the supportof Japan Internati<strong>on</strong>al Cooperati<strong>on</strong> Agency(JICA) In line with the principle of trilateralcooperati<strong>on</strong>, the Center has signed agreementswith over 30 government agenciesresp<strong>on</strong>sible for issues related to disability,al<strong>on</strong>g with some 200 associate organizati<strong>on</strong>s.


hutan7BHUTAN – Building capacitiesto build revenuesC<strong>on</strong>textEven in the l<strong>and</strong> of Gross Nati<strong>on</strong>al Happiness,it is essential, as Bhutan’s Departmentof Revenue <strong>and</strong> Customs’ visi<strong>on</strong> says,to ensure an effective revenue system thatc<strong>on</strong>tributes to the nati<strong>on</strong> building process.The Department has the m<strong>and</strong>ate to collecttaxes <strong>and</strong> all other revenues accruingto the Royal Government of Bhutan. Itsmissi<strong>on</strong> is to “ensure that the tax <strong>and</strong> customsadministrati<strong>on</strong> has the <strong>capacity</strong> tocollect taxes effectively at minimum cost,through impartial <strong>and</strong> c<strong>on</strong>sistent enforcementof regulati<strong>on</strong>s, <strong>and</strong> to provide a c<strong>on</strong>venient<strong>and</strong> h<strong>on</strong>est service to taxpayers.”Development <strong>results</strong>Bhutan is gradually moving away froma feudal system towards becoming amodern democratic state with operati<strong>on</strong>almarkets <strong>and</strong> a modern public sector.Since the first annual report in 1998,revenue performance has c<strong>on</strong>sistently improved,resulting directly in an increased<strong>and</strong> more reliable revenue stream for thegovernment.As ec<strong>on</strong>omic growth in Bhutan dependslargely <strong>on</strong> hydropower generati<strong>on</strong>, collecti<strong>on</strong>of revenues becomes critical. TheDepartment has been able to successfullybroaden the tax base <strong>and</strong> at least partiallyreduce reliance <strong>on</strong> revenues from hydroelectricpower by introducing pers<strong>on</strong>alincome tax <strong>and</strong> improving collecti<strong>on</strong> ofother direct taxes, particularly businesstax. Taxes made up 56 percent of total revenuein 2004-5, of which direct taxes c<strong>on</strong>tributed33 percent <strong>and</strong> 32 percent camefrom hydroelectric power sales.Enhanced performanceThe Department has achieved efficienciesthrough a range of approaches, includingdecentralizati<strong>on</strong> to regi<strong>on</strong>al offices, training,upgrading IT systems, <strong>and</strong> publiceducati<strong>on</strong> <strong>on</strong> compliance.The Department of Revenue <strong>and</strong> Customswas created in 1986, following the restructuring<strong>and</strong> merger of two previously separatedepartments of revenue <strong>and</strong> customs.ResultsSince 1998, revenue performance hasc<strong>on</strong>sistently improved, resulting in an increased<strong>and</strong> more reliable revenue stream.The tax base has been broadened <strong>and</strong> reliance<strong>on</strong> revenues from hydroelectric power has beenreduced by introducing pers<strong>on</strong>al income tax <strong>and</strong>improving collecti<strong>on</strong> of direct taxes.The cost per collecti<strong>on</strong> of Nu 100 is 1.9, astriking statistic that compares favorably in theinternati<strong>on</strong>al c<strong>on</strong>text.Taxpayer compliance has increased as a result ofan effective educati<strong>on</strong> programme.


8 Capacity: ResultsThe management structure has becomemore decentralized, now comprising sixregi<strong>on</strong>al offices. This allows tax authoritiesto be close to their clients, which hasincreased awareness <strong>and</strong> compliance.The intensive use of training <strong>and</strong> professi<strong>on</strong>al<strong>development</strong> in revenue administrati<strong>on</strong><strong>and</strong> IT has enhanced theDepartment’s <strong>capacity</strong> <strong>and</strong> has made itsperformance indicators particularly encouraging.The main indicator used for efficiencyof tax collecti<strong>on</strong> is the cost of collecti<strong>on</strong>ratio. The average cost of collecti<strong>on</strong>of 100 Nu (Bhutanese currency) is 1.9, astriking statistic that compares favorablyin the internati<strong>on</strong>al c<strong>on</strong>text. (The figurefor the USA is 0.39, while it st<strong>and</strong>s at 0.73in Denmark.)The Instituti<strong>on</strong>al Capacity Programmehas strengthened the skills of staff of theDepartment of Revenue <strong>and</strong> Customsthrough in-country training programmes.Capacity <strong>development</strong> investmentsThe professi<strong>on</strong>alizati<strong>on</strong> of revenue managementhas been a l<strong>on</strong>g, but successful, processinvolving training, decentralisati<strong>on</strong> of taxmanagement, the introducti<strong>on</strong> of an informati<strong>on</strong>management system <strong>and</strong> a public educati<strong>on</strong>campaign.The management structure has become moredecentralized, now comprising six regi<strong>on</strong>aloffices. With tax authorities close to the clients,awareness <strong>and</strong> compliance have increased.The introducti<strong>on</strong> of the new IT system hasimproved tax administrati<strong>on</strong> <strong>and</strong> improvedc<strong>on</strong>sistency of data.The staff of the Department of Revenues <strong>and</strong>Customs has received intensive training inrevenue administrati<strong>on</strong> <strong>and</strong> use of the informati<strong>on</strong>management system.Educati<strong>on</strong> programme for the general public hasincreased taxpayers compliance.A 2003 IMF report noted that the Departmentof Revenue <strong>and</strong> Customs’ hasrelatively few staff – around <strong>on</strong>e per 250taxpayers – but that their capabilities areimpressive. The introducti<strong>on</strong> of a new ITsystem for tax <strong>and</strong> customs has improvedtax administrati<strong>on</strong> <strong>and</strong> enhanced m<strong>on</strong>itoring,evaluati<strong>on</strong>, <strong>and</strong> reporting.Another significant achievement is theincreased compliance of the general public(taxpayers) as a result of an effectiveeducati<strong>on</strong> programme which includedtraining, workshops, <strong>and</strong> awareness campaigns.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsThe Department of Revenue <strong>and</strong> Customshas enjoyed str<strong>on</strong>g <strong>and</strong> stable leadershipwith strategic visi<strong>on</strong>. The awarenessam<strong>on</strong>g the senior management of themain challenges facing the Departmenthas led directly to requests for <strong>capacity</strong><strong>development</strong> support.


hutan9Between 2001 <strong>and</strong> 2006, the Governmentsupported the Department’s budget tothe tune of around 90 percent. The professi<strong>on</strong>alizati<strong>on</strong>of revenue managementhas been a l<strong>on</strong>g but successful processinvolving training, the introducti<strong>on</strong> of aninformati<strong>on</strong> management system, the decentralisati<strong>on</strong>of tax administrati<strong>on</strong> <strong>and</strong> apublic educati<strong>on</strong> campaign.The Department of Revenue <strong>and</strong> Customshas supported the <strong>development</strong> of its staff<strong>capacity</strong> through in-country training <strong>and</strong>study visits. Significant investments intraining <strong>and</strong> professi<strong>on</strong>al <strong>development</strong>have been made: between 1997 <strong>and</strong> 2004around 500 participants attended trainingcourses at the Royal Institute of Management.Significant investments were alsomade in new IT systems. Supported bytechnical assistance, this has led to improvedc<strong>on</strong>sistency of data.Development partners’ supportFind out morePlease c<strong>on</strong>tact Kaysang W. SamdupCommunicati<strong>on</strong> SpecialistEmail: kaysangsamdup@hotmail.comPh<strong>on</strong>e: 975333771/322319Web: www.mof.gov.bt/drcThe Department of Revenue <strong>and</strong> Customshas driven the reform process of the nati<strong>on</strong>altax administrati<strong>on</strong> functi<strong>on</strong> withsupport from Danida. Between 2001 <strong>and</strong>2006, Danida provided financial supportto the Department’s Instituti<strong>on</strong>al CapacityProgramme, worth approximately 10percent of the total budget. The effectivenessof the Danish <strong>capacity</strong> <strong>development</strong>support has been due to the flexibility ofits approach in aligning with the aims<strong>and</strong> missi<strong>on</strong> of the Department’s strategy.Technical assistance to support the draftingof complex legislati<strong>on</strong> <strong>and</strong> the introducti<strong>on</strong>of the new IT systems have alsoc<strong>on</strong>tributed significantly to developingthe Department’s instituti<strong>on</strong>al <strong>capacity</strong>.


10 Capacity: ResultsETHIOPIA – Building <strong>capacity</strong>for aid managementC<strong>on</strong>textAt the 2003 High-Level Forum <strong>on</strong> AidEffectiveness in Rome, the Governmentof Ethiopia highlighted its challenges inmanaging informati<strong>on</strong> <strong>on</strong> official <strong>development</strong>assistance. Ethiopia’s Ministryof Finance <strong>and</strong> Ec<strong>on</strong>omic Developmentlacked a mechanism for coordinatingthe collecti<strong>on</strong> <strong>and</strong> st<strong>and</strong>ardizati<strong>on</strong> ofinformati<strong>on</strong> <strong>on</strong> d<strong>on</strong>or-funded activities,which limited the government’s <strong>capacity</strong>to plan, target, <strong>and</strong> m<strong>on</strong>itor <strong>development</strong>projects. Due to its experience applyinginformati<strong>on</strong> technology soluti<strong>on</strong>sto issues in <strong>development</strong> <strong>and</strong> foreignaid, Development Gateway was identifiedas a partner in Ethiopia’s missi<strong>on</strong>to streamline aid informati<strong>on</strong> management.ResultsAccess to timely <strong>and</strong> reliable informati<strong>on</strong> hasimproved.Aid tax<strong>on</strong>omy <strong>and</strong> reporting methodologies havebeen harm<strong>on</strong>ized.D<strong>on</strong>or coordinati<strong>on</strong> <strong>and</strong> aid effectiveness havebeen improved.20 other countries have implemented the aidmanagement system, following Ethiopia’sexperience.Development <strong>results</strong>The Ministry of Finance <strong>and</strong> Ec<strong>on</strong>omicDevelopment’s <strong>capacity</strong> to manage aidinformati<strong>on</strong> had been limited in the pastby a lack of coordinati<strong>on</strong> between d<strong>on</strong>orpartners. For example, differences betweenthe Ethiopian calendar <strong>and</strong> d<strong>on</strong>orfiscal years made it difficult to rec<strong>on</strong>cilereports. The Ministry sought to rectifythis problem by developing software toprovide access to timely, reliable informati<strong>on</strong>,to harm<strong>on</strong>ize aid tax<strong>on</strong>omy <strong>and</strong> reportingmethodologies, to enable <strong>and</strong> improved<strong>on</strong>or coordinati<strong>on</strong>, <strong>and</strong> ultimatelyto boost aid effectiveness.Working with local <strong>and</strong> internati<strong>on</strong>alpartners, the Ministry <strong>and</strong> DevelopmentGateway designed <strong>and</strong> piloted the aidmanagement platform, a software applicati<strong>on</strong>used to collect, m<strong>on</strong>itor, <strong>and</strong> report<strong>on</strong> aid informati<strong>on</strong>. Six years later, theplatform is embedded in Ethiopia’s aid effectivenessacti<strong>on</strong> plan. The Ministry hasmade the platform the official governmentsystem for capturing <strong>and</strong> reporting informati<strong>on</strong><strong>on</strong> aid activities, <strong>and</strong> the Ministry’sstaff can now locate informati<strong>on</strong> <strong>and</strong>produce reports much more quickly. By2011, Ethiopia had 624 completed or <strong>on</strong>going<strong>development</strong> assistance projects carriedout between 1998 <strong>and</strong> 2011, totalingnearly $18 billi<strong>on</strong> in aid flows financed by46 d<strong>on</strong>or agencies.


ETHIOPIA11<strong>and</strong> view profiles of individuald<strong>on</strong>or partners. This project reflectsnot <strong>on</strong>ly Ethiopia’s interestin boosting aid transparency<strong>and</strong> accountability, but its growing<strong>capacity</strong> to design <strong>and</strong> implementsophisticated softwareprograms <strong>and</strong> data managementprocesses.Support to the <strong>capacity</strong><strong>development</strong> processEnhanced performanceThe Ministry of Finance <strong>and</strong> Ec<strong>on</strong>omicDevelopment has embraced the aid managementplatform <strong>and</strong> has introducedcustomizati<strong>on</strong>s designed for the Government’sparticular needs <strong>and</strong> capabilities.The ministry created new sector codingschemes, implemented a module to trackprogress in achieving the indicators of theParis Declarati<strong>on</strong>, <strong>and</strong> helped develop anati<strong>on</strong>al planning dashboard that is nowalso used in other countries. The Ministryalso plans to enhance the platform’sgeospatial functi<strong>on</strong>alities, allowing usersto enter <strong>and</strong> track data <strong>on</strong> basket funds,<strong>and</strong> integrate the platform with the Government’ssystem for managing budget<strong>and</strong> financial informati<strong>on</strong> (the IntegratedFinancial Management Informati<strong>on</strong> System).The Minister for Finance <strong>and</strong> Ec<strong>on</strong>omicDevelopment, H.E. Ato Sufian Ahmed,asked that data captured by the platformbe made available to the public <strong>on</strong>line.During 2011, the Ministry has workedto validate the platform’s dataset <strong>and</strong> developtechnical requirements for a ‘PublicView’ website for the platform. On thewebsite, any<strong>on</strong>e with internet access willbe able to browse <strong>development</strong> assistanceprojects in Ethiopia, produce customisedreports <strong>on</strong> official <strong>development</strong> assistance,Nati<strong>on</strong>al investmentsThe Ministry of Finance <strong>and</strong>Ec<strong>on</strong>omic Development played a key rolein designing, piloting, <strong>and</strong> customizingthe system, c<strong>on</strong>tributing c<strong>on</strong>siderable resources<strong>and</strong> staff hours to training programmes,data management forums, <strong>and</strong>discussi<strong>on</strong>s with Development Gateway<strong>on</strong> technical requirements. The systemnow has 171 users, 35 of whom have beentrained as advanced users, business us-Capacity <strong>development</strong> investmentsAn Aid Management Platform was introducedto help collect, m<strong>on</strong>itor, <strong>and</strong> report <strong>on</strong> official<strong>development</strong> assistance.The system has been customised to suit theGovernment’s specific <strong>capacity</strong> needs.New sector coding schemes have beenintroduced <strong>and</strong> a module to track progress inachieving the indicators of the Paris Declarati<strong>on</strong>implemented; a nati<strong>on</strong>al planning dashboard hasalso been developed.The aid informati<strong>on</strong> system is being madeaccessible to the public, reflecting theGovernment commitment in boosting aidtransparency <strong>and</strong> accountability.Country ownership <strong>and</strong> a government-ledprocess are critical success factors, as well asc<strong>on</strong>sultati<strong>on</strong>s with <strong>development</strong> partners <strong>and</strong> anincremental, programmatic approach.


12 Capacity: ResultsFind out morePlease c<strong>on</strong>tact Emily KallaurEmail: ekallaur@<strong>development</strong>gateway.orgPh<strong>on</strong>e: +1-202-572-9227Web: www.<strong>development</strong>gateway.orgers, technicians, or administrators. Sincethe platform’s implementati<strong>on</strong> in Ethiopia,nearly 20 other countries have implementedthe system, benefitting from theEthiopian pilot. Less<strong>on</strong>s learned includethe critical importance of country ownership<strong>and</strong> a government-led process; ac<strong>on</strong>sultative approach involving <strong>development</strong>partners; <strong>and</strong> an incremental, programmaticapproach that emphasizesdata management <strong>and</strong> addresses infrastructurechallenges.In 2007, the Ministry of Finance <strong>and</strong> Ec<strong>on</strong>omicDevelopment hosted a regi<strong>on</strong>alknowledge-sharing event for prospectiveplatform users from Tanzania, BurkinaFaso, <strong>and</strong> Malawi. The three countriessubsequently decided to move forwardwith introducing similar aid managementsystems. Later that year, the platform’s administratorin Ethiopia joined the DevelopmentGateway team in Tanzania to helptrain the Tanzanian Government’s users.In additi<strong>on</strong>, the Government of Ethiopiahas participated actively in the three annualinternati<strong>on</strong>al workshops that havebeen held to date (2008, 2009, <strong>and</strong> 2010) forusers to share good practices in using thesystem <strong>and</strong> in managing aid informati<strong>on</strong>more generally.Development partners’ supportTo address the Ethiopia’s <strong>capacity</strong> needsfor managing <strong>development</strong> assistance<strong>and</strong> to coordinate with <strong>development</strong>partners, Development Gateway <strong>and</strong> theMinistry of Finance <strong>and</strong> Ec<strong>on</strong>omic Developmentundertook a partnership-basedapproach to implementing the platform,soliciting the assistance of experiencedlocal <strong>and</strong> internati<strong>on</strong>al <strong>development</strong> organizati<strong>on</strong>s.The OECD/DevelopmentAssistance Committee gave guidance <strong>on</strong>internati<strong>on</strong>al reporting st<strong>and</strong>ards (suchas aid sector classificati<strong>on</strong>s), while UNDPadvised <strong>on</strong> implementati<strong>on</strong> approach <strong>and</strong>requirements. The World Bank, the localDevelopment Assistance Group, <strong>and</strong> theGovernment of India provided technicalassistance <strong>and</strong> in-kind d<strong>on</strong>ati<strong>on</strong>s.


guinea-bissau13GUINEA-BISSAU – Supporting<strong>development</strong> of theeducati<strong>on</strong> systemC<strong>on</strong>textIn 2009, the chance of children in Guinea-Bissau attending school was 76 percent,with a 48 percent chance of completingbasic educati<strong>on</strong> <strong>and</strong> a 17 percent chanceof completing sec<strong>on</strong>dary educati<strong>on</strong>. Ofall children enrolled in first grade, morethan half either had to repeat the year ordropped out. Only 40 percent of basic educati<strong>on</strong>teachers had received pre-servicetraining, <strong>and</strong> the situati<strong>on</strong> was aggravatedby inadequate curricula <strong>and</strong> insufficientaccess to textbooks.Following a review of the educati<strong>on</strong> sectorin 2009, the Government of Guinea-Bissaurevised its Policy Strategy for Educati<strong>on</strong>,<strong>and</strong> sought IPAD’s support for the policy’simplementati<strong>on</strong>.Development <strong>results</strong>After four years of a Community Educati<strong>on</strong>Development project (+Escola/DjuntaM<strong>on</strong>) <strong>and</strong> two years of an Educati<strong>on</strong> SystemDevelopment Programme, both covering246 basic <strong>and</strong> sec<strong>on</strong>dary schools, teachers’skills rose up to 27 percent, <strong>and</strong> dropoutsfell by up to 70 percent.A complete reform of the curricula is <strong>on</strong>going,with newly introduced pre-schoolcurricula <strong>and</strong> revised basic educati<strong>on</strong> curriculanow focusing <strong>on</strong> language skills <strong>and</strong>c<strong>on</strong>textualized learning.Improved <strong>and</strong> affordable teaching materials<strong>and</strong> books have been developed <strong>and</strong>introduced with extensive teacher participati<strong>on</strong>.Enhanced performanceA <strong>sustainable</strong> in-service peer-to peertraining system has been developed<strong>and</strong> rolled out, whereby skilled teachersare identified <strong>and</strong> selected to train otherteachers, observe their classes, <strong>and</strong> discussimprovements using structured tools.The Ministry of Educati<strong>on</strong> has created aregulatory envir<strong>on</strong>ment enabling skilledteachers to train their peers, including thenew Teaching Statutory Law, approved in2010, which authorises regular teachers totrain other teachers (Estatuto da CarreiraDocente, Article 27), while reducing theirclass teaching schedules.Upgrading their status has proven to bea sufficient incentive for the peer-trainers,ResultsThe Ministry of Educati<strong>on</strong>’s Sector Policy Strategyled a process of reform of the educati<strong>on</strong> system.Teachers’ skills rose up to 27 percent, <strong>and</strong>dropouts fell by up to 70 percent.School curricula are being revised <strong>and</strong> newteaching material introduced.


14 Capacity: Resultsas they are not compensated witha wage increase. The trainees alsoaccept their peer colleagues’ newrole. To incentivize better performance,a certificati<strong>on</strong> system forcareer progressi<strong>on</strong> is also beingdeveloped. The <strong>capacity</strong> thus addedto previous nati<strong>on</strong>al in-servicetraining system allows to date anadditi<strong>on</strong>al 1,000 trainees to be underc<strong>on</strong>tinuous training each year,providing much needed supportto nine ill-equipped <strong>and</strong> poorlystaffed Regi<strong>on</strong>al Inspecti<strong>on</strong> <strong>and</strong>Training Teams (ETR), each with betweensix <strong>and</strong> 12 inspectors.More attenti<strong>on</strong> has also been given toearly exposure of the teaching languagethrough the pre-school curriculum <strong>and</strong>by extending partnerships with Churchinstituti<strong>on</strong>s. The 2010 Educati<strong>on</strong> StatutoryLaw (Lei de Bases do Sistema Educativo,Article 16) sets down that the basic educati<strong>on</strong>curriculum should address intensiveoral language instructi<strong>on</strong> in the first sixm<strong>on</strong>ths of the 1st grade. Through a partnershipbetween Caritas <strong>and</strong> the NGOFundação Fé e Cooperação (FEC), since2009 pre-service training has been providedto 100 Educators each year.The distributi<strong>on</strong> of affordable learningmaterials is also being enhanced througha pilot cost recovery scheme. In 2010-11,sec<strong>on</strong>dary school boards produced 12,500manuals at an average cost of €1 ($1.40).Capacity <strong>development</strong> investmentsDevelopment <strong>and</strong> roll-out of an in-service, peerto-peertraining system, whereby skilled teacherstrain their peers.Reform of school curricula, with a focus <strong>on</strong>language skills, to be developed in the earlyyears.Improved teaching material has been introduced.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsBetween 2009 <strong>and</strong> 2011, the Ministry ofEducati<strong>on</strong>’s Sector Policy Strategy led tothe introducti<strong>on</strong> of a package of legislati<strong>on</strong>to reform the educati<strong>on</strong> system. Thatincluded the Statutory Laws <strong>and</strong> a Lawestablishing <strong>on</strong>e single Board for all currentPre-Service Training Schools.The Ministry of Educati<strong>on</strong> has led a processto improve harm<strong>on</strong>izati<strong>on</strong> <strong>and</strong> divisi<strong>on</strong>of labour am<strong>on</strong>gst actors operating inthe educati<strong>on</strong> sector. This process has facilitatedthe strengthening of partnershipsbetween different actors: for example,Portuguese Cooperati<strong>on</strong> is now collaboratingwith School Boards for the trainingof teachers, UNESCO is cooperatingwith the Nati<strong>on</strong>al Institute for Educati<strong>on</strong>Development to coordinate curriculumreform, <strong>and</strong> the internati<strong>on</strong>al NGO FEC isworking with ETR to support communityeducati<strong>on</strong>.Working groups have been created underthe leadership of the Nati<strong>on</strong>al Institutefor Educati<strong>on</strong> Development involving relevant<strong>development</strong> partners <strong>and</strong> centralgovernment services. The working groupsaddress issues related to curriculum reforms<strong>and</strong> the findings of the workinggroups are shared for c<strong>on</strong>sultati<strong>on</strong> <strong>and</strong>


guinea-bissau15dialogue with the sector’s stakeholders.Their scope includes pre-school, basic <strong>and</strong>sec<strong>on</strong>dary educati<strong>on</strong>, pre-service trainingcurricula <strong>and</strong> guidelines for Citizenship<strong>and</strong> Human Rights Educati<strong>on</strong>.Development partners’ supportIPAD has worked with partners such asEscola Superior de Educação do Instituto Politécnicode Viana do Castelo, a pre-serviceschool <strong>and</strong> member of the Inter-AgencyNetwork for Educati<strong>on</strong> in Emergency, <strong>and</strong>Fundação Fé e Cooperação, which specializesin community educati<strong>on</strong>. A strategybased <strong>on</strong> three-tier educati<strong>on</strong> system governancehas been outlined with the Ministryof Educati<strong>on</strong>. Technical assistanceincluding upgrading management <strong>and</strong>Find out morePlease c<strong>on</strong>tact Isabel CoutoDirector of CGI/ IPADEmail: isabel.couto@ipad.mne.gov.ptPh<strong>on</strong>e: 351-213176700Web: www.ipad.mne.gov.ptdata collecti<strong>on</strong> tools is provided to the central<strong>and</strong> regi<strong>on</strong>al authorities. Resourceswere channeled to schools to foster theiraut<strong>on</strong>omy <strong>and</strong> role as leaders in developingthe quality of educati<strong>on</strong> from bottomto top practices. Twinning arrangementssupport the strengthening of the nati<strong>on</strong>alpeer-to-peer training <strong>capacity</strong>.República daGuiné-BissauMinistério da Educação Naci<strong>on</strong>al, Cultura, Ciência, Juventude e dos Desportos


16 Capacity: ResultsKENYA – Nati<strong>on</strong>al <strong>capacity</strong> for policyanalysis <strong>and</strong> research: the Kenya Institutefor Public Policy Research <strong>and</strong> AnalysisC<strong>on</strong>textResultsDevelopment <strong>and</strong> use of KIPPRA-Treasury MacroModel (KTMM) by Ministry of Finance <strong>and</strong> IMF(e.g. for ec<strong>on</strong>omic forecasts; public expendituremanagement.)Annual Kenya Ec<strong>on</strong>omic Report (KER) forparliament <strong>on</strong> request of Ministry of Planning <strong>and</strong>Nati<strong>on</strong>al Development (since 2007).Initiati<strong>on</strong> <strong>and</strong>/or c<strong>on</strong>tributi<strong>on</strong> to major policydocuments like Kenya Visi<strong>on</strong> 2030, Ec<strong>on</strong>omicRecovery Strategy.Study that lead to creati<strong>on</strong> of Nairobi MetropolitanStrategy.Establishment of Kenya Private Sector Alliance(KEPSA) as instrument for dialogue withgovernment.Appointment of researchers to key positi<strong>on</strong>slike governor of central bank <strong>and</strong> permanentsecretary of Ministry of HealthOne of the challenges facing Africangovernments has been weak <strong>capacity</strong> forpolicy analysis <strong>and</strong> research. To make upfor the lack of local <strong>capacity</strong>, governmentsused to rely <strong>on</strong> expatriate advisers <strong>and</strong> asmall group of experienced senior civilservants. In order to foster leadership <strong>and</strong>ownership of the <strong>development</strong> agenda,ACBF promoted the establishment of Africa-ledthink tanks which enabled indigenousexperts take over the policy analysisprocess. During the last 15 years a seriesof policy centres were created in Africa todevelop the required expertise, <strong>and</strong> theKenya Institute for Public Policy Research<strong>and</strong> Analysis (KIPPRA) is internati<strong>on</strong>allyrecognized as a successful example of thisinitiative. KIPPRA is an aut<strong>on</strong>omous publicinstitute formally established in 1997 totake up resp<strong>on</strong>sibility for macroec<strong>on</strong>omicmanagement <strong>and</strong> medium to l<strong>on</strong>g termplanning functi<strong>on</strong>s <strong>and</strong> falls under theoversight of the Ministry of State for Planning,Nati<strong>on</strong>al Development <strong>and</strong> Visi<strong>on</strong>2030 (MPND).Development <strong>results</strong>KIPPRA played a critical role in the transformati<strong>on</strong>of the policy-making processin Kenya by providing evidence <strong>and</strong> platformsneeded to promote a broad c<strong>on</strong>sensus<strong>on</strong> key <strong>development</strong> priorities reflectedin the Kenya visi<strong>on</strong> document. Kenyahas taken the leadership in defining its<strong>development</strong> agenda <strong>and</strong> the successfulresilience of the Kenyan ec<strong>on</strong>omy duringthe recent global financial crisis is a testim<strong>on</strong>ialof progress achieved in ec<strong>on</strong>omicmanagement through participati<strong>on</strong> of allkey <strong>development</strong> stakeholders. Workingthrough country-led systems can yield<strong>results</strong> as illustrated by the following examples.


kenya17Some major <strong>results</strong> include theKIPPRA-Treasury Macro Model(KTMM), which supports the Ministryof Finance in preparati<strong>on</strong> ofthe fiscal budget, the Budget OutlookPaper, by running policy simulati<strong>on</strong>s<strong>and</strong> informing nati<strong>on</strong>al<strong>development</strong> plans, <strong>and</strong> the KenyaEc<strong>on</strong>omic Report (KER) <strong>on</strong> the performanceof the ec<strong>on</strong>omy, which isprepared <strong>and</strong> presented to Parliamenteach year. Other c<strong>on</strong>tributi<strong>on</strong>sto key government policy areasinclude the c<strong>on</strong>cept paper for Kenya’sl<strong>on</strong>g-term <strong>development</strong> blueprint (KenyaVisi<strong>on</strong> 2030), policy dialogue through theestablishment of the Kenya Private SectorAlliance (KEPSA), <strong>and</strong> the creati<strong>on</strong>of a Nairobi Metropolitan Ministry. Theimportance of KIPPRA can also be seenby the fact that KIPPRA researchers havebeen appointed to key positi<strong>on</strong>s such asthe governor of the central bank.Dem<strong>and</strong> for KIPPRA’s policy research iswidespread <strong>and</strong> increasing across government(from 5 to 13 ministries <strong>and</strong>agencies) <strong>and</strong> from nati<strong>on</strong>al <strong>and</strong> internati<strong>on</strong>alpolicy working groups (from 12 to30 organisati<strong>on</strong>s including internati<strong>on</strong>alinstituti<strong>on</strong>s like the African Peer ReviewMechanism(APRM). KIPPRA has producedapproximately 200 publicati<strong>on</strong>swith a distributi<strong>on</strong> of over 30,000 copiesannually.Enhanced performanceKIPPRA obtained ISO Certificati<strong>on</strong> forquality st<strong>and</strong>ards <strong>and</strong> services in 2010<strong>and</strong> has been recognized as <strong>on</strong>e of thetop Think Tanks in Africa according tothe annual ranking by the Global ThinkTanks Program of the University of Pennsylvania.Some of the factors c<strong>on</strong>tributingto KIPPRA’s success include: (i) Legalunderpinning by the KIPPRA Act (2006);(ii) Partnerships with the Ministries ofFinance, Planning, <strong>and</strong> Trade <strong>and</strong> Industries,as well as the private sector <strong>and</strong> universities(all of which are represented <strong>on</strong>the governing board) have allowed collaborativeresearch <strong>and</strong> exp<strong>and</strong>ed KIPPRA’sown research capability <strong>and</strong> c<strong>on</strong>tributed tothe use of research <strong>results</strong> (iii) A researchagenda established through assignmentsby government agencies <strong>and</strong> other organizati<strong>on</strong>s,as well as by its own researchstaff; (iv) Rigorous adherence to scientificst<strong>and</strong>ards <strong>and</strong> high quality research;(v)Maintaining high quality staff, despitestaff poaching being a regular challenge;(vi) Financial sustainability based <strong>on</strong> l<strong>on</strong>gterm financial commitments from theGovernment of Kenya <strong>and</strong> other <strong>development</strong>partners combined with internallygenerated funds.Capacity <strong>development</strong> investmentsLegal recogniti<strong>on</strong> (KIPPRA Act, 2006) to ensurecommitment.Str<strong>on</strong>g linkage with Ministries of Finance <strong>and</strong>Planning <strong>and</strong> other instituti<strong>on</strong>s in order to producerelevant research.Scientific independence to maintain credibility.Ability to maintain competent staff despite braindrain tendencies.L<strong>on</strong>g term financial commitment by government<strong>and</strong> <strong>development</strong> partners.Training of young professi<strong>on</strong>als (approx. 10/year).


18 Capacity: ResultsFind out morePlease c<strong>on</strong>tact: Mr. Moses Ikiara(Executive Director)Email: admin@kippra.or.kePh<strong>on</strong>e: +254 20 4936000Web: www.kippra.orgKIPPRA is also c<strong>on</strong>tributing to further <strong>development</strong>of policy research <strong>and</strong> analysis<strong>capacity</strong>. Its efforts are mainly targeted atofficers in government <strong>and</strong> at the staff inthe Institute. One of the core programs inthis area is the Young Professi<strong>on</strong>als programwhich trains at least 10 young professi<strong>on</strong>alseach year.Financial sustainability has improvedover time through diversificati<strong>on</strong> of funding<strong>and</strong> new c<strong>on</strong>sultancy projects. KIP-PRA’s internally generated funds havebeen increasing while that of d<strong>on</strong>orshas been declining. Should d<strong>on</strong>or fundsbe unavailable for KIPPRA, its own resources<strong>and</strong> Kenyan Government supportwould enable the instituti<strong>on</strong> to sustain itsactivities.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsThe performance of KIPPRA <strong>and</strong> its c<strong>on</strong>tinuouspositive c<strong>on</strong>tributi<strong>on</strong> to policyformulati<strong>on</strong> <strong>and</strong> <strong>capacity</strong> building activitiesin Kenya has been instrumental to attractingfunding from the Government ofKenya. Initially government support wasslow, taking more than three years to takeoff. After KIPPRA proved its potential thegovernment passed the KIPPRA Act to cementits commitment. The Governmentprovided l<strong>and</strong> for the KIPPRA’s campus<strong>and</strong> also committed adequate resourcesthrough the Medium Term ExpenditureFramework. The Government has increasedits funding to KIPPRA in threephases from 12% to 24% to 55% of the totalbudget, which is testim<strong>on</strong>y to the Government’scommitment to <strong>and</strong> recogniti<strong>on</strong> ofKIPPRA’s strategic role in providing qualitypublic policy advice <strong>and</strong> in building<strong>capacity</strong>.Development partners’ supportACBF maintained its support to KIPPRAfor over 10 years until the Government ofKenya took over the biggest share of KIP-PRA budget. ACBF is a special type of‘<strong>development</strong> partner’, an African instituti<strong>on</strong>that mobilizes Africa’s own <strong>capacity</strong>to improve <strong>development</strong> management.ACBF had experience in various Africancountries with the establishment of aut<strong>on</strong>omous,semi-aut<strong>on</strong>omous, <strong>and</strong> governmentpolicy research institutes, whichwas used to support the design of KIP-PRA. ACBF also runs a network of policyresearch institutes in which KIPPRA participates.ACBF has played a catalytic role since otherstakeholders <strong>and</strong> d<strong>on</strong>ors acknowledgethe high quality of KIPPRA’s researchproducts <strong>and</strong> c<strong>on</strong>tributi<strong>on</strong> to policy making<strong>and</strong> analysis. This has enhanced thedem<strong>and</strong> for KIPPRA’s services <strong>and</strong> themobilizati<strong>on</strong> of resources as well as attractingother d<strong>on</strong>ors such as the EuropeanCommissi<strong>on</strong> which has been a c<strong>on</strong>sistentcore d<strong>on</strong>or for over 10 years.


LAO PDR19LAO PDR – Entrepreneursdriving productivity <strong>and</strong> <strong>capacity</strong>in smallholder rice farmingC<strong>on</strong>textImproved rice producti<strong>on</strong> is key to <strong>development</strong><strong>and</strong> food security in Lao PDR.While paddy rice producti<strong>on</strong> has increased,less attenti<strong>on</strong> has been paid to improvingproductivity both <strong>on</strong>-farm <strong>and</strong> inpost-harvest h<strong>and</strong>ling, including milling.One kilo of paddy rice milled in Lao PDRused to produce significantly less ediblerice than in neighboring countries. Poorquality has meant lower prices, reducingprofits for both millers <strong>and</strong> farmers. Producti<strong>on</strong>of better quality paddy rice <strong>and</strong>improved milling practices can increasethe supply of rice in Lao PDR, open newdistributi<strong>on</strong> channels <strong>and</strong> improve theprofits <strong>and</strong> livelihoods of both millers <strong>and</strong>smallholder farmers.Development <strong>results</strong>Within 18 m<strong>on</strong>ths of starting, the EnhancingMilled Rice Producti<strong>on</strong> project in LaoPDR brokered fair trading relati<strong>on</strong>s between21,360 smallholder rice producers<strong>and</strong> 21 selected rice mills. The project hasseen some highly encouraging <strong>results</strong>, includinga 10 percent increase in milling recoveryrates <strong>and</strong> a 20 percent productivityincrease in producti<strong>on</strong> per hectare, due toquality input <strong>and</strong> extensi<strong>on</strong> provided bymillers.Farmers say that the benefits include input<strong>and</strong> extensi<strong>on</strong>, an agreed minimum priceat the start of the seas<strong>on</strong>, <strong>and</strong> a premiumprice for higher quality at harvest time.Eight of 21 Enhancing Milled Rice Producti<strong>on</strong>project millers have g<strong>on</strong>e <strong>on</strong> toorganize new Miller Groups outside theprogramme – without additi<strong>on</strong>al support– involving more than 100 new millers.This sp<strong>on</strong>taneous up-scaling str<strong>on</strong>glymultiplies the outreach <strong>and</strong> impact bysharing approaches, exploring new markets,<strong>and</strong> supporting sustainability. SomeMiller Groups are now able to access subsidizedinterest rate loans <strong>and</strong> instituti<strong>on</strong>almarket actors like the World FoodProgramme.The project represents a shift in approachfor <strong>capacity</strong> <strong>development</strong> in farming communities.It deliberately uses business relati<strong>on</strong>sas a driver for <strong>capacity</strong> growth <strong>and</strong>improved relati<strong>on</strong>s in the value chain.Results10 percent increase in milling recovery rates <strong>and</strong>a 20 percent productivity increase in producti<strong>on</strong>per hectare.Miller Groups are now able to access subsidizedinterest rate loans <strong>and</strong> instituti<strong>on</strong>al market actorslike the World Food Programme.Millers can support 1,000 smallholder farmers<strong>and</strong> support self-organizati<strong>on</strong>. Farmer groups arebetter able to make informed decisi<strong>on</strong>s, sharelearning, <strong>and</strong> negotiate.


20 Capacity: ResultsGovernment agencies haveembraced the approach <strong>and</strong>are now starting to appreciatethat Lao entrepreneurs – in thiscase, millers – can actually be<strong>capacity</strong> builders themselves,when they adopt an inclusivebusiness approach.Enhanced performanceSocially committed <strong>and</strong> capablemillers were selected to be theengines of the project. The projecthelped them to develop anInclusive Business Plan, whichdescribed steps to increase productivity,<strong>and</strong> to support farmers to produce highqualitypaddy rice. Millers received training<strong>and</strong> advice <strong>on</strong> farmer group formati<strong>on</strong><strong>and</strong> strengthening, extensi<strong>on</strong> techniques,input provisi<strong>on</strong>, <strong>and</strong> business managementskills. This enabled them to exp<strong>and</strong>their traditi<strong>on</strong>al trading role to incorporatethe provisi<strong>on</strong> of seed, fertilizer <strong>and</strong>extensi<strong>on</strong> services. It has resulted in asteady supply of quality paddy rice, al<strong>on</strong>gwith higher revenues for farmers <strong>and</strong>Capacity <strong>development</strong> investmentsCollaborati<strong>on</strong> between rice millers <strong>and</strong> farmersdrive <strong>capacity</strong> <strong>and</strong> improve relati<strong>on</strong>s in the valuechain.Millers receive training <strong>and</strong> advice <strong>on</strong> farmergroup formati<strong>on</strong> <strong>and</strong> strengthening, extensi<strong>on</strong>techniques, input provisi<strong>on</strong>, <strong>and</strong> businessmanagement skills.Socially committed millers are the project’s drivingforce. Millers participating in the programmehave organized new Miller Groups outsidethe programme – without additi<strong>on</strong>al support –involving more than 100 new millers.Regular c<strong>on</strong>sultati<strong>on</strong> between millers <strong>and</strong> farmersenables trust <strong>and</strong> fair trading relati<strong>on</strong>s.Support to public-private policy dialogue betweenstakeholders in the rice sector.millers. Millers now have the <strong>capacity</strong> tosupport 1,000 smallholder farming households<strong>and</strong> to stimulate self-organizati<strong>on</strong>.Farmer groups are better able to makeinformed decisi<strong>on</strong>s, share learning, <strong>and</strong>negotiate.Regular c<strong>on</strong>sultati<strong>on</strong> between millers <strong>and</strong>farmers enables trust <strong>and</strong> fair trading relati<strong>on</strong>s.A small, but significant, interventi<strong>on</strong>is that millers help purchase communalweighing scales <strong>and</strong> facilitate theircertificati<strong>on</strong> by government authorities tofoster transparency <strong>and</strong> avoid cheating byeither traders or farmers.A co-investment fund helps millers to upgradetheir equipment <strong>and</strong> improve riceproducti<strong>on</strong> <strong>and</strong> post-harvest h<strong>and</strong>ling,which has c<strong>on</strong>tributed to increased recoveryof milled rice.The selecti<strong>on</strong> of socially committed millers<strong>and</strong> the creati<strong>on</strong> of competiti<strong>on</strong> betweenthem have been crucial to the project’ssuccessful implementati<strong>on</strong>. For instance,if a miller underperforms according tothe programme criteria, he is given an initialwarning about his performance <strong>and</strong>is suspended from the programme if performancedoes not improve, <strong>on</strong> the recommendati<strong>on</strong>of provincial <strong>and</strong> districtauthorities. His place is then filled by twoother rice millers. When new millers are


LAO PDR21selected to participate in the programmethrough an abbreviated selecti<strong>on</strong> process,local governments <strong>and</strong> project staff investtime to train them <strong>and</strong> get them <strong>on</strong> track.The project works closely with provincialAgriculture <strong>and</strong> Forestry Offices, the departmentsof Industry <strong>and</strong> Commerce,<strong>and</strong> the private sector. Government agencieshave increasingly realized the valueof alignment with the private sector. InBolikhamxay Province, for example, theGovernment exempted fertilizers fromimport tax as an additi<strong>on</strong>al incentive formillers to work with smallholder farmers.The provincial authority has supportedmillers by officially approving MillerGroups in line with government policy.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsFind out morePlease c<strong>on</strong>tact Robin van KippersluisPortfolio Coordinator, SNV Lao PDREmail: rvankippersluis@snvworld.orgPh<strong>on</strong>e: +856 (0)21 414091Or: Ranjan ShresthaSector Leader Agriculture, SNV Lao PDREmail: ranjan@snvworld.orgPh<strong>on</strong>e: +856 (0)20 55312080Web: www.snvworld.orgThe Lao PDR government has dem<strong>on</strong>stratedits visi<strong>on</strong> as it has steadily commercializedagriculture <strong>and</strong> promotedsmallholder farming, but has struggledto find effective operati<strong>on</strong>al approaches.Launched in January 2010 by the Ministryof Agriculture <strong>and</strong> Forestry, <strong>and</strong> jointlyimplemented with Helvetas <strong>and</strong> SNV, theEnhancing Milled Rice Producti<strong>on</strong> projectpiloted a new approach. It used existingLao entrepreneurship <strong>and</strong> competencies.Leading at the provincial level are theprovincial Agriculture <strong>and</strong> Forestry Offices,<strong>and</strong> the departments of Industry<strong>and</strong> Commerce in six target provinces.They build trust, encourage fair tradingrelati<strong>on</strong>s between millers <strong>and</strong> smallholderfarmer groups <strong>and</strong> – with nati<strong>on</strong>algovernment – organize <strong>and</strong> facilitate public-privatepolicy dialogue between stakeholdersin the rice sector.Development partners’ supportThe project operated <strong>on</strong> a budget of €2.3milli<strong>on</strong>: 90 percent came from the EUFood Facility, with Helvetas <strong>and</strong> SNVproviding the other 10 percent. About<strong>on</strong>e-third was used to co-invest in millingfacilities, <strong>on</strong>e-third supported farmers,<strong>capacity</strong> building, <strong>and</strong> training, <strong>and</strong><strong>on</strong>e-third went to human resources (twointernati<strong>on</strong>al <strong>and</strong> 12 nati<strong>on</strong>al advisers,covering six provinces). The <strong>development</strong>partners offered substantial guidance <strong>on</strong>the overall approach of inclusive businessin the rice sector, <strong>and</strong> supported <strong>capacity</strong><strong>development</strong> of government stakeholders<strong>and</strong> rice millers to work efficiently withthe smallholder farmer groups.


22 Capacity: ResultsNIGERIA – The InterfaithMediati<strong>on</strong> CentreC<strong>on</strong>textFor years Nigeria has suffered from violentc<strong>on</strong>flict between religious <strong>and</strong> ethniccommunities, with extensive loss oflife <strong>and</strong> damage to property. In 1995, twoleaders of opposing facti<strong>on</strong>s – <strong>on</strong>e a Muslim,Imam Muhammad Ashafa, the othera Christian, Pastor James Wuye – helpedfound Nigeria’s Interfaith Mediati<strong>on</strong> Centre.Its missi<strong>on</strong> is to create a peaceful societythrough n<strong>on</strong>-violent <strong>and</strong> strategicengagements in Nigeria <strong>and</strong> elsewhereResultsThe Interfaith Mediati<strong>on</strong> Centre brings togetherpeople from different faiths <strong>and</strong> influences peacerelatedpolicy through advocacy.The Kaduna Peace Declarati<strong>on</strong> of ReligiousLeaders brought nearly a decade of peace inKaduna.The Yelwa Shendam Peace Accord broughtpeace to feuding communities.The Government of Kaduna State’s Bureau forReligious Affairs was established with a functi<strong>on</strong>alsecretariat.The Centre has trained the staff of the NigeriaInter-Religious Council <strong>on</strong> peaceful coexistence,the religious <strong>and</strong> tribal leaders of Adamawa State<strong>on</strong> c<strong>on</strong>flict mitigati<strong>on</strong>, <strong>and</strong> Kano State’s religioussecurity group <strong>on</strong> how to manage c<strong>on</strong>flictsituati<strong>on</strong>s.in the world. The two men were broughttogether in a quest for peace <strong>and</strong> have becomeworld-renowned peacemakers.Development <strong>results</strong>The Interfaith Mediati<strong>on</strong> Centre evolvedfrom the ideas of a few passi<strong>on</strong>ate individualsinto an internati<strong>on</strong>ally respectedn<strong>on</strong>-governmental organizati<strong>on</strong>. It usesadvocacy to influence key legislati<strong>on</strong>, <strong>and</strong>develops innovative tools for interfaithdialogue. For nearly 15 years, the Centrehas flourished as a faith-based organizati<strong>on</strong>.It has carried out more than 180 successfulinterventi<strong>on</strong>s in Nigeria as well asin Sudan, Kenya <strong>and</strong> Iraq.Am<strong>on</strong>g its achievements are the signingof the Kaduna Peace Declarati<strong>on</strong> of ReligiousLeaders, after which Kaduna enjoyednearly a decade of peace, <strong>and</strong> theYelwa Shendam Peace Accord, whichbrought peace to feuding communities.It also c<strong>on</strong>tributed to the establishment of


NIGERIA23Its improved organizati<strong>on</strong>al<strong>capacity</strong> has also enabledmore focus <strong>on</strong> technicalwork, while a shared organizati<strong>on</strong>alvisi<strong>on</strong> has fosteredbetter collaborati<strong>on</strong> withother organizati<strong>on</strong>s.Support to the<strong>capacity</strong> <strong>development</strong>processthe Government of Kaduna State’s Bureaufor Religious Affairs.Enhanced performanceThose positive <strong>results</strong> encouraged the InterfaithMediati<strong>on</strong> Centre to transfer itsskills to like-minded organizati<strong>on</strong>s, but itdid not have the capacities to do so. It alsorecognized that in order to attract supportfor its future work from d<strong>on</strong>ors, it wouldhave to ensure that its own organizati<strong>on</strong>was str<strong>on</strong>g enough to manage fundsproperly. So in 2008, the Centre embarked<strong>on</strong> a partnership with Pact to develop its<strong>capacity</strong> holistically, including joint identificati<strong>on</strong>of gaps through participatoryassessment, planning work using a varietyof methodologies such as training,coaching, <strong>and</strong> mentoring, <strong>and</strong> sub-grantingto test newly established systems <strong>and</strong>procedures.These <strong>capacity</strong> <strong>development</strong> effortshelped make the Centre’s leadership moreeffective <strong>and</strong> enabled it functi<strong>on</strong> moresmoothly <strong>and</strong> reduce dependence <strong>on</strong> itsfounders. The organizati<strong>on</strong>’s capabilitiesare increasingly recognized by <strong>development</strong>partners. The Center has receivedfunding from Christian Aid, the ThresholdFoundati<strong>on</strong>, <strong>and</strong> from UNDP, <strong>and</strong> hasstarted developing proposals for USAID.Nati<strong>on</strong>al InvestmentsAt every level, the governmenthas recognized <strong>and</strong>financially supported theCentre for its role as broker <strong>and</strong> builderof peace. It has also engaged the Centreto train its staff in peacebuilding<strong>and</strong> c<strong>on</strong>flict management. The Centrehas also trained the staff of the NigeriaInter-Religious Council <strong>on</strong> peaceful coexistence,the religious <strong>and</strong> tribal leadersof Adamawa State <strong>on</strong> c<strong>on</strong>flict mitiga-Capacity <strong>development</strong> investmentsThe Center has been recognised by thegovernment as the critical peace broker in Nigeria.A structured <strong>capacity</strong> self-assessment helpedthe organisati<strong>on</strong> to identify its <strong>capacity</strong> assets aswell as its administrative challenges <strong>and</strong> identifystrategies to address the same.A shared organizati<strong>on</strong>al visi<strong>on</strong> fostered bettercollaborati<strong>on</strong> with other organizati<strong>on</strong>s.The organizati<strong>on</strong>al structure has been improvedto make the Center more effective <strong>and</strong> efficient.Work plans <strong>and</strong> strategies have been developed,the financial system strengthened, <strong>and</strong> am<strong>on</strong>itoring <strong>and</strong> evaluati<strong>on</strong> system developed.Staff members have received training <strong>on</strong> peacebuilding <strong>and</strong> c<strong>on</strong>flict management, as well asprofessi<strong>on</strong>al skills training <strong>and</strong> mentoring.


24 Capacity: ResultsFind out morePlease c<strong>on</strong>tact Ahmed Mohammed,Acting Country Representative, Pact NigeriaEmail: amohammed@pactworld.orgPh<strong>on</strong>e: +234 9 4619570Web: www.pactworld.org, www.pactnigeria.orgti<strong>on</strong>, <strong>and</strong> Kano State’s religious securitygroup <strong>on</strong> how to manage c<strong>on</strong>flict situati<strong>on</strong>s.Kaduna State’s Bureau of ReligiousAffairs is another product of theCentre’s work, <strong>and</strong> acts as a model forother states.Members of the Interfaith Mediati<strong>on</strong> Centreserve <strong>on</strong> the Nati<strong>on</strong>al Anti-Corrupti<strong>on</strong>Committee as well as other committeesin Kaduna State. These platforms havehelped to further enhance the Centre’svisibility <strong>and</strong> <strong>development</strong>.Development partners’ supportThe British Council offered valuable moral,material, <strong>and</strong> financial support for theCentre’s early <strong>development</strong>, helping tostabilize the young organizati<strong>on</strong> <strong>and</strong> enableits professi<strong>on</strong>al growth.With USAID support, Pact worked withthe Centre <strong>on</strong> a guided organizati<strong>on</strong>al <strong>capacity</strong>self-assessment, which helped itsstaff to h<strong>on</strong>estly identify the programmaticstrengths as well as the organizati<strong>on</strong>’s administrativechallenges. Based <strong>on</strong> a str<strong>on</strong>g<strong>and</strong> trusting relati<strong>on</strong>ship, Pact worked withthe Centre to address its <strong>capacity</strong> gaps.It provided professi<strong>on</strong>al skills training<strong>and</strong> mentoring through internal events. Ithelped develop work plans <strong>and</strong> strategies,strengthened financial systems, <strong>and</strong> supportedthe <strong>development</strong> of a m<strong>on</strong>itoring<strong>and</strong> evaluati<strong>on</strong> system. A participatory, proactive,<strong>and</strong> flexible approach to <strong>capacity</strong> <strong>development</strong>ensured the Centre’s ownershipof its <strong>results</strong>: improved performance <strong>and</strong>improved organizati<strong>on</strong>al sustainability.


PAPUA NEW GUINEA25PAPUA NEW GUINEA –Creating <strong>capacity</strong> fordecentralized service deliveryC<strong>on</strong>textWhen the Papua New Guinea (PNG) Governmentintroduced the Organic Law <strong>on</strong>Provincial <strong>and</strong> Local Level Governmentin 1995, it decentralized resp<strong>on</strong>sibilityfor service delivery. The new law set intrain a complex reform process that hasgathered c<strong>on</strong>siderable momentum in recentyears.AusAID has supported the PNG Governmentin creating key enablers for decentralizedservice delivery which, al<strong>on</strong>gwith the Government’s commitment <strong>and</strong>leadership, have brought intermediate butimportant <strong>development</strong> <strong>results</strong> <strong>and</strong> havemade sustained improvements in servicedelivery more likely.Development <strong>results</strong>The reform process has achieved severalsignificant medium-term gains: it hasstrengthened corporate governance <strong>and</strong>administrati<strong>on</strong>, which has improved publicservice administrati<strong>on</strong> in all of PNG’s18 provinces; a review of intergovernmentalfinancing brought more clarity to theresp<strong>on</strong>sibilities of provincial <strong>and</strong> localgovernment <strong>and</strong> fiscal decentralizati<strong>on</strong>has increased funding for service delivery;<strong>and</strong> through nati<strong>on</strong>al support <strong>and</strong> coordinati<strong>on</strong>,the Department of Provincial<strong>and</strong> Local Government Affairs has led astr<strong>on</strong>ger nati<strong>on</strong>al engagement in servicedelivery. These achievements in administrative<strong>capacity</strong>, funding, <strong>and</strong> accountability<strong>and</strong> coordinati<strong>on</strong> have now startedto bear fruit in more <strong>and</strong> better servicesfor people.Enhanced performanceBecause of the investment <strong>and</strong> the <strong>results</strong>the reform process has brought, most provinces,districts, <strong>and</strong> local governments areintegrating planning <strong>and</strong> budgeting processes,allocating more m<strong>on</strong>ey to key priorityareas (a 32 percent increase between2005 <strong>and</strong> 2009), moving staff from provincialheadquarters to districts <strong>and</strong> localgovernment to improve services, <strong>and</strong>becoming more accountable for servicedelivery by submitting statutory nati<strong>on</strong>alperformance reports <strong>and</strong> through localmulti-stakeholder performance m<strong>on</strong>itoringforums.ResultsThe reform process has improved theadministrati<strong>on</strong> of public services in all of PNG’s 18provinces.Fiscal decentralizati<strong>on</strong> has increased funding forservice delivery.Accountability <strong>and</strong> coordinati<strong>on</strong>for local service delivery has increased.Planning <strong>and</strong> budgeting processes have becomebetter integrated.


26 Capacity: Resultsm<strong>on</strong>ey being channeled into localservice delivery.More m<strong>on</strong>ey is now flowing into serviceprovisi<strong>on</strong>. The 2010 nati<strong>on</strong>al budget increasedfunding for provincial <strong>and</strong> localservice delivery by 22 percent, <strong>and</strong>by 2012 people will see 40 percent moreCapacity <strong>development</strong> investmentsThe PNG Government introduced the OrganicLaw <strong>on</strong> Provincial <strong>and</strong> Local Level Government.The commitment of central <strong>and</strong> local levelleadership to reforms has significantly c<strong>on</strong>tributedto their success.Staff have been moved from provincial officesto districts <strong>and</strong> local government to improveservices.Local governments now submit statutory nati<strong>on</strong>alperformance reports.Local multi-stakeholder forums m<strong>on</strong>itor localgovernments’ performance.The inter-departmental provincial <strong>and</strong> lowerlevel service m<strong>on</strong>itoring authority m<strong>on</strong>itors<strong>and</strong> coordinates nati<strong>on</strong>al <strong>and</strong> sub-nati<strong>on</strong>alcooperati<strong>on</strong>.Provinces prepare annual reports <strong>on</strong> servicedelivery outcomes for the PNG Parliament.The recogniti<strong>on</strong> of the role of provincialadministrators as chief accounting officers, whoexercise leadership <strong>and</strong> drive change at theprovincial <strong>and</strong> local levels.There is more public accountability.The Department of Provincial<strong>and</strong> Local Government Affairshas revived the inter-departmentalprovincial <strong>and</strong> lower level servicem<strong>on</strong>itoring authority thatm<strong>on</strong>itors <strong>and</strong> coordinates nati<strong>on</strong>al<strong>and</strong> sub-nati<strong>on</strong>al cooperati<strong>on</strong>,<strong>and</strong> resurrected the practiceof provinces preparing annualreports <strong>on</strong> service delivery outcomesfor the PNG Parliament.These <strong>development</strong>s suggest that thesystem is better able to manage its ownaffairs, which bodes well for furtheradvances in service delivery, but PNGremains a complex envir<strong>on</strong>ment withmany challenges still to overcome. Althoughgenerally impressive, progressvaries significantly across provinces. Themost encouraging outcomes have been inprovinces whose leadership – both political<strong>and</strong> administrative – is committed topositive change.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsDecentralizati<strong>on</strong> is complex. It dem<strong>and</strong>svisi<strong>on</strong>, leadership <strong>and</strong>, ideally, a joint approachby key stakeholders. The leadershipof the PNG Government has c<strong>on</strong>firmedits commitment to a three-tiergovernance structure. In its medium- <strong>and</strong>l<strong>on</strong>g-term <strong>development</strong> visi<strong>on</strong>s, it clearlyrecognizes the role of sub-nati<strong>on</strong>al governmentin leading the drive to improveservice delivery.Its steps to advance important fiscal decentralizati<strong>on</strong>reforms aim to revitalizethe service delivery mechanism, encouragemore whole-of-government support,<strong>and</strong> promote the Department of Provin-


PAPUA NEW GUINEA27cial <strong>and</strong> Local Government Affairs asthe lead agency in sub-nati<strong>on</strong>al <strong>capacity</strong><strong>development</strong>. But most critical is its recogniti<strong>on</strong>of the role of provincial administratorsas chief accounting officers whoexercise leadership <strong>and</strong> drive change atthe provincial <strong>and</strong> local levels.Development partners’ supportAusAID has worked with the Governmentas its principal external partner inadvancing decentralizati<strong>on</strong>. Other partners,such as NZAID, the European Commissi<strong>on</strong>,<strong>and</strong> the World Bank, have alsosupported the process.AusAID has channelled its supportthrough the Sub-Nati<strong>on</strong>al Program,which began in 2004 as a pilot project <strong>and</strong>has since evolved into a l<strong>on</strong>ger-term, flexibleprogramme of support. It emphasizesthe importance of forging str<strong>on</strong>g workingrelati<strong>on</strong>ships with counterpart organizati<strong>on</strong>s,<strong>and</strong> has placed staff in provincesto strengthen dialogue, programming,<strong>and</strong> m<strong>on</strong>itoring. These efforts have alsoFind out morePlease c<strong>on</strong>tactEmail: AusAID infoausaid@ausaid.gov.auPh<strong>on</strong>e: 02 6206 4000Web: www.ausaid.gov.ausupported research <strong>and</strong> policy analysis.It has sought to work iteratively, resp<strong>on</strong>dingto opportunities when they arise, <strong>and</strong>supporting the Government’s leadership<strong>and</strong> initiatives. Its <strong>capacity</strong> <strong>development</strong>approaches have included technical assistance,al<strong>on</strong>g with peer-to-peer learning,stepped performance-based incentivefunds, <strong>and</strong> sec<strong>on</strong>dment of staff acrossprovinces. Its key strengths lie in its l<strong>on</strong>gtermcommitment to, <strong>and</strong> support for,PNG systems, plus a flexible <strong>and</strong> resp<strong>on</strong>siveapproach that has helped the programmedevelop as those systems havechanged.DEPARTMENT OF PROVINCIAL & LOCAL GOVERNMENT AFFAIRS


28 Capacity: ResultsParaguay – Improved coordinati<strong>on</strong>for poverty reducti<strong>on</strong>C<strong>on</strong>textPresident Fern<strong>and</strong>o Lugo’s governmentassumed office in August 2008 after60 years of <strong>on</strong>e-party regime. The newgovernment faced a country with widespread<strong>and</strong> extreme poverty, which madeit unlikely to meet most of the MillenniumDevelopment Goals. To make thingsworse, the new Government was establishedwhen the internati<strong>on</strong>al financialcrisis started spreading across countries<strong>and</strong> regi<strong>on</strong>s. The Government resp<strong>on</strong>dedto these challenges by, inter alia, enactingthe Ec<strong>on</strong>omic Recovery Plan (Anti-Crisis), <strong>and</strong> encouraging interagencycoordinati<strong>on</strong> of programmes to combatpoverty.Development <strong>results</strong>ResultsExp<strong>and</strong>ed coverage of safety-net programmes:from 13,000 to 98,000 families.Introducti<strong>on</strong> of free medical c<strong>on</strong>sultati<strong>on</strong>s servicesin poor areas.500 family healthcare units established.Poverty rate significantly reduced.In the face of the global ec<strong>on</strong>omic crisis,the poverty reducti<strong>on</strong> programmes,implemented under the Anti-Crisis Plan,have been successful in reducing povertyby 2.8 percent between 2008 <strong>and</strong> 2009,with a further 1.2 percent reducti<strong>on</strong> between2009 <strong>and</strong> 2010. Other importantMDG <strong>results</strong> include the reducti<strong>on</strong> ofec<strong>on</strong>omic barriers to access to health. Thenumber of people in the poorest quintilethat fell ill <strong>and</strong> did not access health servicesfor ec<strong>on</strong>omic reas<strong>on</strong>s fell from 24.2percent to 13.9 percent; at the same time,instituti<strong>on</strong>al births increased, reaching93.3 percent <strong>and</strong> exceeding the nati<strong>on</strong>altarget.In order to achieve these <strong>results</strong>, the governmentsucceeded in up-scaling thecoverage of the c<strong>on</strong>diti<strong>on</strong>al cash transferprogrammes, increasing the numberof beneficiary families from 13,000 to98,000. Medical c<strong>on</strong>sultati<strong>on</strong>s were madefree of charge <strong>and</strong> 500 Family HealthcareUnits were established, half of which inrural areas, thus doubling the number ofc<strong>on</strong>sultati<strong>on</strong>s in poor areas. Around 20percent of the beneficiary families havebeen assisted by the Program for Promoti<strong>on</strong>of Food Producti<strong>on</strong>.The ambiti<strong>on</strong> of the government is tobring these <strong>results</strong> to the next level <strong>and</strong> beable to provide universal social safety netcoverage within ten years.Enhanced performanceThere are three four critical success factorsof the Paraguayan experience.


PARAGUAY29Firstly, the Ministry of Finance establishedthe Social Ec<strong>on</strong>omy Unit to promote greatercoordinati<strong>on</strong> between the main socialprotecti<strong>on</strong> programmes, including thec<strong>on</strong>diti<strong>on</strong>al cash transfer, the free healthcare, the adult illiteracy, the food producti<strong>on</strong><strong>and</strong> the rural roads programmes.The objectives of these ‘emblematic’ programmeswere better defined <strong>and</strong> an instituti<strong>on</strong>almechanism was established in80 of the poorest districts of the countryto ensure greater coordinati<strong>on</strong> of planning<strong>and</strong> implementati<strong>on</strong> of such programmes.Sec<strong>on</strong>dly, comm<strong>on</strong> indicators <strong>and</strong> m<strong>on</strong>itoring<strong>and</strong> evaluati<strong>on</strong> tools have beendeveloped to better target beneficiaries,as well as to evaluate, <strong>and</strong> account for<strong>results</strong>. These include the geographicpriority index, the index of quality oflife, a household questi<strong>on</strong>naire, <strong>and</strong>comm<strong>on</strong> identifiers (number of identitycard) for heads of households. Building<strong>on</strong> such initiatives, the Government iscurrently in the process of building aSingle Registry System of beneficiaris.According to this system, all anti-povertyprogrammes will use comm<strong>on</strong> beneficiaryinformati<strong>on</strong> (first name, surname,gender, nati<strong>on</strong>al identificati<strong>on</strong> number,place of residency), <strong>and</strong> programmesinvolving transfers will include measurementinstruments (a quality of lifeIndex).Thirdly, in orderto improve m<strong>on</strong>itoringof progress<strong>and</strong> evaluati<strong>on</strong> of<strong>results</strong>, a Systemfor GovernmentAdministrati<strong>on</strong>(SIGOB) has beenestablished. Thissystem strengthensthe evaluati<strong>on</strong><strong>capacity</strong> ofthe instituti<strong>on</strong>swhose m<strong>and</strong>ateincludes the ‘emblematic’ programmes.This include, primarily, the Ministry ofFinance, which m<strong>on</strong>itors budget executi<strong>on</strong>of such programmes through a ‘Budgetfor Results’ system.Lastly, a Social Programmes Fund, establishedin 2010, has provided additi<strong>on</strong>al resourcesfor the ‘emblematic’ programmes<strong>and</strong> has improved the decisi<strong>on</strong>-makingmechanism for <strong>results</strong>-based budget allocati<strong>on</strong>.The Finance Ministry managesthe Fund, which is financed by nati<strong>on</strong>alrevenues, loans, <strong>and</strong> d<strong>on</strong>ati<strong>on</strong>s.Supporting the <strong>capacity</strong>buildingprocessNati<strong>on</strong>al investmentSignificant investments have been madeto coordinate planning with budgeting<strong>and</strong> to create a culture of <strong>results</strong>. To thatend, the Ministry of Finance establishedCapacity <strong>development</strong> investmentsImproved coordinati<strong>on</strong> am<strong>on</strong>gst the ‘emblematic’programmes.Establishment of a single registry of beneficiaries.Introducti<strong>on</strong> of a robust m<strong>on</strong>itoring <strong>and</strong> evaluati<strong>on</strong>system.Establishment of a Social Programmes Fund.


30 Capacity: ResultsFind out morePlease c<strong>on</strong>tact Verónica Serafini GeogheganCoordinadora de la Unidad de Ec<strong>on</strong>omía Socialdel Ministerio de HaciendaEmail: unidaddeec<strong>on</strong>omiasocial@hacienda.gov.pyPh<strong>on</strong>e: + 595 21 200692Web: www.hacienda.gov.pythe Social Ec<strong>on</strong>omy Unit, with the m<strong>and</strong>ateof improving the quality of publicspending, through better design <strong>and</strong> evaluati<strong>on</strong>of social programmes, particularlythose fighting poverty, creating jobs, <strong>and</strong>developing agriculture. The Unit collaborateswith other departments within theMinistry of Finance, as well as with otherministries <strong>and</strong> instituti<strong>on</strong>s, to build theircapacities to design <strong>and</strong> evaluate programmes<strong>and</strong> budgets, <strong>and</strong> to integratethe gender perspective the design of suchprogrammes.A Paraguayan Evaluati<strong>on</strong>Network has also been created, which,by 2011, had evaluated most ‘emblematic’programmes at least <strong>on</strong>ce.Under the Presidency of the Republic, theSocial Cabinet’s Technical Unit has alsobeen strengthened through Presidentialdecrees <strong>and</strong> by training <strong>and</strong> the hiringof experts. The Social Cabinet’s TechnicalUnit coordinates <strong>and</strong> m<strong>on</strong>itors ‘emblematic’programmes. Both the Social Cabinet’sTechnical Unit <strong>and</strong> the Social Ec<strong>on</strong>omicUnit coordinate the use of comm<strong>on</strong> toolsto improve programmes’ targeting, efficiency,<strong>and</strong> transparency of management<strong>and</strong> resource allocati<strong>on</strong>.Development partners’ supportParaguay has learned from the experiencesof other Latin American countries<strong>and</strong> has progressively developed a socialprotecti<strong>on</strong> network, with instituti<strong>on</strong>al improvementsto support it. It has also heededthe <strong>results</strong> of studies <strong>and</strong> evaluati<strong>on</strong>sfrom within the country, <strong>and</strong> used such<strong>results</strong> to inform new planning cycles.South-South cooperati<strong>on</strong> has been themost important mechanism that the Governmenthas used to develop <strong>capacity</strong>.Specifically, this has included seminars<strong>and</strong> quality training of officials in thevarious skills required for the approach’ssuccessful implementati<strong>on</strong>. The support<strong>and</strong> technical assistance provided by internati<strong>on</strong>alorganizati<strong>on</strong>s <strong>and</strong> banks havealso been pivotal.


São Tomé e Príncipe31São Tomé e Príncipe –Building an effectivehealthcare systemC<strong>on</strong>textInstituti<strong>on</strong>al <strong>capacity</strong> issues such as thethe shortage of qualified human resourcesin the nati<strong>on</strong>al healthcare system <strong>and</strong>its inability to provide specialized healthcare services, are just some of the challengesfaced by the Democratic Republicof São Tomé <strong>and</strong> Príncipe.With funding from IPAD <strong>and</strong> theCalouste Gulbenkian Foundati<strong>on</strong>,, InstitutoMarquês de Valle Flôr (IMVF) hasbeen working with the Government ofSão Tomé <strong>and</strong> Príncipe for the past twodecades to develop the <strong>capacity</strong> of the nati<strong>on</strong>alhealthcare system. Supported bythe ‘Health for All Programme’ the systemhas transformed into a decentralized<strong>and</strong> efficient network of local healthunits. Now covering the entire country,the healthcare system promotes preventi<strong>on</strong>services <strong>and</strong> offers both primary<strong>and</strong> specialized healthcare.Development <strong>results</strong>Started with a pilot in <strong>on</strong>e district in 1988,the initiative covered, in 2008, all the sevendistricts in the country. After 20 yearsof implementati<strong>on</strong>, the initiative has ledto remarkable <strong>results</strong>.An IMVF’s evaluati<strong>on</strong> from 2010 showsthat maternal <strong>and</strong> child healthcare coverageis close to 100 percent. Some 98percent of women visited a health facilityat least <strong>on</strong>ce, with 72 percent makingfour or more visits. The number of medicalc<strong>on</strong>sultati<strong>on</strong>s also rose dramatically– from just over 61,000 in 2008 to morethan 136,000 in 2010. C<strong>on</strong>trol of malariashows highly encouraging <strong>results</strong>, withthe incidence falling from 22,7 percent in2005 to 2,2 percent in 2009 (90% decline).World Bank figures also show that thecountry’s life expectancy rose from 61years in 1990 to 64 years in 2009.The country is likely to achieve the healthrelatedMillennium Development Goalsby 2015.ResultsMaternal <strong>and</strong> child healthcare coverage is close to100 percent.In 2010, 98 percent of women visited a healthfacility at least <strong>on</strong>ce, with 72 percent making fouror more visits.The number of medical c<strong>on</strong>sultati<strong>on</strong>s rose fromjust over 61,000 in 2008 to more than 136,000 in2010.The incidence of malaria has fallen from 22,7percent in 2005 to 2,2 percent in 2009.The country’s life expectancy rose from 61 to 64years between 1990 <strong>and</strong> 2009.


32 Capacity: ResultsEnhanced performanceThese <strong>results</strong> are premised <strong>on</strong> a seriesof <strong>capacity</strong> <strong>development</strong> interventi<strong>on</strong>s,including: the professi<strong>on</strong>al training ofhealth technicians <strong>and</strong> administrativestaff; the introducti<strong>on</strong> of an integratedpackage of preventive, primary, <strong>and</strong> specializedhealth care; the sensitizati<strong>on</strong> ofthe general populati<strong>on</strong> through an educati<strong>on</strong>campaign <strong>and</strong> the introducti<strong>on</strong> oftelemedicine.A network of two hospitals, six healthcentres, 28 health posts, <strong>and</strong> 17 communityhealth units has been strengthenedthrough significant investments in thetechnical capacities of health workers. Theprofessi<strong>on</strong>al qualificati<strong>on</strong>s of health technicians<strong>and</strong> administrative staff at central<strong>and</strong> district levels have been enhancedby theoretical <strong>and</strong> practical training initiatives,held in São Tomé <strong>and</strong> PríncipeCapacity <strong>development</strong> investmentsProfessi<strong>on</strong>al training of health technicians <strong>and</strong>administrative staff.The introducti<strong>on</strong> of an integrated package ofpreventive, primary, <strong>and</strong> specialized health care.The sensitizati<strong>on</strong> of the general populati<strong>on</strong>through an educati<strong>on</strong> campaign.The introducti<strong>on</strong> of telemedicine.<strong>and</strong> in Portugal. Investment indeveloping professi<strong>on</strong>al management<strong>and</strong> planning capacitieshas brought significant improvementsin the quality <strong>and</strong> deliveryof services.All health units are now providinga decentralized integratedpackage of preventive, primary<strong>and</strong> specialized health care services,including family planning,maternal <strong>and</strong> child care <strong>and</strong> others.Dem<strong>and</strong> for such servicesis stimulated by educati<strong>on</strong> campaignsc<strong>on</strong>ducted at the community level.Health Delegates m<strong>on</strong>itor the implementati<strong>on</strong>of the package through inspecti<strong>on</strong><strong>and</strong> the applicati<strong>on</strong> of m<strong>on</strong>itoring tools.The accuracy of data collected at districtlevel <strong>and</strong> reported to the Ministry ofHealth has also been enhanced. A coordinati<strong>on</strong>unit, which acts in the <strong>capacity</strong> of aCentral Pharmacy, takes orders from <strong>and</strong>provides stocks to health centres, applyingfixed cost recovery prices. A Ministryregulati<strong>on</strong> (Despacho nº 10/GMS/2009)has determined a financial penalty forphysicians, nurses, district officers <strong>and</strong>technicians who do not comply with theguidance provided by the Health Districtcoordinati<strong>on</strong> unit.Emerging medical needs made clear thenecessity of an approach that allows swifter<strong>and</strong> more suitable soluti<strong>on</strong>s for morecomplex care provisi<strong>on</strong>, the decrease in thenumber of evacuated patients to Portugal<strong>and</strong> the promoti<strong>on</strong> of local competences.In 2011 the project launched the Telemedicine:health informati<strong>on</strong> <strong>and</strong> communicati<strong>on</strong>technology bring together São Tomé<strong>and</strong> Príncipe’s Central Hospital <strong>and</strong> Portuguesemedical experts of all specialties.Telemedicine breaks the isolati<strong>on</strong> to whichthe country <strong>and</strong> the medical practice havebeen c<strong>on</strong>fined to, <strong>and</strong> incorporates themin a network of experienced professi<strong>on</strong>als<strong>and</strong> state of the art techniques <strong>and</strong>


São Tomé e Príncipe33technology. Portuguese doctors can nowprovide l<strong>on</strong>g distance training <strong>and</strong> directsupport to São Tomean doctors for themanagement of medical cases. Telemedicinerepresents a strategic <strong>and</strong> an innovativeinstituti<strong>on</strong>al arrangement for the deliveryof health services.The system has also been provided withadequate equipment, medicines, analysislaboratory, <strong>and</strong> an improved infrastructure.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsLeadership <strong>and</strong> the big push for changehave come from the Ministry of Health<strong>and</strong> Social Services <strong>and</strong> the district healthcentres.The Ministry of Health <strong>and</strong> Social Serviceshas retained the major resp<strong>on</strong>sibilityfor managing <strong>and</strong> implementing the programme’sactivities, facilitating communicati<strong>on</strong>sbetween local <strong>and</strong> central actors,upgrading procedures <strong>and</strong> m<strong>on</strong>itoringprogress. The Ministry has invested inits district management through training,structured tools, inspecti<strong>on</strong>, <strong>and</strong> informati<strong>on</strong>routines <strong>and</strong> equipment to upgradethe Health Delegates capacities.Find out morePlease c<strong>on</strong>tact Dr. Ahmed ZakyProject Director at IMVFEmail: azaky@imvf.orgPh<strong>on</strong>e: + 351 96 622 84 49Web: www.imvf.orgDevelopment partners’ supportManagement c<strong>on</strong>sultants from IMVFworked with the Ministry of Health <strong>and</strong>Social Services to provide technical assistanceto health units’ management. Theyalso arranged staff <strong>and</strong> health agents’training programmes, mostly using thepublic health system’s own <strong>capacity</strong>.The Portuguese High Commissi<strong>on</strong>er forHealth has recognized the interventi<strong>on</strong>’s“public interest”. That allows experts fromthe Portuguese Ministry of Health to provideassistance to São Tomé <strong>and</strong> Príncipefree of charge.IMVF played a supporting role in theproject’s design, in establishing bridgeswith local partners, <strong>and</strong> in coordinatingbetween health specialists <strong>and</strong> representativesof the governments of São Tomé<strong>and</strong> Príncipe <strong>and</strong> Portugal.


34 Capacity: ResultsSIERRA LEONE – The improvementof service delivery throughdecentralizati<strong>on</strong> <strong>and</strong> <strong>capacity</strong> buildingC<strong>on</strong>textWith the 2004 Local Government Act, theGovernment of Sierra Le<strong>on</strong>e embarked <strong>on</strong>a nati<strong>on</strong>wide decentralizati<strong>on</strong> reform programme.Its goal was to improve the deliveryof basic services <strong>and</strong> increase participati<strong>on</strong>in decisi<strong>on</strong> making processes.The programme was critical in addressingthe country’s l<strong>on</strong>gst<strong>and</strong>ing issues of ahighly centralized governance structure,which excluded the majority of the populati<strong>on</strong><strong>and</strong> was a key cause of the country’sdrawn-out c<strong>on</strong>flict that ended in 2002.ResultsService delivery improved significantly acrosssectors:Health - Public satisfacti<strong>on</strong> with health servicesrose from 81 percent to more than 90 percentbetween 2005 <strong>and</strong> 2006.Educati<strong>on</strong> - Household surveys show improvedrural access to primary educati<strong>on</strong>. The percentageof households within 30 minutes’ walking distanceof a school grew from 68 percent in 2005 to 74percent in 2008.Regular meetings with citizens have beeninstituti<strong>on</strong>alised by local councils, participatory<strong>development</strong> planning has taken root, accountsare completed <strong>on</strong> time <strong>and</strong> regularly audited, <strong>and</strong>financial informati<strong>on</strong> is disclosed to the public.Development <strong>results</strong>Sierra Le<strong>on</strong>e has achieved notable success inreestablishing local government in a fragilepost-c<strong>on</strong>flict envir<strong>on</strong>ment. Development<strong>results</strong> include significant improvementsin service delivery. In health, for instance,clinic infrastructure, availability of drugs,<strong>and</strong> numbers of staff have all increased,<strong>and</strong> public satisfacti<strong>on</strong> with health servicesrose from 81 percent to more than 90 percentbetween 2005 <strong>and</strong> 2006. Householdsurveys also show improved rural accessto primary educati<strong>on</strong>, <strong>and</strong> the percentageof households within 30 minutes’ walkingdistance of a school grew from 68 percentin 2005 to 74 percent in 2008.Enhanced performanceThese <strong>results</strong> are related to the improvementin local councils’ <strong>capacity</strong> to superviseservice delivery <strong>and</strong> performadministrative functi<strong>on</strong>s. Local governmentsare now in a positi<strong>on</strong> to c<strong>on</strong>tributeto service <strong>and</strong> infrastructure, such as water<strong>and</strong> sanitati<strong>on</strong>, feeder roads, <strong>and</strong> offgridpower. Local councils hold regularmeetings <strong>and</strong> produce minutes, citizensparticipate in meetings, participatory <strong>development</strong>planning has taken root (althoughscope remains for improvement),accounts are completed <strong>on</strong> time <strong>and</strong> regularlyaudited, <strong>and</strong> financial informati<strong>on</strong>is disclosed.


sierra le<strong>on</strong>e35The strategy also sought to orient, sensitize,<strong>and</strong> educate all key stakeholders <strong>on</strong>the new local government system, <strong>and</strong> theroles <strong>and</strong> resp<strong>on</strong>sibilities, functi<strong>on</strong>al relati<strong>on</strong>ships,<strong>and</strong> accountabilities of variousagencies. The stakeholders targeted weregovernment ministries, departments, <strong>and</strong>agencies, local councils, training instituti<strong>on</strong>s,civil society, media, NGOs, <strong>and</strong> theprivate sector.Surveys of trust in public instituti<strong>on</strong>shave been encouraging. They suggest thatpublic c<strong>on</strong>fidence in local councillors hasincreased over time, with local councilsmaking the largest gains am<strong>on</strong>g politicalinstituti<strong>on</strong>s between 2007 <strong>and</strong> 2008.These improvements would have not beenpossible without the Local GovernmentAct that created a framework for fiscal decentralizati<strong>on</strong>through tied grants to localcouncils to carry out the resp<strong>on</strong>sibilitiesdevolved to them <strong>and</strong> to meet their administrativecosts. Budgeted transfers tolocal councils increased from Le19 billi<strong>on</strong>in 2005 to Le34 billi<strong>on</strong> in 2009, an increaseof 44 percent. With the excepti<strong>on</strong> of 2007,when there were nati<strong>on</strong>al electi<strong>on</strong>s, actualtransfers increased during the same periodby 150 percent, reflecting an increasein budgeted transfers from about 70 percentin 2005 to about 98 percent in 2009.The provisi<strong>on</strong>al figures for 2010 indicatethat the budgeted amount for that yearwas more than 50 percent higher than for2009 <strong>and</strong> that the actual transfers werehigher than the budgeted amounts. Thisis a remarkable achievement for a countrywith a history of centralizati<strong>on</strong>.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsThe process of decentralizati<strong>on</strong>, str<strong>on</strong>glyadvocated by the Decentralizati<strong>on</strong> Secretariat<strong>and</strong> the Local Government FinanceDepartment, was made possible by investmentsin <strong>capacity</strong> <strong>development</strong> at theinstituti<strong>on</strong>al, organizati<strong>on</strong>al, <strong>and</strong> individuallevels. In particular, the legislativeframework provided by the reestablishmentof local governments, <strong>and</strong> the associatedregulati<strong>on</strong>s for political, fiscal, <strong>and</strong>administrative decentralizati<strong>on</strong> provided(with some excepti<strong>on</strong>s) a robust foundati<strong>on</strong>for decentralizati<strong>on</strong> by devolving keyfuncti<strong>on</strong>s from the central government tolocal councils.Investment in <strong>capacity</strong> <strong>development</strong> focused<strong>on</strong> strengthening local governancethrough a rapid <strong>results</strong> approach <strong>and</strong> acti<strong>on</strong>learning <strong>on</strong> prioritizati<strong>on</strong> of <strong>development</strong>issues, using <strong>development</strong> projectfunding, participatory planning process-Capacity <strong>development</strong> investmentsThe decentralizati<strong>on</strong> process was made possibleby investing in the <strong>capacity</strong> <strong>development</strong> ofinstituti<strong>on</strong>s, organizati<strong>on</strong>s, <strong>and</strong> individuals.The legislative framework, including regulati<strong>on</strong>sfor political, fiscal, <strong>and</strong> administrativedecentralizati<strong>on</strong>, provided the enablingenvir<strong>on</strong>ment for the reestablishment of the localgovernments system.The approach involved a c<strong>on</strong>scious effort toenable local councils to enhance their abilitiesto identify <strong>and</strong> sustainably address <strong>development</strong>challenges.Acti<strong>on</strong> learning <strong>on</strong> prioritizati<strong>on</strong> of <strong>development</strong>issues, participatory planning processes, coachingfor senior officers, <strong>and</strong> technical <strong>and</strong> managerialtraining.Introducti<strong>on</strong> of a competiti<strong>on</strong>-based incentivesystem for strengthening local councilsadministrative performance.The strategy sought to orient, sensitize, <strong>and</strong>educate all key stakeholders <strong>on</strong> the newlocal government system, including roles <strong>and</strong>resp<strong>on</strong>sibilities, functi<strong>on</strong>al relati<strong>on</strong>ships, <strong>and</strong>accountabilities of various agencies.


36 Capacity: ResultsFind out morePlease c<strong>on</strong>tact Tommaso Balbo di VinadioWorld Bank InstituteEmail: tbalbodivinadio@worldbank.orgOr: Vivek SrivastavaEmail: vsrivastava@worldbank.orgOr: Marco LarizzaEmail: mlarizza@worldbank.orgWeb: http://wbi.worldbank.org/wbi/es, coaching for senior officers, <strong>and</strong> technical<strong>and</strong> managerial training. Publishinglocal council rankings based <strong>on</strong> theComprehensive Local Government PerformanceAssessment System, <strong>and</strong> linkingthose scores to <strong>development</strong> funding,offers a str<strong>on</strong>g incentive for strengtheningadministrative performance. Localcouncils are now fully staffed <strong>and</strong> operati<strong>on</strong>al:each council has a core staff of<strong>development</strong> planners, internal auditors,m<strong>on</strong>itoring <strong>and</strong> evaluati<strong>on</strong> officers, <strong>and</strong>procurement officers with the necessary<strong>capacity</strong> to manage their service deliveryfuncti<strong>on</strong>s.Development partners’ supportThe process of decentralizati<strong>on</strong> in SierraLe<strong>on</strong>e was supported by the Instituti<strong>on</strong>alReform <strong>and</strong> Capacity Building Project (financedby the Internati<strong>on</strong>al DevelopmentAssociati<strong>on</strong>). Its project <strong>development</strong> objectivewas to “support the post-c<strong>on</strong>flictGovernment of Sierra Le<strong>on</strong>e to establisha functi<strong>on</strong>ing local government system<strong>and</strong> improve inclusiveness, transparency,<strong>and</strong> accountability of public resourcemanagement at all levels of government”.A multi-d<strong>on</strong>or trust fund financed by theEuropean Commissi<strong>on</strong> <strong>and</strong> the UK Departmentfor Internati<strong>on</strong>al Developmentalso provided support.The project’s <strong>capacity</strong> building approachinvolved a c<strong>on</strong>scious effort to enable localcouncils to enhance their abilities toidentify <strong>and</strong> sustainably address <strong>development</strong>challenges. The <strong>capacity</strong> buildingprogramme did not limit itself to trainingor transfer of knowledge <strong>and</strong> skills—thetraditi<strong>on</strong>al focus of <strong>capacity</strong> building programmes––buthelped develop the necessaryenvir<strong>on</strong>ment for stakeholders to effectivelyundertake their resp<strong>on</strong>sibilities.Accordingly, <strong>capacity</strong> building supportwas provided for informati<strong>on</strong>, educati<strong>on</strong><strong>and</strong> communicati<strong>on</strong> activities, training,organizati<strong>on</strong>al <strong>and</strong> instituti<strong>on</strong>al <strong>development</strong>,financing <strong>and</strong> financial management,physical infrastructure, <strong>and</strong> logistics<strong>and</strong> equipment.(The story draws from V. Srivastava <strong>and</strong> M.Larizza. 2011, “Decentralizati<strong>on</strong> in Postc<strong>on</strong>flictSierra Le<strong>on</strong>e: The Genie Is Out of theBottle”, in P.Chuhan-Pole <strong>and</strong> M. Angwafo(eds) Yes Africa Can: Success Stories from aDynamic C<strong>on</strong>tinent, Washingt<strong>on</strong> D.C, WorldBank.)


UGANDA37UGANDA – Using multi-stakeholderprocesses for <strong>capacity</strong> <strong>development</strong>in an agricultural value chainC<strong>on</strong>textThe vegetable oilseed sub-sector is <strong>on</strong>eof seven strategic areas selected by theUg<strong>and</strong>an Government’s Poverty Eradicati<strong>on</strong>Acti<strong>on</strong> Plan. Oilseeds accountfor over 60 percent of the country’s vegetableoil producti<strong>on</strong>, <strong>and</strong> directly affectthe livelihoods of over 12 milli<strong>on</strong> Ug<strong>and</strong>ans.However, producti<strong>on</strong> cannot meetdomestic dem<strong>and</strong>: around 6o percent ofthe vegetable oil c<strong>on</strong>sumed in Ug<strong>and</strong>a isimported as crude palm oil <strong>and</strong> blendedwith locally produced sunflower oil.Multi-stakeholder platforms are a key vehiclefor building capacities in the valuechain. They promote shared underst<strong>and</strong>ing,collaborati<strong>on</strong>, <strong>and</strong> innovati<strong>on</strong>. Thisinterventi<strong>on</strong> focused <strong>on</strong> establishing effectivenati<strong>on</strong>al <strong>and</strong> regi<strong>on</strong>al platforms, whilestrengthening the capacities of specificactors. The platforms engage producer organizati<strong>on</strong>s,small-, mid- <strong>and</strong> large-sizedprocessors, input suppliers, traders <strong>and</strong>warehouse owners, government agencies,research organizati<strong>on</strong>s, higher learninginstituti<strong>on</strong>s , financial instituti<strong>on</strong>s, business<strong>development</strong> service providers, <strong>and</strong><strong>development</strong> organizati<strong>on</strong>s.Development <strong>results</strong>Dialogue <strong>and</strong> c<strong>on</strong>certed acti<strong>on</strong> broughtgreater efficiency throughout the valuechain <strong>and</strong> within four years there weresignificant gains, not just in engagingfarmers, but also in producti<strong>on</strong>, productivity,<strong>and</strong> farmers’ incomes. Sunflowerbecame the leading raw material for edibleoil processing in Ug<strong>and</strong>a <strong>and</strong> therewas substantial import substituti<strong>on</strong> ofpalm oils. All this is currently helpingthe country to save some $100 milli<strong>on</strong> peryear. Sesame <strong>and</strong> maize oil producti<strong>on</strong>has also increased.As a result of increased interacti<strong>on</strong> betweenactors in the value chain, severalinput suppliers collaborated to make betterseed varieties available to farmers.ResultsSunflower became the leading raw material foredible oil processing in Ug<strong>and</strong>a.The country is saving some $100 milli<strong>on</strong> per yearin import substituti<strong>on</strong> of palm oils.Input suppliers have made better seed varietiesavailable to farmers.Better harvest collecti<strong>on</strong> practices broughtefficiency gains to both farmers <strong>and</strong> processors.A rural market informati<strong>on</strong> system empoweredfarmers.Banks created new financial products forsmall farmers, <strong>and</strong> a number of actors joinedto successfully advocate for more c<strong>on</strong>ducivegovernment policies <strong>and</strong> financing for the subsector.


38 Capacity: ResultsBetter harvest collecti<strong>on</strong> practices broughtefficiency gains to both farmers <strong>and</strong> processors.A rural market informati<strong>on</strong> systemempowered farmers, better price arrangementsbenefitted both farmers <strong>and</strong>traders, <strong>and</strong> more effective practices <strong>and</strong>implements were extended. Banks, meanwhile,created new financial products forsmall farmers, <strong>and</strong> a number of actorsjoined to successfully advocate for morec<strong>on</strong>ducive government policies <strong>and</strong> financingfor this sub-sector.In the former c<strong>on</strong>flict areas of eastern,northern, <strong>and</strong> northwestern Ug<strong>and</strong>a particularly,the sunflower industry was revived<strong>and</strong> annual producti<strong>on</strong> rose steadilyto over 300,000 t<strong>on</strong>nes in 2009. The priceof oilseeds also grew from some UGS 200per kilo (€0.05) in 2007 to UGS 700 per kilo(€0.18) in 2010, with a corresp<strong>on</strong>ding risein farmer incomes. Poor households alsobenefitted from more stable c<strong>on</strong>diti<strong>on</strong>s formarketing their product. Some 100,000farmers now produce oilseed, benefittingmore than 500,000 people. It is estimatedthat in the l<strong>on</strong>g term, some 400,000 farmers<strong>and</strong> their families could benefit.Enhanced performanceThe interventi<strong>on</strong>s helped create multistakeholderdialogue <strong>and</strong> acti<strong>on</strong>s. Theymade producer groups str<strong>on</strong>ger, whichCapacity <strong>development</strong> investmentsMulti-stakeholder platforms are a key vehicle forbuilding the value chain. They promote sharedunderst<strong>and</strong>ing, collaborati<strong>on</strong>, <strong>and</strong> innovati<strong>on</strong>.Promoti<strong>on</strong> of dialogue <strong>and</strong> relati<strong>on</strong>s betweenactors in the value chain.brokered access to value chain financing.Creati<strong>on</strong> of business-to-business links <strong>and</strong>organizati<strong>on</strong> of service providers themselves intoclusters.Advocacy for more effective public policy.helped them develop into market-led cooperatives.They also brokered access tovalue chain financing, created businessto-businesslinks, helped service providersorganize themselves into clusters, <strong>and</strong>supported advocacy for effective publicpolicy management.SNV Ug<strong>and</strong>a involved local <strong>capacity</strong>builders in planning, processing, implementing,<strong>and</strong> evaluating the activities,<strong>and</strong> in documenting the <strong>results</strong>.The key growth in <strong>capacity</strong> has been the<strong>development</strong> of multi-stakeholder relati<strong>on</strong>s,which have been substantiallyimproved by active dialogue. An externalevaluati<strong>on</strong>, using the 5C framework,showed that the ability to relate has grownstr<strong>on</strong>gly, both within the value chain <strong>and</strong>with external actors. That, in turn, has significantlystrengthened the value chain’sability to deliver meaningful <strong>development</strong><strong>results</strong>.


UGANDA39Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsThe potential of the vegetable oilseedsubsector has been realized by the valuechain actors themselves. These actorsgenerated further interest in the sector’s<strong>development</strong> am<strong>on</strong>g d<strong>on</strong>ors <strong>and</strong> other<strong>development</strong> organizati<strong>on</strong>s, researchers,public instituti<strong>on</strong>s, NGOs, <strong>and</strong> local <strong>and</strong>internati<strong>on</strong>al financial instituti<strong>on</strong>s.Government policies <strong>on</strong> liberalizati<strong>on</strong> <strong>and</strong>privatizati<strong>on</strong> were c<strong>on</strong>ducive to the sector’s<strong>development</strong> by creating an enablingenvir<strong>on</strong>ment for investments. Restoredpeace provided political stability, which,in turn, c<strong>on</strong>tributed to the return of farmingfamilies. Producti<strong>on</strong> was also boostedby rising global food prices <strong>and</strong> a high nati<strong>on</strong>alpopulati<strong>on</strong> growth <strong>and</strong> dem<strong>and</strong> forfood, including cooking oils. An exp<strong>and</strong>ingdomestic market <strong>and</strong> the wider EastAfrican market have c<strong>on</strong>tributed to makethe sector more dynamic.Find out morePlease c<strong>on</strong>tact Bernard C<strong>on</strong>ilh de BeyssacSenior Advisor, Agriculture, SNV Ug<strong>and</strong>aEmail: bc<strong>on</strong>ilh@snvworld.orgPh<strong>on</strong>e: + 256 414 563 200Web: www.snvworld.orgUg<strong>and</strong>an commercial banks also supportedthe process. An agricultural loan guaranteescheme with Stanbic CommercialBank was negotiated for oilseed farmersto access loans for ploughing implementswith a 50 percent guarantee from d<strong>on</strong>ors,which benefitted 50,000 producers. TheCentenary Bank developed an AnimalTracti<strong>on</strong> Loan (leasing), secured by businessc<strong>on</strong>tracts between farmers <strong>and</strong> processors,using farmers’ Savings <strong>and</strong> CreditCooperative Organizati<strong>on</strong>s.Development partners’ supportSNV collaborated with Wageningen <strong>and</strong>Makerere universities, local c<strong>on</strong>sultants,<strong>and</strong> NGOs to provide flexible <strong>capacity</strong><strong>development</strong> for the multi-stakeholderprocesses <strong>and</strong> to groups within the valuechain. The team provided between 100<strong>and</strong> 300 days of input per year.As the collaborati<strong>on</strong> within the value chaingrew, it attracted d<strong>on</strong>or c<strong>on</strong>tributi<strong>on</strong>s. Thenati<strong>on</strong>al multi-stakeholder process negotiateda guarantee scheme from DANIDAfor the Ug<strong>and</strong>a Nati<strong>on</strong>al Agro Dealers Associati<strong>on</strong>to access imported hybrid seedsfrom Mukwano Industries <strong>and</strong> to distributethem to farmers. USAID <strong>and</strong> DANIDAsupport helped to set up practical dem<strong>on</strong>strati<strong>on</strong>sof how to improve agr<strong>on</strong>omypractices. IFAD <strong>and</strong> the Ug<strong>and</strong>a Governmentcommitted to support the producti<strong>on</strong>of local hybrid varieties.


40 Capacity: ResultsZAMBIA – Support tothe water sectorC<strong>on</strong>textAccess to safe drinking water is a keyfactor in the ec<strong>on</strong>omic <strong>and</strong> social <strong>development</strong>of any country. Zambia has apopulati<strong>on</strong> of 13.5 milli<strong>on</strong> people <strong>and</strong> anurbanizati<strong>on</strong> rate of 39 percent, but as recentlyas 2006 <strong>on</strong>ly two-thirds of the country’surban populati<strong>on</strong> had access to safedrinking water. This was largely due topoor town planning <strong>and</strong> investment strategies,al<strong>on</strong>g with inefficient managementstructures, unclear divisi<strong>on</strong> of resp<strong>on</strong>sibility,<strong>and</strong> rapid increases in Zambia’s urbanpopulati<strong>on</strong>.Development <strong>results</strong>Since 2006, the provisi<strong>on</strong> of safe watersupplies to urban dwellers has increasedfrom two-thirds of the populati<strong>on</strong> to morethan three-quarters. With combined investmentsin infrastructure <strong>and</strong> <strong>capacity</strong><strong>development</strong>, the installati<strong>on</strong> of 400ResultsInvestments in infrastructure <strong>and</strong> <strong>capacity</strong><strong>development</strong> have helped bring clean drinkingwater to more than 77 percent of urban dwellers.400 ‘water-kiosks’ have given 800,000 people inlow-income urban <strong>and</strong> peri-urban communitiesaccess to safe drinking water.‘water-kiosks’ has given 800,000 people inlow-income urban <strong>and</strong> peri-urban communitiesaccess to safe drinking water.The government is planning to exp<strong>and</strong>access to the entire urban populati<strong>on</strong> – anadditi<strong>on</strong>al estimated 2.85 milli<strong>on</strong> people –by 2015.Enhanced performanceThe 1994 Nati<strong>on</strong>al Water Policy reformedZambia’s water sector, which is regulated<strong>and</strong> ec<strong>on</strong>omically sustained by theNati<strong>on</strong>al Water <strong>and</strong> Sanitati<strong>on</strong> Council.Am<strong>on</strong>g the most significant outcomeswas the establishment of 11 CommercialWater Utilities, which provide water <strong>and</strong>sanitati<strong>on</strong> services to 92 percent of the urbanpopulati<strong>on</strong>.The optimizati<strong>on</strong> of instituti<strong>on</strong>al structures<strong>and</strong> processes has made water <strong>and</strong>sanitati<strong>on</strong> instituti<strong>on</strong>s perform better. Thisis part of an approach that has enhancedcapacities at the political, organizati<strong>on</strong>al,<strong>and</strong> individual levels, which has enabledresources to be managed more effectively<strong>and</strong> has produced tangible <strong>results</strong>.Training has enabled ministries, localgovernments, <strong>and</strong> utilities to identifytheir needs <strong>and</strong> plan for their organizati<strong>on</strong>al<strong>and</strong> infrastructure priorities. Forexample, the Nati<strong>on</strong>al Water <strong>and</strong> Sanitati<strong>on</strong>Council now m<strong>on</strong>itors the progressof commercial utilities <strong>and</strong> produces


ZAMBIA41The experience of successful planning <strong>and</strong>implementati<strong>on</strong> has allowed local governments<strong>and</strong> the commercial utilities to developfurther sanitati<strong>on</strong> <strong>and</strong> water supplyprojects. The Devoluti<strong>on</strong> Trust Fund is amulti-d<strong>on</strong>or basket fund, including fundsfrom the Zambian Government, the governmentsof Denmark, Germany, <strong>and</strong>Australia, <strong>and</strong> the European Commissi<strong>on</strong>.A supervisory board oversees disbursementof funds to projects <strong>and</strong> providesthe framework for the <strong>development</strong>of the water <strong>and</strong> sanitati<strong>on</strong> sector in Zambia.The Fund places particular emphasis<strong>on</strong> <strong>results</strong>, such as the number of peoplewith services. It has funded the expansi<strong>on</strong>of the implementati<strong>on</strong> model <strong>and</strong> the <strong>development</strong>of a nati<strong>on</strong>al scaling-up strategyfor water <strong>and</strong> sanitati<strong>on</strong>. It is hopedthat with the Fund’s support, the nati<strong>on</strong>alprogramme will be able to service mostof Zambia’s peri-urban areas within thecoming years.an annual report <strong>on</strong> their activities <strong>and</strong>achievements.With a view to ensuring sustainability,beneficiaries pay a subsidized tariff forwater <strong>and</strong> sanitati<strong>on</strong> services which coversthe systems’ l<strong>on</strong>g-term maintenance. Thecommercial utilities, for their part, haveunderstood that their clients’ willingnessto pay for services is linked to the qualityof the services provided. Therefore, clientsatisfacti<strong>on</strong> is now driving the utilities’management capacities <strong>and</strong> service orientati<strong>on</strong>.The introducti<strong>on</strong> of st<strong>and</strong>ard operatingprocedures <strong>and</strong> the <strong>development</strong> ofa m<strong>on</strong>itoring <strong>and</strong> reporting system haveallowed achieving cost recovery throughsales at water kiosks <strong>and</strong> from meteredc<strong>on</strong>sumers.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsGovernment leadership to move forwardwith the reforms has been critical; this includedthe political will to create a regulatorybody for the privatizati<strong>on</strong> of parts ofthe operati<strong>on</strong>s. The Government leadershipalso made adequate budgetary provisi<strong>on</strong>sto support the implementati<strong>on</strong> ofsuch instituti<strong>on</strong>al changes. Several laws<strong>and</strong> regulatory frameworks were introduced<strong>and</strong>, in 2008, the Nati<strong>on</strong>al Water<strong>and</strong> Sanitati<strong>on</strong> Council implemented theRegulati<strong>on</strong> by Incentives programmeCapacity <strong>development</strong> investmentsNati<strong>on</strong>al leadership supported reforms in thewater sector <strong>and</strong> introduced new laws <strong>and</strong> aregulatory framework in the water sector.Nati<strong>on</strong>al leadership ensured adequate budget forimplementati<strong>on</strong> of reforms.Establishment of 11 commercial water utilities.Client satisfacti<strong>on</strong> is driving the utilities’management capacities <strong>and</strong> service orientati<strong>on</strong>.Introducti<strong>on</strong> of st<strong>and</strong>ard operating procedures<strong>and</strong> an M&E system.


42 Capacity: ResultsFind out morePlease c<strong>on</strong>tact Eberhard GollEmail: eberhard.goll@giz.dePh<strong>on</strong>e: 00260-211291918Web: www.giz.dewhich drove improvements in water <strong>and</strong>sanitati<strong>on</strong> services.Development partners’ supportZambia’s <strong>development</strong> partners combined<strong>capacity</strong> <strong>development</strong> (through l<strong>on</strong>g-termtechnical cooperati<strong>on</strong> provided largely bythe German Government) with financefor selected utility infrastructure projects<strong>and</strong> c<strong>on</strong>tributi<strong>on</strong>s to the multi-d<strong>on</strong>or basketfund.Capacity was developed through a combinati<strong>on</strong>of participatory organizati<strong>on</strong>al<strong>development</strong> <strong>and</strong> policy advice with individualskills <strong>and</strong> career building. The regulatoryauthority, commercial water supplycompanies <strong>and</strong> district governmentsall benefitted from participatory reviewsof their structures, procedures, <strong>and</strong> capacities.This also led to improved operati<strong>on</strong>alskills, procedures, <strong>and</strong> manuals, <strong>and</strong>a greater orientati<strong>on</strong> to service <strong>and</strong> commercialsustainability. Individual skillswere addressed through formal trainingcourses, workshops, <strong>and</strong> exchange of informati<strong>on</strong>.This approach to <strong>capacity</strong> <strong>development</strong>helped instituti<strong>on</strong>s <strong>and</strong> other stakeholdersto improve their grasp of their obligati<strong>on</strong>s<strong>and</strong> resp<strong>on</strong>sibilities. It also helpedto bridge the gap between the dem<strong>and</strong><strong>and</strong> supply sides of service delivery, particularlymaking the supply process morecoordinated <strong>and</strong> effective. The approachwas piloted for two years, after which thenati<strong>on</strong>al authority adopted it as the st<strong>and</strong>ardstrategy for urban water supply.


43ZAMBIA – Building <strong>capacity</strong> of small<strong>and</strong> medium-sized businesses:the Zambia Chamber of Small <strong>and</strong> MediumBusiness Associati<strong>on</strong>sC<strong>on</strong>textThe Zambia Chamber of Small <strong>and</strong> MediumBusiness Associati<strong>on</strong>s (ZCSMBA)was established in 2000 as a nati<strong>on</strong>al bodyto represent the interests of micro, small,<strong>and</strong> medium enterprises (MSME) in thecountry. It is a private organizati<strong>on</strong> drivenby its 96 member associati<strong>on</strong>s representingmore than 200,000 MSMEs.Until 2009, Zambia had no policy <strong>on</strong> small<strong>and</strong> medium enterprises. The absence of acoherent <strong>and</strong> separate regulatory <strong>and</strong> fiscalregime, al<strong>on</strong>g with an unfriendly businessenvir<strong>on</strong>ment, was the main obstacleto developing the small scale business sectorin Zambia. ZCSMBA was establishedto provide a prominent forum throughwhich business associati<strong>on</strong> leaders <strong>and</strong>members could advance <strong>and</strong> protect theinterests of MSMEs in public policies, facilitate<strong>and</strong> stimulate the provisi<strong>on</strong> of dem<strong>and</strong>-drivenbusiness <strong>development</strong> servicesto MSMEs by business associati<strong>on</strong>s,<strong>and</strong> develop an internal management <strong>and</strong>business <strong>development</strong> support system fordedicated <strong>and</strong> committed business associati<strong>on</strong>s.In order for ZSCMBA to achieve its objectives;it has employed the following strategies:(i) invested in its staff members byincreasing their skills <strong>and</strong> knowledge(ii) leveraged its partnerships with privatesector organisati<strong>on</strong>s to increase thescope of services its members can getfrom them; (iii) undertaken issue basedlobby <strong>and</strong> advocacy campaigns <strong>on</strong> issuesidentified by its wider membership; (iv)provided training to local trainers whounderst<strong>and</strong> the envir<strong>on</strong>ment in theirrespective localities; (v) mobilized ef-ResultsThe Zambia Chamber of Small <strong>and</strong> MediumBusiness Associati<strong>on</strong>s is a member-drivenorganizati<strong>on</strong> representing more than 200,000businesses.A nati<strong>on</strong>al membership organizati<strong>on</strong> organizedfrom the grassroots with minimal reliance <strong>on</strong>internati<strong>on</strong>al aid.Successfully influenced Government policies todevelop a friendlier business envir<strong>on</strong>ment forSMEs including lowering the costs of licenses <strong>and</strong>permits.1,000 entrepreneurs were trained in variousbusiness skills, such as developing businessplans <strong>and</strong> leadership skills.Facilitated access to credit for SMEs.Supported access to markets for rural farmers.Established telecentres <strong>and</strong> provided ICT trainingin rural areas.At least 40% of beneficiaries are women.


44 Capacity: ResultsZCSMBA <strong>and</strong> its member associati<strong>on</strong>s lobbiedthe Government of Zambia to developan SME policy promoting a friendly businessenvir<strong>on</strong>ment for SMEs. The Governmentapproved <strong>and</strong> adopted thepolicy in 2009 <strong>and</strong>, for the firsttime, the country had a policy detailinginterventi<strong>on</strong>s <strong>and</strong> initiativesspecific to SMEs that wouldenhance <strong>and</strong> organise their c<strong>on</strong>tributi<strong>on</strong>to the ec<strong>on</strong>omy. Withthe policy in place, ZCSMBA alsolobbied with the Governmentto improve access to the CitizenEc<strong>on</strong>omic Empowerment Fund,which had not been readily accessibleto its members.fectively its network of members spreadacross the whole country, (vi) participatedin nati<strong>on</strong>al <strong>and</strong> technical committeeswhere relevant issues for its membershipare discussed.Development <strong>results</strong>Capacity <strong>development</strong> investmentsInvested in its staff members by increasing theirskills <strong>and</strong> knowledge.Leveraged its partnerships with private sectororganisati<strong>on</strong>s to increase the scope of services itsmembers can get from them.Undertaken issue based lobby <strong>and</strong> advocacycampaigns <strong>on</strong> issues identified by its widermembership.Provided training to local trainers who underst<strong>and</strong>the envir<strong>on</strong>ment in their respective localities.Used effectively its network of members spreadacross the whole country.Participated in nati<strong>on</strong>al <strong>and</strong> technical committeeswhere relevant issues for its membership arediscussed.In 2009, ZCSMBA, in collaborati<strong>on</strong>with the Zambia BusinessForum, has also lobbied successfullythe Ministry of Commerce, Trade <strong>and</strong>Industry <strong>and</strong> the Lusaka City Council fora reducti<strong>on</strong> in the license <strong>and</strong> permit feescharged <strong>on</strong> its members <strong>and</strong> other SMEs.The project has helped to enhance theskills of its member associati<strong>on</strong>s. Between2007 <strong>and</strong> 2010, some 1,000 entrepreneurswere trained in various business skills,such as developing business plans <strong>and</strong>leadership skills.ZCSMBA signed a Memor<strong>and</strong>um of Underst<strong>and</strong>ingwith the Nati<strong>on</strong>al Savings<strong>and</strong> Credit Bank establishing a facilityof US$500,000 for exclusive financing ofZCSMBA affiliated members at affordableinterest rates <strong>and</strong> more relaxed lendingterms.Seven agribusiness centres located in ruralareas provide informati<strong>on</strong> <strong>on</strong> marketaccess for smallholder rural farmers. Thecentres are also used to train members inICT skills. ZCSMBA has also developedthe capacities of district business associati<strong>on</strong>sto write proposals. To date, <strong>on</strong>e centrehas successfully secured funding.The project has mainstreamed gender inall its activities. This has included ensuringthat at least 40 percent of project beneficiariesat all levels are female. This is inline with the proporti<strong>on</strong> of female mem-


45bers in Business Associati<strong>on</strong>s affiliatedwith ZCSMBA. Of the 394 direct beneficiariesof various exchange visits <strong>and</strong> trainings,such as training in leadership skills,business proposal writing, business management,board roles <strong>and</strong> resp<strong>on</strong>sibilities,180 have been women.Enhanced performanceThe project has significantly enhancedZCSMBA’S instituti<strong>on</strong>al <strong>and</strong> human <strong>capacity</strong>.When the project started, ZCSM-BA had five staff. It now has 15 full-timestaff. The Chamber has also permanent<strong>and</strong> fully equipped offices, <strong>and</strong> other capitalassets, including vehicles. This allowsit to effectively <strong>and</strong> efficiently implementits activities <strong>and</strong> to communicate with itsstakeholders.Studies have assessed changes in the operatingenvir<strong>on</strong>ment of small <strong>and</strong> mediumenterprises. With the support of theZambia Informati<strong>on</strong> <strong>and</strong> Communicati<strong>on</strong>sTechnology Authority, three districtbusiness associati<strong>on</strong>s were funded. Theynow have state-of-the-art, multipurposetelecentres where members can access Informati<strong>on</strong>.ZCSMBA c<strong>on</strong>tinues to play the role ofmiddle-man between its member associati<strong>on</strong>s<strong>and</strong> the Government, linking memberswith service providers for the members’various <strong>capacity</strong> needs.Support to the <strong>capacity</strong><strong>development</strong> processNati<strong>on</strong>al investmentsFind out morePlease c<strong>on</strong>tact: Ms. Patience Sakuringwa(Executive Secretary)Email: zcsmba@hrdp.co.zmPh<strong>on</strong>e: +260-211-254855/253372Web: www.zcsmba.orgZCSMBA was formed by Zambian promoterswho received catalytic fundingfrom The African Capacity BuildingFoundati<strong>on</strong>. Its members comprising indigenousSMEs have c<strong>on</strong>tributed theirown resources to make the public-privateinterface forum operati<strong>on</strong>al. ZCSMBA hasalso managed to attract financing fromthe Zambia Governance Fund.Development partners’ supportA number of d<strong>on</strong>ors are financially supportingZCSMBA, which has managed toraise $1.5 milli<strong>on</strong> to date. Financing fromthe Internati<strong>on</strong>al Finance Corporati<strong>on</strong>has been used to help prepare ZCSMBA’sstrategic plan <strong>and</strong> other <strong>capacity</strong> buildingneeds. The European Commissi<strong>on</strong> hasco-financed some of ZCSMBA’s projects,including the c<strong>on</strong>structi<strong>on</strong> of a resourcecentre for small <strong>and</strong> medium enterprises.ACBF funding has enabled computers,furniture, <strong>and</strong> literature to be purchasedfor the centre. The Canadian Internati<strong>on</strong>alDevelopment Agency have signed aMemor<strong>and</strong>um of Underst<strong>and</strong>ing, throughInternati<strong>on</strong>al Trade Centre, <strong>and</strong> have c<strong>on</strong>tributed(US)$28,000 towards trainingwomen exporters.Other partners were expected to add theirsupport during 2011, including the governmentsof Saudi Arabia <strong>and</strong> Finl<strong>and</strong>,the African Development Bank, <strong>and</strong> theTrade Facilitati<strong>on</strong> Office of Canada.


GETTING TO SUSTAINABLERESULTSTHATMATTERTobeefectivefor<strong>sustainable</strong><strong>results</strong>,aid<strong>and</strong><strong>development</strong>cooperati<strong>on</strong>mustsupportcountryefortsratherthanreplacethem,building<strong>on</strong>existing<strong>capacity</strong><strong>and</strong>inclusivecountryownership.Thesecase<str<strong>on</strong>g>stories</str<strong>on</strong>g>from Africa,Asia<strong>and</strong>thePacific,Europe<strong>and</strong>LatinAmericailustratehowcountry-led<strong>capacity</strong><strong>development</strong>processescanleadto<strong>sustainable</strong><strong>development</strong><strong>results</strong>.TheLearningNetwork<strong>on</strong>CapacityDevelopmentisaninformal<strong>and</strong>opennetworkofindividuals<strong>and</strong>organisati<strong>on</strong>ssharingacomm<strong>on</strong>interestinimproving<strong>capacity</strong><strong>development</strong>practice.Thenetworkaimstopromote<strong>and</strong>facilitatesharingofless<strong>on</strong>s<strong>and</strong>learning<strong>on</strong><strong>capacity</strong><strong>development</strong><strong>and</strong>promotechangesforbeterpracticeattheglobal,regi<strong>on</strong>al<strong>and</strong>locallevels.LenCDLearningNetwork<strong>on</strong>CapacityDevelopmentwww.lencd.org

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