What are the core capacity issues in a development context? How can external partners support countries’ efforts to build on these to achieve development goals? This Practice Note, written by the United National Development Programme (UNDP), addresses these issues, drawing on examples from a range of developing countries. It sets out key entry points for UNDP and other external actors to promote capacity development (CD) arguing that UNDP should focus primarily on supporting key cross-cutting capacities.
Capacity is the ability of individuals, institutions and societies to perform functions, solve problems and set and achieve objectives in a sustainable manner. CD is therefore the process through which abilities are obtained, strengthened, adapted and maintained over time. CD is vital to development effectiveness, achievement of the Millennium Development Goals (MDGs) and for long term economic and societal development. Countries’ capacities are at three levels: the enabling environment, organisational and individual. Within these are cross-cutting capacities, all of which need to evaluated and addressed from a human development perspective.
CD support must address issues at all levels, and include supply side as well as demand side issues. It is an endogenous process which needs to be systemic.
- Capacity resides within individuals, organisations and larger systems/ enabling environments. It includes overall policies, rules, norms and values which determine the ‘rules of the game’ for interaction between and among organisations.
- CD is an ongoing process, which can not be rushed. It must take into account political realities, and requires effective participation, public access to information, civic engagement and accountability. Appropriate incentives for improved performance are critical.
- External partners need to be careful not to undermine ownership and local capacity: CD requires genuine cooperation and collective responsibility. CD should be seen as ‘best fit’ rather than ‘best practice’, appropriate to individual country situations.
- Existing capacities should be built rather than new ones created. In difficult circumstances, such as fragile states, there is even greater need for engagement in CD. Accountability of all actors is essential.
UNDP should focus primarily on supporting key cross-cutting capacities, drawing on lessons from previous experience and research.
- Capacity to engage in multi-stakeholder dialogue requires supporting dialogue processes focussing on single development frameworks and engaging with all relevant national stakeholders.
- Capacity to assess current against desired capacity levels in order to develop CD strategies requires facilitating shared understanding of CD challenges amongst partners. Stakeholders need to understand the local political and organisational landscape. Statistical and analytical capacities should be strengthened.
- Capacity to formulate policy and strategy requires addressing capacity in policy dialogue. National capacity to expand development financing, harmonisation of donor analytical work and UNDP development processes with national planning and budgeting should be supported.
- Capacity to budget, manage and implement can be supported through implementing programme activities through national systems and mobilising local capacity, knowledge and expertise.
- Capacity to monitor and evaluate development, including CD, can be supported through developing systems and working towards single reporting frameworks for countries and donors. Principles of mutual accountability and transparency in the aid relationship should be reinforced.
- UNDP should promote a more systematic approach to CD across its practices and programmes, drawing on its key areas of expertise.
