Tbilisi, Georgia, September 2006

UNDP andCAPACITY

DEVELOPMENT

Capacity Development Definitions

Capacity Development:

• Process whereby people, organisations and society as a whole unleash, strengthen, create, adapt and maintain capacity over time (OECD/DAC)

• Process of strengthening the abilities of individuals, organizations and societies to make effective use of the resources, in order to achieve their own goals on a sustainable basis (GTZ)

• Activities, approaches, strategies, and methodologies which help organizations, groups and individuals to improve their performance, generate development benefits and achieve their objectives (CIDA)

• Process of increasing the effectiveness and efficiency with which a country mobilizes and uses resources to identify, achieve, and sustain its development objectives (World Bank)

UNDP Definition of Capacity Development:

Capacity is the ability of individuals, institutions, and societies to perform functions, solve problems, and set and achieve objectives in a sustainable manner.

Capacity development is the process through which the abilities to do so are, strengthened, adapted and maintained over time.

The Shift in Paradigm to a Capacity Development Approach

Facilitating access to knowledge

Capacity DevelopmentTechnical

Assistance

Brokering multi-stake-holder agreements

Participating in policy dialogue & advocacy

Providing incremental resources

Creating space for learning by doing

Supply Driven Demand Driven

Input-based Outcome-based(Transformative)

MD/MDG Framework

Individual level(experience, knowledge

& technical skills)

Individual level(experience, knowledge

& technical skills)

Enabling environment(institutional framework,

power structure & influence)

Organisational level(systems, procedures

& rules)

Successful capacity development requires not only skills & organizational procedures, but also incentives & good governance

A Systems Approach: The Three Layers of Capacity Development

Deepening effective and accountable state-citizen engagement

1. A long-term process which cannot be rushed

2. Require respect for value systems and must

foster self-esteem

3. A learning process without blueprints

4. Not power neutral and challenges existing

mindsets and power differentials

5. Promote development and is sustainable

6. Establish positive incentives

7. Integrate external inputs into national priorities,

processes and systems

8. Build upon existing capacities rather than

creating new ones

9. Stay engaged under difficult circumstances

10. Remain accountable to ultimate beneficiaries

Key Considerations and Default Principles for CD

•Endogenous process

•Opportune timing

•Political economy and power differentials

•Incentives

•A ‘best fit’ approach

Default Principles* Key Considerations

*Benchmarks for these principles are referenced in the UNDP Capacity Development Practice Note

UNDP Capacity Development Process Steps

Capacity Development

Process

UNDP Capacity Assessment Default Tool

Illustrative Questions and Indicators:

Questions:

Do authorities have the capacity to:

Develop accountability mechanisms that ensure multi-stakeholder participation?

Engage domestic and external stakeholders in the process of developing national and local accountability mechanisms?

Publish procedures and criteria for administrative decisions in local language(s)?

Indicators:

Existence and effectiveness of dialogue mechanisms (and other links as appropriate) among domestic institutions.

Existence of “citizen charters” (or similar undertakings) that establish the obligations of service providers and the rights of users.

Capacity Diagnostics and Strategies

Capacity Diagnostics:Needs and capacity assessments, indicators and measurement, local R&D…

Knowledge Services and Learning:Large group, technical and tertiary education, on-the job skills transfer, focus groups…

Leadership Development:One-on-one coaching, mentoring, management skills development…

Institutional Reform and Change Management:Process facilitation, performance management, functional reviews, PAR in transitions, procurement…

Multi-Stakeholder Engagement Processes:Institutional twinning, e-networks, community dialogues, integrated planning and problem analysis…

Mutual Accountability Mechanisms:M&E processes, social watch, peer and partner reviews…

Incentive Systems:Salary supplements, non-monetary benefits, pay and compensation...

Aligning Global Efforts on Capacity Development

(IPS Pillar 1)

Supporting National Capacity Development

Strategies(IPS Pillar 2)

Localising the MDGs(IPS Pillar 3)

CD Diagnostics

Diagnostics of the systemic level/enabling environmentDefault methodologies for capacity assessments CD indicators and monitoring

Operational Policies and Procedures

UN reform and coordinationResults-based management (RBM)Simplification and harmonisation

CD Mainstreaming

Capacity indicators for results reporting (MYFF) and resource allocationCD analysis in Practice AreasRole of UN in national capacity development strategies

CD Policy & Strategies

Training and learningNetworking & partneringLeadership developmentInstitutional reform and change managementIncentive systemsAccountability mechanismsIntegrated planningProcurement andservice delivery

Aid Effectiveness

Aid management and donor coordinationCapacity for different aid modalities, i.e. direct budget support, pooled fundsOECD/DAC process and implementation of the Paris Declaration

Private Sector Development

Public-private partnership brokeringEnabling environment for local PSDLocal private sector capacity assessments

Public-Private Partnerships for the Urban Environment

(PPPUE)

Reducing poverty through public-private partnershipsIncreasing access of the urban poor to basic services such as waterGlobal Learning Network

Capacity 2015: Localising the MDGs

Empowering local communitiesStrengthening local capacities for integrated planningFacilitating capacity investments for service deliveryCodifying local knowledge

CD NETWORKS AND KNOWLEDGE CD resources, products, and tools Best practice codification and dissemination Knowledge networks CD expert rosters Regional information, learning, and networking facilities

Three Results Areas for the Capacity Development Group

Empowering local communities through participatory policy dialogue

and strategy options on the MDGs

Promotion of community Skills buildingFacilitation of local level needs assessmentsStrengthening local and community engagement and partnerships

EXAMPLES: Armenia, Bulgaria, Thailand

Strengthening local capacities for integrated planning and MDG strategies

for local development

Capacity development quick-impact initiatives Facilitation of transparent community M&ESupport to decentralisation policies, local governanceStrengthening local procedures, institutional arrangements and incentive mechanisms

EXAMPLES: Syria, Jordan, Sierra Leone

Facilitating capacity investments in institutions of local service delivery

Supporting the capacities of local businesses Training of local officials on strategies, institutional and legal frameworksSupporting resilience building in small islandsFacilitating more efficient local level coordination

EXAMPLES: SIDS Resilience Building Facility, Timor Leste, Afghanistan

Codifying local knowledge, promoting learning and experience sharing at local levels

Facilitation of practical integrated information systemsReview, updating and application of tools for local level capacity assessments and leadership development.Empowerment of communities through the promotion of peer-to-peer learning and knowledge exchanges

EXAMPLES: Europe&CIS Information & Learning Network, Africa Local Level Information Systems

Capacity 2015: Going Local

• AfricaAfrica Enhancing service delivery capacity related to agriculture and basic services Local level information systems (LIIS) supporting community access to

information Linking local level needs to technical and tertiary education

• Arab StatesArab States Skills development and political empowerment of women leaders MDG-based strategic planning and statistical literacy capacity at the local level Participatory MDG-based reporting and monitoring at sub-national levels

• Asia & PacificAsia & Pacific Change management and leadership training for young leaders Capacity Development Facilities for post-crisis public sector management and

service delivery Adaptation of capacity diagnostic tools and their application to state building

• Europe & CISEurope & CIS MDG-based local development planning for EU accession Strengthening capacity of municipalities in integrated approaches to implement

decentralisation Capacity Development Facilities in countries to support political transitions

• Latin America & CaribbeanLatin America & Caribbean Monitoring and tracking capacity development in procurement and service

delivery Local leadership development and networking Mapping regional indigenous capacities and empowerment of local indigenous

bodies

Regional Face of Capacity 2015

CD Policy NotesCD Policy Notes• Practice Note on Capacity Development• Practice Note on Capacity Assessments

CD Resource Guides and Tools CD Resource Guides and Tools • UNDP Capacity Assessment User’s Guide and Supporting Tool• UNDP Guidelines on Direct Budget Support, SWAps & Basket Funds• Guide on Leadership for Human Development• Toolkit on Localising the MDGs• Toolkit on Private Sector Development• UNDP-LEAD Leadership Modules

CD ResearchCD Research• Capacity for Development: New Solutions to Old Problems• Developing Capacity Through Technical Cooperation• Ownership, Leadership, and Transformation: Can We Do Better for

Capacity Development?• CD Resource Catalogue On Measuring Capacities: An Illustrative

Guide to Benchmarks and Indicators

UNDP Capacity Development Resources

UNDP Capacity Development Resources cont…

CD Expert RostersCD Expert Rosters• Database of external consultants, organisations, and agencies with

CD expertise • Sub-communities of practice, i.e. leadership, strategic planning• www.capacity.undp.org/roster

CD WebsitesCD Websites• www.capacity.undp.org• www.capacity.org• http://topics.developmentgateway.org/mdg • www.capacity.undp.org/roster

Forthcoming Resources in the 5 Categories AboveForthcoming Resources in the 5 Categories Above• VDA E-Learning Modules on Capacity Development• A CD Guide on Applying a Human Rights-Based Approach• Toolkit for CD in South-South Cooperation• CSO Capacity Assessment Tools• Practice Notes on Aid Management, Procurement Capacities,

Private Sector Development & PPP

UNDP Capacity Development Process Step 1

Step 1:Engage

Partners and Build

Consensus

Step 3: Define CD Strategies

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and

Needs

Step 5:Monitor &

Evaluate CD Strategies

Capacity Development

Process

Step 1: Engage Partners and Build Consensus

– Identify all relevant stakeholders and engage them in the capacity development process

– Support local dialogue processes that focus on the agreed CD framework

– Build consensus through negotiation and dialogue and on the how, the what, and the who does what

UNDP Capacity Development Process Step 2

Step 1:Engage

Partners and Build

Consensus

Step 3: Define CD Strategies

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and

Needs

Step 5:Monitor &

Evaluate CD Strategies

Capacity Development

Process

Step 2: Assess Capacity Assets and Needs

– Mobilize and design the capacity assessment exercise by adapting UNDP’s “default” capacity assessment framework to local needs, determining how the assessment will be conducted and costing the exercise

– Conduct the capacity assessment by defining desired capacities and capacity levels, articulating questions to understand existing capacity assets and assessing each capacity level

– Summarize and interpret capacity assessment results

UNDP Capacity Development Process Step 3

Step 1:Engage

Partners and Build

Consensus

Step 3: Define CD Strategies

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and

Needs

Step 5:Monitor &

Evaluate CD Strategies

Capacity Development

Process

Step 3: Define Capacity Development Strategies

– Define capacity development strategies and the required data and analysis that supports them

– Define progress indicators for capacity development strategies and capacity development

– Cost capacity development strategies and capacity development

UNDP Capacity Development Process Step 4

Step 1:Engage

Partners and Build

Consensus

Step 3: Define CD Strategies

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and

Needs

Step 5:Monitor &

Evaluate CD Strategies

Capacity Development

Process

Step 4: Implement Capacity Development Strategies

– Set up national and local programme and advisory teams that will guide and manage application of the strategies

– Facilitate the lead institutions and networks of relevant service delivery agents to perform their functions

– Introduce techniques for efficient project financial management, as well as leadership and change management

UNDP Capacity Development Process Step 5

Step 1:Engage

Partners and Build

Consensus

Step 3: Define CD Strategies

Step 4:Implement CD

Strategies

Step 2:Assess

Capacity Assets and

Needs

Step 5:Monitor &

Evaluate CD Strategies

Capacity Development

Process

Step 5: Monitor & Evaluate Capacity Development Strategies

– Conduct short-term monitoring based on the agreed CD progress indicators

– Ensure results feed into results-based management systems

– Conduct impact evaluations of the capacity development programmes