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71-651: The World Bank Institute is the capacity building branch of the World Bank . It provides learning programs, policy advice and technical assistance to policy makers, government and non-government agencies, and development practitioners of developing countries . Capacity for Development is defined by the WBI as "the ability of individuals, institutions, and whole societies to solve problems, make informed choices, order their priorities and plan their futures, as well as implement programs and projects, and sustain them over time" The WBI

142-587: A capacity development response, implement a capacity development response, evaluate capacity development. Since about 2005, the capacity development agenda has also been adopted beyond the traditional aid community. This is particularly true for Africa: for example the African Union has developed a Capacity Development Strategic Framework and is using capacity development as one of three themes to structure its Development Effectiveness internet portal. Trends in development cooperation shape how capacity development

213-641: A category of ODA. The DAC computes ODA from data submitted by its member states. It also has collected some data from its participants and observers, which are often significant: in fact their donations are roughly in line with that of the DAC countries' as a fraction of donor gross national income as can be seen in the List of development aid country donors . Only aid to countries on the DAC List of ODA Recipients counts as ODA. Initially it included most developing countries. After

284-528: A clear policy framework, institutional development and legal framework , citizen participation and oversight, human resources improvements including education and training, and sustainability . Some of these overlap with other interventions and sectors. Much of the actual focus has been on training and educational inputs where it may be a euphemism for education and training. For example, UNDP focuses on training needs in its assessment methodology rather than on actual performance goals. The pervasive use of

355-507: A clear policy framework, institutional development and legal framework, citizen/democratic participation and oversight, human resources improvements including education and training, and sustainability . The United Nations Development Group Capacity Development Guidelines presents a framework of capacity development comprising three interconnected levels of capacity: Individual, Institutional and Enabling Policy. Thinking of capacity building as simply training or human resource development

426-618: A forum for and by the bilateral donors, each donor's aid efforts are evaluated in peer reviews where major findings and recommendations are presented. Each DAC member country is reviewed roughly once every five years. More recently, the DAC has been involved in questions related to aid effectiveness . At the DAC High Level Meeting in April 2005, participants adopted the Paris Declaration on Aid Effectiveness . Progress in implementing

497-409: A given year that are counted towards ODA are counted net of repayments made that year on the principal of old loans, but not net of interest payments. Therefore, after a loan has been paid back its overall effect on ODA figures is zero (Its overall direct fiscal effect on the recipient is of course that the recipient has had to pay back some amount of interest). Debt forgiveness is counted explicitly as

568-530: A government's capacity whether at the local, regional or national level can improve governance and can lead to sustainable development and political reform. Capacity building in governments often targets a government's ability to budget, collect revenue, create and implement laws, promote civic engagement. International donors often include capacity building as a form of interventions with local governments or NGOs working in developing areas. A study in 2001 observed that "the act of resetting aspirations and strategy

639-568: A higher portion of GDP as a form of foreign aid than any other economic union. The DAC’s 2020 communiqué notes by members’ efforts in responding to the COVID-19. For civil society organizations, “the OECD-DAC continues its narrative of leveraging the private sector, with only some mention of safeguards in private sector involvement”. Since its inception, one of the DAC's main functions has been to collect and publish statistics on aid flow. As noted in

710-415: A publication by OECD-DAC stated in 2006 that capacity development was the preferable term. Since the 1950s, international organizations, governments, non-governmental organizations (NGOs) and communities use the concept of capacity building as part of " social and economic development " in national and subnational plans. The United Nations Development Programme defines itself by "capacity development" in

781-429: A quarter of donor aid, or more than $ 15 billion a year, has gone into "Technical Cooperation", the bulk of which is ostensibly aimed at capacity development". One of the most fundamental ideas associated with capacity building is the idea of building the capacities of governments in developing countries so they are able to handle the problems associated with environmental protection, economic and social needs. Developing

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852-467: A report on its approach to monitoring and evaluating the capacity building. According to the report, USAID monitors program objectives, the links between projects and activities of an organization and its objectives, a program or organization's measurable indicators, data collection, and progress reports. USAID noted two types of indicators for progress: "output indicators" and "outcome indicators." Output indicators measure immediate changes or results such as

923-501: A wide range of policies on seven indicators: aid, trade, investment, migration, environment, security, and technology. In 2009, Sweden and Denmark received the highest rankings, while Japan and South Korea fell toward the bottom. In 2010, South Korea became the first major recipient of ODA from the OECD to turn into a major donor when it became a DAC member. In 2013, the country provided over $ 1.7 billion in aid. The European Union accumulated

994-405: Is because "capacity building" would imply starting from a plain surface and a step-by-step erection of a new structure - which is not how it works. The European Commission Toolkit defines capacity development in the same way and stresses that capacity relates to "abilities", "attributes" and a "process". It is an attribute of people, individual organizations and groups of organizations. Capacity

1065-672: Is defined as a long-term continual process of development that involves all stakeholders as opposed to practices which limit oversight and involvement in interventions with governments. The list of parties that it defines as "community" includes ministries, local authorities, non-governmental organizations, professionals, community members, academics and more. According to the Committee, capacity building takes place at an individual, an institutional, societal level and "non-training" level. The term "community capacity building" (CCB) began to be used in 1995 and since then became popular for example within

1136-506: Is discussed. These include for example: new forms of financing and less of a North–South dichotomy ; more in-country leadership and less donor power; resilience as a framework in fragile environments; increasing private sector engagement. The UNDP integrated this capacity-building system into its work on reaching the Millennium Development Goals (MDGs) by the year 2015. The UNDP states that it focused on building capacity at

1207-452: Is insufficient. The discourse on and concept of capacity development has traditionally been closely associated with development cooperation . The UNDP was one of the forerunners in designing international interventions in the category of capacity building and development. In the early 1970s, the UNDP offered guidance to its staff and governments on what it called "institution-building" which

1278-546: Is often the first step in improving an organization's capacity". Secondly good management is important (committed people in senior positions to make capacity building happen). Thirdly, patience is required: "there are few quick fixes when it comes to building capacity". Some methods of capacity building for NGOs might include visiting training centers, organizing exposure visits, office and documentation support, on-the-job training, learning centers, and consultations. For private sector organizations, capacity building may go beyond

1349-436: Is one of 13 that is part of the treatise of international development law and can be applied with the other indicators for specific sectors and development principles, as well as assurance of quality of evaluation systems. Critique of capacity development has centered on the ambiguity surrounding it in terms of its anticipated focus, its effectiveness, the role of infrastructure organisations (such as empowerment networks), and

1420-400: Is one of the pillars of its current work and is part of a category of "public administration reform". In the 1970s, international organizations emphasized building capacity through technical skills training in rural areas , and also in the administrative sectors of developing countries . In the 1980s they expanded the concept of institutional development further. "Institutional development"

1491-533: Is shaped by, adapting to and reacting to external factors and actors, but it is not something external — it is internal to people, organizations and groups or systems of organizations. Thus, capacity development is a change process internal to organizations and people. The United Nations Office for Disaster Risk Reduction (UNDRR) , formerly the United Nations International Strategy for Disaster Reduction (UNISDR), defines capacity development in

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1562-869: Is to "By 2030, expand international cooperation and capacity-building support to developing countries in water- and sanitation-related activities and programmes, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse technologies". Similarly, Sustainable Development Goal 8 Target 8.10 states "Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all". As of 2009, some $ 20 billion per year of international development intervention funding went for capacity development; roughly 20% of total funding in this category  The World Bank committed more than $ 1 billion per year to this service in loans or grants (more than 10% of its portfolio of nearly $ 10 billion). A publication by OECD-DAC in 2005 estimated that "about

1633-640: Is to "Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development". Target 9 of that goal is formulated as "Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the Sustainable Development Goals, including through north–south, South-South and triangular cooperation." Sustainable Development Goal 6 also includes capacity building in its Target 6a which

1704-410: Is understood as the process whereby people, organizations and society as a whole unleash, strengthen, create, adapt and maintain capacity over time." Capacity is understood as "the ability of people, organizations and society as a whole to manage their affairs successfully". The OECD-DAC stated in 2006 that the term "capacity development" should be used rather than the term "capacity building". This

1775-573: The Achievements section of this article, in 1969 the DAC's members adopted a criterion for calculating their aid contributions. They called the resulting measure of aid contributions Official Development Assistance (ODA). It has become widely used by other organisations, and scholars, as a general measure of aid; for example, the United Nations and the World Bank both commonly use ODA as calculated by

1846-712: The Canadian International Development Agency (CIDA). France was the first country to establish a Ministry for Co-operation to be responsible for assistance to independent, mainly African, developing countries in 1961, the predecessor to the French Development Agency , Agence Française de Développement (AFD). Enactment in the United States in 1961 of the Foreign Assistance Act as the basic economic assistance legislation, established

1917-476: The Danish Institute for International Studies concluded that on the basis of the available information, the overall picture was positive. The report recommended more frequent and transparent reporting by donor countries on the status of tied aid to the OECD and DAC, removal of obstacles to untying on the donor side, and initiatives to encourage competition for aid-supported contracts on the recipient side. As

1988-789: The European Union which acts as a full member of the committee. In addition, there are "Participants" and "Observers". The listed Participants at this time are: Azerbaijan, Bulgaria, Kuwait, Qatar, Romania, Saudi Arabia and the United Arab Emirates. The Observers are: World Bank, the IMF, UNDP, the African Development Bank, the Asian Development Bank, and the Inter-American Development Bank. Known at first as

2059-670: The United States Agency for International Development (USAID). Later the rest of the member states followed, either establishing an aid agency under the command of its Foreign ministry or as a separate entity. The work of the committee concentrates on To this end, the committee holds regular High Level Meetings and Senior Level Meetings where the ministers or heads of the national aid agencies and other development partners meet to discuss issues related to development and adopt recommendations and resolutions. The member states are expected to have certain common objectives concerning

2130-423: The disaster risk reduction domain as "the process by which people, organizations and society systematically stimulate and develop their capability over time to achieve social and economic goals, including through improvement of knowledge, skills, systems, and institutions – within a wider social and cultural enabling environment." Outside of international interventions, capacity building can refer to strengthening

2201-453: The Bank noted again in its evaluations that business practices to its capacity building work are not as rigorous as they are in other areas. For example, standard quality assurance processes were missing at the design stage.  Similar problems were reported by UNDP in 2002 when they reviewed their capacity building projects. In 2007, specific criteria for effective evaluation and monitoring of

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2272-477: The DAC as their measure of aid. This is in spite of the fact that it is not an entirely comprehensive measure. It includes only aid from government sources; aid from private sources, including NGOs, is not counted. About ten to fifteen percent of aid comes from private sources. ODA includes developmental and humanitarian aid, the latter being much the smaller of the two. It does not include aid for military use. It includes both outright grants and loans , as long as

2343-630: The Development Assistance Group (DAG), the committee was set up on 13 January 1960 under the auspices of the OECD's forerunner, the Organisation for European Economic Co-operation (OEEC). Its first meeting took place in Washington, D.C. (U.S.A.) on 9–11 March 1960, chaired by ambassador Ortona, Italy. A primary concern of the DAG, addressed at its second (July 1960) and third (October 1960) meetings,

2414-691: The Fourth High Level Forum on Aid Effectiveness, held in Busan, Korea in 2011, participants endorsed the "Busan Partnership for Effective Development Co-operation," which expanded on the Paris Declaration and established the Global Partnership for Effective Development Co-operation. In April 2014, the Global Partnership -- for which the OECD and UNDP assure a joint support team -- held its first High Level Meeting in Mexico City. UNCTAD has noted that, since

2485-518: The Least Developed Countries and to promote buying goods and services locally in these countries, rather than in donor countries. This agreement was extended in 2008 to 39 highly indebted poor countries (HIPCs). As a consequence, in 2008 80% of total ODA (minus administrative costs) was provided untied, 4% tied and of 16% the tying status was not reported. A 2009 independent evaluation of DAC members' policies and practices towards untying by

2556-576: The OEEC by the OECD, the DAG would become the DAC, and these changes came about in September 1961. The resolution also spelled out the DAC's mandate in five points, the first of which read: The Committee will continue to consult on the methods for making national resources available for assisting countries and areas in the process of economic development and for expanding and improving the flow of long-term funds and other development assistance to them. The origins of

2627-505: The Paris Declaration commitments was reviewed at the third High Level Forum on Aid Effectiveness in September 2008 in Accra Ghana, an event co-ordinated by the DAC's Working Party on Aid Effectiveness, the government of Ghana and the World Bank. The International Health Partnership (IHP+) was created in 2007 in order to put the Paris and Accra principles on aid effectiveness into practice. At

2698-521: The U.N. Declaration Against Corruption and Bribery, Articles 15, 16, 18, and 19. Below are examples of capacity building in developing countries: Development Assistance Committee The Development Co-operation Directorate (DCD) is the Secretariat of the DAC and is the OECD Directorate within which the DAC operates. As of 4 July 2023, there are 32 members of DAC (see list below), including

2769-572: The arrival of capacity building as a dominant subject in international aid, donors and practitioners have struggled to create a concise mechanism for determining the effectiveness of capacity building initiatives. An independent public measurement indicator for improvement and oversight of the large variety of capacity building initiatives was published in 2015. This scoring system is based on international development law and professional management principles. A "good practice paper" by OECD-DAC defined capacity development as follows: "Capacity development

2840-693: The capacity building of NGOs were proposed, though only in generalities without clear measures for the tool. The proposal suggested only that evaluating the capacity building ability of NGOs should be based on a combination of monitoring the results of their activities and also a more open flexible way of monitoring that also takes into consideration, self-improvement and cooperation. Other wishes were that monitoring for capacity building effectiveness should include an organization's clarity of mission, an organization's leadership, an organization's learning, an organization's emphasis on on-the-job-development, an organization's monitoring processes. In 2007, USAID published

2911-480: The codification of international development law, capacity building is a "cross cutting modality of international intervention". It often overlaps or is part of interventions in public administration reform, good governance and education in line sectors of public services . The consensus approach of the international community for the components of capacity building as established by the World Bank , United Nations and European Commission consists of five areas:

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2982-454: The committee adopted the concept of Official Development Assistance (ODA) in 1969. The DAC revised the definition in 1972, which has remained unchanged since then, except for changes in the list of recipients for which it can be counted. At the DAC High Level Meeting in May 2000, members agreed to untie their aid (with the exception of technical cooperation and food aid) from January 2001 onwards to

3053-484: The conduct of their aid programmes. The committee therefore issues guidelines on the management of development aid. It also publishes a wide range of reports, among them the annual Development Co-operation Report. In addition, as member states recognise the need for greater coherence in policies across sectors that affect developing countries, an OECD-wide initiative on Policy Coherence for Development explores ways to ensure that government policies are mutually supportive of

3124-403: The countries' development goals. The subsidiary bodies of DAC are: Since March 2023, its Chair is Mr. Carsten Staur , former Danish Ambassador to the OECD and UNESCO. As already noted, the DAC is a forum for the coordination of aid efforts. One of the principal questions that has emerged over the years was how to ensure that its member states contributed equal shares of development aid . In

3195-545: The early 1960s, some member states contributed a significantly larger share of their GNP than others. To encourage that the aid effort was equally divided, the DAC quickly recognized the United Nations Conference on Trade and Development recommendation on having an International Aid Target , proposed in 1964. The issue of the aid burden-sharing eventually led to the first report on "Total Official Contributions as Per Cent of National Income" in 1967, something that

3266-437: The effectiveness of capacity building initiatives. Recognition of problems in capacity building interventions in evaluations funded and managed by international organizations dates back to the year 1999. A World Bank review in the year 2000 found many examples where capacity building interventions undermined public management efforts. In these cases, public sector reform and institution-building were hindered.  In 2005,

3337-597: The fall of Communism in Europe in the early 1990s, the Eastern European countries and the Soviet Union, which had formerly been donors of aid, became aid recipients, albeit wealthier ones than most developing countries. Because of this and because some formerly poor East Asian countries were now middle-income, the DAC in 1993 divided the list of recipients into two parts, on the basis of national income. Only aid to countries in

3408-401: The five recognized principles of capacity building, analyzing their application in diagnosis and design of an intervention (7 questions), sustainability of reform (2 questions), and good governance (2 questions), and second, with 9 questions to assure professionalism and safeguards against conflicts of interest, unintended consequences, and distortion of public and private systems. This indicator

3479-399: The improvement of services for public organizations and include fund-raising and income generation, diversity, partnerships and collaboration, marketing, positioning, planning and other activities relating to production and performance. Capacity development of private organizations involves the build-up of an organization's tangible and intangible assets.  Organization development (OD) is

3550-613: The institution of the DAG/DAC, several developments in the early 1960s completed the institutional framework for aid that is still largely in place. In 1960, the World Bank opened a subsidiary, the International Development Association (IDA) to provide loans to developing countries on easier terms than the Bank's normal lending. The aid agencies of the large donor states were also set up at this time. Canada created an "External Aid Office" in 1960, which in 1968 became

3621-416: The institutional level because it believed that "institutions are at the heart of human development, and that when they are able to perform better, [...] they can contribute more meaningfully to the achievement of national human development goals." The United Nations Sustainable Development Goals mention capacity building (rather than capacity development) in several places: Sustainable Development Goal 17

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3692-501: The interventions as a form of "soft power". One common problem of interventions that focus on education and training of foreign government officials is that they are akin to trying to "teach elephants to fly" or to "teach wolves not to eat sheep" while avoiding the actual changes needed for impact. Under international development law, there is also concern that much of the implementation of capacity building has been and continues to be in violation of existing international treaties such as

3763-461: The loans are on significantly easier terms than the commercial norm: the DAC calls these "concessional" loans. The change to the definition of ODA in 1972 involved tightening the definition of "concessionality". The DAC defines concessionality according to a mathematically computed "grant element"; loans with a grant element of at least 25 percent are considered concessional and count as ODA. This criterion has not been changed since 1972. Loans made in

3834-501: The lower income part (Part I) counted as ODA. Aid to countries in the upper income part was put into a new category called Official Assistance (OA), separate from ODA. This bifurcated list was abolished in 2005, however, because of the confusion and accounting difficulties that were occasioned when countries moved from one part to the other of the list. The current list (2007) includes all countries with per capita GNI less than $ 11 455, except that it excludes countries that are members of

3905-421: The most difficult areas of international development practice. Capacity development has been one of the least responsive targets of donor assistance, lagging behind progress in infrastructure development or improving health and child mortality". Since the arrival of capacity building as a dominant subject in international aid , donors and practitioners have struggled to create a concise mechanism for determining

3976-447: The number of people trained. Outcome indicators measure the impact, such as laws changed due to trained advocates. Both the "numbers of people trained" and "laws changed" are, however, just inputs or intermediate inputs and do not measure actual improvements in "performance" in terms of measurable outcomes of public agencies that are the definition of capacity building. Despite these claims of existence of these evaluation approaches, there

4047-606: The policy literature in the United Kingdom, particularly in the context of urban policy, regeneration and social development. It is, however, difficult to distinguish it from the practice of " community development ". It is "built on a deficit model of communities which fails to engage properly with their own skills, knowledge and interests". Therefore, it does not properly address structural reasons for poverty and inequality. The World Bank , United Nations and European Commission describe capacity building to consist of five areas:

4118-547: The sense of "'how UNDP works" to fulfill its mission. The UN system applies it in almost every sector, including several of the Sustainable Development Goals to be achieved by 2030. For example, the Sustainable Development Goal 17 advocates for enhanced international support for capacity building in developing countries to support national plans to implement the 2030 Agenda .   Under

4189-425: The skills of people and communities, in small businesses and local grassroots movements. Organizational capacity building is used by NGOs and governments to guide their internal development and activities as a form of managerial improvements following administrative practices. The United Nations Committee of Experts on Public Administration in 2006 offered an additional term, "community capacity building". It

4260-676: The so-called "DAC Secretariat" or DCD are as follows. A Development Department (DD), under the direction of Assistant Secretary-General Luciano Giretti of Italy was established within the OECD Secretariat in 1961. It consisted of two branches, a Technical Co-operation Branch and a Development Financial Branch. The latter became the Development Assistance Directorate (DAD) in 1969 and then the Development Co-operation Directorate (DCD) in 1975. Along with

4331-458: The study and implementation of practices, systems, and techniques that affect organizational change. The goal of which is to modify an organization's performance and/or culture. The difficulties with achieving results from capacity development projects have regularly been described in a range of publications. For example, in 2006, a document by OECD-DAC stated that: "evaluation results confirm that development of sustainable capacity remains one of

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4402-408: The term for these multiple sectors and elements and the huge amount of development aid funding devoted to it has resulted in controversy over its true meaning. There is also concern over its use and impacts. In international development funding, evaluations by the World Bank and other donors have consistently revealed problems in this overall category of funding dating back to the year 2000. Since

4473-587: The turn of the century, DAC has become one of the dominant institutions with regards to development aid. The Center for Global Development , a non-profit think-tank in Washington DC, created the Commitment to Development Index which ranks and evaluates the achievements of DAC countries to the developing world. It measures the "development-friendliness" of the donor nations, moving beyond standard comparisons of Official Development Assistance . The Index quantifies

4544-463: The underlying problems are solved, and refraining from asking whether there may be hidden agendas to buy influence, subsidize elites, and continue dependency. An independent public measurement indicator for improvement and oversight of the large variety of capacity building initiatives was published in 2015, with scoring, and based on international development law and professional management principles. This comprehensive indicator for capacity building

4615-775: The unwillingness or inability of public agencies to apply their own principles and international law . Capacity building has been called a buzzword within development which comes with a heavy normative load but little critical interrogation and appropriate review. The term capacity building is usually "loaded with positive value". Despite some 20 years recognizing the problems, practitioners continue to note that some capacity development projects are just "throwing money at symptoms with no logic or analysis". Others are "disguised bribes to government officials and attempts to undermine entire government structures by setting up foreign run Ministries and foreign influenced political parties or civil society to lobby for foreign interests" using

4686-423: Was accompanied by closely negotiated explanations. Another early question was what a donor could include when it reported its aid efforts to the committee. It was necessary to make the distinction between official transactions that were made with the main objective of promoting the economic and social development of developing countries, as opposed to other official flows (OOF) like military assistance. To that end,

4757-456: Was little more than lists of inputs and outputs without use of professional management standards or any kind of real oversight, and a report for the World Bank in 2009 noted that the failures were deep and systemic, where the measures used are "smile sheets", asking beneficiaries if they are "happy" or "better off" and measuring things like "raised awareness", "enhanced skills", and "improved teamwork" that are "locally driven", rather than on whether

4828-632: Was previously named the Economic Development Institute which was founded in 1955. It was renamed World Bank Institute in 2000. the ratios between the accounts are also included in the features [REDACTED]   World Bank Group Capacity building Capacity building (or capacity development, capacity strengthening ) is the improvement in an individual's or organization's facility (or capability) "to produce, perform or deploy".  The terms capacity building and capacity development have often been used interchangeably, although

4899-410: Was proposed as part of the elements codifying international development law in a treatise. It consists of 20 specific elements that apply law, administrative principles, social science concepts, and education concepts, to troubleshoot the actual problems that occur and to promote public oversight and accountability. The indicator has two sections: one with 11 questions to assure proper application of

4970-454: Was to achieve accurate and comparable data reporting by its members on their aid flows to developing countries. In March 1961, the OEEC published the first comprehensive survey of The Flow of Financial Resources to Countries in Course of Economic Development, 1956-59 . This was followed by annual reports until 1964. On 23 July 1961 a Ministerial Resolution decreed that upon the supersession of

5041-607: Was viewed as a long-term process of interventions in a developing country's government, public and private sector institutions, and NGOs.   Under the UNDP 's 2008–2013 "strategic plan for development", capacity building is the "organization's core contribution to development". The UNDP focused on building capacity at an institutional level and offers a six-step process for systematic capacity building. The six steps are: Conducting training need assessment, engage stakeholders on capacity development, assess capacity needs and assets, formulate

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