CapDev No14 12.14.05.qxd 12/14/05 4:32 PM Page 1 38910 Capacity Development B R I E F S S H A R I N G K N O W L E D G E A N D L E S S O N S L E A R N E D APPLYING A CAPACITY-RESULTS FRAMEWORK IN LAO PDR AND OTHER PILOT COUNTRIES Chirine Alameddine and Moira Hart-Poliquin, World Bank Institute Achieving the Millennium Development Goals (MDG) and poverty reduction objectives of develop- ing countries requires a substantially greater investment in capacity development. This translates into action at three levels: improving the skills of individuals, developing organizational processes and systems, and creating an enabling environment that can support the achievement of these goals. The process of planning and implementing strategies for strengthening capacity can seem over- whelming for development practitioners. Unbundling the capacity elements into actionable compo- nents at the institutional, organizational, and individual levels and linking them to specific results can eliminate much of the perceived complexity that often accompanies the planning process. One way to begin is by using a capacity-results matrix to work through the process. Such a matrix is designed to help prioritize results, disaggregate capacity constraints, determine needed capacity interventions, and agree on indicators to measure progress. A series of consultations with the East Asia-Pacific the need to (a) communicate to the client that Regional operations of the World Bank that began in capacity is critical to the success and sustainabil- 2003 focused on the need to develop a strategy to ity of the project and (b) encourage stakeholders incorporate capacity development at the heart of to invest resources for bridging the capacity gap. Bank operations. The Region had decided to make For example, the Forest Management and Lao PDR a capacity development pilot country and to Conservation Project emphasized the importance test this more comprehensive approach at integrat- of communicating to government officials and ing capacity into Bank work. A new country assis- other stakeholders the multiple benefits of tance strategy (CAS) would provide the instrument investing in capacity development, particularly for testing the strategy. As a starting point, WBI at the community level. Building capacity for vil- conducted an internal assessment of ten completed lage-based management would result in more and ongoing sample projects from a cross-section of efficient tax and royalty collection, which would service delivery sectors, including a review of project enhance regional and central budgets. appraisal documents, implementation completion · Implementation: Assessment of the implementa- reports, Operations Evaluation Department reviews, tion stage revealed the vital role of committed and supervision reports. WBI also conducted inter- leadership in generating client cooperation, the views with task team leaders to assess the impact higher effectiveness of learning-by-doing com- that capacity development interventions had on pro- pared with lecture-style training, the importance ject results. Key findings from the assessment of effective monitoring and evaluation of capacity include the following: development interventions to measure perfor- mance gains, and the importance of defining · Design: An assessment of the planning stages of clear, up-front objectives for client training. For projects in the Lao portfolio revealed that only a instance, in the Land Titling Project, compensa- few of the projects identified specific capacities tion for external technical advisers was based not needed for achieving results. Lessons included D E C E M B E R 2 0 0 5 NUMBER 14 CapDev No14 12.14.05.qxd 12/14/05 4:32 PM Page 2 only on completing the training, but also on mea- What Is the Capacity-Results Framework? surable learning gains among the trained clients. The capacity-results framework is a tool for use · Monitoring: Many of the projects lacked adequate jointly by Bank staff and the client to facilitate dia- indicators to measure capacity development. logue and strategic thinking on critical capacity Where measurable indicators were present, the issues. The framework strategically focuses on capac- timelines provided were often overly ambitious. ity and knowledge at the institutional, organizational, Main lessons included the importance of setting and individual levels (see table 1). realistic targets and timelines, identifying resources required to achieve the project goals, · At the institutional level, the enabling environ- and encouraging effective communication with ment helps shape how organizations and individ- the client to ensure that performance targets and uals can effectively perform their functions and timelines are clear and achievable. solve problems in any given sector. · Sustainability: One of the most notable lessons · At the organizational level, issues relevant to was the need for sustained involvement through- task-oriented organizations, such as management out the life of the project, which allows for better systems and business processes, need to be monitoring of performance. In the transport sec- assessed. The way all these organizations collec- tor, for example, the key to attaining this tively interact and operate to generate target out- involvement was convincing the stakeholders comes ultimately determines overall organiza- that maintenance of roads is as essential as con- tional capacity. struction and is best achieved through an increased focus on capacity development. Those · At the individual level, key learning areas, motiva- projects with an increased focus on capacity tional factors, assessment tools, and learning de- development proved more effective in sustaining livery mechanisms need to be thoroughly assessed project outcomes. as part of a comprehensive well-structured and results-oriented capacity-building program. In light of the findings of the project portfolio review, a simple capacity-results matrix was devel- The results chain, on the left of the table, focuses on oped as a tool for engaging clients on a results-ori- assessing the current level of capacity of ministries, ented capacity development approach. The objective of agencies, and other local institutions; designing inter- this matrix is to (a) identify capacity gaps that con- ventions to address capacity gaps; and agreeing with strain project outcomes, (b) design interventions to the client on a realistic timeline and set of indicators address these gaps, and (c) develop indicators that to monitor progress toward achieving the desired can be jointly monitored with the client. results. Table 1: The Capacity Results-Framework Institutional Organizational Individual Incentives, norms, laws, Processes and systems Targeted skills and rules, or policies that enabling task-oriented knowledge required enable organizations and organizations to manage for individuals to individuals to achieve resources, perform perform functions development results functions, and achieve and sustain outcomes Baseline Current level of capacity relative to what is Capacity required to achieve the desired outcome Chain Inputs/ Menu of interventions and strategies Results Interventions to redress constraints Outcome/ Simple, customized, and measurable indicators Indicators that proxy for progress toward results D E C E M B E R 2 0 0 5 NUMBER 14 CapDev No14 12.14.05.qxd 12/14/05 4:32 PM Page 3 Table 2: Example of a Capacity-Results Framework (Lao PDR) Objective: Strengthening capacity of the Ministry of Communication, Transport, Post, and Construction (MCTPC) to sustain and scale up the road maintenance culture Institutional Organizational Individual (norms, incentives, rules) (business processes and systems) (skills) Capacity · Lack of clarity and weak · Low management capacity in · Low levels of technical, constraint accountability of provinces provinces in procurement, administrative, and managerial for managing the Road monitoring, and financial skills in planning, reporting, Maintenance Fund (RMF) management in the private procurement, monitoring, · Continued dependence on sector and at the village level donors to finance RMF · Weak performance measurement Capacity · Country-to-country dialogue to · Consultant report assessing · Training for staff by MCTPC development share and demonstrate good needs and baseline capacities in the above key functions interventions practice in maintenance culture of core and support functions provided · Public information strategy · Workshop to disseminate · Series of formal events through periodic reporting results and implement and informal learning to broaden awareness of performance measurement activities implemented RMF status system across provinces by MCTPC for multiple · Study completed on functional stakeholders (government benchmarking to improve and contractors) in key performance support functions Intermediate · Increased clarity by MCTPC · Standardized indicators used · Improved competence in outcome and other stakeholders on by MCTPC to benchmark performing technical roles and responsibilities and measure performance administrative and managerial for managing the RMF of core and support functions functions Indicators · Increase in share of RMF · Increase in number of provinces · Increase in number of qualified covered by national budget using performance indicators staff in performing core and · Increase in the number support functions of provinces autonomously managing core and support processes For example, one of the objectives of the Second Road Maintenance Program (RMP2) is to scale up the Expected Benefits of a Results-Oriented road maintenance culture and strengthen capacities at Approach to Capacity Development the provincial levels for managing the road mainte- nance fund (see table 2). During the pre-appraisal · Expands focus beyond building individual skills to strength- ening organizational systems and creating an enabling envi- mission, the World Bank and the Ministry of ronment in which individuals and organizations operate Communication, Transport, Post, and Construction · Encourages country ownership of results by jointly devel- designed a comprehensive human resource strategy oping indicators for monitoring program interventions and intended to institutionalize skills and processes tracking progress on developing capacity at each level required for decentralization in all provinces. The · Acts as an analytical process tool that (a) helps assess capacities needed to achieve specific development results, World Bank and the government reached an explicit (b) facilitates the design of interventions and clarifies agreement to submit a satisfactory capacity develop- accountabilities at each level, and (c) can be used by the ment proposal. The client has welcomed using this country to improve communication and coordination with donors around critical capacity issues systematic capacity-results tool, which is embedded · Is replicable for capacity gaps or problems regardless of both in the project document and in a capacity-build- sector. ing Policy and Human Resources Development grant. CapDev No14 12.14.05.qxd 12/14/05 4:32 PM Page 4 Table 3: Examples of Application of a Table 4: Examples of Application of a Results Approach in Madagascar Results Approach in Chad WBI is engaged in ongoing governance work in WBI is working with local counterparts in the civil service Madagascar and is providing support to the Governance and and representatives from public and private local institutes Institutional Development Project (known by its French ini- that provide training in the field of public financial manage- tials PGDI) management team, contributing to the develop- ment. The objective is to define and prioritize clearly the ment of a clear results framework at the national level. This capacity development needs in the civil service, while assist- includes the alignment of capacity investments with priority ing local training institutes on building their capacities to results of the country. respond to this demand. At the level of the PGDI, the capacity-results framework is In the first phase of this work, WBI worked with a number currently being used in the development of annual work pro- of local training institutes to internalize the capacity-results grams, curriculum reform, and monitoring frameworks for approach and help them better focus their capacity develop- two civil service training institutes supported by the project. ment programs. This work has resulted in the institutes com- ing together to create a confederation of Chadian training institutes with the aim of improving access to and exchange of information and expertise nationally and internationally. This approach has also been introduced in Representatives from this confederation are currently partici- pating in intensive in-country consultations with civil service Madagascar and Chad, where capacity development representatives to develop a comprehensive action plan for activities are currently under implementation. (See improving the public financial management system. tables 3 and 4) The 2005 Lao PDR CAS presented an opportunity to and sequence actions and inputs at the three levels. pilot a process of integrating capacity development Although this method may prove useful in prioritizing into different CAS instruments. This is a dynamic capacity issues for Bank teams, ownership of the learning process that will be continuously reviewed approach by the client will be critical to its successful and updated as new lessons emerge during imple- implementation. This approach will also enable gov- mentation. The capacity-results framework was intro- ernments to communicate to development partners duced as a tool to help initiate dialogue with the client their priorities for external assistance in capacity on critical capacity issues. One way of helping clients development. grapple with the capacity problem is by directly link- ing capacity constraints with priority results. The results chain, as illustrated earlier in the capacity Peer reviewers: Zafar Ahmed, senior economist in results framework, allows development practitioners the East Asia-Pacific Region of the World Bank, to think backward from the outcome and to prioritize and Dorte Kabell, a Danish evaluation specialist. About World Bank Institute (WBI): Unleashing the Power of Knowledge to Enable a World Free of Poverty WBI helps people, institutions, and countries to diagnose problems that keep communities poor, to make informed choices to solve those problems, and to share what they learn with others. Through traditional and distance learning methods, WBI and its partners in many countries deliver knowledge-based options to policymakers, technical experts, business and community leaders, and civil society stakeholders; fos- tering analytical and networking skills to help them make sound decisions, design effective socioeconomic policies and programs, and unleash the productive potential of their societies. WBI Contacts: Mark Nelson; Program Manager, Capacity Development Resource Center Tel: 202-458-8041, Email: mnelson1@worldbank.org Pinki Chaudhuri, Coordinator Tel: 202-458-5787, E-mail: pchaudhuri@worldbank.org Visit our website for more information and download the electronic copies of all Capacity Development Briefs: http://www.worldbank.org/capacity D E C E M B E R 2 0 0 5 NUMBER 14