APCoP/ESCAP/ADB/UNDP Regional Conference on Public Sector Management in Support of the MDGs

1. APCoP/ESCAP/ADB/UNDP Regional Conference on Public Sector Management in Support of the MDGs Community Driven Development and Local Government: Building Accountable and Sustainable Service Delivery Paul Smoke, New York University UNESCAP Bangkok, 13-15 June 2012

2. Outline • A. Origins and Objectives of Community Driven Development • B. Elements and Uses of Community Driven Development • C. Advantages and Disadvantages of Community Driven Development • D. Local Governments and Community Driven Development

3. A. Origins and Objectives of Community Driven Development • Social Funds (or Social Investment Funds) were established by international donors to directly finance small community managed projects intended to help to empower the poor and vulnerable • Social Funds emerged in the 1980s as emergency resources to help mitigate some of the harsher effects of structural adjustment and a major global economic downturn (the first Social Fund was implemented in Bolivia in 1987) • Social Funds rapidly spread to dozens of countries in the developing world and grew to account for billions of aid dollars each year by the late 1990s • Social Funds continued to evolve over time and have now been incorporated under the broader rubric of Community Driven Development (CDD)

4. Definition of Community Driven Development • Community Driven Development (CDD) is broadly defined by the World Bank as: “…giving control of decisions and resources to community groups. CDD frameworks link participation, community management of resources, good governance and decentralization. CDD is directly relevant across sectors for provision of goods and services that are within the management capacity of community organizations.”

5. Types of CDD Mechanisms • Traditional Social Funds • Single Sector/Common Property Resource Management • Multi-Sector/Integrated Service Delivery • Livelihoods and Micro-credit • Post-Conflict and Disaster Response • Local Government and Intergovernmental Reform Support

6. Local Institutions Absent Markets absent Public services absent Post-conflict Post-disaster Nascent decentralization Local Institutions Non-Functional Corruption Lack of Capacity Lack of Accountability Exclusion Non-responsive local government Resulting Application Contexts: Community infrastructure – rural roads, water, education, health Common property resource management – forestry, fisheries, water supply Micro-enterprise development/cooperatives Local governance/decentralization support Other goods/ services that are small scale, not complex, and require local cooperation Appropriate Uses of CDD Approach

7. B. Structures, Elements and Uses of Community Driven Development • A community under CDD: • Includes groups of individuals living in close proximity to each other and able to identify a need and come together to access project funds • Is usually represented by some form of community-based organization (CBO) or local project committee (chosen by various means) • Can work largely independently or have a variety of relationships with other types of governmental and nongovernmental actors—NGOs, private firms, local governments, central agencies, etc. (there has been increasing emphasis on link to local governments, more in principle than practice)

8. Elements of Community Driven Development

9. CDD Institutional Arrangements

10. CDD Financing • CDD funds are often primarily from external sources, but national governments sometimes contribute to the resource pool or take over externally initiated programs • CDD programs can be based on a project application process or a dedicated local planning exercise • Communities receive funds directly from the funding agency (central government, elected local government, or NGO), procure materials, hire contractors and consultants/technical experts, employ skilled and unskilled labor, and ultimately manage the overall implementation of the subproject. • The role of the funding agency (central or regional) is that of a facilitator providing funds and technical support to the community throughout the project cycle.

11. CDD Project Selection • The selection criteria used to pick from among subproject proposals are expected to ensure that they fit in with the overall goals of a CDD program in a particular country • The criteria, for example: • May favor "pro-poor" projects (e.g. basic infrastructure or services) in accordance with PRSP or MDG targets • May give priority to proposals submitted by or targeted to certain beneficiaries (such as women, ethnic minorities or people with disabilities) • May target particular geographical regions that meet pressing national priorities

12. CDD Community Contracting • Community contracting involves procurement by or on behalf of a community • There are many different models of community contracting, but they all share certain key characteristics and goals: • Community members are expected to be involved in identifying needs and selecting a subproject • Participation is encouraged throughout all stages of the subproject cycle • Communities often provide contributions in the form of labor, cash and/or materials, so as to promote ownership and (it is hoped) sustainability

13. CDD Financial Management • In many developing countries, local communities may be unfamiliar with sound financial management and disbursement practices • Where this is the case, there are potential dangers that CDD funding may be managed at best poorly, without sufficient transparency and accountability, and at worst appropriated for the wrong purposes • Accordingly CDD programs normally require the design and application of specific procedures for financial management and disbursement that are intended to maximize accountability and transparency both to community residents and to higher levels/external actors ultimately responsible for the funding

14. Capacity Building Approach for CDD • Capacity building is considered essential but also needs to be preceded by mobilization of local capacity that already exists but emerges only when communities are empowered. • Empowered communities are defined as having voice, decision-making powers, and access to resources • Three key facets of community empowerment are: • Organizing and improving community participation • Financing communities through matching grants • Targeting interventions to ensure the participation of socially excluded sections • Community empowerment must be embedded in institutional structures to be sustainable, and it must be accompanied by local government empowerment.

15. CDD Information, Education and Communication (IEC) Principles • A CDD IEC campaign should be conceptualized at the design stage and precede project implementation • Communities should be well informed about the CDD program and their roles and responsibilities. • Mass communication campaigns mitigate risks of manipulation by politicians, officials, and contractors • CDD IEC campaigns should use simple and innovative means that are best suited to local culture and context • Community groups need knowledge/information to facilitate linkages to governments and markets • CDD PMUs need committed IEC professionals and must train front line staff in communications • IEC is an ongoing process that provides information and also builds accountability and transparency.

16. C. Potential Benefits and Limitations of Community Driven Development • Potential Benefits: • Equity • Efficiency • Empowerment • Potential Limitations: • Conceptual Challenges • Practical Challenges • Institutional Challenges (for supporting development partners)

17. Potential Benefits of CDD

18. Potential Limitations of CDD

19. D. Local Governments and Community Driven Development • Community Driven Development and local governments can be complementary or competitive • Where local governments are weak or non-existent, CDD can lay some aspects of the institutional and governance foundation for decentralization • Where local governments exist and have some capacity, appropriately structured CDD can still be used to reach into communities and provide small-scale services that may not be a priority for local governments

20. Local Governments and Community Driven Development (continued) • Despite their potential, CDD can rarely provide larger network services that link local communities into the larger economy • CDD institutions are rarely governed by formal democratic institutions and normally lack the ability to tap into the formal powers of the state • Ultimately effective local governments are generally needed to provide accountable and sustainable service delivery to citizens • At the same time, CDD can often play an important role in many contexts