Reforming Technical Cooperation for Capacity Development

Follow up to Re-thinking Technical Cooperation – Reforms for Capacity Building in Africa (UNDP, Regional Bureau for Africa, Elliot J)

Bureau for Development Policy, March 2001

Since the publication of the report in 1993, a number of new global factors – such as globalization, the information revolution, the tremendous growth in international markets and acceleration in the democratization and decentralization of national authority – are causing international development institutions to reassess their roles and their competencies. Comprehensive evaluations of aid programmes reveal the limits of development approaches that do not take into consideration the broader enabling environment within which strengthened institutions and empowered individuals must operate. Capacity development (see glossary for definition) with its emphasis on "capacities to be developed" in support of long-term self-management, shifts the focus from technical assistance to technical cooperation. Traditional donor-driven, input-oriented, cost-benefit and expert-led practices are therefore giving way to approaches promoting local control, local knowledge and participation, and the dynamics and interrelationships among the various actors and level of national programmes, groups and organizations. The emphasis is now on donors shifting slowly to facilitating, in which advocacy, training, technical support and monitoring are emphasized.

Within this changing context, development agencies must now provide developing countries with more access to information and experience through their own resources or other global networks and pools of knowledge. This role will become more important as the ability to finance a wide range of development activities declines. The priority should be to develop coherent capacity development programmes supported by multi-donor consortia that are nationally led. Partnerships are increasingly being accepted as integral to development effectiveness. Project by project financing and different approaches to long-term use of experts, national remuneration, contracting and accountability make it difficult for developing countries to formulate and implement comprehensive strategies. A coherent approach is therefore needed.

The DAC has outlined the issues that donors should address in order to respond to the various development challenges ahead. These include increased efforts at policy coherence across a wide range of policy areas as well as implications for the conceptual, organizational and financial modalities of aid. More specifically, programmatic approaches; broadening the financial mechanisms of donor support; acquiring and developing new tools and techniques as well as revise, adapt and design new instruments for technical cooperation; greater adaptability to local conditions; longer and more flexible time horizons to accommodate the process-oriented character of technical assistance; multi-recipient strategies to create partnerships with and support for a number of constituencies in the programme countries.

The transition to new approaches has been difficult. Development agencies feel a loss of control and accountability. Technical cooperation programme countries’ accountability systems vary. Developing countries benefiting from technical cooperation have been experiencing a narrowing of their policy options. In the long term however, the new approaches will lead to enhanced local capacities and sustainability of development goals.

UNDP has played and continues to play a leadership role in the assessment of technical cooperation effectiveness. Over time, a number of important contributions have influenced international approaches for programme interventions that address the shortcomings of traditional technical cooperation.

The Netherlands Ministry of Foreign Affairs has an interest to revisit Rethinking Technical Cooperation (1993) with like-minded partners to include the development of alternatives for traditional technical cooperation, the identification of new instruments and the embedding of technical cooperation in a wider sector approach. The stimulus comes from the Government of Netherlands own review of the role of technical assistance (see glossary for definitions of technical assistance and technical cooperation). UNDP, with its expertise in governance and capacity development issues, is interested in taking a lead in addressing these concerns and secure broad participation of multilateral and other bilateral donors, as well as partners from the south in this policy-oriented research. UNDP is uniquely placed to bring a wide range of partners on board in the discussions and follow up to the report. A series of meetings were held between UNDP representatives and Dutch officials to discuss the content and scope of the proposed collaboration. This proposal reflects the consensus reached.

Within the context of changes in the global arena (identified above), and their impact on capacity development this collaboration seeks to look at:

1. Key lessons on what worked, what did not work and why and make recommendations on specific areas.
2. Select issues that impact on capacity development, including the identification of new instruments and embedding technical cooperation within the sector-wide approach.

Note: Within the context of the above objectives, the recommendations of the 1993 report will be revisited to assess their continued relevance, review the extent to which they have been implemented, including lessons learned, and identify select "cutting edge" issues not cited in the report that have become relevant as a result of the changed environment.

1. A policy paper (drawing on technical studies) that identifies key lessons, highlights best practices and makes policy recommendations for improved technical cooperation and donor coordination. The paper will be submitted to the OECD/DAC jointly by UNDP and the Netherlands.
2. 6-7 technical studies that analyse key issues through a capacity development "lens" and in keeping with some of the emerging global issues and trends discussed above.
3. Based on the above, the development of a set of tools to assist development partners to operationalize the main findings.
4. All of the above will feed into the compilation of a trend-setting book on the subject.

The audience for these outputs consists of development practitioners in the programme countries, and the donor community comprising both multilateral and bilateral institutions. The policy recommendations and studies will also be useful for the development community as a whole including institutions from the north and south comprising academia, non-governmental organizations, the private sector etc.

The book will target policy makers as well as the above.

Policy recommendations and best practices that influence international norms, national and institutional policies and donor coordination.

In addition to the policy paper mentioned above, a series of studies/technical studies will be commissioned and the production of a book on the subject (note: the preparation of these papers will be the outcome of a consultative process with key actors that have expertise in the particular subject area)

Suggested topics for these studies could include the following (note: the topics that have been identified reflect select cutting issues and challenges facing the development community in the current global arena. They also provide the opportunity to "re-visit" issues addressed in the Berg report to assess their continued relevance for technical cooperation):

Capacity development within the context of the information revolution:

Traditional technical cooperation has relied on training and expert assistance as the main ways to transmit technical information. The global information and communications revolution is changing all that. Networks, (local, national, regional and global) are becoming the organizational structure of the information age. These trends promise to profoundly alter traditional approaches to technical cooperation and capacity development. Global networks can provide advice (expert systems and best practices) at a fraction of the cost of traditional technical cooperation and with fewer conditions. Virtual capacity can be developed in poorer countries and can bypass bureaucracies that can no longer perform. Civil society institutions and the private sector in many developing countries can access knowledge sources that provide options and approaches. Not only is this speedier access to information, but also it is achieved at lower costs and gives beneficiaries more control over how information is accessed and used. The information revolution has important implications for governance. Better-informed citizens and institutions are better able to participate in governance and administration. Public-sector institutions not only have to improve their effectiveness, they are also under increasing pressure to be more open and accountable to the people. All these issues have tremendous implications on how capacity is managed, utilized, retained and developed. The paper will look at some of the above-mentioned issues, along with the scope and limitations afforded by information technologies, issues related to the "digital divide" and the impact on capacity development.

– help provide policies, legal frameworks, opportunities, incentives and resources. This mostly addresses crosscutting issues, particularly in good governance and the macroeconomic framework. It can also involve complex issues in society requiring long-term processes and the ability to respond with flexibility to changing circumstances. Critical areas for capacity development include:

• National visions, policies, strategies and programme frameworks and legislation that support sustainable development

• Critical cross-sectoral public-sector institutions responsible for systems for policy coordination, planning, economic, financial and fiscal management and accountability
• Processes that encourage societal interaction and build consensus
• Governing institutions and systems (the judiciary, parliament, human rights) and decentralization
• People-centered sustainable macroeconomic frameworks
• Macro-micro linkages – processes that establish linkages between different decision-making levels from community levels upwards.

This paper would also look at the "enabling environment" in terms of public sector management issues, payment of salaries, public sector reform (administrative reform, employment reform) etc.

Delivery mechanisms:

The paper would look into some of the following issues: capacity assessments, delivery mechanisms and programme frameworks, issues related to building capacities for programme identification and design, programme personnel (advisors, consultants, programme staff) etc. The demands of capacity development are changing the role of donors. National ownership and execution are reducing the need for donors to be directly involved in programme and project implementation. Capacity development (within the context of delivery mechanisms) depends on accountability, ownership, learning-by-doing and the experience of national participants. National execution of programmes allows for greater technical continuity after foreign technical staff leave – and opens up opportunities for local people to gain experience. Its decentralized approach to management is more responsive to local conditions. It does not however guarantee sustainability. The following issues also have to be taken into consideration – salary levels, administrative traditions, availability of financial resources and political conditions.

Most development practitioners do not think in terms of a market. They rarely consider capacity development/technical assistance a service that has definable supply and demand functions and a price. Nonetheless, like any scarce commodity, technical assistance has costs that somebody has to pay. Analysis of the determinants of supply and demand, the way technical assistance markets function, and the role of costs and prices in this form of aid is essential to understand the general problem of technical assistance efficiency and effectiveness. The paper would focus on issues related to introducing prices, technical assistance budgets and their integration into public investment programmes, building capacities for support services, institutional strengthening, issues related to training etc. It will also look at the reduction of the space of maneuver of the recipient countries.

Building Capacities for effective Monitoring and Evaluation (M&E):

Some of the most important advantages of M&E to assess the effectiveness of technical cooperation and development programmes are: i) capacity development: - it can greatly enhance learning from experience; ii) building social capital by strengthening ownership of development initiatives; iii) improving management and quality control. All of these issues can greatly enhance the technical assistance that donors are providing. Monitoring and Evaluation (ME) seeks to develop capacity and provide stakeholders and beneficiaries with the opportunity to reflect on a project's opportunities and obstacles. It aims to generate practical knowledge that results in the application of lessons learned and leads to corrective actions and/or improvements. It can be a critical component of efforts to strengthen the responsiveness of public management systems (both internal and external) for transparency, effectiveness and results orientation. M&E processes in participatory programmes are essentially learning systems for managers, participants and donors. Why the emphasis on learning? Because it leads to superior performance, improved quality and enhanced ability to manage change. It is important to note that the potential value of M&E is not universally appreciated. There is still sometimes a tendency to see it as an alternative rather than a complement to "managing for results." M&E approaches, like participatory approaches, need a far higher level of mutual trust and confidence among participants than is the case with more traditional M&E approaches. Pervasive cultures of non-participation, where international and national agencies and professionals have carefully preserved decision-making power, may be slow to make these kinds of changes. At the same time it is critical to balance participatory M&E approaches with managing for results. The paper would explore some of the above issues, identify what is meant by enhanced performance and capacities and how and this can be assessed, and make explicit links between M&E and improved technical cooperation, within the context of capacity development and participatory approaches.

Capacity development and the issues of ownership:

Capacity development requires a review of the cooperation relationship between donors and programme countries as these countries move towards a greater ownership and control of technical cooperation programmes. It requires the identification of real or incipient capacity that can be enhanced and nurtured, at least partially by donor resources. This catalytic or facilitating role for outside support leads in turn to a less interventionist and intrusive role for donor agencies. Visions of donors "developing" or "implementing" programmes that produce short term results for "beneficiaries" or "target groups" should be replaced by approaches that focus more on enabling indigenous individuals, groups and organizations to strengthen their own capabilities. Endogenous capacities are key to the issue of ownership and help to create and reinforce the ability of people and countries to make and carry out their own choices. In looking at strengthening endogenous capacities to enhance ownership, it is important to include non–formal institutions as well.

While national ownership has become increasingly accepted, there have been new donor-led targets and processes such as Poverty Reduction Strategies (PRSs), Comprehensive Development Frameworks (CDFs) etc. It will be important to balance such targets with the principles of national ownership.

Key to the issue of capacity development and the issue of ownership to promote sustainability is the emphasis on local knowledge and commitment. The goal of donors must be to facilitate local action and not preempt or replace local initiatives. Donors need to therefore focus more on the identification and enhancement of local commitment. Identifying and applying principles of good development practices is key to strengthening ownership of externally funded programmes, in programme countries.

Other very relevant topics for the technical studies could include for example, partnerships for effective technical cooperation (since technical cooperation markets represent an important element for partnerships), role of the private sector in capacity development, capacity assessments etc.

V1. The trend setting book

As a result of the discussions facilitated by the technical studies a set of tools and a trend-setting book will be produced. The book will be the final outcome of a review process of the key issues on capacity development representing the real update of Rethinking Technical Cooperation. Drawing on the subject matter of the technical papers, the book could address issues that include:

1. assessment of trends in the reform of technical cooperation, including issues related to the evolution in technical cooperation trends and modalities: contrast pre1985 with 1990; review how far OECD guidelines been implemented etc.
2. outline the new paradigm of knowledge in the network age , including issues related to technology in a networked society; education and technological capacity; growth, knowledge, production and technology; reorganizing business and technology; information and imperfect markets etc.
3. capacity development and technical cooperation facts and concepts
4. results-based management and technical cooperation
5. role of UN and other international agencies in linking the global development agenda (arising mostly from the international conferences supported by the UN) with country strategies and policies. Technical cooperation and global public goods
6. proposals for new models, reforms and innovations

An essential part of the project will be a continued component of advocacy and outreach to prepare the ground for the book and the recommendations that will emerge from the process within the donor and the wider development community as well as the public. The project will the necessary inter-faces with these groups and will ensure a high degree of transparency and inter-action. Regular information on progress using various channels of communications targeted briefs direct contacts with key institutions and the website will contribute to this end. Early in the project a suitable institution will be sub-contracted for developing and managing an interactive website for the overall project. The site will serve two main purposes: first, to inform the global development community of the work undertaken by this project: second, to obtain continuous guidance, feedback and inputs from policy makers and practitioners from the North and the South into the project, through an ongoing interactive dialogue. An advocacy and public relations campaign will be undertaken to launch the official release of the book. For developing such a communications and outreach strategy UNDP will use the experiences with other high profile publications like the Human Development Report.

Early in the process, one institution will be sub-contracted to conduct a survey so as to obtain key statistics, data and information on the subject, which will feed into the preparation of the technical papers and the book. UNDP will use its field presence and the system of Sub-regional Resource Facilities (SURFs) for consultations or workshops on national and/or regional level. Out of this process valuable inputs from developing countries as well as the preparation of 7 country case studies are expected.

The technical studies will be commissioned to relevant experts/institutions in the North and South. The studies will draw on the approaches, experiences and lessons of a range of programme countries. A set of tools will be developed in order to assist development partners to operationalize the findings of these studies. Partnerships will be developed with key institutions (leading national, regional institutions and international institutions,) who have been doing cutting edge work on some of these issues, so as to mobilize the best of current thinking, including academic, on the issues of the study from both the North and the South, and to mobilize a wide and inclusive range of partners – multilateral, bilateral donors and programme countries. It will be important to ensure that the processes of local, national and regional level consultations, review and analysis underpin the development of the planned studies, so as to serve as capacity building and participatory planning tools in their own right and to ensure ownership, credibility and relevance. The studies could therefore serve as a useful outreach, advocacy and learning tools for the various partners involved in the development of each study.

UNDP will sub-contract the World Bank Institute to organize two round table discussions on the various topics covered by the technical studies and the book. Policy makers and experts from the North and South will participate in these round tables.

The outcome of these discussions will provide valuable guidance, insights and feedback into the preparation of the book and the policy paper to be presented to OECD/DAC. The book will be edited by UNDP, with contributions from UNDP and leading experts and development policy makers from North and South. The entire process will be subject to a rigorous peer review process organized with various groups of reviewers according to the subject issues of the technical studies and the scope. Finally, the production of the book, including editing of language, presentation and design, translations printing and production will be sub-contracted to a renowned publishing house.

VIII. Management arrangements (see also Annex 3)

An Advisory & Facilitation Group, comprising representatives from UNDP, the Netherlands, the European Commission, the World Bank, and representatives from bilateral donors, 3-4 select Southern academic/research institutions will provide overall guidance on the strategic directions and quality of the studies and the book. To ensure quality control, to maximize distribution of published materials and to build on the knowledge and experience of other agencies and individuals, a rigorous process of peer review will be established.

Within UNDP, its' recently re-organized Bureau for Development Policy (BDP) will take the lead and strategically steer this work with inputs from the Evaluation Office, the Human Development Report Office, the Bureau for Resources and Strategic Planning and the Regional Bureaux. The project coordinator will be responsible for the management of the project and for ensuring that any required action is taken to ensure a timely results of highest quality. The project coordinator will will be vested with the authority to take decisions on all aspect of the project, negotiate with any partner and for the spending of funds.

The project consists of a number of processes that are interrelated but required specific attention involving different partners and interactions. Six task steering teams have been identified, namely on 1. Advocacy and outreach, 2. Case studies, 3. Survey and studies, 4. Drafting and editing, 5. Peer review, and 6. Production process. The project coordinator will associate qualified individuals from within and beyond UNDP who will provide their advice and guidance on substantive matters relating to the specific task and in some cases for handling specific components.

Annex 3 to this proposal provides details on the management arrangements including roles and responsibilities of the various partners and a summary in form of an organigramme.

IX. Time frame:

Technical studies, policy paper and the book are to be ready by the first quarter of 2002. The Government of Netherlands and UNDP will present the policy paper to the DAC meeting in early 2002. An informal Advisory Facilitation Group meeting (early March) will provide strategic guidance. Three formal Advisory & Facilitation Group meetings are envisaged for July and October 2001 and January 2002 respectively.

The project will need a follow-up process, as the book and the policy paper will set a discussion in motion that should have repercussions throughout the development community. In the closer sense there will also be a need to finalize the tools, launch and disseminate other language versions and the website will need to continue active for some time.

The timeline for the project is very short and will require a very tight knitting of the process. While processes will need overlap and run in parallel, one can distinguish 6 phases for the project:

1. January – March 2001: Preparation
2. March – April 2001: Launch and sub-contracting
3. April – September 2001: Studies and consultations
4. September – December 2001: Synthesis and substantive editing
5. December-February 2002: Book production (in English) and launch
6. February-July 2002: Follow up

Please refer to Annex 2 for key results associated with these phases.

The total budget for the project is proposed at the level of US$ 2.18 million. Details are provided in Annex 4.

An Advisory and Facilitation Group (AFG) will provide overall guidance on the strategic directions and quality of the studies and the book. It will be composed of individuals from bilateral partners (including The Netherlands, Sida, CIDA, DFID), multi-lateral partners (including the World Bank, the European Union and UNDP), 4 southern academic or research institutions (including The African Capacity Building Foundation, and others) 2 northern key institutions and individual capacities in the area. The AFG would also include participation of individuals from the private sector, the NNGO community and perhaps a journalistic perspective. The AFG will

Project management and coordination will be the responsibility by a project coordinator who will take any required action to ensure timely results of highest quality. The project coordinator will liaise closely with the BDP lead steering team but will be vested with the authority to take decisions on all aspect of the project, negotiate with any partner and for the spending of funds. The project coordinator will be responsible to BDP management and will

	Project Budget
Project Results/Outputs		Total	Sub-contract	Personnel	Other
1.       PR, advocacy and outreach
Inter-active website	Development, maintenance, management of discussion, synthesis reports	100,000	100,000	0
Targeted outreach incl. book launch	Brochure, regular outreach, launch event, media coverage	150,000	150,000	0
3.       Consultations		0	0	0
Regional/national consultations	Country/regional consultations, events, case studies etc.)	200,000	150,000	50,000
Roundtables	Organization of event, complete reporting and recommendations	200,000	200,000	0
AFG meetings	Organization, travel and daily subsistence for 12-14 persons	150,000	150,000	0
3.       Studies		0	0	0
Technical/focus studies	Framing paper, annotated outline, full study, inputs for tools	280,000	280,000	0
Consultancy services	Papers, advice, data collection, peer review, etc.	210,000	0	210,000
4.       Drafting and editing		0	0	0
Book contributions, editing	Inputs from top experts in area	80,000	0	80,000
Operational Tools	Consultant, design, testing	50,000	0	50,000
Policy paper/presentation	Editing, design, on screen presentation	10,000	0	10,000
6.       Book production and launch		0	0	0
Publication process (Engl, Fre, Span)	Editing, design, proofing, printing	200,000	200,000	0
7.       Project coordination and facilitation		0	0	0
Project coordination	Coordinator and support services	180,000	0	180,000
Mission costs	Travel by coordinator (AFG, Round tables, outreach to partners)	60,000	0	0	60,000
Miscellaneous / Sundries	Communication, postage, courier, shipping, copies, printer supplies etc.	10,000	0	0	10,000
5.       Contingencies	Incl. Additional research, consultations, A&O, etc. as needed	200,000	80,000	80,000	40,000
Sub totals
Administrative Cost	5 % Administrative charge UNDP	104,000			104,000
Grand total		2,184,000
UNDP contribution in kind	UNDP will mobilize the relevant capacities in all parts of the organization

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