Learning Curves

OED
January2007

LessonsinCapacity Development:SectoralStudiesin SriLanka

Povertyreductionrequiresenhancedcapacitytoformulateandimplementpolicies,reforms, andinvestments.ADBhaslongprovidedextensivesupportforthis.Butunderstandingof capacitydevelopmentevolvescontinuously.Andlackofcomprehensiveandsystematic diagnosticsimpactsthedesign,implementation,andresultsofrelatedassistance. In2004,capacitydevelopmentbecameathematicpriorityofADBspovertyreduction strategyandoneinitiativeofADBsreformagenda.ACapacityDevelopmentWorking Groupwasestablishedtoformulateamediumtermstrategicframeworkandactionplan.It producedafirstdraftinSeptember2005andsoughtsuggestionsforimprovement.

Background In2006,theOperationsEvaluationDepartment conductedaSpecialEvaluationStudyonLessonsin CapacityDevelopment:SectoralStudiesinSriLanka tosupportpreparationofthecountryassistance programevaluationandthenextcountrystrategyand program,scheduledin2007.Giventheemphasisthat theenhancedpovertyreductionstrategyoftheAsian DevelopmentBank(ADB)placesoncapacity development,thestudyaimedtoassessthesuccessand impactofpastandongoingcapacitydevelopment, identifylessons,andofferguidance. BasedonpastandplannedassistancetoSriLanka, thestudyfocusedon:(i)treecrops,(ii)watersupply andsanitation,and(iii)education.Thestudyexamined alllendingandnonlendingactivitiessince1985, excludingprojectpreparatorytechnicalassistance.In eachsectorofinterest,oneongoingbutnearly completedloanprojectwasselectedfordetailedreview. Thefocusencouraged:(i)greaterdepthofevaluation, (ii)rapidcompletionofanalysesintimetoinformthe CapacityDevelopmentWorkingGroup,and(iii) contextualizationoffindingsinspecificdevelopment environments.1 Basedontheinitialworkingdefinitionofcapacity developmentputforwardbytheWorkingGroup,2the questionsthatthestudyraisedrelatedto:(i)were ADBscapacitydevelopmentinitiativesrelevanttothe needsofthecountryandthesectors,(ii)werethey understoodbytheGovernmentandimplemented efficiently,(iii)weretheyeffective,andwhatwerethe reasonsforeffectivenessorlackthereof,(iv)werethey sustainable,(v)whatremainstobedonetoenhance capacityfurther,(vi)whatgeneric,crosssectoral lessonscanbeidentifiedfromthecapacitydevelopment initiativesevaluated,(vii)whatcontextualfactors contributedtosuccessorlackofit,and(viii)what modelcanbeusedtoassesspastcapacitydevelopment activitiesandfuturecapacitydevelopmentneeds? Thestudyposedthesequestionsagainstamodel encompassingfiveinterrelateddimensionsforcapacity development:(i)enablingenvironment,(ii)sector network,(iii)organization,(iv)agencyemployee,and (v)enduser. SummaryofFindings ThestudydeterminedthatADBsoperationsfortree crops,watersupplyandsanitation,andeducation includedsignificantandmeaningfulcapacity developmentcoveringarangeofpurposes,from

Operations Evaluation Department Asian Development Bank

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projectplanningtopostprojectsustainability. Operationshadtakenintoaccountallfivedimensions ofcapacitydevelopment.Coherentunderstandingof capacitydevelopmentneedsandthefactorsthat influencethemhadbeengainedthroughsustained involvement. Intreecrops,recentprojectshadengagedthe privatesectorinpreferencetointerveninginthepublic sector.Ineducation,investmenthadbeenininstitutions. Inwatersupplyandsanitation,capacitydevelopment hadatfirstfocusedontheNationalWaterSupplyand DrainageBoard.Underthetwomostrecentprojects,it hadstrengthenedenduserparticipationinselection, design,implementation,operation,andmaintenanceof localsystems,andbuilttheabilityoflocalauthoritiesto developandmanagethem. Significantly,thestudyidentifiedthat:(i)majorand extensivecapacitydevelopmentimpactslieattheend userlevelandintheenablingenvironment,(ii)themost successfulfundingmodalitiesforcapacitydevelopment currentlyavailabletoADBisprojectlending,preferably associatedwithagranttofinanceconsultancy,(iii)a stronglinkexistsbetweencontinuityinasectorandthe successandachievementsofcapacitydevelopment interventions,(iv)arealisticapproachtopolicyand institutionalchangeisimportant,(v)capacity developmentusuallycallformuchconsultancybecause theexpertiserequireddoesnotexistinthetargeted agency,(vi)whereassignificantcapacitydevelopment impactscanbeachievedatreasonablecostwithsimple, practicaltrainingcoursesdesignedforspecificneeds, formalincountryandoverseastrainingoftendoesnot servewell,(vii)capacitydevelopmentneedsshouldbe assessedatalllevelsofpublicservice,notjustinthe upperechelonsofnationalagencies,(viii)whatis,and isnot,capacitydevelopmentisstillnotclearin literatureoramongdevelopmentpractitioners,and(ix) ifADBdecidestoexitfromsectorswherecapacityhas beeneffectivelydeveloped,thereisariskthatcapacity maydeteriorateordisappear. Thestudyalsocalledattentiontothreecontextual factorsimpactingcapacitydevelopment.Theyare:(i) focus,(ii)ownershipandcommitment;and(iii)equality ofaccess. Recommendations Whenformulatingthenextcountrystrategyand programforSriLanka,decisionsonsector

involvementshouldbeinformedbyknowledgeof theimpactandsustainabilityofpastandongoing capacitydevelopmentactivities. ThegovernmentsofADBsdevelopingmember countries,includingSriLanka,shouldbeinformed thatcapacitydevelopmentisathematicpriorityof ADBspovertyreductionstrategy,withimplications forcountrystrategiesandprograms. TheRegionalandSustainableDevelopment DepartmentandtheOperationsEvaluation Departmentshouldcooperatetoclarifythe operationalcontentofcapacitydevelopment,when preparingthemediumtermstrategicframework andactionplan,andconductafollowonstudyto testfurtherthecapacitydevelopmentmodelthatthe studyapplied. Feedback ADBManagementsResponseandtheChairs SummaryoftheDevelopmentEffectiveness CommitteeDiscussionsendorsedthestudys recommendations.Majorpointsmadebyindividual membersoftheDevelopmentEffectivenessCommittee were:(i)inthelongrun,capacitydevelopmentmaybe themostimportantvalueaddingcontributionbyADB, (ii)thestudymakesanimportantcontributionby includingendusersandplacingthematthecenterof themodelforcapacitydevelopment,(iii)theimportance ofsufficientandeffectivecommunicationwithall stakeholdersinacapacitydevelopmentinitiative cannotbeoveremphasized,(iv)oppositiontopolicy andinstitutionalchangemaybeduetoaninadequate processofchangemanagement,notnecessarilytothe magnitudeofchangerequired,(v)theissue surroundingconsultancymaynotbesomuchinthe factofhavingconsultantsbutinselectingtherightones, and(vi)effectivenessofoverseastrainingmaybean issueinthedesignofsuchtraining.
ADB.2006.SpecialEvaluationStudyonLessonsinCapacity Development:SectoralStudiesinSriLanka.Manila.Available: http://www.adb.org/Documents/Reports/Evaluation/sst sri200604/sessri.pdf 2 TheWorkingGroupsawcapacitydevelopmentas operationsprimarilyaimedatsupportingprocesses throughwhichnationalorganizationsandgroupsbecome morecapableofmobilizingandusingresourcestoachieve agreedobjectivesonasustainablebasis.
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Team Leader: Toshio Kondo; Tel +63 2 632 5627; tkondo@adb.org