Learning Curves

OED
May2007

CapacityDevelopment AssistancetoLaoPDR

Capacitydevelopmentistheprocessbywhichindividuals,groups,organizations,and countriesdevelop,enhance,andorganizetheirsystems,resources,andknowledgeall reflectedintheirabilities(individuallyandcollectively)toperformfunctions,solveproblems, andsetandachieveobjectives. CapacitydevelopmenthasbeenessentialtothedevelopmentagendaoftheLaoPeoples DemocraticRepublicandanimportantpartofassistancefromtheAsianDevelopmentBank (ADB).Itistakingplaceinthecontextoflimitedhumanresources,acontinuouslychanging organizationallandscape,anonlyslowlyreformingpublicadministration,parallelprocesses ofpoliticalandadministrativedecisionmaking,andminimalfinancialresourcesfor recurrentexpenditure.Theseconditionsillustratethecentralneedfordevelopingcapacities, butalsoconstituteparametersthatadverselyaffecttheprocess.
Background Capacitydevelopmentconstraintsvaryfrom countrytocountry.Themostprominentfactorsthat affectopportunitiesandoutcomesofcapacity developmentassistancetotheLaoPeoplesDemocratic Republic(LaoPDR)includehistory(notablytheperiod ofpoliticalturbulencethatensuedafterthecolonialrule ofFrancecametoanendandinwhichthewar involvingVietNamandtheUnitedStatesofAmerica affectedtheLaoPDR),theunevendirectionand impetusoftheNewEconomicMechanismadoptedin 1986,theweakhumanresourcebase,lackofincentives forgoodperformance,andshortageoffinance. TheimportanceofcapacitydevelopmentinADBs programisillustratedinsuccessivecountrystrategies andprograms,eachofwhichhaditascentraltheme.In 2004,theOperationsEvaluationDepartmentconducted aSpecialEvaluationStudyonCapacityDevelopment AssistanceoftheAsianDevelopmentBanktotheLao PeoplesDemocraticRepublic. 1 Thestudywas designedtoassesstheeffectivenessofdifferent approachestocapacitydevelopment,toidentifyfactors thataffected(positivelyornegatively)capacity developmentoutcomes,andthusrecommend improvementsforfutureoperations.
Operations Evaluation Department Asian Development Bank

SummaryofFindings Dividingthecapacitydevelopmentassistance processintothreephasesdiagnostic,design,and implementationthestudyfoundthattheprocess sufferedseveralweaknesses.Whilealargenumberof staffingovernmentagencieshadmetwithdiagnostic teams,theirparticipationhadbeenlimitedtoproviding dataratherthanparticipatinginananalyticalprocessto identifykeyproblemsandrelevantsolutions.The qualityofdiagnosticsvariedacrosssectorsandprojects, butgenerallylackedanalyticaldepthandhadledto ratherbroadstatementsaboutcapacityweaknessesand theircauses.Acapacitydevelopmentstrategywas developedforonesector(urbandevelopment),but otherwiseassistancewasreactivetoevolvingneeds. Capacitydevelopmentobjectiveshadnotbeen articulatedwell,andanticipatedoutcomeshadnotbeen statedintermsthatwouldfacilitatetheirfocusand measurement.Implementationplanshadconcentrated onprojectinputs,i.e.,trainingandconsultants,rather thanonorganizationalchangesthatcouldbesustained. Implementationhadsufferedfrom(i)lackofstaffand resources;(ii)amechanisticadoptionofnewsystems withoutanunderstandingoftheirpurpose,thus renderingsystemsineffective;and(iii)acommon,but

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4847; Fax +63 2 636 2163; evaluation@adb.org; www.adb.org/evaluation/

illdocumented,practiceofcapacitysubstitution.The lattermeantthatcapacitydevelopmentresourceshad beenusedinplaceoflocalones,intheabsenceofwhich capacitiescouldnotbedevelopedorsustained.While thedifferentapproachesusedineachsectorhad appearedrelevantandeffectiveintheircontext,the overallimpactofcommunitydevelopmentassistance hadbeenscattered. Thehighlevelofcontinuingcommunity developmentassistanceandtheselfassessmentsof currentstrengthsandweakness(undertakenaspartof theevaluation)indicatedthatlocalorganizationswere notyetsufficientlydevelopedtofunctionwithout externalassistance.Areasinwhichcapacitieswere developedhadnotbeenwelldocumented,which impededeffortstodrawsystematiclessonsfromthe experience.Weakresultscouldbeexplainedasfollows: Constraints.Humanresourceweaknesses,staffing andremunerationpoliciesandpractices,andfinancial constraintsonthepartoftheLaoPDRseriouslyaffect thewayinwhichcapacitydevelopmentassistanceis perceivedandused(mostlyascapacitysubstitution). Process.Weakdiagnosticsmeantthatnoclear understandingexistedoftheproblemsthatneededto beaddressed,norwasconsensusandownershipbuilt aroundthesuggestedsolutions.Thedesignofcapacity developmentassistancesufferedasaconsequence: objectiveswerenotarticulatedwellandanticipated outcomesnotspecified.Asaresult,implementation focusedondeliveringinputsandcarryingoutactivities, oftenusingprojectinputstosubstituteforlocal resourcesratherthandevelopingcapacities. Scope.Capacitydevelopmentisoftenequatedwith trainingorprovisionofconsultingservices.Thelackof aframeworkrecognizingcapacitydevelopmentneeds intheoperatingenvironmentoforganizationsandfor organizationaldevelopmentaffectedtheapproachand resultsthatcapacitydevelopmentassistancehadhad. Individualcapacitydevelopmentactivitieswere scatteredratherthansystematicallystructuredand sequenced,whichaffectedtheextenttowhichADB assistancehadanimpactoncapacitiesforsectorand publicresourcemanagement.Fundamentalissuesof publicsectormanagement,includinghumanresource developmentandfinancialmanagement,hadnotbeen addressed. Recommendations ADBshoulddevelopdiagnostictoolsand approachesandrequireitsconsultantstousethese
Learning Curves available @ www.adb.org/evaluation/

inpreparationforallcapacitydevelopment assistance. ADBshoulddevelopdesignstandardsand principlesforcapacitydevelopmentprojectsor components,andapplytheserigorously. ADBshoulddevelopconceptsandapproachesfor capacitydevelopmentimplementationplansthat shouldbecomepartofallcapacitydevelopment designdocumentationandbeusedtomanage implementation. Feedback ADBManagementsResponseagreedthatamore systematicapproachwasneededtoimprovethe effectivenessofADBsassistanceforcapacity development.Tomainstreamcapacitydevelopment intoADBsoperations,ADBsManagementhad establishedaworkinggrouponcapacitydevelopment inApril2004.Theworkinggrouphadincorporatedthe recommendationsofthestudy.Inaddition,therevised PovertyReductionStrategyapprovedinJuly2004 includedcapacitydevelopmentasathematicpriority. Theissuesraisedinthestudywouldbeaddressedin thenextcountrystrategyandprogramforLaoPDR. TheChairsSummaryoftheDevelopment EffectivenessCommitteeDiscussionsconsideredthe findingsofthestudyofhighimportance.The Committeealsodeemedthefindingstobeuniversally applicabletoothercountriestacklingcapacity development.Itendorsedthelessonslearned,key issues,andrecommendationsforconsiderationin developmentofADBsfuturecapacitydevelopment assistance.SomeCommitteemembersconsideredthat thestudypointedtoadeficiencyinprofessionaland technicalmanagementinADBbecausenecessary adjustmentsandcorrectionscouldhavebeenmade eitheratdesignorimplementationstages.Questionsof internalaccountabilitymighthavebeenaddressedby thestudy.WhileacknowledgingADBManagements Response,someCommitteemembersthoughtitwas tooopenendedindelegatingtheproposalofactionsto astaffworkinggroup. 1 2004.ADB.SpecialEvaluationStudyonCapacityDevelopment
AssistanceoftheAsianDevelopmentBanktotheLaoPeoples DemocraticRepublic.Manila.Available: http://www.adb.org/Documents/Reports/Evaluation/sst lao200403/sescdalao.pdf

Team Leader: Caroline Heider; Tel +63 2 632 4133; evaluation@adb.org