259 Multisector 35526 February 2006 Findings reports on ongoing operational, economic, and sector work carried out by the World Bank and its member governments in the Africa Region. It is published periodically by the Knowledge and Learning Center on behalf of the Region. The views expressed in Findings are those of the author/s and should not be attributed to the World Bank Group. Five Key Messages: Recommendations for Capacity Development in Africa As Africans and their interna- the state to carry out basic public tional partners gear up for a major management functions to provide push to fuel development and pov- access to basic social services. In erty reduction, Africa has a new the private sector, entrepreneurs, opportunity to push the develop- farmers and shopkeepers need ment agenda and to improve con- regulatory institutions that ensure ditions for the continent's poor. In a competitive and cost effective July 2005, the Group of Eight in- business environment, low barri- dustrialized nations agreed to ers to entry, and minimum risks double aid to some $50 billion a to investment. year, recognizing the common in- The starting-point today is much terest in accompanying Africans more propitious than at the launch on the road to sustainable devel- of the African Capacity Building opment. But for increased aid flows Facility (ACBF) more than a decade to translate into better develop- ago. The PRSP era has paved the ment outcomes, African govern- way for important innovations in ments and societies have to the way donors and the World Bank strengthen their capacity to imple- do business. The introduction of ment development programs. budget support (including PRSCs) The attention paid to Africa's lag and Sector Wide Approaches in achieving the MDGs and its fal- (SWAps) aligned with government tering economic performance has systems have put countries in the correctly drawn attention to Africa's driver's seat with stronger incen- capacity gaps and the constraints tives to show results. Harmoniza- that the continent faces in over- tion of donor efforts around coun- coming them. Using the new re- try-owned benchmarks for poverty sources flowing towards Africa in reduction although slow has like- the form of debt relief, aid, trade wise improved the efficiency of the and investment requires that Af- partnerships with developing coun- rica and its partners address this tries. The development of various capacity challenge, learning from country-level, multi-sectoral pro- Findings the successes and mistakes of the grams related to public sector re- past. form and public financial manage- Shared growth requires capacity ment, community-driven develop- not only in the public sphere, but ment, and the fight against also in the private sector and civil HIV/AIDS are also in place and society. Poverty reduction requires show promise. A few key messages straint to development and poverty committees, advocacy, interest A Task Force was set up to rec- reduction despite concerted efforts and consumer groups, professional ommend changes in the way the by a number of African countries associations, local governments Bank affects African capacity, both and substantial donor support. This and communities. directly through operations aimed underscores the crucial impor- at capacity development and indi- tance of easing the capacity con- rectly through the way it conducts straint, in tandem with larger aid Message 3: Africans must take the its overall business of development flows to Africa; the two need to go lead in capacity development and lending and cooperation in Africa. together. aid management Based on its assessment of the evi- Since the end of the 1980s, Capacity development should be dence of capacity development and macro-economic, structural and approached strategically as a core widespread consultations with Af- social policies have improved all area of country strategy for growth ricans and their partners, a few key over Africa and political and eco- and poverty reduction. As home- messages are emerging which can nomic governance has improved grown strategies are much more inform and stimulate the efforts of since the early 1990s. In short, likely to address the right issues all parties in capacity development with economic policy and good gov- and be effectively implemented, Af- on the continent--African coun- ernance building blocks moving rican country stakeholders, includ- tries, external partners, and the into place to create opportunities, ing their regional institutions, Bank. The Task Force regards together with the availability of ex- have to be at the center of a stra- these as a work in progress around ternal financing, capacity remains tegic approach to capacity develop- which further discussion and re- the most binding constraint meet- ment. flection are on-going. ing the stipulated MDG targets in African governments should de- Africa. sign strategies for capacity devel- opment as part of a participatory Message 1: Capacity is the missing link in Africa's achievement of the PRS process, including a robust Message 2: Capacity development MDGs aims at an effective state and an monitoring and evaluation system engaged society as an integral part of its medium Capacity comprises the skills, in- term plan such as the PRS. centives, resources, organizational Capacity development must be systems and structures--as well as approached from what it intends to the broader enabling environ- achieve. An effective state with an Message 4: External partners must ment--that allow individuals and engaged society are needed to engage existing capacity in all organizations to plan, implement, reach the end goals of poverty re- African countries and monitor their development. duction, growth, empowerment, External partners must respect Equally important is the need to peace and security. African leadership and ownership answer the question: capacity for A state is effective when it deliv- of the design and implementation what? In this regard, capacity is ers quality public goods and ser- of national capacity development best developed and used most effec- vices meeting the needs of the strategies. They must also follow a tively and tangibly in pursuit of spe- population. Effective states require customized approach to supporting cific objectives such as delivering engaged societies that demand a country's capacity development services to the poor, improving in- change and hold governments ac- strategy. vestment climate for private firms countable for such delivery. and entrepreneurs, empowering The international partner com- An engaged society, an end in local communities to take part in munity should support the imple- itself, is also a key element of the public decision-making, and resolv- mentation of the capacity develop- domestic accountability system. ing conflict and promoting peace ment strategies with timely, flex- Participatory institutions that are and security. ible and predictable technical and active holding the state account- financial assistance. Technical Capacity remains a binding con- able include parliaments and their cooperation (including technical assistance) to African countries is countries has been gathering mo- tually reinforcing support and ac- on a strong rebound in 2004, it mentum especially in the context countability. reached US$5.8 billion. Unfortu- of the PRS process. Africa itself has The renewed compact will re- nately these technical assistance shown the way though the African quire the commitment of African expenditures are not building ca- Peer Review Mechanism, which leaders and their development pacity; there is therefore a need uses a regional framework to partners to address capacity devel- for redirection of its use in two strengthen domestic dialogue and opment more strategically, sys- ways. One is to raise the share of encourage change towards im- tematically and boldly. It will re- technical assistance funding going proved political and economic gov- quire a frank and comprehensive to capacity building activities in- ernance. assessment dealing with the real stead of expatriate salaries and constraints to building capacity. It support. The other is to provide it A shared vision will require using and retaining in a way that pools the fragmented The emerging shared vision of capacity effectively. It will require financing arrangements into a effective approaches to capacity analytical and financial support basket to fund prioritized capacity development provides a conceptual for homegrown strategies for ca- development activities or filling and operational underpinning for pacity development. And it will country-identified short-term a common platform. It is supported require the evolution of modali- needs for achieving results with by the literature review and the ties and practices for partners to the country directing the invest- experiences documented in the support the development of coun- ments. There is also a need to fund country and thematic studies. And try capacities. regional and sub-regional capacity. it is reinforced by a strong endorse- In all African countries, external ment from the consultation pro- partners should take a longer- cess so far. term, more patient and predictable This platform provides the basis This article was written by Callisto approach to capacity development, for a coordinated "big push"--a new Madavo, former Vice President for the extending over 15-20 years. compact--to be mobilized with our Africa Region, World Bank, and is re- African partners, the donor com- produced from the World Bank munity in general, and the World Institute's Development Outreach Message 5: Achieving capacity Bank Group. None of the three part- September 2005 edition. It was writ- outcomes requires independent ners can do it all alone. While each monitoring ten in his capacity as leader of the of the partners may have a differ- Task Force on Capacity Development. Mutual accountability between ent role, sustainable capacity de- external partners and African velopment calls for a spirit of mu-