Community Development Community Development Sixty Years of Global ExperienceSixty Years of Global Experience

Portfolio Committee on Provincial and Portfolio Committee on Provincial and Local GovernmentLocal Government19 September 200619 September 2006

Hans P. BinswangerHans P. BinswangerInstitute for Research on Economic InnovationInstitute for Research on Economic Innovation

Tshwane University of TechnologyTshwane University of Technology

The major intellectual and political The major intellectual and political battles over the last 60 yearsbattles over the last 60 years

How to help and/or empower poor How to help and/or empower poor communities and peoplecommunities and people

Who is in charge of planning and Who is in charge of planning and executionexecution

Who controls the moneyWho controls the money Productive projects: Via Productive projects: Via

cooperatives, communities, or cooperatives, communities, or individual projects?individual projects?

Three different approaches to Three different approaches to communitiescommunities

Service Delivery Approach:Service Delivery Approach: Government or other Government or other service providers consult communities and service providers consult communities and beneficiaries, adapt their services and deliver beneficiaries, adapt their services and deliver them through their own staffsthem through their own staffs

Intermediary model:Intermediary model: Government or other Government or other facilitators work with communities, but take a facilitators work with communities, but take a strong management approach, including selection strong management approach, including selection of projects, technology, construction, and of projects, technology, construction, and financial management. Communities co-finance financial management. Communities co-finance projects and run and maintain themprojects and run and maintain them

Empowerment model:Empowerment model: Outside facilitators help Outside facilitators help communities in diagnosis, design, and execution. communities in diagnosis, design, and execution. Communities manage funds, contracts and Communities manage funds, contracts and implementationimplementation

Three different approaches to local Three different approaches to local developmentdevelopment

Community Support Approaches

Linked Approaches

Local Government Approaches

Decentralized Sectoral

Approaches

Local and Community-driven Local and Community-driven developmentdevelopment

The emerging consensusThe emerging consensus• Integrated local development is a co-Integrated local development is a co-

production of communities, local production of communities, local governments, government sectors, and governments, government sectors, and private organizationsprivate organizations

• Roles need to be properly defined, and Roles need to be properly defined, and actors need to be fully empowered to actors need to be fully empowered to execute their roles, in particular with execute their roles, in particular with financesfinances

Where did this consensus come from? Where did this consensus come from?

Mahatma Gandhi as an advocateMahatma Gandhi as an advocate• He would have said that he believes in holistic He would have said that he believes in holistic

development, not just incomedevelopment, not just income Sector-specific approachesSector-specific approaches Community Development in IndiaCommunity Development in India The Comilla ModelThe Comilla Model Area Development programs: 1970-1990Area Development programs: 1970-1990 Community-driven development, Social Community-driven development, Social

Funds, Local government approachesFunds, Local government approaches

Sector-specific programs are the Sector-specific programs are the oldest approachesoldest approaches

Irrigation, health and education Irrigation, health and education bureaucracies bureaucracies

Agricultural research, extension Agricultural research, extension services, forestry departmentsservices, forestry departments

Agricultural credit institutions, often Agricultural credit institutions, often replaced by micro-finance institutionsreplaced by micro-finance institutions

Rural engineering departments, Rural engineering departments, housing departments, water supply…housing departments, water supply…

Do sector-specific programs serve Do sector-specific programs serve the poor? the poor?

The global record of sector-specific The global record of sector-specific programs to serve the poor, vulnerable programs to serve the poor, vulnerable and marginalized is miserableand marginalized is miserable

• They rarely reach into deep rural space or They rarely reach into deep rural space or informal settlementsinformal settlements

• They tend to service the better off members of They tend to service the better off members of the communitythe community

• They are rarely accountable to the usersThey are rarely accountable to the users• They are often corruptThey are often corrupt

Community Development in IndiaCommunity Development in India 1948 pilots of S. K. Dev, advocating a 1948 pilots of S. K. Dev, advocating a

holistic and integrated approachholistic and integrated approach Key elements: Diagnosis, planning, Key elements: Diagnosis, planning,

empowerment, community empowerment, community development workers in each village, development workers in each village, coordination at the block level (like coordination at the block level (like rural municipality)rural municipality)

Mobilization of the communities and Mobilization of the communities and poor people’s own resourcespoor people’s own resources

Scaled up nationally in less than Scaled up nationally in less than ten yearsten years

Managed by a special ministry of Managed by a special ministry of community developmentcommunity development

But reality departed from the ideals: But reality departed from the ideals: • Block development plans developed by Block development plans developed by

technicians technicians • Program transformation to a service Program transformation to a service

delivery approach by central agencies delivery approach by central agencies • Little community empowerment, NPO Little community empowerment, NPO

and local government involvementand local government involvement

More on IndiaMore on India

Community development program Community development program achieved little until 1970, at which time achieved little until 1970, at which time the program and the ministry was the program and the ministry was disbandeddisbanded

It was to be replaced by It was to be replaced by • Technology-driven approachesTechnology-driven approaches• Sector–driven service delivery, and Sector–driven service delivery, and

intermediary approachesintermediary approaches• A plethora of programs for special target A plethora of programs for special target

groupsgroups

Elected local governments created Elected local governments created in the late 1950sin the late 1950s

But not empowered with fiscal But not empowered with fiscal resources, therefore achieved little resources, therefore achieved little

New thrust towards decentralization New thrust towards decentralization came back only in the 1990scame back only in the 1990s

Now India is moving towards the co-Now India is moving towards the co-production model, but lagging behind production model, but lagging behind in the empowerment of communities in the empowerment of communities and local governments financiallyand local governments financially

The Comilla Model in BangladeshThe Comilla Model in Bangladesh Akhter Hameed Khan, and the Akhter Hameed Khan, and the

Bangladesh Academy for Rural Bangladesh Academy for Rural Development, starting in 1960Development, starting in 1960

Same elements as CD in India, Same elements as CD in India, emphasizing a holistic development, emphasizing a holistic development, mobilizing the strengths and resources mobilizing the strengths and resources of the poorof the poor• Plus a lot of emphasis on Plus a lot of emphasis on institutional basis institutional basis

for local development, technology, for local development, technology, irrigation, and cooperatives, more elaborate irrigation, and cooperatives, more elaborate coordination mechanisms at local levelcoordination mechanisms at local level

Scaled up nationally (from 1970) Scaled up nationally (from 1970)

via the via the Integrated Rural Integrated Rural Development Programme (IRDP)Development Programme (IRDP),,

eventually replaced by eventually replaced by Bangladesh Rural Bangladesh Rural Development Board (BRDB)Development Board (BRDB)

that became a large centralized that became a large centralized bureaucracy, using the service delivery bureaucracy, using the service delivery modelmodel

Absence of local government Absence of local government involvement, little community involvement, little community empowermentempowerment

More on Bangladesh and India More on Bangladesh and India

Despite shortcomings, these countries Despite shortcomings, these countries have achieved significant development of have achieved significant development of infrastructure, food self sufficiency, rapid infrastructure, food self sufficiency, rapid economic growth economic growth

But they are still lagging badly in poverty But they are still lagging badly in poverty reduction, human capabilities, and social reduction, human capabilities, and social developmentdevelopment

CHART 9: Index of Sector Decentralization in 19 Countries, in the 1990s

0.50.7

1.0 1.0 1.11.4

1.8

2.4 2.4 2.4 2.52.8

3.84.2 4.2

5.25.4

6.4

7.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Country

Productive projects have always Productive projects have always been a problembeen a problem

Less successful, less sustainable than infrastructure Less successful, less sustainable than infrastructure projectsprojects

Often supply-driven, fail because of lack of marketsOften supply-driven, fail because of lack of markets Cooperative and/or community enterprises have an Cooperative and/or community enterprises have an

enormous record of failure, all around the worldenormous record of failure, all around the world• The reasons are largely conflicts over incentives to work, The reasons are largely conflicts over incentives to work,

consume and share profitsconsume and share profits• The variant of labor-managed have also done poorlyThe variant of labor-managed have also done poorly

Some cooperatives do well in provision of inputs, Some cooperatives do well in provision of inputs, marketing, finance, and other facilitating rolemarketing, finance, and other facilitating role

Individual enterprises do bestIndividual enterprises do best

The (Integrated) Area Development The (Integrated) Area Development Approach: 1969 to 1995Approach: 1969 to 1995

Inspired by Comilla modelInspired by Comilla model Emphasizing holistic area Emphasizing holistic area

development, community autonomy, development, community autonomy, role of local government, NPOs and role of local government, NPOs and sector specialists to achieve sector specialists to achieve programs designed programs designed locally/communitieslocally/communities

Hundreds of such programs were Hundreds of such programs were designed designed

Funded by World Bank, AFDB, DBSA, IFAD, Funded by World Bank, AFDB, DBSA, IFAD, bilateral donorsbilateral donors

Most of them, reverted to planning by Most of them, reverted to planning by technocrats, used the service delivery or technocrats, used the service delivery or intermediary models, ignored any local intermediary models, ignored any local government which might have helped, and government which might have helped, and suffered enormous coordination problemssuffered enormous coordination problems

They did best on delivery of infrastructure, but They did best on delivery of infrastructure, but failed on most other objectivesfailed on most other objectives• Income growth often not achieved because of lack of Income growth often not achieved because of lack of

technologytechnology• Few viable institutions left behindFew viable institutions left behind

The approach was abandoned around 1990 The approach was abandoned around 1990

The Coordination ProblemThe Coordination Problem

1.1. There is a huge diversity among poor areas, poor There is a huge diversity among poor areas, poor communities and poor peoplecommunities and poor people

2.2. No central agency can even keep track of this No central agency can even keep track of this heterogeneity or design and implement heterogeneity or design and implement development programsdevelopment programs

3.3. Even when plans are developed locally or by Even when plans are developed locally or by communities, central agencies rarely can deliver on communities, central agencies rarely can deliver on them individually in a service delivery mode, much them individually in a service delivery mode, much less so in a holistic integrated approachless so in a holistic integrated approach

4.4. The tree major approaches we discussed all The tree major approaches we discussed all developed the so called stove pipe model to developed the so called stove pipe model to delivery of programs, and then attempted to delivery of programs, and then attempted to coordinate the stovepipes locally, such as your coordinate the stovepipes locally, such as your development nodesdevelopment nodes

5.5. All attempts at such coordination failedAll attempts at such coordination failed

Components and costs of a typical land Components and costs of a typical land reform projectreform project

Land

Infrastructure& housingInputs

Resettlement

Advice

Overhead

But government programs are fragmented But government programs are fragmented into stove pipesinto stove pipes

(LRAD, CASP, RDP housing, MAFISA, (LRAD, CASP, RDP housing, MAFISA, Land Bank, Khula, AgriBEE, LandCare, AgriSETA, etc.)Land Bank, Khula, AgriBEE, LandCare, AgriSETA, etc.)

Treasury

National

Provincial

Local

CommunityLand reform project

Lessons from this reviewLessons from this review

Strong ideals and strategies of holistic and Strong ideals and strategies of holistic and integrated development degenerated upon integrated development degenerated upon scaling upscaling up• Centralization, disempowerment, inability to coordinate Centralization, disempowerment, inability to coordinate

and integrateand integrate The programs did not strengthen the institutional The programs did not strengthen the institutional

framework for local and community-developmentframework for local and community-development They did not devolve functions and development They did not devolve functions and development

resources to communities and local governmentsresources to communities and local governments They lost their social objectives, and instead were They lost their social objectives, and instead were

often captured by elitesoften captured by elites NGOs have rarely graduated beyond the service NGOs have rarely graduated beyond the service

delivery and intermediary modeldelivery and intermediary model

Overcoming the legacy of failureOvercoming the legacy of failure

Local (Government) Development Local (Government) Development FundsFunds

Pioneer: United Nations Capital Fund, now being Pioneer: United Nations Capital Fund, now being generalizedgeneralized

Bottom up planning starting at communities, each Bottom up planning starting at communities, each of which lists its priorities, complemented by of which lists its priorities, complemented by priorities at local levelpriorities at local level

Selection of projects in open district development Selection of projects in open district development committees in the presence of community committees in the presence of community representativesrepresentatives

Financed out of a fungible fund held and Financed out of a fungible fund held and managed at local levelmanaged at local level

South Africa has implemented this model in the South Africa has implemented this model in the local development grantlocal development grant• But it is requiring much too complex panning, usually But it is requiring much too complex panning, usually

done by consultants rather than the communities and done by consultants rather than the communities and local development committeelocal development committee

Community-driven development: (CDD) Community-driven development: (CDD) (over a hundred programs around the world)(over a hundred programs around the world)

Communities are in charge of the choice of Communities are in charge of the choice of project and its design, choice of technology, the project and its design, choice of technology, the money to execute the project, their contributions money to execute the project, their contributions to the project, the contracting and financial to the project, the contracting and financial managementmanagement

Communities are coordinated at local Communities are coordinated at local government level, have access to professional government level, have access to professional facilitators, and the technical resources of the facilitators, and the technical resources of the sector agencies. They may use their money to sector agencies. They may use their money to buy additional technical servicesbuy additional technical services

In the best programs communities get a budget In the best programs communities get a budget based on per capita and other norms, and based on per capita and other norms, and allocate it to their projects in their development allocate it to their projects in their development planplan

How is CDD done?How is CDD done?

Diagnosis, planning, integration, and Diagnosis, planning, integration, and monitoring usually done via PRA monitoring usually done via PRA techniquestechniques

They get training in financial They get training in financial management and planningmanagement and planning

They learn mostly by doingThey learn mostly by doing The communities have to co-finance The communities have to co-finance

the projects in cash, labor, or local the projects in cash, labor, or local materialsmaterials

Recent impact evaluation of Brazil Recent impact evaluation of Brazil CDD programCDD program

Over 250000 communities reached, over Over 250000 communities reached, over 300000 community projects, at a total cost of 300000 community projects, at a total cost of about 10 billion randabout 10 billion rand

Mostly focused on essential priorities such as Mostly focused on essential priorities such as electrification and drinking water, but also electrification and drinking water, but also productive and social projectsproductive and social projects

Communities achieve projects faster, cheaper, Communities achieve projects faster, cheaper, at the same or better quality as intermediary at the same or better quality as intermediary or service delivery approaches, or service delivery approaches, sustainabilility of projects is fairly goodsustainabilility of projects is fairly good

Impacts in BrazilImpacts in BrazilAccess to infrastructure and quality of Access to infrastructure and quality of

housing has increasedhousing has increasedChild mortality and incidence of several Child mortality and incidence of several

communicable diseases have declinedcommunicable diseases have declinedAll household assets have increased, but All household assets have increased, but

increase is not statistically significantincrease is not statistically significantProductive projects do less well than Productive projects do less well than

infrastructure projectsinfrastructure projectsThere has been a very quick and large There has been a very quick and large

increase in social capital at community increase in social capital at community and local levels, and that capital does not and local levels, and that capital does not depreciatedepreciate

The recent synthesis: Local and The recent synthesis: Local and community-driven development (LCDD)community-driven development (LCDD)

It is a co-production:It is a co-production: of communities, of communities, local governments, sector agencies, the local governments, sector agencies, the private sector and NGOsprivate sector and NGOs

Coordination at local levelCoordination at local level The money and authority does not The money and authority does not

flow in stovepipes: flow in stovepipes: They are devolved to They are devolved to local governments and communitieslocal governments and communities

Local governments and communities Local governments and communities are are held accountableheld accountable for use of funds and for use of funds and for achieving their own and mandated for achieving their own and mandated development objectivesdevelopment objectives

Implementation of the synthesis is Implementation of the synthesis is a huge challengea huge challenge

Lack of trust in communities and Lack of trust in communities and local governmentslocal governments

Exaggerated planning expectationsExaggerated planning expectations Many political battles about control Many political battles about control

over money and other resourcesover money and other resources

Weaknesses and future Weaknesses and future challenges for LCDDchallenges for LCDD

Communities, local governments prioritize Communities, local governments prioritize infrastructure first, followed by productive infrastructure first, followed by productive projects, rarely social projectsprojects, rarely social projects

But they are not that good at productive projects But they are not that good at productive projects because they find it hard to link to broader markets because they find it hard to link to broader markets and input supply systemsand input supply systems

A CDD approach to delivery of welfare A CDD approach to delivery of welfare services and social safety nets does not services and social safety nets does not yet existyet exist

• only fragments of responsibility are devolved, only fragments of responsibility are devolved, such as selection of beneficiaries, and such as selection of beneficiaries, and requirements to contribute labor and foodrequirements to contribute labor and food