Improving Government. Michael Heppell

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      PACIFIC CHOICE

      Improving Government

      By Michael Heppell

       Capacity Development Series

      This subseries is published by the Asian Development Bank to provide the governments of its Pacific developing member countries (PDMCs) with analyses and insights on key issues and lessons learned with respect to capacity development. The report highlights a range of experiences throughout the region by sector, theme and source of external support, revealing approaches to capacity development that work best and the conditions that have been conducive to their success. It explores the unique challenges faced by PDMCs in addressing capacity constraints as well as some of the opportunities facing governments and the people in the Pacific islands. Among other things, the report underlines the importance of PDMC leadership, engagement of local partners, strategic attention to long-term capacity issues and effective use of external resources. It is our hope that the findings in this report will help to guide future capacity building efforts in the Pacific.

      © 2008 Asian Development Bank

      All rights reserved. Published 2008.

      Printed in the Philippines.

      Cataloging-In-Publication Data

      Publication Stock No. BBK179908

      ISBN 978-971-561-739-0

      Cataloging-In-Publication Data

      Heppell, Michael.

      Improving Government

      Mandaluyong City, Phil.: Asian Development Bank, 2008.

      1. Capacity development. 2. Pacific.

      I. Asian Development Bank. II. Australian Agency for International Development

      The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Australian Agency for International Development (AusAID) and the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

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       FOREWORD

      Despite 50 years of aid in the Pacific region, including some $20 billion of support over the past 25 years, overall results in terms of sustainable improvements in capacity have been mixed, at best. This raises questions, not only in the Pacific but throughout the developing world, about approaches to building capacity—what works, what doesn’t, and why? The Asian Development Bank (ADB) recognizes the importance of capacity development, having officially embraced it as a thematic priority in 2004. ADB’s commitment is consistent with the Paris Declaration on Aid Effectiveness and the Pacific Principles on Aid Effectiveness. The programs of a number of other funding agencies, including the Australian Agency for International Development (AusAID), New Zealand Agency for International Development (NZAID), United Nations Development Programme (UNDP), and the World Bank also embrace the importance of more effective capacity development.

      Increased interest in capacity development in recent years reflects an acknowledgment of the shortcomings in development assistance over the past 50 years. This has led to calls for approaches that are more systematic and integrated, and which focus more on developing country ownership and achievement of sustainable results. Capacity amounts to the policy, procedures, personnel, institutions, and supporting environment required to effectively deliver development outcomes. In particular, ADB has focused on the ability of the public sector to deliver essential public services, thereby strengthening the compact between government, civil society, and the private sector. Capacity development is much more than just training or skills transfer. It is about effective institutions, a sound unpoliticized policy environment, accountability systems, effective relationships, and appropriate incentives. As noted in this study, capacity development should be firmly rooted in a country’s political economy.

      To better understand what works, in terms of approaches to capacity development, with significant cofinancing from AusAID, ADB’s Pacific Department (PARD) commissioned a regional study in 2006. The study led to a report which “explores the capacity needs and prerequisites for capacity development in the context of the independence of various levels of government.” Further work was then commissioned to build on study findings. This has led to the formulation of a framework to “examine capacity development opportunities within the organization of government business and pinpoint conditions that increase the likelihood of [better government].” ADB’s intent in commissioning this report Pacific Choice: Improving Government was to draw upon the study’s findings and recommendations to help guide future capacity building efforts in the Pacific, including institutionalizing a more focused and effective approach to capacity development in country programs and operations.

      This report was prepared by Michael Heppell, under the direction of Steve Pollard, principal economist, PARD. The report has also benefited from the comments and inputs of a number of resource persons. I trust that you will find the report both thought provoking and practically helpful in advancing our collective commitment to development in the Pacific.

      Sultan Hafeez Rahman

      Director General

      Pacific Department

       INTRODUCTION

      Capacity development (CD) is central to improving standards of living and reducing poverty in developing member countries (DMCs).

      The Paris Declaration provides for donors to harmonize activities to support governments committed to CD. Where commitment is absent, one thing donors should do is to strengthen the capacity of civil society to demand improved performance from government and help promote commitment.

      CD is a means to an end—the end being improved government performance. It seeks to improve whole systems. Consequently, to be effective, it must be more than a simple transmission of improved technical capacity.

       CD is a means to an end—the end being improved government performance

      CD has been an interest of governments, Asian Development Bank (ADB) and other donors for many years. ADB’s