Capacity development is central to improving standards of living and reducing poverty in developing member countries. It 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. It is a means to an end–the end being improved government performance.
The Star Mountain Investment Holding Limited (SMIHL) is a Papua New Guinean (PNG) landowner holding company operating in Western Province, in the shadows of the huge Ok Tedi mine. The initiative drew on a Future Generation Fund and was, for the community, a response to years of frustration with wasted opportunities for economic development which were attributed to a lack of organizational and economic development capacity, capture of benefits by local elites, and the absence of a consensus on how to address the community's long-term interests. Among other things, the case highlights the value of locally-led and facilitated change processes, and the understanding of local cultural dynamics and capacity issues that goes with it.
The Community Justice Liaison Unit was established under Papua New Guinea's (PNG) law and justice sector program, with the support of the Australian government, to enhance the capacity of PNG's civil society and facilitate its involvement in policy development and delivery of services in the justice sector. The case study highlights those efforts in a context characterized by broad-based ownership of sector reforms and shared interests among civil society and government actors. In addition, it underscores the role external actors can play in supporting traditional institutions–such as PNG approaches to mediation and restorative justice–while encouraging links between the formal and informal aspects of the justice system.
A 1993 Australian Agency for International Development (AusAID)-funded study reported that water and sanitation problems in South Tarawa, Kiribati had become critical and needed to be addressed in «as comprehensive a manner as possible.» This led to a series of interventions including several Asian Development Bank (ADB)-sponsored projects which focused on the community participation component that the Government of Kiribati had come to recognize as key to sustainability. The case study highlights the second of these projects–a positive example of country-led networking and coalition building that demonstrates the potential for harnessing capacity of multiple actors with shared interests.
Problems facing Tonga's health care system intensified in the 1990s leading eventually to a decision by the government to address the «core problem», the Ministry of Health's planning, management, and coordination capacity. This case explores how attempts to enhance Ministry's organizational capacity, and improve its organizational culture, were aided by: consistent and strategic leadership and political support, participatory approaches, a clear sense of the capacity challenges, and the facilitative role played by the Australian Agency for International Development (AusAID). The paper describes it as a process of «developing Tongan solutions to Tongan problems».