Pro-poor institutional transformation for community-based development
Learning note
Interim version
This Note relates to KSF4: Implementation arrangements and institutional aspects
Version: January 2008
Core issues
Radical institutional transformations intended to improve the lot of the rural poor risk causing antagonism and suffering implementation delays. It may be more effective to build on, or improve institutions that already exist. To decide whether improvements or more extensive transformation are appropriate will involve the following main steps or issues:
- An institutional overview. The needs, opportunities and constraints currently facing rural people and communities need to be contrasted with the adequacy of the present institutional framework. Issues and obstacles to pro-poor change may arise from the mandates, structures, means of operation, resources or mindsets of existing organisations; national or local laws and regulations; or government policies and commitments to institutional and organisational change.
- An assessment of institutional constraints and opportunities. The choice of steps that are appropriate and implementable to remedy the identified institutional shortcomings that exacerbate poverty among the IFAD target group will be conditioned by the above issues. Assessment of constraints will identify practical limits to the changes in institutional mandates, modes of operation, skills and staffing. The issues that will unavoidably have to be addressed relating to government laws, regulations, policies, recruitment or training for national and local administrations, and to secure the participation of the poor themselves will reveal themselves. Implications for funding of institutional transformation will emerge.
- A rationale and strategy for change. The central focus of the strategy adopted for institutional transformation should be according to beneficiary needs. At the same time designers must take account of issues such as the need for proposals to be cost effective and implementable within an acceptable time frame; and they must minimise or sidestep, to the extent realistically possible, more difficult issues relating to laws, policy or governance. Transformations should also take account of and synergise the efforts of other donors and lenders.
- The outcome should be a step-wise implementation plan for pro-poor institutional strengthening and transformation. This should include ‘means to draw in and incorporate stakeholders’ ideas and build commitments to change from community up to national level; provisions for training and to build institutional capacities; funding and assistance requirements; suggested means and responsibilities for resolving outstanding issues; links to other donors; indicators and milestones to monitor progress; fall-back plans or alternative strategies if progress falters; and the means to maintain momentum and sustainability of enhanced institutional performance after IFAD funding ends.
Key tasks for design and review
- Make an institutional analysis that: identifies the links between institutional constraints and poverty; indicates how the livelihood choices of poor people could be improved through institutional transformation; flags policy, regulatory or legal constraints to such transformation; realistically assesses social and bureaucratic forces in favour of or opposed to change in terms of the extent and speed of transformation judged achievable; reviews and analyses the capacities of organizations with potential to promote or support such institutional transformation; identifies and reviews which institutions (formal – public at central, regional and local levels, private, civic and informal - traditional, customary, voluntary) are best suited to deliver interventions effectively and efficiently, by understanding the institutional and organizational linkages as well as organizational factors which are critical to successful delivery of the project(s) based on the needs of the target group; assess (financial) resource adequacy of the systems and actors given the planned project objectives and activities.
- On the basis of the above, decide the extent to which traditional or existing institutions should be reinforced or adapted to boost pro-poor community development, versus needs to create new arrangements - ensuring that the proposed new institutional setup(s) will indeed be possible in the given country and context. The nature of communities and community structures are of equal importance to evaluate the potential for pro-poor targeting measures and the role of community participation
- Develop implementation proposals based on the above rationale and concept. Match transformed management and/or organizational structures to the constraints facing the target group. Take account both of needs for strengthening and capacity building, and of inertia or resistance to institutional transformation that may be encountered. Identify institutional policy issues: suggest solutions and how, by whom and by when these issues might be resolved.
- Develop proposals for the promotion and support of the transformations proposed, and for harmonization with other progammes and co-ordination and collaboration between community organizations, the public sector, civil society and the private sector. Ensure respective roles, functions and rights (both vertical and horizontal linkages) are clear. Exploit links between local user agencies and regional or national public agencies, to strengthen local capacities for service delivery and empowerment.
- Formulate an exit strategy and specify the means to sustain the strengthened and functional institutional framework after loan disbursement ends.
- Ensure that outputs of institutional analysis and assessment are presented in the SWOT and Stakeholder tables of the Key Files. Specify M&E indicators of pro-poor institutional transformation to be included in the logframe and Key Files.
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