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Community Driven Development (CDD)

anchor link Overview
anchor link Results Brief anchor link Kecamatan Development Project (Indonesia)
Community Development in Indonesia (Overview)
anchor link KALAHI - CIDSS Project (Philippines) 


Much of the EAP’s Social Development operational work is focused on CDD projects that seek to enhance participation of and to give control of decisions and development resources to community groups and local governments. Three prominent examples of this work in the region are the Kecamatan Development Program (KDP) in Indonesia, the KALAHI project in the Philippines, and the Northern Mountains Poverty Reduction Program (NMPRP) in Vietnam.

The KDP is one of the largest World Bank financed CDD projects and is aimed at alleviating poverty in rural communities and improving local governance. It provides block grants directly to Kecamatan (sub-districts) and villages for small scale infrastructure, social, and economic activities. The aim is to alleviate poverty by raising rural incomes and providing increased economic opportunities, strengthen local government and community institutions, and build public infrastructure.

The KALAHI (Linking Arms against Poverty) Project provides funding to villagers for the development of public services that improve communities' standards of living. Using a competitive process, villagers select projects from an open menu and prioritize them for funding. KALAHI has trained thousands of villagers in project planning, technical design, and financial management and procurement, thus building a cadre of future leaders at the local level. A high degree of local commitment to the investments is demonstrated by the significant levels of local contributions raised from villages and local governments.

The NMPRP works through local government authorities at the district and commune levels to support local and village level infrastructure investments. The project is focused on the poorest provinces in Vietnam (in the Northern Mountains region) that have a significantly higher percentage of ethnic minorities. The project has invested heavily in the provision of basic infrastructure (schools, drinking water, roads, and other economic infrastructures) and has financed essential inputs such as teacher training, agriculture extension, and the provision of medicines for these areas where the levels of access and services are significantly lower than the national averages.

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Result Brief

Indonesia - Kecamatan Development Project (KDP). The KDP is the largest Bank poverty reduction project in Indonesia. Started just before the East Asia financial crisis, KDP, is completing its second phase, is aimed at improving community participation and building basic economic infrastructure to serve the rural poor. The project has reached 12,000 poor villages with an estimated total beneficiary population of almost ten million; 75% of project funds go towards roads, bridges, irrigation and clean water. Over 77% of fund loan beneficiaries have been the poorer members of their communities, and 38 % have been women. Nearly five million villagers received wages in KDP's first year. KDP 2 is giving teeth to the reform agenda laid out in the CAS and Indonesia's decentralization program by turning broad principles into a program of action in which many of the poorest Indonesians, including widows and other vulnerable groups, will receive significant benefits.  

Facts and Figures for KDP 1 and 2 (1998 - 2004)

• 22,738 roads built or upgraded and 26,623 kms built or upgraded


• 4,279 bridges built or reconstructed 

• 4,110 clean water supply units built 

• 1,670 sanitation units built 

• 6,142 irrigation systems built 

• 583 public markets built or rehabilitated


• 307 rural electrification activities 

• 37 million workdays generated from infrastructure projects


• 27,056 economic loan activities 

• 408.816 loan beneficiaries 

• 803 health posts supported 

• 1,168 new schools built or rehabilitated
38,485 scholarships distributed and 581 school grants to provide equipment and materials

Philippines Kalahi (Kalahi-CIDSS). This is the flagship poverty reduction project of the Philippines. Launched in January 2003, it covers a total of 4,270 barangays in 177 municipalities spread across 42 of the poorest provinces. Through this coverage, approximately 1.9 million households or about 10 million poor Filipinos are expected to benefit from the community development-driven project. Barely one year after implementation, it was estimated that the project had reached more than one third of total beneficiary barangays. Also, that community development projects of 114 of 201 barangays in Phase I implementation (57%) had been funded with local community counterparts providing on the average 37% of total project costs, and with some communities providing as much as 54%. At the end of 2003, project funds were estimated to have been disbursed in the following proportions: 47% on water projects; 24% on road projects; 7% on school classrooms; 5% on multi-purpose buildings; 4% on day care centers; 3% on health centers; and the remaining on productive assets such as motorized pump boats, dump trucks, corn mills, marketing centers, barangay electrification, foot/suspension bridges and meat processing facilities.






    • Vietnam – Northern Mountains Poverty Reduction Program (NMPRP). Under the first phase of the NMPRP, several thousand subproject activities addressing locally identified priorities have been successfully implemented, improving access to basic services and opening opportunities for tens of thousands of rural households. In the process, local government capacity for investment selection and management has been greatly enhanced. Specific results have included:

      • 128 commune health stations were built/upgraded and equipped to provide better, more accessible basic health care to 353,871 households.
      • 1,693 improved education facilities were constructed—including 858 village classrooms, 428 kindergartens, 319 houses for teachers and 88 upgraded schools.
      • Some 86,000 households took part in 3,481 Applied Agricultural Demonstrations that provided hands-on experience in how to boost productivity and improve livelihoods.
      • The average income per household in the project area was VND 10.6 million in 2007, more than double the income at the 2004 baseline survey of VND 4.3 million.
      • A total of 2,110 kilometers of commune-to-district roads were built, and 930 kilometers of commune-to-village roads were upgraded, reducing travel time to market by nearly 20% in the project areas.
      • The project brought improved water supply to 32,200 households, reaching about 85 percent of those targeted by installing 4,181 wells and 369 piped/gravity-fed systems.
      • New irrigation schemes now service 18,925 hectares, allowing farmers to increase the number of crops they plant and harvest per year.


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      Focus Area

      Kecamatan Development Program/National Program for Community Empowerment in Rural Areas


      Indonesia has made significant progress over the past several years in reducing poverty but many people remain poor and vulnerable. Sustained economic growth has helped more Indonesians escape poverty by creating more jobs and increasing public expenditures for health, education and infrastructure. Since 2004, the poverty headcount has fallen from 16.7 percent to 14.1 percent (2009). Despite these gains, 32.5 million Indonesians currently live below the poverty line and approximately half of all households remain clustered around the national poverty line (IDR 200,262/month). Non-income poverty remains a serious problem in terms of high malnutrition and maternal mortality rates, inadequate access to safe water and sanitation, and education outcomes. Furthermore, inequality is increasing and disparities between regions remain high.

      To accelerate the Government’s efforts to reduce poverty and ensure equity and inclusiveness, on August 16, 2006 President Yudhoyono of Indonesia announced the National Program for Community Empowerment or Program Nasional Pemberdayaan Masyarakat (PNPM) as the policy and operational umbrella for all community empowerment programs in the country. PNPM builds primarily upon the previous ten years of successful experience with the World Bank-supported Kecamatan Development Program (KDP) and the Urban Poverty Program. The Government expects that PNPM will be the flagship poverty reduction program at the community level. With World Bank technical and financial assistance, PNPM is now a national program covering all villages and cities in the country.

      Project Objectives and Design 

      PNPM’s overall objective is to reduce poverty and improve local-level governance in Indonesia through the provision of investment resources to support productive proposals developed by communities, using a participatory planning process. The project, using a community-based approach, will help fill Indonesia’s large tertiary infrastructure gap efficiently. Objectives are being achieved through: (a) communities’ participating in an open planning process; (b) provision of grants to communities directly and transparently to finance an open menu of poverty alleviation activities; and (c) enhancing the capacity of central government and local governments to partner with community organizations in service provision.

      In 2009, the KDP/PNPM-Rural program covers 4,371 rural subdistricts in 2009 (68% of the total subdistricts in the country) reaching a population of approximately 125 million.

      PNPM-Rural Pilots. In addition to the core subdistrict planning and block grant scheme, PNPM-Rural includes six major operational pilots funded through loans and grants from several bilateral donors (The Netherlands, United Kingdom, Australia, Canada, and Denmark). All of the pilots build upon the main PNPM platform and principles of community participatory engagement. These include: (i) the PNPM MDG achievement grants (or conditional cash transfer ‘CCT’ pilot) in 178 subdistricts in five provinces across the country to achieve education and health outcomes; (ii) Green KDP to support natural resource management and renewable energy initiatives; (iii) support for agricultural development initiatives (SADI) to provide technical assistance and financial resources for poor farmers; (iv) Papua RESPEK which supports Papua and West Papua’s customized approach to adapting PNPM to the distinct conditions of those two provinces; (v) Aceh Multi-Donor Trust Fund activities for post-tsunami recovery and PNPM specific adaptations for Aceh and Nias; and (vi) Creative Communities pilot in 30 subdistricts aimed at cultivating a cultural approach to poverty reduction.

      Results to Date for KDP and PNPM-Rural

      In terms of concrete outcomes over the past ten years, the achievements through the KDP and PNPM-Rural series have been significant:

      • Poverty reduction: A rigorous 2008 impact evaluation of KDP2 (PNPM-Rural’s predecessor) showed that real per capita consumption gains were 11 percentage points higher among poor households in KDP areas compared with control areas. Also, the proportion of households moving out of poverty in poor subdistricts was 9.2 percent higher in KDP2 areas compared with control areas. Vulnerable households near the poverty line were less at risk of falling into poverty as a result of KDP participation. An impact evaluation of KDP1 shows that KDP had a significant impact on rural household expenditure. The longer a subdistrict received KDP funding, the greater the estimated impact on rural household expenditure.
      • Employment generation: KDP2 reduced unemployment by 1.5 percent in comparison with control areas. Some 72 million workdays have been created as of December 2007 from KDP/PNPM-Rural.
      • Physical economic infrastructure: As of April 2008, over 40,000 kilometers of roads, 10,500 clean water supply units, 11,000 irrigation schemes, 3,800 village health posts and 6,700 new schools have been built or rehabilitated, along with 23,000 other types of economically productive infrastructure since KDP1 began in 1998. Economic productive infrastructure built by KDP has resulted in expanded business opportunities and employment. Economic rates of return on sample infrastructure have ranged from 39 to 68 percent.
      • Quality, cost-effective infrastructure: Independent evaluations of the technical quality for infrastructure works classified 91 to 93 percent of the infrastructure as “good” to “very good”. Also, an independent evaluation found that village infrastructure built through KDP/PNPM methods costs significantly less – on average 56 percent less – than equivalent works built through government contracts.
      • Participation rates: Community participation is high. Participation of women in PNPM-Rural meetings averaged 48 percent in 2008. Nearly 60 percent of those who attend KDP/PNPM-Rural planning meetings are from the poorer segments of the community. The recent impact evaluation and gender review did find however, that PNPM could do much more to promote participation of women and vulnerable groups.
      • Education and health benefits: PNPM-Rural and its Generasi MDG/CCT pilot have led to higher levels of participation by women (60 percent on average) in village meetings; school facility improvements; and lessening of school costs for poor families; for health, program results are higher attendance at village and community health centers, improved nutritional feeding, and increased child and maternal healthcare.

      Project Implementation Arrangements. The Coordinating Ministry of People’s Welfare chairs the PNPM Program Steering Committee, an inter-ministerial coordination body, which consists of representatives from the Ministries of Public Works, Finance, Home Affairs, People’s Welfare, Cooperation and Small Medium Enterprises, and Industry and Trade, etc. The Coordinating Ministry of People’s Welfare also chairs the Government’s National Poverty Reduction Coordination Committee. Overall project oversight is the responsibility of the Ministry of Home Affairs (MoHA), while the day-to-day coordination is undertaken by a Project Management Unit (PMU) assisted by administrative units (satuan kerja or ‘Satker’) at central, provincial, and district levels.

      Sustainability. The Government has discussed continuing PNPM until 2015, using two phases. The current phase, 2007 through 2009, is the scale-up to full national coverage of all 70,000 villages and wards. Currently, the national and local governments already pay for approximately 75 percent of PNPM-Rural through their own resources. After the scale-up mode, PNPM shifts into a more sustaining mode, whereby local governments will take on greater responsibility for financing. Also over time, small poverty reduction initiatives will be folded into PNPM in order to make programming at the community level more streamlined, coordinated, and responsive to beneficiaries’ needs.
      For more information about KDP/PNPM-Rural, see

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      KALAHI-CIDSS Project (Philippines)

      Implemented in 2003, the KALAHI-CIDSS is a community-driven development project that aims to empower communities through their enhanced participation in community projects that reduce poverty.
      Within 6 years, the project aims to cover 25 percent of the poorest municipalities in the poorest 42 (out of 79) provinces of the Philippines, equivalent to more than 4,000 villages in 182 municipalities. It strengthens community participation in local governance and develops local capacity to design, implement, and manage development activities. Community grants are used to support the building of low-cost, productive infrastructure such as roads, water systems, clinics, and schools.

      Northern Mountain Poverty Reduction Program (Vietnam)

      Vietnam’s economy has grown rapidly and significant poverty reduction efforts have been undertaken since the 1990s. Yet progress in poverty reduction has been uneven across different groups and in different parts of the country. Poverty is a largely rural phenomenon, concentrated in remote and mountainous areas. The Northern Mountains Region is one of the poorest parts of the country, and the poverty is most wide-spread in the areas of the region where 94 to 100 percent of residents belong to ethnic minority groups. In 1998, about three-quarters of ethnic minority people were estimated to be below the national poverty line, compared to about a third of the majority Kinh. Ethnic minorities comprised about 14 percent of Vietnam’s population but accounted for nearly 30 percent of those living in poverty.

      Using a community-driven approach, the Northern Mountains Poverty Reduction Project sought to accelerate development and cut poverty in this region. It did so by financing a large number of small subprojects that were selected and largely implemented by local governments (communes, which encompass an average of 10 villages each). Subprojects included the construction and upgrading of rural roads, small-scale irrigation systems, facilities for rural markets, potable water supply systems, schools and village classrooms, and commune health stations. In addition to public infrastructure, the project financed provision of complementary inputs for schools and health facilities such as teacher training, medical equipment and medicines, and information and communication outreach. It also supported a program of agricultural extension and training to raise farmer productivity. Support from the United Kingdom’s Department for International Development (DFID) effectively trained local cadres and people to better manage subprojects as well as to maintain and operate the new infrastructure.

      Total project cost was US$132.5 million, of which US$114 million was financed by IDA. The United Kingdom’s Department for International Development (DFID) provided US$10.5 million for capacity building activities that significantly contributed to successful project implementation. Positive results from the co financing contributed to DFID’s broader sectoral work, and led to co-financing of other projects. DFID notes that the Northern Mountains project directly contributed to the development outcomes of their Country Assistance Plan Objective 2, “to improve the quality and inclusiveness of services for the poor and vulnerable” by supporting key institutional and policy improvements for better targeting, pro-poor resource allocation, decentralization of investment ownership to communes and local income generation. Interestingly, participants introduced competitive bidding by local artisans for subproject work in construction, monitoring and evaluation, a novel approach to procurement at this level that generated greater transparency and popular support. The balance of funding—US$12 million—was provided by government counterparts.

      Leading Group on Poverty Alleviation and Development (China)

      China’s 11th Five-Year Plan recognizes that creation of a “harmonious and well-off society” requires new approaches to poverty alleviation. To realize this goal, poor households and communities must themselves be active participants in local development, while local government agencies must dedicate themselves to serving the needs of poor communities. Consistent with China’s development objectives, the State Council Leading Group on Poverty Alleviation and Development is now testing new development approach of Community Driven Development (CDD).

      The CDD pilot program is intended to give poor communities: 1) An opportunity to improve local infrastructure or public services; 2) An opportunity to collectively manage a revolving fund, available to households wanting to pursue income-generation activities; 3) An incentive to consider sustainable natural resource management or other environmental improvements in determining local development priorities; 4) More effective community organization, with developed capacity for community planning and management; 5) An improved relationship with local government agencies, who will be more responsive to your community’s priorities.

      More information:
       KALAHI-CIDSS Project
       Additional CDD Projects in the Philippines

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