Defining capacity is complex

Capacity is a complex concept to define. However, at the heart of the international development consensus is the notion that capacity is the ability of individuals, institutions, and societies to solve problems, make informed choices, define their priorities and plan their futures.The objective of aid assistance is to help developing countries build their capacities, that is boost their ability to achieve their development goals.   

Capacity development is thus a gradual process, with the country taking the initiative to tailor interventions to meet its needs by  investing and building on human capital and changing and strengthening institutional practices. “Ownership” is key to capacity, and there is evidence to suggest that capacity is built faster when the process is endogenous. 

Also, countries that have an incentive to build capacity have been more successful in initiating and achieving their goals, as in the case of Poland. Spurred by the desire to join the European Union, Poland implemented  macroeconomic reforms successfully, leading to its transformation in three decades. Aid alone is thus not an answer as gaps in knowledge and capacity keep countries from applying successful practices applied elsewhere to their own circumstances.  (Reducing Poverty Sustaining Growth, Shanghai conference, May 25-27, 2004). This underscores the need to accelerate governance reform and capacity building. The Bank’s experience has shown that focusing on policies and institutions, country ownership of the development process, role of private sector, partnerships, knowledge and learning is more useful than just physical investments in building capacity. (2003 Annual Review of Development Effectiveness).

Some of the activities, though not exhaustive, that lead to capacity development are technical assistance, training, training of trainers, organizational or institutional reorganization, improved access to information, establishment of partnerships, communities of practice, help desk, study trips, and improved material conditions such as purchase of computers.

Although the importance of capacity is recognized, identifying, assessing, monitoring and measuring capacity has proved difficult mainly because capacity is a process, not a definite output. There are few measurements of outputs, performance, or capacity gains linked to specific capacity support. Performance, though related, is not synonymous with  capacity, nor is the relationship direct and linear. It is therefore important to distinguish between the two to avoid misleading conclusions.