proceedings _regional conference on cdd_ 31 jan 2012

8/2/2019 PROCEEDINGS _Regional Conference on CDD_ 31 Jan 2012.

1/19

1

CONFERENCE PROCEEDINGS

The Asian Development Bank (ADB) held a Regional Conference on Community-DrivenDevelopment (CDD) on 31 January 2012 at the ADB Headquarters in Manila. The conferenceprovided an opportunity to share and distill lessons from four (4) CDD country studies includingCDD scale-up, and launch the CDD Learning Network to promote policy discussions, peersupport, and knowledge sharing. It brought together around 90 participants from ADBsdeveloping member countries, partner development agencies, academe and research institutes,and civil society organizations. (See List of Participants in Appendix A)

Presentations covered the lessons learned on sustaining institutional impacts, urban communityparticipation, involving NGOs in CDD project implementation, and promoting participatoryapproach through Saemaul Undong education, as well as lessons from global experiences in

scaling up CDD. Discussions revolved around issues on CDD implementation as well aschallenges and opportunities for scaling up CDD in Asia and the Pacific. (See Agenda inAppendix B)

I. OPENING SESSION

A. Welcome Remarks

Director General Xianbin Yao of the ADB Regional and Sustainable Development Department(RSDD) opened the conference, and welcomed participants and resource persons. Heemphasized the importance of CDD and how it inspires and encourages the Bank to carry out

its development work at the community level while learning from lessons in the past and tryingto avoid mistakes done by others.

DG Yao stressed that community empowerment is important to ensure maintenance andsustainability of infrastructures beyond project completion. He shared the belief of Nobel Prizeawardee Professor Elinor Ostrom of Indiana University that communities play an important role,aside from state and market, in making development work.

ADBs Strategy 2020 focuses on inclusive growth as one of its strategic agenda. Inclusivegrowth addresses how the poor can both benefit and actively participate in the growth process,which points to the importance of communities. DG Yao noted the need to learn how CDD canbecome an important vehicle to carry out infrastructure-related services better. Given the 800

million people in the region without access to energy and hundreds of millions suffering fromlack of sanitation, the challenge is on how to support and empower them, instead of dominatingand alienating them. He stressed the importance of the conference and hoped that the eventwould allow for intensive learning on lessons from CDD case studies and scaling up. (SeeSpeech in Appendix C)


2/19

2

B. Keynote Address

Honorable Corazon Juliano-Soliman, the Philippines Secretary of Department of Social Welfareand Development (DSWD) stressed the importance of inclusive growth and how it works for thepoor by engaging them in development process. A CDD project in the Philippines since 2003,Kapit-bisig sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-

CIDSS) contributes to inclusive growth. KALAHI-CIDSS aims to reduce widespread povertythrough empowerment of citizens and promotion of good local governance. Lessons learnedfrom its implementation include the (i) importance of rigorous targeting methods, (ii)effectiveness of community participation in enhancing local poverty reduction initiatives, (iii)transformation of ordinary residents into community leaders through their training as communityvolunteers, (iv) reduction of corruption or misuse of funds through strong communityparticipation in CDD mechanisms, and (v) potential of CDD programs to progress further bydevolving local implementation to responsive LGUs.

The Secretary noted the support of Philippine President Benigno Aquino III to elevating CDDinto a national strategy for poverty reduction. CDD is now being scaled-up into a national CDDprogram (NCDDP) which is envisioned to integrate local empowerment, participatory

governance, and improved local capacity. The NCDDP, however, faces a number of challengessuch as lack of more stable and long-term funding for CDD and need for certain nationalgovernment agencies and local government units to fully appreciate and eventually integrateCDD processes into their operations. To move towards fullscale implementation of NCDDP, itis necessary to have a transition period that will involve adjustment of legislative mandates toprovide LGU incentive systems; generation of interagency support to pilot the program; andcreating a CDD training institute for program implementers.

Secretary Soliman noted that the success showcased by KALAHI-CIDSS and other CDDprojects in the Philippines, and the demand from communities and local chief executives willgive a strong push to the proposed NCDDP. It is important to ground scale-up efforts onexperience and the KALAHI-CIDSS experience is proof that once people are allowed to

determine the course of their own development, the environment becomes conducive forcommunities, local governments, and national government agencies to take more concertedaction in responding to local needs. In her final note, the Secretary stressed the importance ofthe conference in nurturing a strong culture of learning and sharing of experiences, andencouraged everyone to see the value of these experiences to further improve work on CDD.(See Speech and Powerpoint presentation in Appendix D1-D2)

C. Conference Guidelines and Arrangements

Ms. Yukiko Ito, Social Development Specialist at Poverty Reduction, Gender and SocialDevelopment Division (RSGS) of RSDD, briefed participants on the conference flow and topicsto be discussed, as well as the housekeeping rules.

II. PRESENTATION OF CDD STUDIES

The presenters - Raul Gonzalez (Philippines), Sulton Mawardi (Indonesia), He Liu (PeoplesRepublic of China), and Djun Kil Kim (Republic of Korea) discussed the issues and lessonslearned on distinct topics covered by the 4 CDD studies conducted under RETA 7543-SharingKnowledge on CDD in Asia and the Pacific (See Powerpoint presentations in Appendix E1-E4and paper abstracts in Appendix F).


3/19

3

A. Sustainability of Institutional Impacts of KALAHI-CIDSS Project - Raul Gonzalez(Philippines)

Background. KALAHI-CIDSS was implemented from 2003 to 2010 in 42 poorest provinces inthe Philippines. Towards the latter part of the project in 2008, DSWD launched theMakamasang Tugon or the Peoples Response Pilot, which involved 33 municipalities in 17

KALAHI-CIDSS provinces. This pilot had two objectives: (i) to institutionalize the KALAHI-CIDSS empowerment activity cycle into the local planning processes of LGUs, and (ii) totransfer the responsibility of KALAHI-CIDSS implementation from DSWD to municipalgovernments. The KALAHI-CIDSS was extended in early 2011 and now operates in 48provinces.

Issues. The sustainability of CDD as a development strategy is surrounded by several majorissues: (i) turnover of local executives during elections wherein a new administration tends todiscontinue the previous regimes support programs; (ii) insufficient funds to finance CDDprojects on a long-term basis; (iii) existence of a legal impediment that inhibits the participationof village residents in the implementation and monitoring of subprojects; (iv) major decisions onthe allocation of development resources still being made at the national level despite

decentralization; (v) absence of a national government directive or enabling law that encouragesor supports LGU adoption of CDD.

Lessons learned:(i) CDD provides an effective platform for integrating and coordinating the key elements of

an effective local poverty reduction strategy through (i) participatory planning processesof KALAHI-CIDSS; (ii) transparency of the project selection process, which strengthensthe responsiveness of local planning and budgeting systems to the needs of the poor,(iii) community participation, which lowers costs and improves construction quality ofsubproject investments; and (iv) shared responsibility between village communities andlocal governments for the operations and maintenance of local subprojects, whichenhances sustainabiilty.

(ii) Community facilitation is essential. Social preparation should not be viewed as a costbut as an investment in human capital formation. Investment in social preparation isimmediately manifested through improved community capacity to manage villagesubprojects.

(iii) Local governments will need guidance and time to adopt CDD principles and practicesand lead local CDD implementation. Most LGUs have positively responded to CDDgoals of enhance governance and improved service delivery but continue to strugglewith the adoption of new values, roles and relationships.

B. Urban Community Participation in Neighborhood Upgrading and Shelter SectorProject- Sulton Mawardi (Indonesia)

Background. The ADB-funded Neighborhood Upgrading and Shelter Sector Project (NUSSP)was implemented in urban slum and rural areas in Indonesia. Among the 4 components of theproject, the neighborhood upgrading component (Component 3) used a CDD approach todeliver infrastructure in urban slums and rural villages. The project improved 6,800 hectares ofurban slum areas in 32 cities within 17 provinces in Indonesia. This presentation focuses on


4/19

4

community participation in neighborhood upgrading based on a study in six (6) villagesbenefited by the project.

Issues and Recommendations. Community participation in urban areas is lesser compared torural villages due to weaker social cohesiveness. The poorest and marginal people were notsystematically encouraged in community participation process and womens participation was

generally weak. The elite still seem to dominate the decision-making process particularly theselection of subproject proposals. The authority in making this decision was with self-helpgroups and public works agency at the district level. Meanwhile, participation in subprojectimplementation is high among subprojects implemented by communities themselves (SP3)compared to those implemented by contractors (SP2). Transparency and accountability werealso higher in subprojects implemented through SP3 type.

To address the issues in promoting and sustaining citizen participation, the following arerecommended:

(i) All development practitioners should have deeper understanding of the communityssocial culture.

(ii) Raise common awareness on the importance of the participatory approach throughorganic mechanisms of facilitation. These organic mechanisms denote the use ofinformal and more personal and adoptive approaches that put community members in apartnership role.

(iii) Mainstream the participatory approach in all small-scale village development efforts.(iv) Find more options for community participation that do not necessarily require direct

meetings.(v) Involve indigenous and trusted institutions rather than project-driven ones.

Lessons learned:(i) CDD initiatives may reduce the negative impact of urbanization.(ii) Institutionalizing community participation is a long task that requires assimilation of new

values and traditions by beneficiary communities.(iii) Encouraging large-scale involvement of heterogeneous community members cancomplicate the implementation of a development initiative.

(iv) To maximize the degree of community participation, ensure that planning of an initiativeis in the hands of the beneficiaries.

(v) Make necessary adjustments to participatory programs implemented in urban areas asopposed to those is rural areas.

C. Role of NGOs in the Implementation of CDD Pilot Project at the Local/VillageLevel- He Liu (Peoples Republic of China)

Background. The CDD Pilot Project was funded by World Bank and implemented by the PRC

Leading Group Office for Poverty Alleviation (LGOP) from 2006 to 2009. The LGOP regardsCDD as a promising new approach that provides a solution to the problem of poverty in PRC.The pilot project was launched in four counties, all in four separate provinces in PRC. Itsupported 3 types of subprojects: (i) improvement of small-scale infrastructures and services inproject communities; (ii) funding for community development; and (iii) improvement of naturalresources and environmental protection in project communities.

China boasts of large-scale government participation in addressing poverty but it acknowledgessome weaknesses. NGOs supplemented what the local governments lacked. Three


5/19

5

international NGOs were involved in the CDD pilot project: (i) ActionAid, (ii) Plan International,and (iii) World Vision International. These NGOs all exhibited different levels of collaboration.Plan International manifested a rather profound collaboration with the Baishui County localgovernment. Both parties often sought discussion, coordination and the resolution of problemstogether. Action Aid in Jingxi County, on the other hand, demonstrated a medium level ofcollaboration with the government and there was clear division of work. World Visions early

experience in Inner Mongolia Autonomous Region reaped some problems due to impropercommunication and coordination with local government and communities. In general, theinvolvement of these NGOs in the project helped to promote citizen participation, build thecapacity of communities and local governments, and ensure transparency and accountability.

Issues. There remain other problems with involving NGOs in the CDD Pilot Project: (i)instability of NGO staff members which led to discontinuity of development work in communities;(ii) NGOs difficulty with training villagers due to low literacy level, language barriers, andgeographic conditions of the villages.

Lessons learned:(i) Development projects require NGOs to collaborate well with the local government.

NGOs must therefore be highly localized. They must accumulate abundant experiencein working with rural villagers, understand local culture and customs, and establish agood and stable relationship with villagers. 1

(ii) NGOs stable staff arrangement ensures continuity of community development work.(iii) A collaborative relationship and a clear division of work between local governments and

NGOs are imperative.

D. Promoting Participatory Approach through Saemaul Undong Education - Djun KilKim (Republic of Korea)

Background. Saemaul Undong (SU) or the New Village Movement is well known as a classic

model of CDD to address rural poverty in South Korea in the 1970s. The decade-long SUmovement brought tangible and intangible benefits that made possible the long-term growth inSouth Koreas per capita income and well-being. One of the essential benefits reaped from theSU movement was the sweeping change in mindset of Korean people. Through Saemauleducation, the Saemaul spirit of diligence, self-help and cooperation was instilled onto traineesfrom both urban and rural areas. The transformation in peoples mentality has driven rapiddevelopment in South Korean society.

Objectives & Mechanics. Saemaul education began with training leaders from villages onSaemaul spirit and modern agriculture technologies to establish Saemaul leadership, andpromote community development. Training opportunity was given to elite Saemaul leaders whoshowed positive leadership. Those trained were encouraged to promote SU participation in

community development. At the onset, all trainees with various social backgrounds were put inthe same training camp at the Training Institute. They were taught practice-oriented Saemaulspirit and engaged in group discussions on SU best practices. The trainees were supported bypost educational programs.

1 In an ADB-supported pilot test in the PRC noted on page 10 of this proceedings, domestic NGOs were competitivelyselected to facilitate CDD-like participatory village poverty reduction projects.


6/19

6

Role & Contribution. Saemaul education was an important factor in promoting widespreadparticipation in the SU movement. The trademark campaign of Saemaul education expandedfrom Saemaul leaders in rural villages and local administration officers to members of the urbanelite. Dissemination of SU success stories by the state-controlled media were likewise animportant factor in increasing the popularity of the SU movement. In the midst of security threatand political situation in the 1970s, Saemaul education played an important role to rally peopleto modernize communities through public education by evoking can-do spirit of confidenceamong the South Koreans who have long suffered from colonialism and war since the late 19 thcentury.

Issues encountered. The political situation during the latter half of the 1970s caused difficultyin continuing SU participation. The democratization movement by dissident leaders frompolitical, religious, labor and student circles discouraged SU participation, condemning Saemauleducation to be merely a political indoctrination of economic-oriented government policies.Urban SU movement in industrial sites, in particular, began to be challenged by the clandestinelabor movement encouraged by a small number of progressive religious leaders and Marxist-oriented student activists.

Another issue SU faced was the criticism of its trademark quality of camp-in trainings. Thequasi-compulsory institutionalization and its military-style training method often brought aboutreluctant participation of the urban elite in the camp. These disinclinations certainly weakenednationwide participation in the SU movement.

Lessons learned. Key lessons drawn can be from the SU movement experience in usingeducation and training as a means for promoting participatory approach to communitydevelopment.

(i) The Saemaul Spirit was institutionalized as the operation principle of CDD to promoteSU participation.

(ii) SU participation was activated through camp-in training method by which rural andurban elite from both public and private sectors were put in the same camp.

(iii) Education at the campaign training center transformed ones mindset and attitudethrough a cycle of stimulus, reflection, resolution and practice.(iv) Knowledge sharing is best done via best practice presentations and group discussions.(v) Political factors stymied and discouraged SU participation.

III. PANEL DISCUSSION: Lessons Learned from CDD StudiesModerator: Wolfgang Kubitzki, ADBPanelists : Raul Gonzalez (Philippines); Sulton Mawardi (Indonesia); Djun Kil Kim

(Republic of Korea); He Liu (Peoples Republic of China)

A. Reluctance of government agencies to release funds directly to the community

In the Philippines, the direct transfer of government funds to communities was madepossible by the bilateral agreement between WB and Philippine government in 2003.Initially, there was strong reluctance among central government agencies as well aslocal government units because in the past, central government funds to villagecommunities would always pass through local governments, especially municipalmayors. Over time, however, as the mayors became more deeply involved in theKALAHI-CIDSS program, they began to like the process and they are now strongsupporters of the system. The reason is that mayors see that if the money does not


7/19

7

pass through them, no one can accuse them of corruption; at the same time, they canalways take credit for all the projects built by KALAHI-CIDSS.

In Indonesia, some actors in local governments are against direct channeling of funds tocommunities because many of them still practice of bad governance. If bureaucratschannel funds directly to communities, they would not have the authority to control funds

and not get something from it. The bureaucrats or local governments are reluctantbecause they dont believe that the community will use the money honestly.

In PRC, the previous poverty alleviation strategy provided funds to needy villages butthis developed complacence among villagers thereby deterring self-development. Fundswere also sometimes controlled by village leaders causing reluctance among villagers toparticipate in a project. The introduction of CDD allowed direct channeling of funds tocommunities which demonstrated the potential for institutionalizing communityparticipation and promoting motivation for self-development. At the onset, there wasreluctance to directly channel funds to communities due to danger of fund misuse butthis was overcome with the launch of CDD approach.

B. Challenges to community participation and empowermentIn the Philippine KALAHI-CIDSS Project, competition is used as a mechanism forselection of community projects as well as for allocation of scarce developmentresources at the local level. The assessment confirmed that the use of competition isactually the main energizing element in KALAHI-CIDSS program and a distinguishingfeature from all other programs in the Philippines. In fact, competition is the mainreason for the high degree of community participation in the project. However, as thereis politics in the selection process, there can sometimes be occasions of collusion andpoliticking which run counter to CDD principles.

Based on field interviews in PRC, village leaders are reluctant to give way tocollaborative decision-making process because being the authority in villages, theycontrol resources and public affairs. For instance, in the expansion of the CDD PilotProject after 2009 in Shaanxi Province, there was a village that cancelled the projectbecause of uncooperative attitude of the village leader.

In Indonesia, even if there is a mandate on participatory planning at the national level, inpractice, it is the elite and not the grassroots that represent the village. In urban villages,the individual and varied characteristics of urban residents prevent them from directlyparticipating in community subprojects. Community participation, however, can beincreased by using the level of participation as one of the criteria for subprojectselection, as demonstrated by PNPM Rural. Communities where there is lowparticipation in meetings will receive low priority in subproject selection. A balanced

gender representation in inter-village meetings also promotes participation as decisionswill not be solely made by village leaders.

In South Korea, fair competition among the rural communities was induced by thecatalytic strategy of the government support according to leadership, cooperation, trust,and the community spirit.

C. Preventing elite capture


8/19

8

In the Philippines, although the most influential individuals in the selection of KALAHI-CIDSS subprojects are local government officials, this need not be interpreted as elitecapture of subproject processes and benefits. For one, there is widespread satisfactionof community residents with the subproject and the services it delivers. Second,residents believe that they participated effectively in subproject selection. And third,residents believe that the decisions of their village officials tend to reflect the priorities of

the community. Given the above, it is more likely that in KALAHI-CIDSS areas, villageofficials are credible to residents and that these officials and residents often have aconfluence of views on community priorities. At the onset of KALAHI-CIDSS, villageofficials were systematically excluded from the project by design, because of the fear ofelite capture. Because of their exclusion, many local officials were reluctant to supportKALAHI-CIDSS. Over the years, KALAHI-CIDSS has sought to achieve the delicatebalance between the participation and support of local officials and the prevention ofelite capture, both overt and subtle, on decision making over village subprojects.

In Indonesia, reducing elite capture is a long-term task and part of the countrysdemocratization process. However, elite capture can be reduced by self-help communityorganizations or the democratically elected BKMswho are involved in implementing localdevelopment projects.

In PRC, elite culture is also a tradition in rural areas, which puts great responsibility onthe elite to help the poor or allows the elite to promote their self-interest. As the CDDPilot Project introduced a new approach in PRC, it drew the attention of localgovernments to focus on monitoring and complaint handling system, which worked wellas elite capture has not yet occurred. However, if PRC will scale up the CDD approachin large areas in the future, elite capture can become an issue.

In South Korea, the elite capture by the local administration officers was reduced afterthe active participation of the Saemaul leaders democratically elected at Village General

Meeting.D. Formation and role of community organizations

In Indonesia, BKMs are independent community organizations that serve as partners oflocal governments in implementing and managing development projects in communities.Their officers are elected by local communities and not appointed by local governments.Empowerment of BKMs can make them trustworthy and represent the community.

In the Philippines, ad hoc organizations are set up during social preparation, subprojectapproval, and subproject implementation stages. When the subproject reaches theoperations and maintenance stage, there is a need for a more formal organization; thiscan either be a new or existing organization of the villagers. Depending on the type of

subprojects, the organizations can be a water users association for water projects; aparent-teachers association for school facility subproject; or a cooperative for economic-oriented subprojects such as rice or corn mills.

In Korea during the Saemaul Movement, rural communities conducted Village GeneralMeeting where villagers discuss their development needs. Traditional clubs like savingsclub and womens club also helped to promote participation in the SU Movement.

E. Constraints and facilitating factors to CDD adoption


9/19

9

In Indonesia, the support and contribution of local governments to the NUSSP budgetwas a very important determinant of eligibility, which facilitates their participation in theproject. However, the identification and selection of areas where the sub-projects will beimplemented are usually influenced by politicians such as mayors, district heads, ormembers of the local parliament, and these areas are not necessarily the poorest onesin need of sub-projects.

In the Philippines, management of procurement processes by village communities is notallowed under the law and this limits community participation in subprojectimplementation. The ongoing amendment of Philippine Procurement Law to includevillage participation in procurement will certainly help communities to implementsubprojects. In KALAHI-CIDSS, community procurement of labor and relatedrequirements of a subproject is allowed under the World Bank-Philippine governmentcovenant.

F. Types of NGOs involved in community developmentNGOs should not be generalized because they can be classified as international/regional, national and local NGOs. Their nature of participation in CDD initiatives alsovaries depending on a countrys context. In the Philippines and Indonesia, there is a lotof grassroots movements, thus, the roles of NGOs in these countries are very different.In PRC, however, it was an international NGO that was responsible for communityfacilitation and capacity building in CDD Pilot Project.

PRC has a different context as it has two systems, i.e., party system and governmentsystem, whose structures go down to the village level making the government a verystrong player in CDD. NGOs then supplement or complement the role of governmentparticularly in the areas of facilitation and capacity building for communities and localgovernments.

In KALAHI-CIDSS, there are two types of NGOs, i.e., indigenous and professionalNGOs. Indigenous NGOs are significantly involved in the operations and maintenanceof subprojects. With respect to professional NGOs, there was a strategic decision takenduring project design not to subcontract community facilitation to NGOs. Instead, DSWDrecruited facilitators as contractual workers of the Department to conduct communityfacilitation work. Since many of the facilitators recruited were formerly NGO workers,many aspects of NGO processes and culture were eventually mainstreamed into theKALAHI-CIDSS structure and operations.

G. Capacity building for NGOsIn PRC, the capacity of NGOs should be strengthened for a specific purpose. NGOsare supposed to work for overall development of poor communities together with otherstakeholders including government. It is important to balance the power and interests ofthe stakeholders, to avoid negative effects on the expected output and outcome of aproject. The scope and type of capacity building will depend on roles and responsibilitiesthat should be clear from the very beginning.

Generally, capacity building for NGOs should not be in the form of trainings as thesehave limited impact. Alternative approaches that have proven to be successful include

job-sharing, cross-visits, and exchange visits with other programs.


10/19

10

H. Direct involvement of NGOs in CDD project implementationIn the proposed National CDD Program (NCDDP), a training institute will be establishedto train not only workers of CDD projects but also partner NGOs. NGO expertise isexpected to form a significant part of the resources of the training institute. At the sametime, with the planned CDD expansion to cover more areas, NGOs could be tapped forcommunity facilitation work in certain areas, where they have a geographic advantage.

In Indonesias PNPM Program, NGOs are engaged for special purposes such asawareness-raising at village level. The program has started to use them more often forreaching marginalized and poorest villagers. At the outset, the PNPM Program requiredmore facilitators and opened opportunities for local NGOs to apply as PNPM facilitators.Thus, at present, many PNPM facilitators are affiliated with local NGOs. In KecamatanDevelopment Project (KDP), the predecessor of PNPM Rural, NGOs were also involvedin independent monitoring.

In the case of the noted CDD Pilot Project in the PRC, the impact of involvinginternational NGOs appears rather mixed. By contrast, in an earlier ADB-supported pilottest in PRC called NGO Partnerships in Village-Level Poverty Alleviation, the

involvement of local NGOs was found to substantially increase levels of participation(particularly by women and the poor), poverty targeting, and transparency. Under thatpilot, ADB provided technical assistance (TA) to LGOP to trial the engagement ofdomestic NGOs as facilitators within the governments flagship grassroots povertyprogram Village Poverty Alleviation Development Planning, which in principle is a CDD-like program. Specifically, the TA pilot tested the first outsourcing of facilitation ofvillage-level participatory planning processes to competitively selected domestic NGOs.A total of ten (10) consortia of domestic NGOs were selected, and worked very closelywith local governments to facilitate the process of identifying at the village level how bestto use government resources to implement grassroots development projects. (SeeSnapshot of TA 4580-PRC: NGO-Government Partnerships in Village-level PovertyAlleviation in Appendix G)

In Cambodia, there are about 3,000 international and local NGOs, most of which areworking on rural community development. The government is working in partnership withNGOs to enhance community development, food security and poverty reductionprograms.

Based on global experience, NGOs are not involved in facilitation in almost all cases ofscale-up simply because it is too expensive. They are often involved in pilot programslike the one in PRC and any areas where there is conflict or disaster situation, or wherethere is no alternative machinery either in terms of facilitators or in terms of localgovernment. However, NGOs come very strongly in monitoring special programs,targeting the most vulnerable, and doing communications.

IV. CDD SCALING UP: LESSONS FROM GLOBAL EXPERIENCES

Mr. Janmejay Singh, Senior Social Development Specialist/CDD Coordinator, World Bank,presented and discussed the definition of CDD scaling up and the challenges, experience ofother countries, prerequisites, and generic steps in scaling up CDD.


11/19

11

Definition. CDD is an approach to local development that gives control over planning decisionsand investment resources to community groups and local governments. Practically, it involvesthe elements of community focus, participatory planning, community control of resources,community control of implementation and maintenance, and participatory monitoring. Theprocess of scaling-up CDD is therefore a political and social transformation that embeds theseCDD principles into the whole process of local development. The outcomes expected from thisscaling up can be summarized into the three Es: efficiency, equity and empowerment. Thevision driven by scaling up is the creation of a platform wherein multiple sector programs fromdifferent sources can transfer through this CDD platform and reach end users.

Challenges. The difficulty in scaling up lies in a number of reasons:(i) Cost. CDD is not an area that lends itself to economies of scale very easily. Although

there are benefits of scaling up and replication, there is still a need for communityfacilitators in every community and monitoring support such as more vehicles and staff.

(ii) Design. Scaling up entails standardization and harmonization of systems throughout thecountry. However, as CDD application is context-specific, a balance betweenstandardization and flexibility for different contexts should be considered.

(iii) Policies. Decentralization policies that locate administrative, political and fiscal reforms

are necessary to make CDD conducive to national scale-up.(iv) Finances. It is important to determine how money will be transferred from national

government to communities and how financing can be sustained in the long term.Financing of CDD scale-up should be included in the national budget and part of fiscaldecentralization system, supported by locally generated revenue.

(v) Coordination. Interagency coordination is necessary for convergence of efforts toensure operation and maintenance of programs and projects.

(vi) Politics. Strong political commitment is important to ensure the shift in political powerfrom top to bottom.

Cases of scaling up. There are different cases of scaling-up in Malawi, Mexico, India andMorocco:

(i) Malawis Social Action Fund (MASAF). MASAF is a first generation CDD/social fundprogram that has been around for almost two decades. It evolved from being acompletely parallel social fund to a technical support agency for local municipaldevelopment financing. It then shifted completely from being an autonomous agency tobeing a part of the Ministry of Planning and Finance in Malawi to eventually run the coremunicipal financing of the country. It has retained the elements of CDD in the transfer ofpublic works and for other programs to community groups, but the funding is handledcompletely by local governments now.

(ii) Mexicos gradual decentralization. This case proves to be slightly similar to Malawis. Itall began with municipal financing paired with formula-driven allocations to different

municipalities across the country based on poverty, performance and capacity. Thesmall-scale projects were basically being implemented by community groups and therewas cost-sharing. It is interesting that Mexicos program preceded the decentralizationlaws that institutionalized it. The program ran for approximately 9 years before itbecame law in terms of fiscal transfers and local governance.

(iii) Indias rural livelihood model. Indias scaling up of livelihoods is quite different. In thismodel, seven states in India created womens self-help groups (like savings andlending group) which are federated to create a village organization. When every village


12/19

12

in a sub-district is covered, a sub-district organization is created, then eventually adistrict level is established. With this nested federation model, India has scaled upwomens federations that have membership of over 200,000 each. The scale-upinvolves several phases before national expansion and demonstrates to be a goodframework to be considered by countries that want to scale up by province or region.

(iv) Moroccos nationwide CDD program. This case is the opposite of phased scaling up inIndia. In 2005, the king announced the creation of National Human DevelopmentInitiativea nationwide program that has CDD elements. It was implementedimmediately. Within the first year, the country established more than a thousandtripartite committees at the local level and implemented the program in all 70 provinces.All manuals and procedures were designed and prepared during the implementationstage. This model is applicable when a country has very powerful leadership at the topwhich is committed to get things done immediately.

Requisites. In general, scaling up CDD requires the following:(i) Political will (at both national and local levels)(ii) Policies including a framework for fiscal administration and political decentralization

(iii) An army of community professionals and qualified project staff which may involvesetting up of training or certification institute

(iv) Simple systems and procedures based on an overarching framework that allowsflexibility

(v) Management incentives linked to performance of project staff(vi) Convergence and harmonization with sector programs(vii) Social accountability by setting up monitoring and incentive systems on the ground.(viii) Patience and flexibility

Generic steps. Scaling up involves a diagnosis of current situation as a first step. Running agood diagnosis supports further planning for the scale-up. From thereon, the creation of a buy-inis essential. Interagency workshops facilitate in persuading stakeholders of the necessity of

scaling up. The next step is to move on to decentralization policies, and afterwards pilotingbegins. Experiences from pilot-testing pave the way for refinement of systems and procedures,after which consolidation and expansion occur. The last step is investing in monitoring andevaluation which will provide inputs for improving the CDD program later on. (See Powerpointpresentation in Appendix E5)

V. PANEL DISCUSSION: Scaling Up CDD in Asia and the Pacific: Challenges andOpportunitiesModerator : Betty Wilkinson, ADBPanelists : Janmejay Singh, World Bank, Washington D.C.; Vivi Yulaswati, Bappenas,

Indonesia; Camilo Gudmalin, DSWD, Philippines; Sovann Sen, MAFF,

Kingdom of Cambodia

A. Importance of CDD scaling up

Scaling up of CDD is essential as it empowers both local governments and communitiesto control their own development. There is both a need and opportunity to scale up inAsia because (a) most countries have embarked on some decentralization, (b) severallagging regions and pockets of poverty could benefits from a CDD model, and (c)disasters and post-conflict reconstruction and state building still remain common needswhere the CDD can help.


13/19

13

The Philippine government envisages the use of CDD approach to attack the problem ofpoverty by engaging the poor in the development process. This is based on empiricalevidence showing that the KALAHI-CIDSS process of empowering the poor andenhancing local governance contributes to poverty reduction. Given the KALAHI-CIDSSexperience and the demand from local government units who underwent the CDD

process, the country is now on the verge of scaling up the implementation of CDD inother areas of the country.

The Indonesian CDD scaling-up experience was mainly in response to governmentsfailure to reach and provide basic services to the poor in remote/isolated areas. Also,after the financial crisis in 1997, there were so many foreign-assisted CDD projectsusing different approaches, procedures, and institutions. CDD scaling up reducedfragmentation of development assistance by simplifying the design, procedures,database, performance indicators, among others, and created synergy towards effectivepoverty reduction. Scaling up, however, does not happen instantly. It should be done instages or phases.

In Cambodia, CDD is viewed as a rural development approach/tool to fight poverty.Given the experiences of Philippines and Indonesia, the government can learn and applylessons, and avoid mistakes. It is important that the poor help themselves especially withthe availability of natural resources, and their capacity in managing these be enhanced.

B. Costs and benefits of scaling upCDD programs are often initiated as responses to crisis situations be these natural,economic or conflict-based. The earlier phases of scaling up may entail higher coststhan what is currently allocated for the specific community development programcombined. A variety of costs and challenges should be expected and planned for. Thepotential costs and challenges may involve administrative overload, poor coordinationwith sectors, political resistance, elite capture and more.

The benefits of scaling up root from greater efficiency, equity and empowerment broughtabout by the principles of community-driven development. Scaling up will manifestimprovements in welfare, social capital and local governance outcomes. Moreover,greater efficiency in delivering basic services and increased effectiveness in use ofpublic investments from increased inter-agency coordination will be accomplished.

When Indonesias PNPM was scaled up in 2009, costs included provision for M&Escheme, supervision scheme, complaint handling, disbursement, coordination, and time.In terms of benefits, the CDD system at the national level helped a lot during disaster orfinancial crisis. For instance, during the recent global economic crisis, the country wasaffected by the influx of returning migrant workers. The central government did not know

who and how many they were, and the effects to their families. It was the communitieswho exactly knew and identified their needs that would not have been known andresponded to immediately through a regular project mechanism.

C. Issues and challenges

There are now quite a few problems in expanding a CDD program because the firstgeneration of these projects started in the 90s in response to a crisis situation. Afterhaving gone through crisis, people basically hung on because they delivered and saw


14/19

14

that the modality could get resources to the ground fast and get infrastructure andservices moving quickly in a transparent manner. More than half of World Banks CDDportfolio in the last 3 years was comprised of second/third generation operations orfirst/second additional financing of existing ones and the reason for this is that theseprojects have basically continued. A quarter to a third of these projects are now in asituation where they are scaling up. For Asia, the imperative has become stronger partly

because there are so many of these types which need to be consolidated. Also, beforethe crisis, Asia had historically the most tremendous growth globally but in mostcountries, it has not been inclusive. Therefore, the imperative to move on inclusivegrowth is quite strong. There are a lot of countries going through the scaling up processand the costs and challenges are very similar coordination, politics, policies, etc.

Some of the potential and actual issues in scaling up CDD are (i) monitoring andsupervision, (b) quality control, (iii) sector coordination, (iv) elite capture, and (v) lack ofadequate decentralization policy framework, (vi) transfer efficiency, (vii) inadequatesystems and procedures, (viii) lack of staff capacity, and (ix) complex funds flowarrangements.

In Indonesia, issues and challenges include (i) coordination, which needs strong politicalwill and clear role of each ministry/office, (ii) confusion due to differences in database,targeting, performance measurement, and institutions, (iii) inefficiency due to duplicationof activities and functions. Also, there has always been a gap between the design,knowledge, and implementation of the program, which requires synergy amongstakeholders to help in assuring quality of implementation. To avoid unnecessarypoliticization in the future, there is a need for careful institutional design andaccountability arrangements.

In the Philippines, some of the issues and challenges in scaling-up CDD include; (a)absence of more stable and longer-term funding for CDD activities; (b) existing laws that

limit community participation in implementation (including monitoring) of communityprojects; (c) lack of bottom-up planning and budgeting processes within nationalgovernment agency systems (currently being addressed through the piloting of bottom-up budgeting approaches), and; (d) top-down delivery of community projects by nationalagencies and local governments which is contrary to CDD principles and practices,among others.

In the case of KALAHI-CIDSS, the project management office has been facingadministrative difficulty particularly with the increase in project coverage to 400municipalities. Administratively, scaling up would test the existing systems forimplementing projects particularly on how to align these with current demands of theproject. With the vision to scale up CDD, problems and challenges are expected which

may be anticipated and minimized by learning the lessons from the experience ofIndonesia at the onset of PNPM Mandiri implementation. Identifying the scale-upchallenges will mitigate the risks involved and make implementation better.

D. Factors that hinder convergence among sectorsSeveral factors hinder cross-sector collaboration: (i) political economy, (ii) technocratshaving better career options/loyalty to sectors; (iii) loss of power or authority and controlover special programs; (iv) existing overlaps in agency mandates; (v) differentapproaches used by agencies; (vi) commitment of current and future NGA budgets to


15/19

15

different departmental priorities; (vii) need to spend NGA budgets within the currentfiscal year, (viii) lack of dissemination/ socialization, (ix) unclear principles, indicators andmechanisms, and (x) non-sharing of database and related information. Such issuesmay be addressed by introducing incentives for sector staff to work with and throughcommunities and local governments. Regular communication and results-orientedmanagement are also seen as imperative in fostering collaboration.

Based on Indonesias experience in converging CDD programs, it is important to startwith a clear vision in consultation with all stakeholders. The vision should include theprinciples, indicators and mechanisms that are understood by everybody at the centraland local levels. Transparency is an issue sometimes as it is hindered by some officialsor parties by not sharing their database and information. Also, dissemination,socialization, and communication are important as there has always been a problem ofrepresentation and high turnover of local officials. The results, effectiveness, and goodand bad practices in CDD based on scientific studies should be communicated andshared. Capacity development of project management office can avoid delays inconvergence process. To prevent misuse of fund, agencies should agree on someprinciples, mechanisms and procedures.

In the Philippines, convergence is very important in CDD scaling up. In DSWD, effortsare under way to converge its 3 major core social protection programs CDD, CCT, andsustainable livelihood- which were separately implemented but are now put into one unit.At the national level, the cabinet is organized into clusters and one of these is HumanDevelopment and Poverty Reduction Cluster headed by Secretary Dinky Soliman.Under this cluster, all aligned agencies are mandated to perform and implement theirprojects as converged programs. However, there are certain inherent difficulties.DSWD is organized and operates sectorally and vertically. With the clustering approach,there will be avenue for agencies to communicate, coordinate and collaborate on theiractivities. The other platform by which convergence can happen is at the localgovernment level. Under a decentralized regime, provinces and municipalities can

integrate and harmonize all vertical programs implemented in their respectivejurisdictions. The government has in place some of the structures, systems, andpolicies that hopefully will provide good impetus for CDD scaling up.

Convergence is basically a challenge of decentralization. The key to convergence is thecreation of a platform for sector programs at the local level, which will facilitate the scale-up. To come up with an agreement among sectors to go through the platform, it isimportant to demonstrate impacts which will show to the national government that thismodality delivers results and is incentivized based on results and outcome.

E. Questions raised

1. LGU reactions to CDD or its scaling upIn Indonesia, only two local governments resist the PNPM Mandiri by not providingcontribution or share. Before, there were more LGUs resisting but these were reduceddue to the involvement of higher political leaders as well as the parliament incommunicating the results of CDD projects.

In the Philippines, the initial implementation of KALAHI-CIDSS Project saw varyingdegrees of LGU responsiveness. To stimulate the responsiveness of LGUs, the project


16/19

16

gave more incentive to responsive LGUs. In the project expansion, the incentive systemwas used as a tool to determine the responsiveness of LGUs before implementing theproject. The project adopted an enrolment process wherein LGUs, after having beeninformed that they qualify for KALAHI-CIDSS, must make a manifestation that they areinterested in joining the project at the first instance. This way, the project was able tomore or less manage the problems by knowing the risks involved once the project

engages the qualified municipalities.

Currently, there are about 400 KALAHI-CIDSS municipalities whose mayors appreciateand are inspired by the CDD process to the extent that they lobby for the CDD scale-up.On 24 February 2011, the mayors together with DSWD went to see the President toexplain how KALAHI-CIDSS inspired them despite the cost and requirements of theprogram from LGUs, and to convince him to support the scaling up of CDD into anational program. This is an opportunity that calls for ADB support to bring the mayorstogether and elicit their inputs to the national CDD Program.

Resistance from local governments is common and almost universal when CDD startssimply because they are in a lot of situations operating at one layer below the existing

local government unit (LGU). Resistance can be combated by showing that the CDDmodel works and incentives are quite common. At the start, local chief executivesshould be sensitized and brought in conferences to share good examples. Goodexamples become the norm and they are somehow awarded. There are cases whereincentive funds for partnerships between communities and local governments have beenset up. Once a community is awarded, it becomes a model to other communities. Thistype of process erodes the resistance combined with support from someone at the top.

2. Current thinking on CDD scaling up within the World Bank

CDD scaling up is the policy advice that World Bank gives to countries that have shownislands of success on CDD implementation. The cumulative impact evaluation on CDDprograms globally show that scaling up does well in delivering infrastructure and

services. It targets well at the community level but not so well the poorest of the poor. Itdelivers infrastructure of lower cost, which is often better maintained and in some cases,depending on what people invest on, it does have income impacts. Surprisingly, thesocial and governance impacts sometimes are not that strong and they dont translatebeyond the CDD project itself.This is therefore an area in which further efforts andfurther research will be put in by the Banks CDD Community of Practice.

3. PNPM Generasi

Indonesia piloted community CCT intervention into the CDD scheme given its widerange of experiences in CDD. CCT communities with better performance in terms ofachieving MDG-related indicators were given block grants. Based on success storiesfrom an evaluation study, the pilot intervention showed significant impact on health andwomens participation, among others, in these communities. Indonesia is now scalingup Generasi using CDD approach with grant support from Millennium ChallengeCorporation. The scale-up will then support the complementation of supply in terms ofproviding needed infrastructures by the community, and demand for cash transfers.NGOs involved in education and health are currently tapped by the project to acceleratethe achievement of MDG targets.

4. Diversity in CDD Implementation


17/19

17

In the Philippines, KALAHI-CIDSS observed the principle of inclusiveness, that is,everybody in a community or geographic location is covered by the project. Thisinvolved areas of different contexts such as areas inhabited by indigenous peoples,conflict-affected areas, and those that are very hard to reach. The difficulty sometimeswas that there was only one model for all areas covered by the project. But over time,the project adjusted to the different context of these areas.

KALAHI-CIDSS is not the only CDD project in the Philippines. The Autonomous Regionin Muslim Mindanao (ARMM) Social Fund is designed to respond to the needs and buildsocial cohesion in conflict-affected areas in Mindanao. There are also infrastructureprojects using CDD approach managed by LGUs, not by communities.

5. Incentives and participation in CDD project

KALAHI-CIDSS has two types of incentive structure. First is the use of criteria agreedto by the community for prioritizing subprojects in the succeeding cycle. This means thatthose who have completed or complied with the agreements in the first cycle can beprioritized in the succeeding cycle. This incentive motivates people to participatebecause well-performing communities get to be awarded subprojects. Second is theMakamasang Tugons performance-based strategy where good performing LGUs andcommunities in the first 3 cycles are awarded additional cycle.

6. Taking people out of poverty thru CDD

Investments in local infrastructure through CDD have definitely an impact on the localeconomy. Taking people out of poverty can require directed assistance for livelihood butthere are very few examples of successful livelihood CDD approaches. The twoexceptions are Brazil and India. From India, the model is being transplanted to SriLanka, Bangladesh, Nepal, and parts of Southeast Asia. Barring those, the experienceis not very good because it is not easy to identify the requisites to create a viable orsustainable livelihood for individual households and for groups.

VI. Community-Driven Development and Institutional Sustainability Establishedunder ADB-assisted Second Urban Governance and Infrastructure ImprovementProject (UGIIP-II) in Bangladesh

Bangladesh representatives, Mr. Md. Nurullah and Mr. A.K.M. Luthfur Rahman, made a briefpresentation on the CDD features of UGIIP-II that aims to improve urban infrastructure andbasic service delivery. The presentation highlighted the provision of performance-basedallocation investment fund to municipalities as a strategy of UGIIP II to ensure citizenparticipation and improve urban governance and management. The strategy encouragesmunicipalities to improve their own governance capacities through the preparation of adevelopment plan that requires citizen participation and formation of coordinating committees at

local and community levels. The presentation showed that these committees are usefulmechanisms for promoting community participation in development. (See Powerpointpresentation in Appendix E6)

VII. CDD LEARNING NETWORK

Ms. Yukiko Ito welcomed the participants to the CDD Learning Network session. The CDDLearning Network has been created to provide a platform for maintaining the momentum of


18/19

18

discussions on CDD among participants, and eventually promote policy discussions, peersupport, and enhance collaboration among CDD practitioners in the region. To support thenetworking, the names of conference participants and their contact details have also beencompiled and circulated among participants.

The CDD Learning Network uses social media as suggested during the Regional Workshop on

CDD and Institutional Sustainability in Jakarta in June 2011. It is meant to be demand-driven,self-administered, and self-sustaining. To make the network simple, the conference secretariatcreated Yahoogroup mail and Facebook account as primary and secondary networking tools,respectively. Individual Yahoo Mail and Facebook accounts and passwords have been createdand distributed to each of the 14 DMC representatives, including a manual to guide theparticipants in using the tools.

Ms. Glorie Mae Olivares and Ms. Honey May Manzano-Guerzon walked the participantsthrough the process of using Yahoogroup and Facebook. Scribd has been created also toserve as a repository of CDD knowledge products such as conference materials and the four (4)CDD country studies prepared under RETA 7543, which can be shared with network members.After the demonstration, participants were given a chance to access their Facebook accounts

and register to Yahoogroup. (See Powerpoint Presentation in Appendix E7)

VIII. CLOSING REMARKS

In his closing remarks, Mr. Bart W. des, Director, RSGS noted that the conference has broughtto light the lessons learned in sustaining institutional impact of CDD, community participation inurban areas, involvement of NGOs in CDD projects, and the role of education in promoting aparticipatory approach. While the lessons discussed are important, these are context-specific,requiring consideration of local circumstances when examining the possibilities of a CDDapproach.

Mr. Edes stressed the great potential in scaling up CDD in countries where the localgovernments are involved in service delivery. An example is the Philippines which is nowworking to expand its CDD initiatives and making CDD a part of national poverty reductionstrategy. CDD is clearly a powerful development tool for promoting inclusive growth andreducing poverty and its scale up can bring significant benefits to DMCs. He hoped thatparticipants were able to identify lessons that are relevant and will work in their respectivecountries.

With the launch of the CDD learning network, Mr. Edes pointed out that the learning and sharingdoes not end with the conference. The network, which uses various social media, will continuethe discussion and exchanges that have taken place during the event. He encouraged theparticipants to join and promote the network to facilitate collaboration, knowledge sharing, and

learning on CDD in the region.

APPENDICESA. List of ParticipantsB. AgendaC. Speech of DG Xianbin YaoD. Speech of Secretary Dinky Soliman


19/19

19

E1-E7 PowerPoint PresentationsF. Abstracts of CDD Country StudiesG. Snapshot of TA 4580-PRC: NGO-Government Partnerships in Village-level

Poverty Alleviation

proceedings _regional conference on cdd_ 31 jan 2012

Documents