ENHANCING CAPACITY - OECD · While capacity development for the environment is the responsibility...

ENHANCINGCAPACITY A basis for greening development

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Sound environmental management is fundamental for green growth, sustainable development andpoverty reduction. This core message from the 1992 Rio Earth Summit remains all the more validtoday as we prepare for Rio+20.

Emerging-market economies and developing countries are heavily reliant on their endowments ofenvironmental resources. Therefore, improved management of these resources can have hugebenefits in terms of industrial production, job creation and incomes, export growth and fiscalrevenues. However, despite sustained efforts to promote better and more effective environmentalmanagement over several decades, the natural resource base continue to deteriorate in manyparts of the world. The greatest impact is felt by developing countries with fewer financialresources to address the challenges of environmental degradation, to adapt to changingenvironments and to pursue green growth strategies.

To reverse this trend, developing countries and donor agencies have to work together to betterintegrate environmental issues in their policy reform agendas. Such a strategy can have manyadvantages and positive policy spill-overs: strengthened capacity for environmental managementwill empower individuals, organisations and society as a whole, and it can create a moretransparent governance of environmental and natural resources. While capacity development forthe environment is the responsibility of domestic actors, international donors can play an importantrole in supporting developing countries.

This summary is based on an OECD guidance document titled Greening Development: EnhancingCapacity for Environmental Management and Governance. It distils lessons learned from theexperience of donors and partner countries in incorporating the environment at the national andsectoral levels. It also reflects a shift from the traditional view of capacity development as a purelytechnical process to one that recognises the importance of country ownership at different levels ingovernments and society. Furthermore, it advocates the application of country systems as entrypoints for capacity development for the environment.

Outlined in this summary are a number of steps to be considered when building capacity foreffective integration of environmental issues into national development plans, national budgetaryprocesses and key economic sector strategies. It identifies the key actors to be engaged indecision-making processes, outlines possible capacity needs and suggests how these can beaddressed. In addition, it provides recommendations for donors on how they can support partnercountries in strengthening capacity development for the environment and what internal capacitydonors themselves may need in order to effectively provide this support.

We hope that this summary will assist international donors and developing country partners in theirefforts to achieve greener and more inclusive growth. OECD stands ready to support these efforts.

Angel GurríaOECD Secretary-General

Message from the OECD Secretary-General

© OECD ENHANCING CAPACITY . 1


INDIA: Green accounting of forest resources

The Indian state of HimachalPradesh has broken newground in sustainable resourcemanagement by developing itscapacity to carry out a fulleconomic valuation of its forestsand the environmental servicesthey provide. The valuationrevealed that the state’s forestscould contribute a staggeringUSD 26.7 billion a year to thecountry’s GDP. Yet the statereceives just USD 10 million ayear in revenue from its forestsand the sale of timber and otherforest products. In order toensure that the true value of itsforests is properly recognised,Himachal Pradesh now appliesa levy on anyone using forestsin a way that affects theservices they provide.Source: www.lead.org.

2 . © OECD ENHANCING CAPACITY

What does greening development mean?

Greening national processes: distinctive features of developing countries

n Natural resources: The centrality of naturalresources to developing countries’ economiesmakes it particularly important to include thevalue of environmental assets and services innational and corporate accounts. This canencourage the development of policies tosafeguard their value.

n The informal sector: A significant number of people in developing countries work ininformal sectors, which poses challenges forimplementing environmental standards. The complexity of many informal sectoractivities means that the implementation ofenvironmental policies contributing to greeningdevelopment relies on the capacity ofstakeholders to develop and implementappropriate measures.

n Opportunity for leapfrogging: The lowlevel of infrastructure that characterises mostdeveloping countries provides an opportunityto move straight to modern, efficienttechnologies. But this opportunity will onlybe realised with sufficient technical capacityand a supportive policy environment.

n Governance: Developing countries cansuffer from weak governance. Effective,inclusive and equitable governance is anenabling condition for, and a measure ofgreening development. It is, therefore,important that governance processes andmechanisms for greening developmentrespond to the needs and interests ofmarginalised groups.

The OECD defines capacity as:

Greening development means buildingsustainable environmental management into suchkey areas of development as national planning,national budget processes, and economic sectorstrategies. It is a process by which betterstewardship of natural capital can contribute toachieving national growth and developmentobjectives, while also addressing criticalchallenges such as natural resource depletion,climate change, energy and food shortages.Furthermore, it can create new business activities,markets, and job opportunities in areas like greenagriculture, clean energy technologies, andservices provided by ecosystems.

Environmental resources and services make avital contribution to economic growth and well-being in developing countries. Their naturalresource sectors drive economic growth andprovide the poor with livelihoods and an importantsafety net in times of crisis. Endowments fromenvironmental resources and services account foran estimated 26% of total wealth in low-incomecountries compared to 2% in industrialisedcountries.

Economic growth based on the unsustainableuse of natural resources is no longer viable in aworld facing the pressures of a growingpopulation, climate change and increasing risks offood shortages. Against this background ensuringthe sustainability of the natural resource base iscrucial. This requires a rapid transition to agreener development path.

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Commitment on capacitydevelopment in the ParisDeclaration on AidEffectiveness:

n Developing countriescommit to integrate specificcapacity strengtheningobjectives in nationaldevelopment strategies andpursue their implementationthrough country-ledcapacity developmentstrategies where needed.

n Development supportproviders commit to aligntheir analytic and financialsupport with partners’capacity developmentobjectives and strategies,make effective use ofexisting capacities andharmonise support forcapacity developmentaccordingly

Source: OECD (2005), Paris Declaration

on Aid Effectiveness, OECD. Paris.


Greening development requires capacity

case for greening development to non-environmental staff and policy makers. It alsoseeks to develop more environmentally specificskills, such as:

n identifying environmental challenges andpriorities and their implications fordevelopment;

n monitoring environmental changes throughgreen accounting;

n sending price signals that prompt changes inbehaviour;

n reforming environmental fiscal systems toencourage more sustainable resourceconsumption.

A key obstacle for many developing countriesin meeting this greening development objectiveis a lack of the above mentioned capacities andskills. This brief summarises how countries canwork with development support providers toaddress these gaps and unlock the benefitsfrom greening development.

Awareness is growing of the intrinsic linkbetween natural resource management andsustainable development. Indeed, developingcountries – with assistance from developmentsupport providers – have made substantialefforts over the years to build and improve theircapacity to manage their natural resource base.However, there is still limited integration of theenvironment into various levels of decisionmaking. A consequence of this has been that thenatural resource base continues to deteriorate.

It is clear that a new approach to capacitydevelopment for environmental management andgovernance is required. Moving beyond thetraditional approach, the focus of capacity buildingfor greening development needs to extend beyondenvironment ministries and environmentalprotection. It should encompass the finance,planning and line ministries, civil society groups,the private sector and local communities.

Enhancing capacities for greening developmentmeans improved understanding of the naturalresource base, and the ability of environmentministries and agencies to make the economic


RWANDA: Programmaticapproach to capacitydevelopment forenvironmental integration

The Government of Rwandasystematically integratesenvironmental concerns into itsnational plan, budget cycle andsub-national planning process.It has programmed capacitydevelopment activities into thismainstreaming effort, whichhas benefited from a highdegree of country ownership:

n The enabling environmenthas been greatly enhancedby convincing the Ministryof Finance of theimportance of theenvironment to nationaldevelopment goals andsector strategies.

n The environment agencyand relevant stakeholdershave become involved inthe poverty reductionstrategy and in the budgetprocess. This has helpedbuild organisationalcapacity.

n Individual capacities havebeen developed through“learning-by-doing”, e.g.valuing ecosystem services,costing environmentaldegradation, draftingguidelines for incorporatingthe environment into localplanning.

Source : www.unpei.org.

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Capacity building for greening developmentshould be country based

line ministries, parliament, the national auditoffice, citizens and civil society groups.

Line ministries may have their own environmentunits which come together in inter-ministerialgroups to address the links between theeconomy and the environment. The inter-departmental nature of such groups reflects thecross-cutting nature of the environment. Moreinformal governmental networks are alsoconducive to sharing information, experienceand good practices.

Although capacity building involves non-governmental stakeholders, the governmentmust take the lead in integrating greeningdevelopment objectives into national policyprocesses.

Developing country contexts varytremendously. Any approach to build andenhance capacity for greening developmentmust therefore be flexible by design and shouldmake use of countries’ own systems.

Using countries’ institutional and regulatoryarrangements to deliver capacity developmentsupport helps to strengthen ownership ofcapacity building efforts. It also enablescountries to better align developmentassistance with their national priorities andpolicies.

Furthermore, using a developing country’spublic financial management system helps tostrengthen accountability and promotetransparency between the ministry of finance,


Capacity on three levels:

n Individual level:Knowledge and skills to setand achieve objectives. Thisincludes the capacity tobuild relationships, trust andlegitimacy (“soft” capacities)and technical, logistical andmanagerial skills (“hardcapacities”).

n Organisational level:Organisational structuresand systems that bringindividual capacitieseffectively together.Organisational capacitypreserves institutionalcontinuity when staffturnover is high.

n Enabling environmentlevel: Policy, legal,regulatory, economic andsocial support systems inwhich individuals andorganisations operate. It isdetermined by policies, ruleof law, accountability,transparency and flow ofinformation.

The national planning process is critical forgreening development. The main entry pointsfor enhancing capacity for greeningdevelopment are national development plans,budgetary processes and economic sectorstrategies.

A five-step framework should be applied whenundertaking capacity develop initiatives at eachof these levels. The five steps are notnecessarily sequential. Nor do all five stepshave to be applied.

1.Assessing the political and institutionalcontext, by conducting an analysis of thenational context, understanding incentivestructures and gaining familiarity with countrylevel analysis of natural resource constraintsand opportunities.

2. Identifying key actors and their capacitydevelopment needs, such as governmentofficials, private sector representatives andmembers of civil society groups. This processneeds to go beyond the institutional level andalso consider the political and economicdimensions that influence the commitmentand performance of stakeholders.

3. Identifying opportunities to shapeorganisational incentives, including findingpossible entry points, setting priorities andoutlining the appropriate timescale, targetsand resources needed to tackle the identifiedcapacity needs.

4. Identifying awareness / knowledgeneeds and existing analytical tools, suchas raising awareness of the role theenvironment plays in achieving economicdevelopment, becoming familiar with existingknowledge products and adopting and usingtechnical tools to make the economic casefor environmental programmes and measures.

5. Identifying options for policy response,ranging from revised priorities andimplementation strategies to specificenvironmental management measures andinvestments.

The capacity development process should seta realistic timeline and match planning andpolicy cycles. It is a cyclical process thatdevelops over the long term. Regular reviewsshould be conducted and findings channelledback into the process.

A framework for greening national, budgetary,and economic sector planning



Questions to ask whenbuilding capacity forgreening national planning

n What political andinstitutional context shapesthe national planningprocess? And does it fosterlinkages betweenenvironment anddevelopment outcomes?

n Who are the key actors ingreening national planningprocesses and do theyhave the relevantcapacities?

n How can capacitydevelopment be designedas a programme ofprioritised activities tailoredto the particular process,entry points, targets,timescale and resourcesrequired?

n What organisationalcapacities should beprioritised to facilitategreening developmentplanning?

n What mechanisms canraise awareness andimprove access to highquality knowledge productsthat support a greendevelopment path at bothorganisational and individuallevels?

n What kind of training andtechnical support can beprovided to use specificanalytical tools for greeningdevelopment?

n How can citizens engage inthe national planningprocess and influencespecific outcomes?


Enhancing capacity for greening nationaldevelopment planning

Steps for enhancing capacity for greening national development planning

National development planning is an importantdriver of a country’s environmental managementsystem. Greening national development plansinvolves clear prioritisation, realistic targets, and aprogrammatic approach developed over severalplanning cycles. It is particularly important tohave a strong participatory approach that createsdomestic ownership and accountability, facilitateslearning, and enshrines the involvement of civilsociety.

What capacities are required for participatorygreen development planning?

n capacity to help build long-term environ -mental constituencies and include all affectedstakeholders;

n capacity to shape effective institutionalmechanisms that systematically provideenvironmental input to the nationaldevelopment planning process;

n capacity to frame environmental issues in thelanguage of the policy maker and to enableother stakeholders to relate environmentalissues to development priorities like growthand poverty;

n capacity to co-ordinate initiatives fundeddomestically and by development supportproviders.

Assess national planning cycle andinstitutional setup;

Link greening development objectives to national policy process;

Enlist officials aware of environment-development linkages.

Integrate results from environmentalassessment into national planningprocesses;

Enhance environmental governanceand accountability;

Legalise the rights of non-governmental stakeholders toparticipate in processes to greennational development plans.

Identify key actors and their capacitydevelopment needs for greeningnational processes;

Key actors include staff in environment,finance, planning and line ministries/agencies, civil society groups, privatesector and other “champions”.

Equip key actors with tools forecosystem assessment and economicanalysis to make the case for greeningnational development plans;

Build capacity to integrate technicalanalysis into national planningprocesses;

Collect data to strengthen the case forgreening development planning.

Create incentives for planningofficials to consider the role of theenvironment in meeting developmentobjectives;

Involve environment officials innational planning processes (e.g. inworking groups).


SRI LANKA: Greening thePoverty Reduction StrategyPaper (PRSP)

The integration ofenvironmental issues into SriLanka’s PRSP in 2003 wasthe result of more than 10years of gradual capacitydevelopment that involved aset of reforms of theinstitutional structure:

n In 1990, an inter-ministerialcommittee led by theMinistry of Environmentprepared the first NationalEnvironmental Action Planof an Asian country.

n In 1991 a powerful inter-ministerial NationalEnvironmental SteeringCommittee (NESC), chairedby the Secretary to theTreasury, was established.

n Subsequently, ten sectoralCommittees onEnvironmental Policy andManagement wereestablished, chaired by therespective secretaries of theline ministries (Energy,Transport, Health, Water,etc.).

n By the end of the process,the Ministry of Environmentacted as a facilitator andsucceeded in creating anenabling environment thatencouraged the lineministries to take leadershipand ownership forintegrating environmentalissues into theirdevelopment plans.

Source: Bojö, J., et al. (2004),

“Environment in Poverty Reduction

Strategies and Poverty Reduction

Support Credits”, World Bank

Environment Department Paper,

No. 102, World Bank, Washington, DC.

Development support providers play animportant role in assisting developing countriesto enhance the capacity to green their nationaldevelopment planning processes. They shouldalso help countries to assume leadership of thecapacity development process.

As development support providers increasinglychannel their assistance through budgetsupport, they need to ensure that theircommitments are in line with the principles of theaid effectiveness agenda. Among the actionpoints they should undertake to help greendevelopment at the national level are:

n Expanding the focus from policies andplans on capacity development to actual

implementation to build a ‘results orientation’at all levels of decision making.

n Making effective use of mechanisms forco‐ordinating development support inorder to promote a consistent approach togreening development and the associatedcapacity development efforts. Where suchco‐ordination mechanisms are weak or non-existent, support should be provided todevelop them;

n Demonstrating good practice by integratingenvironmental issues into the execution of theirown funding instruments to set an example.They should also collaborate to develop sharedknowledge products from lessons learned.

The role of support providers in greening nationalplanning processes


Case study



Reforming the budget process is likely to bemore challenging than that of the planningprocess – the stakes for entrenched actors arehigher because national budget processes arethe mechanisms through which nationalresources are appropriated and distributed.

Capacity development for greening the nationalbudget process needs to be strategic. Itincludes the capacity needs of finance andenvironment ministries and agencies. A keypriority is to ensure that environment officialshave the capacity to present evidence on howthe environment achieves specific developmentoutcomes in a language that can beunderstood by budget officials.

In order to do so, environmental actors must havea good understanding of the budget cycle(formation, approval, execution and oversight), thedecision points for introducing budget reforms,and demands on fiscal policy. Important skills aredata collection, management and priority setting.

Providers should target their capacity develop -ment initiatives at weaknesses in existingenvironmental management and fostercollaboration between finance and environmentministries and agencies. A capacity develop -ment framework for the budget process shouldbuild on:

n good fiscal knowledge;n involvement and commitment of all

government players and stakeholders; n training and human resource development; n targeting of key weaknesses;n working with existing synergies;n improving cross-sector linkages.

Traditionally environment agencies account for lowshares of national budgets, while finance ministriescontrol revenues from major sources like fossil fueltaxes. But as climate change climbs the politicalagenda, environment ministries and agenciesare increasingly part of budget formulation andinteract more closely with finance ministries.

Enhancing capacity for greening national budgetprocesses

Annual environmentalprotection budgets generallyaccount for between 1% and2.5% of public spending.

Source: Lawson, A. and N. Bird (2008),

Environmental funding: How to increase the

effectiveness of public expenditure in

developing countries, ODI, London.

The capacity needed Enabling environment Organisational level Individual level

Stakeholders understandthe importance ofenvironmental issues

Stakeholders involved in theinstitutional process forpreparing national budget

Finance ministry hasincentives and mechanismsto assess economic value ofenvironmental policies

Finance staff are aware of economicvalue of environmental policies andprogrammes

Environment agenciesformally involved in nationalbudget process

Finance ministry agrees on roleof environment agency inbudget process

Finance and environmentofficials understand howenvironment stakeholdersmay participate

Environment staff understand howbudget process works and how toengage effectively

Analyse links betweenenvironment anddevelopment – make theeconomic case

Budget allocations to spendingministries in accordance withnational plan and priorities

Finance ministry hasincentives to includeenvironmental priorities andmeasures in budgetformulation

Environment staff skilled in economicvaluation, programme costing andstating the environmental case tobudget officials

Formulate environmentalmanagement measures andenvironmental fiscal reformin budget

Budget process includesenvironmental managementmeasures, environmental fiscalinstruments, subsidy reform

Environment agencyparticipates effectively indrafting budget proposals andfinance ministry adopts itsguidance

Environment staff can analyse andcommunicate benefits of budgetedenvironmental measures, economicinstruments, subsidy reform

Environment-developmentindicators and monitoringmechanisms used

A well functioning national auditsystem promotes soundexpenditure management in allgovernment agencies

Environment and lineministries have managementsystems to disburse fundsefficiently to meet policypriorities

Environment staff skilled in projectscreening, management andmonitoring/evaluation skills


COSTA RICA: Capacitydevelopment for financialanalysis of climateinvestments

UNDP has provided supportto Costa Rica as part of aglobal programme on capacitydevelopment. The programmeaims to raise the awarenessand technical skills needed bygovernment bodies – includingfinance and line ministries – toassess the investment needsfor climate change adaptationin key sectors. Specificcapacity developmentactivities include collaborativeinitiatives to identify adaptationpriorities and actions and todevelop costingmethodologies used to assessthe financial requirements tocarry out these activities.Some lessons learned are:

n Measures must include anaccurate assessment ofcosts and set priorities tobe considered and includedin a country’s financial plan;

n It is useful to distinguishinvestment costs fromoperation and maintenancecosts to adequatelyconsider trade-offs betweenmeasures;

n A cost assessment ofvarious options isparticularly challenging insectors with greateruncertainty and lessexperience in public policy,such as biodiversityconservation.

Source: www.undpcc.org

Case study

Providers of capacity development support forgreening budget processes should:

n Work with developing countries on howto integrate environmental issues into thebudget process. They should also ensurethat environment agencies (widely fundedfrom off-budget sources) are notmarginalised as they switch to funding fromthe national budget.

n Support the acquisition of skills such asvaluing the economic costs and benefits of

environmental policies and preparing publicenvironmental expenditure reviews.

n Support the preparation of guidelines onhow environmental programmes can bedeveloped to align them with the budgetaryprocess and demonstrate their contributionto poverty reduction.

n Provide the resources needed to greenbudget processes while national experts setthe priorities. Such an arrangement complieswith commitments to use country’s existingsystems.

The role of support providers in greeningbudget processes


Steps for enhancing capacity for greening national budget processes

Assess budget cycle and institutionalset-up;

Link greening development objectivesto budget allocations;

Enlist officials aware of environmentalimplications in budget planning.

Use results from environmentalanalysis in budget planning;

Consider proposals on environmentalfiscal reform;

Broaden stakeholder participation inbudget process.

Identify key actors and their capacitydevelopment needs for greeningnational budgets;

Key actors include staff in finance,planning, environment and lineministries/agencies, civil societygroups and other “champions”.

Provide environment staff with abetter understanding of the budgetprocess;

Enhance communication andnegotiation skills of environmentstaff to participate in budget process;

Offer budget officials training on howto undertake and apply economic andassessment tools for environmentalvaluation.

Create incentives for budget officialsto assess costs/ benefits ofenvironmental assets and services;

Enable environment staff to providesupport or participate budgetaryplanning (e.g. through collaborationwith budget officials).


Natural resource sectorsdrive economic growth inmany developing countries

n Agriculture is the largesteconomic sector in Africa,generating over USD 100billion annually andrepresenting 15% of thecontinent’s total GDP.Rising global food pricesoffer much economicgrowth potential. But soilerosion has degraded anestimated 16% of cropland.

n The forestry industrycontributes to more than10% to GDP and employsaround 40-60 million peoplein developing countries.

n It is estimated that around95% of the world’s 35million fishermen live indeveloping countries. Butfish stocks are decliningfast, further curbing pro-poor growth.

Sources: McKinsey (2010), McKinsey on

Africa: A continent on the move,

McKinsey Global Institue, New York;

OECD (2008), Natural Resources and

Pro-Poor Growth: The Economics and

Politics, DAC Guidelines and Reference

Series, OECD, Paris.


Enhancing the capacity to green key economicsectors

n In turn, finance and planning ministries oragencies that usually co-ordinate sectorplanning need to understand the rationalebehind an enhanced role for the environmentagency and agree on that role across eachprocess.

n At the same time, government actors need tobe aware of the role non-govermental actorsplay and involve them in the planning process.This should go beyond simple consultation toreal engagement.

n Furthermore, sector-based capacitydevelopment should recognise the cross-cuttingnature of the environment. Much current focusis on how policies and measures can be used togreen sectors like energy, agriculture, fisheries,water and forestry.

Governments use a variety of instruments toinfluence and shape the development andenvironmental outcomes of economic sectors.These include changing regulatory andenforcement measures, introducing or reducingfiscal measures, reforming markets orderegulating production, and influencingconsumer demand.

Sectors are also affected by the broader enablingenvironment such as the effectiveness of publicfinancial management, procurement systems,oversight, accountability and the engagement ofstakeholders:

n It is critical that the relevant environment ministryor agency understands how sector planningand budgeting processes operate if it is tobecome an integral part of these processes.

Steps for enhancing capacity for greening economic sectors

Assess sector planning processes andinstitutional set-up;

Link sectoral planning to greeningdevelopment objectives;

Enlist officials aware of environmentalimplications on sector planning.

Establish environment units in lineministries;

Integrate results from technical andpolicy analysis to on the role of theenvironment in sector strategies.

Identify key actors and their capacitydevelopment needs for greening sectorplanning processes;

Key actors include staff in lineministries/ agencies, environmentofficials, central authorities, civil societygroups and other “champions”.

Raise awareness on the role of theenvironment in achieving sectortargets;

Provide knowledge products andtechnical support for assessmentand analysis of environmental assetsand services.

Create incentives for staff in lineministries to learn about environment-sector linkages;

Create opportunities for environmentstaff to participate in sector planningprocesses.


Building capacity for greening economicsectors requires that development supportproviders understand the planning processes,their entry points, and the pressures to whichtheir strategies respond. Vested interests maymake sectors resistant to greeningdevelopment, while their planning processesare less clearly formulated than for nationalplanning and budgeting. Against thatbackground, support for capacity developmentfor greening economic sectors should:

n Use capacity development initiativesto address priority weaknesses.Common methodologies for reportingshould be developed to help overcomepoor accountability due to thefragmentation of the economic sector.

n Join forces with other relevantprogrammes. Capacity development forgreening economic sectors can beincorporated into on-going programmesfor capacity development in each sector.

n Adopt a long-term iterative approach.Support providers should aim to learn lessonsfrom using a programmatic approach andbuild these into subsequent planning cycles inorder to achieve a lasting improvement.

n Improve sectoral co-ordinationmechanisms. This is critical to ensure thatcross-cutting issues, such as theenvironment are adequately prioritised.

n Set capacity building for individualsectors within the wider context. Sectorsare complex systems and any capacitydevelopment initiatives must be aware ofbroader national objectives and specificpolitical, social and contextual factors.

n Break the task into bite-size pieces.When a sector is too large to deal witheffectively, one should focus on a sub-set ofthe sector, while being aware of the broadersector and to engage a large number ofstakeholders within the sub-sector.

The role of support providers in greeningeconomic sector strategies


South-south co-operation(SSC) is an importantmechanism through whichdeveloping countries candevelop some of thecapacities they need forequitable and sustainableenvironmental governancein a specific sector.

SSC allows countries with a

similar natural resource base,

economic development,

political structures and social

objectives to help each other

reinforce institutional

measures and technical

capacities for goals such as

sustainable environment

management.

One such co-operation

mechanisms is the

Mesoamerican Environmental

Sustainability Strategy (EMSA).

It began in 2008 and brings

together the environmental

ministries of Belize, Colombia,

Costa Rica, El Salvador,

Guatemala, Honduras,

Nicaragua, Panama and the

Dominican Republic.

With the objective of achieving

a more sustainable ecosystem

service provision, EMSA

agreed to strengthen the

Mesoamerican Biological

Corridor by putting in place an

inter-connected regional

system of protected areas, an

expert network for integrated

hydrographic basin

management, and a

Mesoamerican system of

economic and social valuation

of ecosystems.

Source : UNCBD (2010), South-South

Co-operation on Biodiversity, Newsletter,

Volume 1, Issue 1, UNCBD, Montreal.


n Paris Declaration on AidEffectiveness calls fordevelopment supportproviders to commit toaligning their analytical andfinancial support withdeveloping countries’capacity developmentobjectives and strategies.

n Over the past threedecades, severaldevelopment supportproviders have adoptedpolicies, procedures andstrategies that commit themto promote environmentallysustainable development.

n Environment-related officialdevelopment assistance wasUSD 26 billion in 2009, a45% increase from 2007.

Enabling environment Does the development support provider:

Organisational level Does the development support provider:

Individual level Does the development support provider:

Environmental policyframework

Environment programmecommitment

n Have a policy on support to the environment?n Have a policy on integrating environmental considerations into country programming?n Have a policy consistent with other multilateral and bilateral development organisations?

n Treat the environment as a programme or as a sector?n Propose financial support for environment-related programmes at regional or country level?n Propose active programmes to support capacity building for environment agencies?n Run active programmes to integrate the environment into development planning?

Environmental staffing andresponsibilities

Guidance on capacitydevelopment and countrysystems

Cross-practice programmecapacity

n Have a dedicated environment unit?n Have regional- or country-based environmental advisors?n Offer environmental training for non-environmental staff members?

n Have a dedicated unit specialising in capacity development knowledge and practice?n Have any internationally endorsed best practice guidance on capacity development? n Offer guidance on applying best practice to support the strengthening of country systems?

n Understand needs assessment and determine realistic time frames and outcome indicators?n Give organisations incentives to build capacities for greening development that meets the needs of the

country concerned?” n Have mechanisms for cross-practice knowledge management, monitoring and evaluation?

Knowledge and experience of– environmental governance

and integration,– economic and poverty-

environment linkages– results-based management

n Have any best practice guidance on capacity development?n Have any best practice guidance on enhancing capacity for greening development?n Have any reviews or evaluations of past initiatives to support capacity development for environmental

management and governance?n Have staff members with skills in programme preparation and results-based management?


Development support providers and theircapacity needs

Development support providers face two keychallenges:

n how to tackle the institutional and technicalaspects of greening development.

n how to align capacity building for greeningdevelopment efforts with existing countrysystems.

The first step for development supportproviders should be to assess their owncapacity to build enabling environments,organisational capacity, and individual skills.

Sustained assistance from developmentsupport providers – bilateral and multilateraldevelopment co-operation and environmentagencies – helps developing countries buildsuccessful capacity for greening developmentand meet their environmental conservation anddevelopment objectives.

In recent years the focus has shifted fromtechnical assistance to collaboration withdeveloping countries. Development supportproviders should deliver support that meetsidentified needs, determining priorities inresponse to environmental threats andopportunities in developing countries. They should use the strengths and address the weaknesses of local environmentalmanagement and governance systems. When possible, they should contribute toenvironmental initiatives already underway.



n Nurture local ownership. Capacitydevelopment support is more likely to besuccessful when it works towards meaningfuland achievable goals that are priorities fordeveloping countries. Such an approachencourages countries to invest in leadership,oversight and management of support.

n Focus on results. Measurable results arethe cornerstone of effective capacitydevelopment. They emphasise theachievement of outcomes and long-termimpacts rather than mere measurement ofinput and output and enable developmentsupport providers to evaluate progress andbuild on lessons learned.

n Implement best practice guidance. Suchguidelines can help identify key principlesand tools required to deliver effective supportfor capacity development.

n Reflect and learn. Support providersshould regularly evaluate their activities toadjust their strategies and enhance theirinitiatives on capacity building for greeningdevelopment. “Learning-by-doing” shouldbecome an integral part of an overallprogrammatic approach.

n View capacity development for theenvironment as underpinning alldevelopment support. Capacitydevelopment for environmental managementmust be seen as a cross-cutting strategicissue. As such, it should be a focal point at alllevels of design, implementation and valuation.

n Collaborate across agencies. Developmentco-operation agencies may lack the technicalexpertise and operational knowledge to buildcapacity for environmental integration. Theymay delegate some tasks to their nationalenvironment agencies or work with themunder twinning arrangements. Collaborationmaximises the comparative advantages ofdifferent agencies within a providergovernment.

n Harmonise work with other developmentsupport providers. Harmonisation ofdevelopment support is a fundamentalprinciple of aid effectiveness. It is critical thatdevelopment and environment agenciesoperating in developing countries harmonisetheir approaches to ensure effectiveprogramme delivery, facilitate exchange ofknowledge and expertise across agencies,and to avoid duplication.

How development support providers can enhancetheir capacity for greening development

Capacity development involvesmore than just a transfer of skillsand is first and foremost aboutthe collective institutionalcapabilities needed to achievenational goals and to contributeto changing social values.Country leadership to create thespace for change is critical, butthe context determines what ispossible at any given time.

Setting specific priorities requiresa joint understanding anddialogue around a set offundamental questions: capacityfor what, by whom, why andhow? Several elements are

important to consider whenprioritising capacity developmentefforts:

n Seek collaboration. It isessential to have a sharedunderstanding of objectivesand priorities in addressing aparticular challenge andreadiness for change. Jointapproaches allowdevelopment supportproviders to understand localperspectives better, whileensuring a degree ofdeveloping country ownershipand leadership of the changeprocess.

n Be transparent and talkwith key stakeholders.Capacity development is adynamic process and requiresregular consultation anddialogue. Transparencyrequires the participation ofkey stakeholders (civil societygroups, parliament, press, andothers) wherever possible.Those involved will need toregularly assess the need forpolitical support and how toachieve it.

n Start small, learn andadapt. Countries often tendto set overly ambitious targets

but underestimate timeframes.Capacity development oftenresponds well to more humblebeginnings, associated with amore gradual learning andscaling-up process.

n Target “pockets of energy”and opportunities for “win-wins”. The most effectiveinitial priorities for support areoften those where readinessfor change already exists andwhere win-win arrangementsare possible for bothdeveloping countries anddevelopment supportproviders.

Prioritising capacity development initiatives


Greening Development: enhancingcapacity for environmental managementand governance

Economic growth based on the unsustainable use of natural resourcesis no longer viable in a world facing the pressures of a growingpopulation, climate change and increasing risks of food shortages.Against this background ensuring the sustainability of the naturalresource base is crucial. Enhancing capacity for environmentalmanagement is a key element in achieving this transition to a greenerdevelopment path.

The OECD’s policy guidance on Greening Development: EnhancingCapacity for Environmental Management and Governance is intendedto assist developing countries – and providers of development support– in their efforts to move to a greener development path. This policybrief outlines the key messages from that guidance. It shows the mainsteps required to build capacity for greening national developmentplanning, national budgetary processes and key economic sectorstrategies. It identifies key actors to be engaged in the decision-making processes, outlines possible capacity needs and suggestshow these can be addressed.

For more information:www.oecd.org/dac/environment D

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ENHANCING CAPACITY - OECD · While capacity development for the environment is the responsibility...

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