CONFERENCE PROCEEDINGS

The Asian Development Bank (ADB) held a Regional Conference on Community-Driven Development (CDD) on 31 January 2012 at the ADB Headquarters in Manila. The conference provided an opportunity to share and distill lessons from four (4) CDD country studies including CDD scale-up, and launch the CDD Learning Network to promote policy discussions, peer support, and knowledge sharing. It brought together around 90 participants from ADBs developing 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 community participation, involving NGOs in CDD project implementation, and promoting participatory approach through Saemaul Undong education, as well as lessons from global experiences in scaling up CDD. Discussions revolved around issues on CDD implementation as well as challenges and opportunities for scaling up CDD in Asia and the Pacific. (See Agenda in Appendix B) I. A. OPENING SESSION Welcome Remarks

Director General Xianbin Yao of the ADB Regional and Sustainable Development Department (RSDD) opened the conference, and welcomed participants and resource persons. He emphasized 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 trying to avoid mistakes done by others. DG Yao stressed that community empowerment is important to ensure maintenance and sustainability of infrastructures beyond project completion. He shared the belief of Nobel Prize awardee 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. Inclusive growth 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 can become 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 from lack of sanitation, the challenge is on how to support and empower them, instead of dominating and alienating them. He stressed the importance of the conference and hoped that the event would allow for intensive learning on lessons from CDD case studies and scaling up. (See Speech in Appendix C)

B.

Keynote Address

Honorable Corazon Juliano-Soliman, the Philippines Secretary of Department of Social Welfare and Development (DSWD) stressed the importance of inclusive growth and how it works for the poor 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 (KALAHICIDSS) contributes to inclusive growth. KALAHI-CIDSS aims to reduce widespread poverty through empowerment of citizens and promotion of good local governance. Lessons learned from 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 community volunteers, (iv) reduction of corruption or misuse of funds through strong community participation in CDD mechanisms, and (v) potential of CDD programs to progress further by devolving local implementation to responsive LGUs. The Secretary noted the support of Philippine President Benigno Aquino III to elevating CDD into a national strategy for poverty reduction. CDD is now being scaled-up into a national CDD program (NCDDP) which is envisioned to integrate local empowerment, participatory governance, and improved local capacity. The NCDDP, however, faces a number of challenges such as lack of more stable and long-term funding for CDD and need for certain national government agencies and local government units to fully appreciate and eventually integrate CDD processes into their operations. To move towards fullscale implementation of NCDDP, it is necessary to have a transition period that will involve adjustment of legislative mandates to provide LGU incentive systems; generation of interagency support to pilot the program; and creating a CDD training institute for program implementers. Secretary Soliman noted that the success showcased by KALAHI-CIDSS and other CDD projects in the Philippines, and the demand from communities and local chief executives will give a strong push to the proposed NCDDP. It is important to ground scale-up efforts on experience and the KALAHI-CIDSS experience is proof that once people are allowed to determine the course of their own development, the environment becomes conducive for communities, local governments, and national government agencies to take more concerted action in responding to local needs. In her final note, the Secretary stressed the importance of the conference in nurturing a strong culture of learning and sharing of experiences, and encouraged 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 Social Development Division (RSGS) of RSDD, briefed participants on the conference flow and topics to be discussed, as well as the housekeeping rules.

II.

PRESENTATION OF CDD STUDIES

The presenters - Raul Gonzalez (Philippines), Sulton Mawardi (Indonesia), He Liu (Peoples Republic of China), and Djun Kil Kim (Republic of Korea) discussed the issues and lessons learned on distinct topics covered by the 4 CDD studies conducted under RETA 7543-Sharing Knowledge on CDD in Asia and the Pacific (See Powerpoint presentations in Appendix E1-E4 and paper abstracts in Appendix F). 2

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 in the Philippines. Towards the latter part of the project in 2008, DSWD launched the Makamasang Tugon or the Peoples Response Pilot, which involved 33 municipalities in 17 KALAHI-CIDSS provinces. This pilot had two objectives: (i) to institutionalize the KALAHICIDSS empowerment activity cycle into the local planning processes of LGUs, and (ii) to transfer the responsibility of KALAHI-CIDSS implementation from DSWD to municipal governments. The KALAHI-CIDSS was extended in early 2011 and now operates in 48 provinces. Issues. The sustainability of CDD as a development strategy is surrounded by several major issues: (i) turnover of local executives during elections wherein a new administration tends to discontinue the previous regimes support programs; (ii) insufficient funds to finance CDD projects on a long-term basis; (iii) existence of a legal impediment that inhibits the participation of village residents in the implementation and monitoring of subprojects; (iv) major decisions on the allocation of development resources still being made at the national level despite decentralization; (v) absence of a national government directive or enabling law that encourages or 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 processes of KALAHI-CIDSS; (ii) transparency of the project selection process, which strengthens the responsiveness of local planning and budgeting systems to the needs of the poor, (iii) community participation, which lowers costs and improves construction quality of subproject investments; and (iv) shared responsibility between village communities and local governments for the operations and maintenance of local subprojects, which enhances sustainabiilty. (ii) Community facilitation is essential. Social preparation should not be viewed as a cost but as an investment in human capital formation. Investment in social preparation is immediately manifested through improved community capacity to manage village subprojects. (iii) Local governments will need guidance and time to adopt CDD principles and practices and lead local CDD implementation. Most LGUs have positively responded to CDD goals of enhance governance and improved service delivery but continue to struggle with the adoption of new values, roles and relationships. B. Urban Community Participation in Neighborhood Upgrading and Shelter Sector Project- 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 the project, the neighborhood upgrading component (Component 3) used a CDD approach to deliver infrastructure in urban slums and rural villages. The project improved 6,800 hectares of urban slum areas in 32 cities within 17 provinces in Indonesia. This presentation focuses on

community participation in neighborhood upgrading based on a study in six (6) villages benefited by the project. Issues and Recommendations. Community participation in urban areas is lesser compared to rural villages due to weaker social cohesiveness. The poorest and marginal people were not systematically encouraged in community participation process and womens participation was generally weak. The elite still seem to dominate the decision-making process particularly the selection of subproject proposals. The authority in making this decision was with self-help groups and public works agency at the district level. Meanwhile, participation in subproject implementation is high among subprojects implemented by communities themselves (SP3) compared to those implemented by contractors (SP2). Transparency and accountability were also higher in subprojects implemented through SP3 type. To address the issues in promoting and sustaining citizen participation, the following are recommended: (i) All development practitioners should have deeper understanding of the communitys social culture. (ii) Raise common awareness on the importance of the participatory approach through organic mechanisms of facilitation. These organic mechanisms denote the use of informal and more personal and adoptive approaches that put community members in a partnership 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 can complicate the implementation of a development initiative. (iv) To maximize the degree of community participation, ensure that planning of an initiative is in the hands of the beneficiaries. (v) Make necessary adjustments to participatory programs implemented in urban areas as opposed to those is rural areas. C. Role of NGOs in the Implementation of CDD Pilot Project at the Local/Village Level- 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 regards CDD 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. It supported 3 types of subprojects: (i) improvement of small-scale infrastructures and services in project communities; (ii) funding for community development; and (iii) improvement of natural resources and environmental protection in project communities. China boasts of large-scale government participation in addressing poverty but it acknowledges some weaknesses. NGOs supplemented what the local governments lacked. Three 4

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 local government. Both parties often sought discussion, coordination and the resolution of problems together. Action Aid in Jingxi County, on the other hand, demonstrated a medium level of collaboration with the government and there was clear division of work. World Visions early experience in Inner Mongolia Autonomous Region reaped some problems due to improper communication and coordination with local government and communities. In general, the involvement of these NGOs in the project helped to promote citizen participation, build the capacity 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, and geographic 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 experience in working with rural villagers, understand local culture and customs, and establish a good 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 Kil Kim (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 SU movement brought tangible and intangible benefits that made possible the long-term growth in South Koreas per capita income and well-being. One of the essential benefits reaped from the SU movement was the sweeping change in mindset of Korean people. Through Saemaul education, the Saemaul spirit of diligence, self-help and cooperation was instilled onto trainees from both urban and rural areas. The transformation in peoples mentality has driven rapid development in South Korean society. Objectives & Mechanics. Saemaul education began with training leaders from villages on Saemaul spirit and modern agriculture technologies to establish Saemaul leadership, and promote community development. Training opportunity was given to elite Saemaul leaders who showed positive leadership. Those trained were encouraged to promote SU participation in community development. At the onset, all trainees with various social backgrounds were put in the same training camp at the Training Institute. They were taught practice-oriented Saemaul spirit and engaged in group discussions on SU best practices. The trainees were supported by post educational programs.

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

Role & Contribution. Saemaul education was an important factor in promoting widespread participation in the SU movement. The trademark campaign of Saemaul education expanded from Saemaul leaders in rural villages and local administration officers to members of the urban elite. Dissemination of SU success stories by the state-controlled media were likewise an important factor in increasing the popularity of the SU movement. In the midst of security threat and political situation in the 1970s, Saemaul education played an important role to rally people to modernize communities through public education by evoking can-do spirit of confidence among the South Koreans who have long suffered from colonialism and war since the late 19th century. Issues encountered. The political situation during the latter half of the 1970s caused difficulty in continuing SU participation. The democratization movement by dissident leaders from political, religious, labor and student circles discouraged SU participation, condemning Saemaul education 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 clandestine labor movement encouraged by a small number of progressive religious leaders and Marxistoriented student activists. Another issue SU faced was the criticism of its trademark quality of camp-in trainings. The quasi-compulsory institutionalization and its military-style training method often brought about reluctant participation of the urban elite in the camp. These disinclinations certainly weakened nationwide participation in the SU movement. Lessons learned. Key lessons drawn can be from the SU movement experience in using education and training as a means for promoting participatory approach to community development. (i) The Saemaul Spirit was institutionalized as the operation principle of CDD to promote SU participation. (ii) SU participation was activated through camp-in training method by which rural and urban elite from both public and private sectors were put in the same camp. (iii) Education at the campaign training center transformed ones mindset and attitude through 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 Studies Moderator: Wolfgang Kubitzki, ADB Panelists : 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 made possible by the bilateral agreement between WB and Philippine government in 2003. Initially, there was strong reluctance among central government agencies as well as local government units because in the past, central government funds to village communities would always pass through local governments, especially municipal mayors. Over time, however, as the mayors became more deeply involved in the KALAHI-CIDSS program, they began to like the process and they are now strong supporters of the system. The reason is that mayors see that if the money does not

pass through them, no one can accuse them of corruption; at the same time, they can always take credit for all the projects built by KALAHI-CIDSS. In Indonesia, some actors in local governments are against direct channeling of funds to communities because many of them still practice of bad governance. If bureaucrats channel 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 reluctant because they dont believe that the community will use the money honestly. In PRC, the previous poverty alleviation strategy provided funds to needy villages but this developed complacence among villagers thereby deterring self-development. Funds were also sometimes controlled by village leaders causing reluctance among villagers to participate in a project. The introduction of CDD allowed direct channeling of funds to communities which demonstrated the potential for institutionalizing community participation and promoting motivation for self-development. At the onset, there was reluctance to directly channel funds to communities due to danger of fund misuse but this was overcome with the launch of CDD approach. B. Challenges to community participation and empowerment In the Philippine KALAHI-CIDSS Project, competition is used as a mechanism for selection of community projects as well as for allocation of scarce development resources at the local level. The assessment confirmed that the use of competition is actually the main energizing element in KALAHI-CIDSS program and a distinguishing feature from all other programs in the Philippines. In fact, competition is the main reason for the high degree of community participation in the project. However, as there is politics in the selection process, there can sometimes be occasions of collusion and politicking which run counter to CDD principles. Based on field interviews in PRC, village leaders are reluctant to give way to collaborative decision-making process because being the authority in villages, they control resources and public affairs. For instance, in the expansion of the CDD Pilot Project after 2009 in Shaanxi Province, there was a village that cancelled the project because of uncooperative attitude of the village leader. In Indonesia, even if there is a mandate on participatory planning at the national level, in practice, 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 directly participating in community subprojects. Community participation, however, can be increased by using the level of participation as one of the criteria for subproject selection, as demonstrated by PNPM Rural. Communities where there is low participation in meetings will receive low priority in subproject selection. A balanced gender representation in inter-village meetings also promotes participation as decisions will not be solely made by village leaders. In South Korea, fair competition among the rural communities was induced by the catalytic strategy of the government support according to leadership, cooperation, trust, and the community spirit. C. Preventing elite capture

In the Philippines, although the most influential individuals in the selection of KALAHICIDSS subprojects are local government officials, this need not be interpreted as elite capture of subproject processes and benefits. For one, there is widespread satisfaction of 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, village officials are credible to residents and that these officials and residents often have a confluence of views on community priorities. At the onset of KALAHI-CIDSS, village officials were systematically excluded from the project by design, because of the fear of elite capture. Because of their exclusion, many local officials were reluctant to support KALAHI-CIDSS. Over the years, KALAHI-CIDSS has sought to achieve the delicate balance between the participation and support of local officials and the prevention of elite 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 countrys democratization process. However, elite capture can be reduced by self-help community organizations or the democratically elected BKMs who are involved in implementing local development projects. In PRC, elite culture is also a tradition in rural areas, which puts great responsibility on the elite to help the poor or allows the elite to promote their self-interest. As the CDD Pilot Project introduced a new approach in PRC, it drew the attention of local governments to focus on monitoring and complaint handling system, which worked well as elite capture has not yet occurred. However, if PRC will scale up the CDD approach in large areas in the future, elite capture can become an issue. In South Korea, the elite capture by the local administration officers was reduced after the 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 of local 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, subproject approval, and subproject implementation stages. When the subproject reaches the operations and maintenance stage, there is a need for a more formal organization; this can 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; a parent-teachers association for school facility subproject; or a cooperative for economicoriented subprojects such as rice or corn mills. In Korea during the Saemaul Movement, rural communities conducted Village General Meeting where villagers discuss their development needs. Traditional clubs like savings club and womens club also helped to promote participation in the SU Movement. E. Constraints and facilitating factors to CDD adoption 8

In Indonesia, the support and contribution of local governments to the NUSSP budget was a very important determinant of eligibility, which facilitates their participation in the project. However, the identification and selection of areas where the sub-projects will be implemented are usually influenced by politicians such as mayors, district heads, or members of the local parliament, and these areas are not necessarily the poorest ones in need of sub-projects. In the Philippines, management of procurement processes by village communities is not allowed under the law and this limits community participation in subproject implementation. The ongoing amendment of Philippine Procurement Law to include village participation in procurement will certainly help communities to implement subprojects. In KALAHI-CIDSS, community procurement of labor and related requirements of a subproject is allowed under the World Bank-Philippine government covenant. F. Types of NGOs involved in community development NGOs should not be generalized because they can be classified as international/ regional, national and local NGOs. Their nature of participation in CDD initiatives also varies depending on a countrys context. In the Philippines and Indonesia, there is a lot of 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 community facilitation and capacity building in CDD Pilot Project. PRC has a different context as it has two systems, i.e., party system and government system, whose structures go down to the village level making the government a very strong player in CDD. NGOs then supplement or complement the role of government particularly in the areas of facilitation and capacity building for communities and local governments. In KALAHI-CIDSS, there are two types of NGOs, i.e., indigenous and professional NGOs. Indigenous NGOs are significantly involved in the operations and maintenance of subprojects. With respect to professional NGOs, there was a strategic decision taken during project design not to subcontract community facilitation to NGOs. Instead, DSWD recruited facilitators as contractual workers of the Department to conduct community facilitation work. Since many of the facilitators recruited were formerly NGO workers, many aspects of NGO processes and culture were eventually mainstreamed into the KALAHI-CIDSS structure and operations. G. Capacity building for NGOs In PRC, the capacity of NGOs should be strengthened for a specific purpose. NGOs are supposed to work for overall development of poor communities together with other stakeholders including government. It is important to balance the power and interests of the stakeholders, to avoid negative effects on the expected output and outcome of a project. The scope and type of capacity building will depend on roles and responsibilities that should be clear from the very beginning. Generally, capacity building for NGOs should not be in the form of trainings as these have limited impact. Alternative approaches that have proven to be successful include job-sharing, cross-visits, and exchange visits with other programs.

H. Direct involvement of NGOs in CDD project implementation In the proposed National CDD Program (NCDDP), a training institute will be established to train not only workers of CDD projects but also partner NGOs. NGO expertise is expected to form a significant part of the resources of the training institute. At the same time, with the planned CDD expansion to cover more areas, NGOs could be tapped for community facilitation work in certain areas, where they have a geographic advantage. In Indonesias PNPM Program, NGOs are engaged for special purposes such as awareness-raising at village level. The program has started to use them more often for reaching marginalized and poorest villagers. At the outset, the PNPM Program required more facilitators and opened opportunities for local NGOs to apply as PNPM facilitators. Thus, at present, many PNPM facilitators are affiliated with local NGOs. In Kecamatan Development Project (KDP), the predecessor of PNPM Rural, NGOs were also involved in independent monitoring. In the case of the noted CDD Pilot Project in the PRC, the impact of involving international NGOs appears rather mixed. By contrast, in an earlier ADB-supported pilot test 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 that pilot, ADB provided technical assistance (TA) to LGOP to trial the engagement of domestic NGOs as facilitators within the governments flagship grassroots poverty programVillage Poverty Alleviation Development Planning, which in principle is a CDDlike program. Specifically, the TA pilot tested the first outsourcing of facilitation of village-level participatory planning processes to competitively selected domestic NGOs. A total of ten (10) consortia of domestic NGOs were selected, and worked very closely with local governments to facilitate the process of identifying at the village level how best to use government resources to implement grassroots development projects. (See Snapshot of TA 4580-PRC: NGO-Government Partnerships in Village-level Poverty Alleviation in Appendix G) In Cambodia, there are about 3,000 international and local NGOs, most of which are working on rural community development. The government is working in partnership with NGOs to enhance community development, food security and poverty reduction programs. Based on global experience, NGOs are not involved in facilitation in almost all cases of scale-up simply because it is too expensive. They are often involved in pilot programs like the one in PRC and any areas where there is conflict or disaster situation, or where there is no alternative machinery either in terms of facilitators or in terms of local government. 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 of other countries, prerequisites, and generic steps in scaling up CDD.

10

Definition. CDD is an approach to local development that gives control over planning decisions and investment resources to community groups and local governments. Practically, it involves the elements of community focus, participatory planning, community control of resources, community control of implementation and maintenance, and participatory monitoring. The process of scaling-up CDD is therefore a political and social transformation that embeds these CDD principles into the whole process of local development. The outcomes expected from this scaling up can be summarized into the three Es: efficiency, equity and empowerment. The vision driven by scaling up is the creation of a platform wherein multiple sector programs from different 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 community facilitators in every community and monitoring support such as more vehicles and staff. (ii) Design. Scaling up entails standardization and harmonization of systems throughout the country. However, as CDD application is context-specific, a balance between standardization 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 fiscal decentralization system, supported by locally generated revenue. (v) Coordination. Interagency coordination is necessary for convergence of efforts to ensure operation and maintenance of programs and projects. (vi) Politics. Strong political commitment is important to ensure the shift in political power from top to bottom. Cases of scaling up. There are different cases of scaling-up in Malawi, Mexico, India and Morocco: (i) Malawis Social Action Fund (MASAF). MASAF is a first generation CDD/social fund program that has been around for almost two decades. It evolved from being a completely parallel social fund to a technical support agency for local municipal development financing. It then shifted completely from being an autonomous agency to being a part of the Ministry of Planning and Finance in Malawi to eventually run the core municipal financing of the country. It has retained the elements of CDD in the transfer of public works and for other programs to community groups, but the funding is handled completely by local governments now. (ii) Mexicos gradual decentralization. This case proves to be slightly similar to Malawis. It all began with municipal financing paired with formula-driven allocations to different municipalities across the country based on poverty, performance and capacity. The small-scale projects were basically being implemented by community groups and there was cost-sharing. It is interesting that Mexicos program preceded the decentralization laws that institutionalized it. The program ran for approximately 9 years before it became law in terms of fiscal transfers and local governance. (iii) Indias rural livelihood model. Indias scaling up of livelihoods is quite different. In this model, seven states in India created womens self-help groups (like savings and lending group) which are federated to create a village organization. When every village 11

in a sub-district is covered, a sub-district organization is created, then eventually a district level is established. With this nested federation model, India has scaled up womens federations that have membership of over 200,000 each. The scale-up involves several phases before national expansion and demonstrates to be a good framework 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 in India. In 2005, the king announced the creation of National Human Development Initiativea nationwide program that has CDD elements. It was implemented immediately. Within the first year, the country established more than a thousand tripartite committees at the local level and implemented the program in all 70 provinces. All manuals and procedures were designed and prepared during the implementation stage. This model is applicable when a country has very powerful leadership at the top which 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 involve setting up of training or certification institute (iv) Simple systems and procedures based on an overarching framework that allows flexibility (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 a good diagnosis supports further planning for the scale-up. From thereon, the creation of a buy-in is 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 piloting begins. 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 and evaluation which will provide inputs for improving the CDD program later on. (See Powerpoint presentation in Appendix E5) V. PANEL DISCUSSION: Scaling Up CDD in Asia and the Pacific: Challenges and Opportunities Moderator : Betty Wilkinson, ADB Panelists : 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 communities to control their own development. There is both a need and opportunity to scale up in Asia because (a) most countries have embarked on some decentralization, (b) several lagging regions and pockets of poverty could benefits from a CDD model, and (c) disasters and post-conflict reconstruction and state building still remain common needs where the CDD can help. 12

The Philippine government envisages the use of CDD approach to attack the problem of poverty by engaging the poor in the development process. This is based on empirical evidence showing that the KALAHI-CIDSS process of empowering the poor and enhancing local governance contributes to poverty reduction. Given the KALAHI-CIDSS experience 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 in other areas of the country. The Indonesian CDD scaling-up experience was mainly in response to governments failure 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 projects using different approaches, procedures, and institutions. CDD scaling up reduced fragmentation of development assistance by simplifying the design, procedures, database, performance indicators, among others, and created synergy towards effective poverty reduction. Scaling up, however, does not happen instantly. It should be done in stages 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 apply lessons, and avoid mistakes. It is important that the poor help themselves especially with the availability of natural resources, and their capacity in managing these be enhanced. B. Costs and benefits of scaling up CDD 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 costs than what is currently allocated for the specific community development program combined. A variety of costs and challenges should be expected and planned for. The potential costs and challenges may involve administrative overload, poor coordination with sectors, political resistance, elite capture and more. The benefits of scaling up root from greater efficiency, equity and empowerment brought about by the principles of community-driven development. Scaling up will manifest improvements in welfare, social capital and local governance outcomes. Moreover, greater efficiency in delivering basic services and increased effectiveness in use of public investments from increased inter-agency coordination will be accomplished. When Indonesias PNPM was scaled up in 2009, costs included provision for M&E scheme, supervision scheme, complaint handling, disbursement, coordination, and time. In terms of benefits, the CDD system at the national level helped a lot during disaster or financial crisis. For instance, during the recent global economic crisis, the country was affected 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 communities who exactly knew and identified their needs that would not have been known and responded 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 first generation of these projects started in the 90s in response to a crisis situation. After having gone through crisis, people basically hung on because they delivered and saw

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that the modality could get resources to the ground fast and get infrastructure and services moving quickly in a transparent manner. More than half of World Banks CDD portfolio in the last 3 years was comprised of second/third generation operations or first/second additional financing of existing ones and the reason for this is that these projects have basically continued. A quarter to a third of these projects are now in a situation 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, before the crisis, Asia had historically the most tremendous growth globally but in most countries, it has not been inclusive. Therefore, the imperative to move on inclusive growth is quite strong. There are a lot of countries going through the scaling up process and 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 and supervision, (b) quality control, (iii) sector coordination, (iv) elite capture, and (v) lack of adequate decentralization policy framework, (vi) transfer efficiency, (vii) inadequate systems and procedures, (viii) lack of staff capacity, and (ix) complex funds flow arrangements. In Indonesia, issues and challenges include (i) coordination, which needs strong political will and clear role of each ministry/office, (ii) confusion due to differences in database, targeting, performance measurement, and institutions, (iii) inefficiency due to duplication of activities and functions. Also, there has always been a gap between the design, knowledge, and implementation of the program, which requires synergy among stakeholders to help in assuring quality of implementation. To avoid unnecessary politicization in the future, there is a need for careful institutional design and accountability 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 community projects; (c) lack of bottom-up planning and budgeting processes within national government agency systems (currently being addressed through the piloting of bottomup budgeting approaches), and; (d) top-down delivery of community projects by national agencies 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 facing administrative difficulty particularly with the increase in project coverage to 400 municipalities. Administratively, scaling up would test the existing systems for implementing projects particularly on how to align these with current demands of the project. 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 of Indonesia at the onset of PNPM Mandiri implementation. Identifying the scale-up challenges will mitigate the risks involved and make implementation better. D. Factors that hinder convergence among sectors Several factors hinder cross-sector collaboration: (i) political economy, (ii) technocrats having better career options/loyalty to sectors; (iii) loss of power or authority and control over special programs; (iv) existing overlaps in agency mandates; (v) different approaches used by agencies; (vi) commitment of current and future NGA budgets to 14

different departmental priorities; (vii) need to spend NGA budgets within the current fiscal year, (viii) lack of dissemination/ socialization, (ix) unclear principles, indicators and mechanisms, and (x) non-sharing of database and related information. Such issues may be addressed by introducing incentives for sector staff to work with and through communities and local governments. Regular communication and results-oriented management are also seen as imperative in fostering collaboration. Based on Indonesias experience in converging CDD programs, it is important to start with a clear vision in consultation with all stakeholders. The vision should include the principles, indicators and mechanisms that are understood by everybody at the central and local levels. Transparency is an issue sometimes as it is hindered by some officials or parties by not sharing their database and information. Also, dissemination, socialization, and communication are important as there has always been a problem of representation and high turnover of local officials. The results, effectiveness, and good and bad practices in CDD based on scientific studies should be communicated and shared. Capacity development of project management office can avoid delays in convergence process. To prevent misuse of fund, agencies should agree on some principles, mechanisms and procedures. In the Philippines, convergence is very important in CDD scaling up. In DSWD, efforts are under way to converge its 3 major core social protection programs CDD, CCT, and sustainable 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 Human Development and Poverty Reduction Cluster headed by Secretary Dinky Soliman. Under this cluster, all aligned agencies are mandated to perform and implement their projects 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 their activities. The other platform by which convergence can happen is at the local government level. Under a decentralized regime, provinces and municipalities can integrate and harmonize all vertical programs implemented in their respective jurisdictions. The government has in place some of the structures, systems, and policies that hopefully will provide good impetus for CDD scaling up. Convergence is basically a challenge of decentralization. The key to convergence is the creation of a platform for sector programs at the local level, which will facilitate the scaleup. To come up with an agreement among sectors to go through the platform, it is important to demonstrate impacts which will show to the national government that this modality delivers results and is incentivized based on results and outcome. E. Questions raised 1. LGU reactions to CDD or its scaling up In Indonesia, only two local governments resist the PNPM Mandiri by not providing contribution or share. Before, there were more LGUs resisting but these were reduced due to the involvement of higher political leaders as well as the parliament in communicating the results of CDD projects. In the Philippines, the initial implementation of KALAHI-CIDSS Project saw varying degrees of LGU responsiveness. To stimulate the responsiveness of LGUs, the project 15

gave more incentive to responsive LGUs. In the project expansion, the incentive system was used as a tool to determine the responsiveness of LGUs before implementing the project. The project adopted an enrolment process wherein LGUs, after having been informed that they qualify for KALAHI-CIDSS, must make a manifestation that they are interested in joining the project at the first instance. This way, the project was able to more 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 appreciate and 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 to explain how KALAHI-CIDSS inspired them despite the cost and requirements of the program from LGUs, and to convince him to support the scaling up of CDD into a national program. This is an opportunity that calls for ADB support to bring the mayors together and elicit their inputs to the national CDD Program. Resistance from local governments is common and almost universal when CDD starts simply 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 CDD model works and incentives are quite common. At the start, local chief executives should be sensitized and brought in conferences to share good examples. Good examples become the norm and they are somehow awarded. There are cases where incentive funds for partnerships between communities and local governments have been set up. Once a community is awarded, it becomes a model to other communities. This type 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 shown islands of success on CDD implementation. The cumulative impact evaluation on CDD programs 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. It delivers 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, the social and governance impacts sometimes are not that strong and they dont translate beyond the CDD project itself.This is therefore an area in which further efforts and further 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 wide range of experiences in CDD. CCT communities with better performance in terms of achieving MDG-related indicators were given block grants. Based on success stories from an evaluation study, the pilot intervention showed significant impact on health and womens participation, among others, in these communities. Indonesia is now scaling up Generasi using CDD approach with grant support from Millennium Challenge Corporation. The scale-up will then support the complementation of supply in terms of providing needed infrastructures by the community, and demand for cash transfers. NGOs involved in education and health are currently tapped by the project to accelerate the achievement of MDG targets. 4. Diversity in CDD Implementation

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In the Philippines, KALAHI-CIDSS observed the principle of inclusiveness, that is, everybody in a community or geographic location is covered by the project. This involved areas of different contexts such as areas inhabited by indigenous peoples, conflict-affected areas, and those that are very hard to reach. The difficulty sometimes was 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 Region in Muslim Mindanao (ARMM) Social Fund is designed to respond to the needs and build social cohesion in conflict-affected areas in Mindanao. There are also infrastructure projects 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 agreed to by the community for prioritizing subprojects in the succeeding cycle. This means that those who have completed or complied with the agreements in the first cycle can be prioritized in the succeeding cycle. This incentive motivates people to participate because well-performing communities get to be awarded subprojects. Second is the Makamasang Tugons performance-based strategy where good performing LGUs and communities 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 local economy. Taking people out of poverty can require directed assistance for livelihood but there are very few examples of successful livelihood CDD approaches. The two exceptions are Brazil and India. From India, the model is being transplanted to Sri Lanka, Bangladesh, Nepal, and parts of Southeast Asia. Barring those, the experience is not very good because it is not easy to identify the requisites to create a viable or sustainable livelihood for individual households and for groups. VI. Community-Driven Development and Institutional Sustainability Established under ADB-assisted Second Urban Governance and Infrastructure Improvement Project (UGIIP-II) in Bangladesh

Bangladesh representatives, Mr. Md. Nurullah and Mr. A.K.M. Luthfur Rahman, made a brief presentation on the CDD features of UGIIP-II that aims to improve urban infrastructure and basic service delivery. The presentation highlighted the provision of performance-based allocation investment fund to municipalities as a strategy of UGIIP II to ensure citizen participation and improve urban governance and management. The strategy encourages municipalities to improve their own governance capacities through the preparation of a development plan that requires citizen participation and formation of coordinating committees at local and community levels. The presentation showed that these committees are useful mechanisms for promoting community participation in development. (See Powerpoint presentation in Appendix E6)

VII.

CDD LEARNING NETWORK

Ms. Yukiko Ito welcomed the participants to the CDD Learning Network session. The CDD Learning Network has been created to provide a platform for maintaining the momentum of 17

discussions on CDD among participants, and eventually promote policy discussions, peer support, and enhance collaboration among CDD practitioners in the region. To support the networking, the names of conference participants and their contact details have also been compiled 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 secretariat created Yahoogroup mail and Facebook account as primary and secondary networking tools, respectively. Individual Yahoo Mail and Facebook accounts and passwords have been created and distributed to each of the 14 DMC representatives, including a manual to guide the participants in using the tools. Ms. Glorie Mae Olivares and Ms. Honey May Manzano-Guerzon walked the participants through the process of using Yahoogroup and Facebook. Scribd has been created also to serve 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 brought to light the lessons learned in sustaining institutional impact of CDD, community participation in urban areas, involvement of NGOs in CDD projects, and the role of education in promoting a participatory approach. While the lessons discussed are important, these are context-specific, requiring consideration of local circumstances when examining the possibilities of a CDD approach. Mr. Edes stressed the great potential in scaling up CDD in countries where the local governments are involved in service delivery. An example is the Philippines which is now working to expand its CDD initiatives and making CDD a part of national poverty reduction strategy. CDD is clearly a powerful development tool for promoting inclusive growth and reducing poverty and its scale up can bring significant benefits to DMCs. He hoped that participants were able to identify lessons that are relevant and will work in their respective countries. With the launch of the CDD learning network, Mr. Edes pointed out that the learning and sharing does not end with the conference. The network, which uses various social media, will continue the discussion and exchanges that have taken place during the event. He encouraged the participants to join and promote the network to facilitate collaboration, knowledge sharing, and learning on CDD in the region.

APPENDICES A. List of Participants B. Agenda C. Speech of DG Xianbin Yao D. Speech of Secretary Dinky Soliman 18

E1-E7 F. G.

PowerPoint Presentations Abstracts of CDD Country Studies Snapshot of TA 4580-PRC: NGO-Government Partnerships in Village-level Poverty Alleviation

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