Learning Curves

OED
March 2007

ParticipatoryApproachesto RuralDevelopment

Newparticipatoryapproachestoruraldevelopmentincludebeneficiaryconsultationand participatoryplanning,communitydevelopmentsupport,engagementofnongovernment organizations,localgovernmentinvolvement,andprivatesectorparticipation.Dotheyoffer aneffectivesolutiontotheconventionalproblemsofprojectrelevanceandsustainability?

Background In1996,theAsianDevelopmentBank(ADB) introducedaframeworkforMainstreaming ParticipatoryDevelopmentProcessesinitsoperations. Theframeworkwaspreparedinresponsetothe findingsandrecommendationsoftheReportofthe TaskForceonImprovingProjectQuality(1994),which emphasizedtheneedforADBtoenhancecountry ownershipofprojectsandbeneficiaryparticipation throughouttheprojectcycle. Inruraldevelopmentprojects,theapproaches developedhaveincluded(i)beneficiaryconsultation andparticipatoryplanning,(ii)community developmentsupport,(iii)engagementof nongovernmentorganizations,(iv)localgovernment involvement,and(v)privatesectorparticipation. Consideringthescalingupofparticipatory approaches,theOperationsEvaluationDepartment conductedaSpecialEvaluationStudyon EffectivenessofParticipatoryApproachesin2004.1 Theunitsofobservationweresixruraldevelopment projectsthatappliedparticipatoryorbottomup approaches.Thestudyemployedtheprincipalagent approachtoanalyzetherolesandrelationshipsof majorplayersinthefivecentralelementsofservice deliveryresources,information,decisionmaking, deliverymechanisms,andaccountability. Citizensasawholearetheprincipal,representedby governmentselectedtoserveit.Governmentsprovidea budgettoorganizationalprovidersandholdthem accountable.Thelattermanagefrontlineprovidersand holdthemaccountable.Aidorganizationsareentrusted bygovernmentstousefundscontributedbytaxpayers. Theyalsofinanceprojectsandprovidepolicyadvice. Thus,aidagenciesandgovernmentsareproxy principals.Agentsincludeorganizationalproviders (executingagencies)andfrontlineproviders(e.g.,local officesofexecutingagencies,fieldstaffs,and contractors)whoareinclosecontactwithbeneficiaries. SummaryofFindings Thestudyexaminedbeneficiaryownershipand projectsustainability,mechanismsofdownward accountability,therealvalueofbeneficiaryconsultation andparticipatoryplanning,povertyreductionthrough effortsofthenonpoor,deviationfromthestandard creditunionmodel,projectmonitoringanddata requirements,andfieldworkattheprojectdesignstage. Theparticipatoryorbottomupapproaches examineddidnotaltertheprincipalagent
6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444; evaluation@adb.org; www.adb.org/evaluation/

P=Principal,A=Agent. Source:Wikipedia.

Operations Evaluation Department Asian Development Bank

relationshipsamongpolicymakers,projectproviders, andbeneficiaries. Theconventionalproblemsofprojectrelevanceand sustainabilitywerepersistent,prevailingnotonlyin pastprojectsbutalsointhenewgenerationofrural developmentprojectsexamined. Ofthefivecentralelementsofservicedelivery resources,information,decisionmaking,delivery mechanisms,andaccountabilitycontrolof resourceswasthemostcriticalsinceitdetermines powerindecisionmakingandauthoritytohold providersaccountable. Informationflowanddeliverymechanismsseemed tobelessimportantinthecasesstudied. Informationwaspowerfulundercertainconditions, suchaswhenbeneficiarieshadmultiplechoicesof providers. WhereADBsoperationshavebeensuccessful,it wasnottheapplicationofastandardpackageof participatoryapproachesthatmadethemmorerelevant orsustainable. Recommendations Participationisnotagoalbutameanstoanend. Dependingonspecificconditions,alternativeformsof participationcouldbeexploredsuchasthosefocusing onestablishmentandstrengtheningofdirect relationshipsbetweenprovidersandbeneficiariesby makingtheformermoreaccountabletothelatter. Wheredirectapproachesarenotpractical,incentives shouldbedesignedsothattheinterestsofprincipals andagentslieinachievingtheobjectivesof beneficiaries.Thestudyproposedthattheframework formainstreamingparticipatoryprocessesberevisited. Givepurchasingpowertobeneficiariesby distributingavailableprojectbudgetstotargeted beneficiariesintheformofdevelopmentcoupons; beneficiarieswouldusethecouponstopay providersandholdthemaccountable. Promotecompetitionamongprovidersbyallowing beneficiariestochooseprovidersfrommultiple choicesgovernmentagencies,privatecompanies, localcontractors,andnongovernmentorganizations. Makeprovidersresponddownwardlyto beneficiariesbyevaluatingprovidersbasedon
Learning Curves available @ www.adb.org/evaluation/

beneficiaryfeedbackby,forexample,assessing beneficiarysatisfactionpriortopayingcontractors. AlignincentivesforprojectdesignersinADBto workforthebestinterestsofthepublicinsteadby rewardingthequalityofprojectdesign. Alignincentivesforexecutingagenciesandfrontline providersbylinkingbudgetaryallocationstothe realizationofprojectobjectivesinsteadofactivities oroutputs. Contractoutemploymentgenerationorpoverty reductiontoagentsandprovidethemproject assistance(suchasprojectfunds,accesstocredit,or otherinvestmentsthatreleasetheirkeyconstraints) conditionalonthenumberofjobscreated,orthe numberofpoorhouseholdsexitingfrompoverty throughtheeffortsoftheseagents. Provideincentivesforbeneficiariestotreatproject fundsastheirownfundsandmotivatethemto demandleastcostsubprojectdesign,monitor subprojectconstruction,andmaintainthe infrastructureafterconstruction. Feedback ADBManagementsResponseobservedthatthe 1996frameworkdefinesparticipationasaprocess throughwhichstakeholderinfluenceandsharecontrol overdevelopmentinitiatives,andoverthedecisionand resourcesthataffectthemselves.Byequatingits definitiontoastandardpackage,thestudydismissed thesignificanceofparticipationwhenthepackagedid notyieldgreaterprojectrelevanceandsustainability. Nevertheless,Managementsawtheneedtoimprove incentivesthatpromoteprojectqualityandwelcomed theproposaltorevisitthe1996framework.TheChairs SummaryoftheDevelopmentEffectiveness CommitteeDiscussionsaffirmedthecontinuing importanceofparticipatoryapproachestomanaging fordevelopmentresults.Thediscussionsalsobrought outapotentialforconfusionordifferencesin perceptionsofparticipation.Areviewofthe1996 frameworkshouldaimtopromoteunderstandingof theopportunitiesprovidedbyparticipatoryapproaches tooptimizethebenefitsofparticipation. 1 2004.ADB.SpecialEvaluationStudyonEffectivenessof
ParticipatoryApproaches.Manila.Available: http://www.adb.org/Documents/Reports/Evaluation/sst reg200501/seseffectiveness.pdf

Team Leader: Qiaolun Ye; Tel +63 2 632 4133; evaluation@adb.org