The evaluation concluded that the different capacity development (CD) approaches used in each sector were relevant and effective in their contexts; however, the overall impacts were diffused. Local institutions still require external assistance. Identified lessons and key issues highlight the need for rethinking the CD concept, a lesson that has been identified in other Operations Evaluation Department reports. The lack of comprehensive and systematic diagnostics affected the design (choices, scope, priorities, and sequencing of activities), implementation, and results of CD assistance. Several key areas lacked attention: (i) functions, clients, and services; (ii) human resource management; (iii) finance, including recurrent expenditure and financial management skills; and (iv) relationships among organizations.
For ADB, improvements should entail developing a definition, a working framework, and tool kits that can change the approach to diagnosis, design, and implementation and move CD beyond the project level. For the government, the focus must move from project management to the ministry level and to building capacities for independent, selfsustained operations. Systemic issues require attention at the country level. Rigorous application of design standards and principles for CD are needed to develop clearly stated goals and objectives. These include organizational performance criteria, baseline information, and time-bound targets to monitor progress and assess outcomes. A review by the government, ADB, and development partners of the financial dimension of CD must identify options for long-term, sustainable solutions. Implementation plans should provide for phased assistance and an exit strategy for sectors and agencies as they become more independent. (For the full report, see www.adb.org/Evaluation.)