UNDP's Capacity Diagnostics Methodology

1. Application of UNDP’s Capacity Development Process and Capacity Diagnostics Methodology September 2006

2. Context UNDP’s Capacity Development Process and Capacity Diagnostics Methodology draw upon prior UNDP, UN system, and partner organisation capacity development and assessment documents, case studies and reviews, at the level of both the enabling environment and the institution. The methodology materials, consisting of the Practice Notes on Capacity Development and Capacity Assessment, User’s Guide and Supporting Tool, have benefited from a technical review provided by representatives from the Bureau for Development Policy as well as from the Regional Bureaux. All of the input provided has enriched both the process and the product, and we look forward to this being a continuous learning process for all of us.

3. Purpose of Presentation Frame capacity diagnostics within UNDP’s capacity development process Familiarize audience with UNDP’s “default” capacity diagnostics methodology Enable practitioners to apply the methodology – from designing a diagnostic, to conducting an assessment exercise, to interpreting results Audience UN Country Offices Regional Programmes Government Partners Regional Institutions and Experts Related Materials Capacity Development Practice Note Capacity Assessment Practice Note Capacity Assessment User’s Guide Capacity Assessment Supporting Tool Introduction

4. Capacity Development Process – Focus on “Assess Capacity Assets and Needs” and “Define Capacity Development Strategies” Supporting Tool User’s Guide Supporting Content – User’s Guide and Supporting Tool Focus of this Presentation Capacity Diagnostics Framework

5. Assess Capacity Assets and Needs and Define Capacity Development Strategies Capacity Development Process * Focus of this presentation.

6. UNDP Definitions Related to Capacity (cont…) Capacity Assessment: An analysis of current capacities against desired future capacities; this assessment generates an understanding of capacity assets and needs which in turn leads to the formulation of capacity development strategies

7. Step 2: Assess Capacity Assets and Needs Description Conducted along three dimensions: points of entry, core issues and functional capacities. Existing process and framework can be applied to any sector, e.g., health or education Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results * Focus of this presentation.

8. Primary Areas of Capacity Assessment Focus – Specific Assessment Questions and Indicators Available for Each Cross Section UNDP “Default” Capacity Assessment Framework Functional Capacities* Engage in Multi-Stakeholder Dialogue Analyze a Situation & Create a Vision Formulate Policy & Strategy Budget, Manage & Implement Monitor & Evaluate Individual Points of Entry Org’l Enabling Environment Leadership Policy & Legal Framework Mutual Accountability Mechanisms Public Engagement Core Issues Human Resources Financial Resources Physical Resources Environmental Resources Human Rights Overlay any Capacity Assessment * Technical capacities complement the functional capacities.

9. UNDP “Default” Capacity Assessment Framework: Points of Entry Capacity resides on different levels – enabling environment, organisation and individual – and needs to be assessed across these levels. A capacity assessment team selects one level as its point of entry (and may “zoom in” or “zoom out” from that level as needed). Having a clearly articulated purpose for a capacity diagnostic helps define the point of entry. Point of Entry Description Enabling Environment Comprises a variety of elements that can facilitate or constrain the development of capacity, including overall policies, rules and norms, values governing the mandates, priorities, modes of operation, etc. within and across sectors. Such elements create incentives or constraints that determine the “rules of the game” for interaction between them and can affect the performance of individual and sector organisations. Alternatively known as the societal or institutional level; it is not necessarily synonymous with the national level. Organisational Generally focuses on the internal workings of an organisation in order to establish or improve specific capacities. Rarely, if ever, sufficient to explore capacity issues at this level alone. Individual Generally conducted within the context of an organisational assessment, carried out through performance management systems and are the responsibility of the countries concerned. Zoom In Zooming In and Zooming Out Capacity Levels  Enabling Environment Organisational Individual Zoom Out

10. Leadership Capacity to foster ownership; manage relationships with key external stakeholders, including the ability to negotiate; develop, communicate and give direction on vision, mission and values; develop and implement a system for overall management; and create an environment that motivates and supports individuals Mutual Accountability Mechanisms Policy and Legal Framework Capacity to ensure accountability through prevention and enforcement; strengthening of national integrity institutions; increasing public participation; and building coalitions; and working with the international community Capacity to develop and sustain a policy and legal framework that is independent, impartial and fair – a system that is critical to the alleviation of poverty and achievement of the MDGs Public Engagement 1) Capacity for inclusion, participation, equity and empowerment of individuals; and 2) mobilization, access and use of information and knowledge Human Resources Capacity for development of recruitment and promotion policies; performance assessment and management mechanisms; incentives (monetary and non-monetary); monitoring and evaluation mechanisms; and training Financial Resources National and local capacities to negotiate, manage, utilize and monitor internal financial resources as well as DBS in ways that best support the human development agenda and achieve the MDGs, including capacities for the management of development finance and development cooperation Physical Resources Capacity to build, maintain and manage physical resources; does not include accounting of the number of bridges but the capacity to construct and provide continuing services necessary to keep them operational Environmental Resources Capacity to manage environment and natural resource and energy sectors, to integrate environmental and energy dimensions into poverty reduction strategies and national development frameworks, and to strengthen the role of communities in promoting sustainable development Human Rights Capacities regarding promotion and protection of human rights, including gender rights, and the application of a human-rights-based approach to development planning and programming; creation of sustainable institutional systems; the application of human rights in law and reality; effective systems for societal monitoring of human rights enforcement; transparent mechanisms to correct human rights violations; and specific measures for affirmative action for addressing structural issues that perpetuate inequality and discrimination UNDP “Default” Capacity Assessment Framework: Core Issues The Core Issues are those that UNDP most frequently encounters. Not all of these will necessarily be analysed in any given assessment, but they provide a comprehensive set of issues from which a capacity assessment team may choose as it defines its scope. Core Issue Description

11. To Engage in Multi-Stakeholder Dialogue To Assess a Situation and Create a Vision Capacity to engage and build consensus among all stakeholders, including relevant public and societal agents, as well as external partners. Specific skills include the ability to identify, motivate and mobilize stakeholders; create partnerships and networks; raise awareness; develop an enabling environment that engages civil society and the private sector; manage large group processes and open dialogue; mediate divergent interests; and establish collaborative mechanisms Abilities to effectively access, gather, analyze and synthesize data and information, and translate it into a vision for the future. Specifically, it includes the ability to define the state of current capacities, and assess those against a desired future state, thus articulating the capacity needs that can lead to capacity development strategies To Formulate Policy and Strategy Abilities to analyze a range of development parameters that may affect needs and performance in a given area; explore different perspectives; conduct long-term strategizing; and set objectives To Budget, Manage and Implement Process management capacities essential in the implementation of any type of policy, legislation, strategy and programme, including budget formulation; execution aspects of programme and project implementation; mobilization and management of human, material and financial resources; selection of technologies; and procurement of equipment To Monitor and Evaluate Abilities to monitor progress, measure results and codify lessons, for learning and feedback to ensure accountability to partners and the ultimate beneficiaries of development. It also covers results-based management and monitoring and evaluation systems, as a means of reporting to donors. UNDP “Default” Capacity Assessment Framework: Functional Capacities Specific functional capacities are necessary for the successful creation and management of policies, legislations, strategies and programmes. UNDP has chosen to prioritise the functional capacities below, which exist at all three points of entry, for all core issues and across sectors. Functional Capacity Description

12. Assess Capacity Assets and Needs – Benefits • Brings rigor and a systematic method for assessing existing capacity assets and needs • Provides a comprehensive view of the issues that could be addressed in a capacity assessment • Provides a structure for discussion about the scale and scope of the capacity assessment exercise and about expectations of the capacity development effort more generally • Provides a method for generating quantitative as well as qualitative data to support the development of a capacity development action plan • Makes sense of complex development situations, when it is not always obvious where best to intervene to promote capacity development

13. Assess Capacity Assets and Needs – Operational Considerations • Understand that capacity diagnostic is a set of activities, not a solution • Leverage the framework as a point of departure for a capacity diagnostic – it is flexible and needs to be customized by the assessment team to suit its specific needs/context • Define desired capacities prior to undertaking the diagnostic, as they do not emerge from a capacity diagnostic • Do not necessarily expect “surprises” from the diagnostic, but rather confirmation and consensus • Leave prioritization of investment until after the assessment of capacities has been completed • Consider a capacity diagnostic as a dynamic, ongoing process… not a one-time event

14. Step 3: Define Capacity Development Strategies Description The formulation of capacity development strategy options suggested by capacity assessment data, evidence and analysis. Includes short to medium (1 year +) strategic initiatives and immediate quick impact activities (<1 year) Capacity Development Process Key Activities 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development * Focus of this presentation.

15. Capacity Development Strategies Capacity Diagnostics: Needs and capacity assessments, indicators and measurement, local R&D… Knowledge Services and Learning: Large group, technical and tertiary education, on-the job skills transfer, focus groups… Leadership Development: One-on-one coaching, mentoring, management skills development… Institutional Reform and Change Management: Process facilitation, performance management, functional reviews, PAR in transitions, procurement… Multi-Stakeholder Engagement Processes: Institutional twinning, e-networks, community dialogues, integrated planning and problem analysis… Mutual Accountability Mechanisms: M&E processes, social watch, peer and partner reviews… Incentive Systems: Salary supplements, non-monetary benefits, pay and compensation... Note: Case-driven concept notes for each capacity development strategies are expected to be published in the fourth quarter of 2006.

16. Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results Capacity Development Process 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development * Focus of this presentation.

17. 2a. Mobilize and Design It is important for local participants to gain ownership of the exercise and for stakeholders to be identified and engaged appropriately – providing political and administrative oversight, assisting in the design and implementation, and ensuring thorough analysis and follow-up. • Clarify objectives and expectations with primary clients • Identify and engage national/local stakeholders throughout the process – design, assessment, interpretation and dialogue – to ensure ongoing success • Use UNDP Capacity Assessment Framework to suit local needs • Define the scale and scope of the capacity assessment by selecting point of entry, core issue(s) and functional capacity(ies) • Determine data collection and analysis approach • Review existing sources and knowledge • Determine how the assessment will be conducted (team, location) • Cost the capacity assessment exercise (based on team composition, duration and depth)

18. Primary Areas of Capacity Assessment Focus – Specific Assessment Questions and Indicators Available for Each Cross Section UNDP “Default” Capacity Assessment Framework Comments Functional Capacities* The Capacity Assessment Framework is flexible enough to meet the needs of most capacity assessment situations. It is incumbent upon a capacity assessment team to design the framework to suit local needs. It is not mandated that the entire framework is used in any given assessment. Engage in Multi-Stakeholder Dialogue Analyze a Situation & Create a Vision Formulate Policy & Strategy Budget, Manage & Implement Monitor & Evaluate Individual Points of Entry Org’l Enabling Environment Leadership Policy & Legal Framework Mutual Accountability Mechanisms Public Engagement Core Issues Human Resources Financial Resources Physical Resources Environmental Resources Human Rights Overlay any Capacity Assessment * Technical capacities complement the functional capacities.

19. Design Considerations • Select one cross-section to all 100 cross-sections • Once a point of entry has been determined, use either a core issue(s) or a cross-cutting functional capacity(ies) as the primary driver of the assessment • Go into more depth on any given cross-section, e.g., split “Budget, Manage & Implement” into three sub-capacities • Formulate questions as appropriate – use questions in User’s Guide; develop additional questions; break down questions provided into more sub-questions • Customize according to how much time is allotted for a given project – one week assessment or a three-month assessment It is incumbent upon a capacity assessment team to design the framework to suit local needs.

20. Quantitative Data vs. Qualitative Information Quantitative Data Qualitative Information Advantages • May be seen as more “legitimate” than the qualitative element • Easier to compare capacity levels across different core issues and functional capacities Disadvantages • May be used for comparison purposes that are not valid Advantages • Provides context for qualitative element • Creates repository of “institutional memory” Disadvantages • More difficult to compare capacity levels across core issues and cross-cutting capacities

21. Illustration: Designing a Capacity Assessment Visioning and Strategic Planning Capacities “During the process of developing the UNDAF, a perceived gap in national-level visioning and strategic planning has been identified.” Considerations • Use the UNDP Capacity Assessment Framework as a framework for discussion • Define scope and scale of capacity assessment by selecting point of entry, core issue(s) and cross-cutting functional capacity(ies) • Focus efforts on a handful of dimensions (issues and capacities) that cover a majority of the scope and scale; although a capacity assessment may feasibly include all issues and capacities

22. Illustration: Designing a Capacity Assessment

23. Capacity Development Process Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results Capacity Development Process 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development

24. 2b. Conduct the Capacity Assessment Viable capacity development strategies nurture and reinforce existing capacities. The capacity assessment uses existing capacities as the starting point, and throughout the process, identifies capacity needs against pre-determined desired capacities. • Define desired future capacities – by articulating key questions • Define capacity levels • Assess existing capacity levels

25. Articulating Capacity Assessment Questions – User’s Guide A step-by-step guide to conducting a capacity assessment Includes instructions for conducting a capacity assessment and specifically for using the supporting tool Includes illustrative questions and indicators for each cross-section of the “default” framework (cross section of point of entry, core issue and functional capacity) • Contents • Overview and Key Operational Considerations • Assess Capacity Assets and Needs • Define Capacity Development Strategies and Actions • Questions and Indicators by Core Issue • Annexes

26. Articulating Capacity Assessment Questions Considerations • Begin by leveraging questions in the User’s Guide • Adapt questions to assessment objectives: modify, add to, delete questions as necessary Request – Illustration #1: Visioning and Strategic Planning “During the process of developing the UNDAF, a perceived gap in national-level visioning and strategic planning has been identified.”

27. Defining Capacity Levels Considerations • Adjust definition of each capacity level as the context dictates • Ensure consensus on what each capacity level means • Determine how to assign levels… or how will the questions be answered • Identify appropriate indicators • Find data, e.g., from policy documents, reports, statistics, interviews, observable practices • Determine what will be done with results – will they be used to compare across entities (e.g., ministries, districts, communities) • Determine whether qualitative information will be captured as well Levels

28. Capacity Development Process Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results Capacity Development Process 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development

29. Capacity Development Process 2c. Summarize and Interpret Results Once the assessment has been completed for selected cross-sections, the assessment team compares the assessment results against the desired level of capacity, as determined during the Mobilize and Design phase. This comparison helps the team determine the level of improvement required, which in turn will provide direction in terms of which areas to focus capacity development strategies • Summarize results • Compare against desired level of capacity and interpret findings

30. Leadership is relatively strong within all capacities assessed • Human resource-related capacities are less strong Capacity Development Process Illustration: Interpreting the Results • Capacity to budget is strong across issues • However, capacity to manage and implement may need improvement

31. Supporting Tool An excel spreadsheet to support a capacity assessment, including separate worksheets for each step of the assessment and an overall summary

32. User’s Guide and Supporting Tool – Benefits • Provides instructions for conducting a capacity assessment • Offers a starting point for capacity assessment exercises • Provides overall and detailed questions for each cross-section of the Capacity Assessment Framework • Provides indicators for each cross-section • Provides a tool for data collection and analysis

33. User’s Guide and Supporting Tool – Operational Considerations • Adapt questions and indicators as appropriate • Questions and indicators provided are intended to serve as thought-starters • Given the contextual demands of any assessment, it is expected that these questions and indicators will be tailored, added to or deleted to address context-specific needs • They do not represent an exhaustive set of questions and indicators for any capacity assessment • Use the supporting tool as needed for data collection and analysis. It need not be used, however – pen and paper are a sufficient approach for data capture • While the overall Capacity Development process is mandated, the specific questions and indicators in the User’s Guide and Supporting Tool are not

34. “Zoom in” on the issues • Importance of building consensus • Assessments for overall development effectiveness • Focus on the link between assessment results and capacity development strategies • Endogenous process, ownership Potential Pitfalls……………………………………and Responses • Assessment fatigue • Skepticism about value and validity of results emerging from a capacity assessment • Suspicion that capacity assessments are being used by senior management for re-profiling or retrenchment • Disconnect between capacity assessment and formulation of capacity development strategies: basing strategy formulation on “guesstimates” of capacity gaps • Facilitation level: too much may lead to “coached” outcomes; too little may result in a “wish list” of capacity development strategies

35. Good Practices • Consider capacity assessments as a normal part of good management that can assist stakeholders in enhancing capacity and improving performance and that can add value to the processes of needs identification, planning, implementation, monitoring and evaluation, rather than treating them as stand-alone activities • Ensure that any assessment is nationally and/or locally led, although external facilitation is the most effective way to make the assessment as objective as possible • Engage stakeholders from the outset to ensure appropriate design and buy-in, and where appropriate, to encourage self-assessment • Budget for capacity assessments as an ongoing part of institutional reform and change management • Use capacity assessments to galvanize interest for change and to promote organisational learning and empowerment • Incorporate lessons learned on an ongoing basis into a capacity assessment by taking an iterative approach to the overall process • Remain flexible, ensuring optimal use of existing information sources while taking opportunities to build synergies with other ongoing initiatives/processes • Encourage an open and honest assessment process to ensure fairness and acceptance of the assessment’s procedures and results

36. Supplementary Capacity Assessment Methodologies – Select List

37. Breakout groups

38. Millennium Development Goal-Based Development Strategies Poverty Reduction Strategies CCA and UNDAF Millennium Project Needs Assessment and Capacity Assessment are complementary in nature. Needs Assessments focus on “interventions,” i.e., what needs to improve, and the financial requirements to fund the interventions. Capacity Assessments focus on the current and desired levels of capacity in a given enabling environment or organisation, the gap between them, and most important, the resulting capacity development strategies – how the improvements will occur and how much such will cost to undertake. Capacity Assessments can be applied in developing the medium-term poverty reduction strategy (PRS), with capacity assets and needs assessed over a shorter time horizon, and strategic initiatives and quick impact activities similarly developed over a shorter time horizon. Note: it is not possible to create a one-to-one relation between a capacity gap and a desired poverty reduction outcome. UNDP’s capacity development process and “default” capacity assessment methodology are mandated by UNDP. The “default” Capacity Assessment Framework can be used to underpin the analysis in priority areas of engagement for the UN in a country. Such would be included in a CCA process, and the resulting capacity development strategies would be reflected in the UNDAF, and UN common programmes or agency specific programmes and projects that follow. Capacity Diagnostics and Development Planning Capacity diagnostics provide valuable input into the formulation of capacity development policies and strategies, at the level of MDG-based development strategies, poverty reduction strategies and the CCA/UNDAF.

39. Adapting the UNDP Capacity Development Process “Non-Negotiables” Rationale • Capacity development process, including capacity assessment • Process is mandated by UNDP to improve consistency and increase impact of work • Definitions of capacity, capacity development and capacity assessment • This content was developed in consultation with internal partners (e.g., UNDG Working Group on Capacity Development) as well as external partners (e.g., OECD DAC GovNet) • Capacity development strategies • Similar to the capacity development process, this content is mandated by UNDP Available for Adaptation Rationale • Capacity assessment framework • Scope and scale of the assessment (point of entry, core issue(s) cross-cutting capacity(ies)) are determined by the local context • Specific questions are determined by the assessment objectives • Application of the capacity development strategies • Application is determined by the local context

40. Kemal Dervis’s Statement to the Executive Board, 11 Sept 2006 Long-term development should be a nationally led and managed process that builds upon existing capacity in designing and implementing effective strategies to further boost capacity development. Our approach in nurturing MDG-based national development strategies integrates capacity diagnostics and strategies into the heart of that process. Capacity development must be taken into the core of development planning, policy and financing if it is not to be an ineffective add-on or after-thought. Even when requested to do so, UNDP should operate in a way where we do not provide direct support services in the short to medium term without a capacity-development exit strategy. Here it is also important to mention the vital role that South-South cooperation has in capacity development, bringing as it does a unique transfer of skills between developing countries themselves.

41. The Capacity Myth • Capacity is often viewed as exogenous to a government or country rather than an endogenous course of action that builds on existing capacities and assets • Capacity is commonly defined in numbers of people in a given sector based on globally defined ratios of human resources to a given service (e.g., 1 doctor:2,500 patients) despite very different contexts • Lack of capacity therefore is the common refrain with much less focus on the utilisation of this capacity. • Capacity “building” focuses on knowledge and skills rarely strategic competencies • Capacity development is a simple event or series of inputs that can easily be resolved through short-term training often defined and delivered by external partners • Capacity is defined at the sectoral level, e.g., teachers, doctors, economists with often no reference to the relationships between and across inter-dependent sectors. Yet, development outcomes e.g. “justice for all” is achieved through the contributions of police, prisons, internal security, justice, etc. • Capacity is about the people or human resources in a country and less about the organizational systems and the enabling environment. And yet, where poor organizational systems exist, the utilisation of the human resources is often constrained

42. Step 3

43. Capacity Development Process Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results Capacity Development Process 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development

44. Capacity Development Process 3a. Define Capacity Development Strategies Capacity Diagnostics: Needs and capacity assessments, indicators and measurement, local R&D… Knowledge Services and Learning: Large group, technical and tertiary education, on-the job skills transfer, focus groups… Leadership Development: One-on-one coaching, mentoring, management skills development… Institutional Reform and Change Management: Process facilitation, performance management, functional reviews, PAR in transitions, procurement… Multi-Stakeholder Engagement Processes: Institutional twinning, e-networks, community dialogues, integrated planning and problem analysis… Mutual Accountability Mechanisms: M&E processes, social watch, peer and partner reviews… Incentive Systems: Salary supplements, non-monetary benefits, pay and compensation... Note: Case-driven concept notes for each capacity development strategies are expected to be published in the fourth quarter of 2006.

45. Capacity Development Process Key Considerations and Default Principles for Capacity Development Key Considerations Default Principles* • Endogenous process • Opportune timing • Political economy and power differentials • Incentives • A ‘best fit’ approach *Benchmarks for these principles are referenced in the UNDP Capacity Development Practice Note

46. Capacity Development Process Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results Capacity Development Process 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development

47. Capacity Development Process 3b. Define Progress Indicators Capacity development should be accompanied by indicators against which to measure progress. The challenge is to go beyond monitoring and evaluation that is project- or programme-based and viewed in terms of outputs, to monitoring and evaluation that is viewed in terms of outcomes. • Define indicators for capacity development strategies = output • Define indicators for capacity development = outcome • Determine baselines and set targets for each indicator

48. INPUTS • Experts • Equipment • Funds • OUTPUTS • Studies completed • People trained • OUTCOMES • Income increased • Jobs created • IMPACT • Health conditions improved • Longevity increased Capacity Development Process 3b. Define Progress Indicators TYPE WHAT IS MEASURED INDICATORS CD Strategies (Output Level) Effort, or products and services generated by Capacity Development projects and programmes Implementation of activities Capacity Development (Outcome Level) Development effectiveness, or results in terms of access, usage and stakeholder satisfaction from products and services generated by projects and programmes Use of outputs and sustained production of benefits

49. Capacity Development Process Capacity Development Process Key Activities 2a. Mobilize and design 2b. Conduct the capacity assessment 2c. Summarize and interpret results Capacity Development Process 3a. Define capacity development strategies 3b. Define progress indicators for capacity development strategies and capacity development 3c. Cost capacity development strategies and capacity development

50. Capacity Development Process 3c. Cost Capacity Development Strategies and Capacity Development The best developed policies and programmes will go nowhere without appropriate funding. It is critical that the capacity development strategy options and related action plans are accurately costed in order for the team to realistically determine the extent of funding required for implementation. • Use input-based budgeting process for shorter-term capacity development actions and strategies; this is based on known, quantifiable inputs, e.g., number of consultant-days, number of consultation sessions, translation costs • Less straight-forward is the process for determining or projecting costs required for longer-term capacity development. If an assessment team feels that these costs cannot be accurately projected, it is suggested that this costing exercise be limited to an actual costing of inputs in order to avoid any issues of credibility or legitimacy What approaches have you used to cost capacity development strategies and capacity development? What challenges have you faced?