Implementation – Capacity Development
21.1 Why is capacity development important to municipal managers?
The greater the capacity of a municipality, the more likely
it is to succeed in developing and sustaining effective PPPs.
PPPs represent a new field, requiring new skills (and inevitably
some organisational change) as municipal functions are delegated
to the private sector and the role of the municipality changes.
A basic level of capacity development is essential. In some cases,
however, the private sector, which traditionally has better knowledge
and skills, needs to develop its capacity. This is especially
the case in countries with a low level of private sector activity.
This toolkit describes a capacity development process.
Urban service delivery requires the management of resources,
financial resources (capital and operational);
natural resources (water, basic building materials and so
physical resources (transport, equipment and so on);
social resources (communities and NGO participation); and
human resources (a skilled, motivated workforce and other
Managers at all levels will need to forecast, allocate
and control these resources. Investments are required
to develop their full potential. Limited human resources
(in terms of number, attitude, focus, skill, knowledge or
experience) can lead to poor productivity and participation,
resulting in higher unit costs in basic urban services.
Just as the technical delivery of urban services has
changed to take a more demand-led approach, capacity development
has also been developing its approach to meet the needs
of organisations. Investment in the development of people
is now targeted to meet institutional strategies and management
targets for the delivery of services.
A key change in the way municipalities are expected to
work is their level of interaction with citizens, especially
those residing in poor areas, slums and informal settlements.
This requires different skills and knowledge and a shift
in traditional attitudes towards service delivery and
participation. These changes in turn will demand appropriate
internal employee and managerial capacity and the development
of partnerships with other stakeholders, for example NGOs.
The involvement of the private sector, especially those
organisations with vision, can provide an opportunity
to implement cohesive capacity development to ensure
that people are reaching their full potential.