Policy and Strategy for Capacity Development in the Sector Table of contents 1. Introduction 1.1 Capacity Development 1.2 Sector 2. Process of policy formulation and approval 2.1 Composition of Core Group 2.2 Capacity Development Needs assessment 2.3 Formulation of Capacity Development Objectives 2.4 Capacity Development Supply side considerations 3. Process of policy action planning and implementation 4. Process of monitoring and evaluation the policy implementation Policy and Strategy for Sector Capacity Development 1
1. Introduction Recently, PWA together with the water sector stakeholders have embarked on efforts to formulate and agree on a new water law, a water policy and a water strategy, covering water resources, water supply and wastewater and to a lesser extent also irrigation, environmental protection and public health. Separate sub-strategies have already been produced for Non-Revenue and Sustainable Financing, all with TPAT assistance, and for and Gender. Additional strategies have been identified to be produced for Wastewater Technology and Bio-solids (with TPAT assistance), and for Irrigation. PWA has requested the TPAT project to assist PWA to prepare and implement a policy and a strategy on capacity development of the water sector. What is understood by capacity development and the water sector is elaborated in the following two sections hereunder. 1.1 Capacity Development Knowledge, competence and well-functioning organizations and institutions are important pillars in any strategy that aims at improving human well-being, public health, poverty reduction, social equity, transparency, accountability and sustainable development. Any investment in infrastructure or any effort to manage natural resources and eco-systems is at risk of failure without a commensurate investment in capacity development and the subsequent management of the new knowledge generated throughout such an investment process. In other words, weak capacity impedes the proper targeting and absorption of development funds and the sustainable operation and management of feasible investments. Moreover, capacity development is emerging as the single best tool to create transparency and an informed citizenry to combat corruptive and other negative practices that may taint the use of funds expended on behalf of the government and the donor or lending communities. Several multilateral and bilateral development organizations engaged in capacity development have tried to come up with a definition for it (WB, UNDP, OECD, GIZ, CIDA, others). Some common elements and learning emerge, including the following: Capacity development is a process of change, and thus about managing transformations. As capacities change over time, a focus on what development policies and investments work best to strengthen the abilities, networks, skills and knowledge base cannot be a one-off intervention; Capacity development takes place at three different levels: individual level, organizational level and societal level. These three levels are interlinked and interdependent. An investment in capacity development must designed and accounted for impact at these multiple levels; There can be short term results. And often in crises and post conflict situations there is a need for short term results. But even short term capacity gains must be supported by a sustained resource and political commitment to yield longer term results that truly impact on existing capacities. Policy and Strategy for Sector Capacity Development 2
Capacity development is about who, how and where decisions are made, management takes place, services are delivered and results are monitored and evaluated. It is primarily an endogenous process, and while supported and facilitated by the international development community, it cannot be owned or driven from the outside. At the end of the day, it is about capable and transformational states, which enable capable and resilient societies to achieve their own development objectives over time. In summary, capacity development, i.e. the generation and dissemination/application of knowledge would aim to create the conditions for professional sustainability of individuals and organizations focusing on three different levels: Developing knowledge and competences of individuals (i.e. the players); Developing organizations and/or systems of organizations (i.e. the teams); Changing and strengthening the enabling environment, i.e. institutional framework through formal laws and policies and/or other informal norms which stipulate the limits within which individuals and organizations develop (i.e. the rules of the game). Capacity development can be carried out via different direct vehicles or modes, such as secondary or tertiary education, learning-by-doing, learning from peers, learning through formal and social networks, through the purchase of patents, and the physical of import of individual specialists. However, and in order to retain qualified staff and their commitment, additional essential indirect instruments should help to retain and improve capacity, e.g. through financial and other career-related incentives as part through a human resource policy. A summary of capacity (development) at different levels, including inputs and outcomes and means of measurement are presented in the table below. Level Capacity Capacity Development Outcome Indicator Individual Factual knowledge Understanding Skills Attitudes Traning Education Apprenticeship Peer learning Learning-by-doing Networking Factual knowledge Understanding Skills Attitudes Organization Enabling environment Strategies Human resources Administrative procedures Budget framework Accountability framework System to learn lessons Political priorities Policies Regulatory framework Public administration Fiscal framework Accountability Change management Technical advice on structure, management, incentives Human resources development Peer learning Learning-by-doing Press Technical Advice Dialogue Peer learning Learning-by-doing Organizational performance "Conduciveness" Good governance Competences of individuals and organizations: - Technical - Managerial - On governance - For continued learning and innovation Civil Society literacy Social/indigenous capital Awareness raising Mass communication Learning-by-doing Policy and Strategy for Sector Capacity Development 3
1.2 Sector Capacity development functions can be found both in the government sector and in the nongovernment sector, the latter also including community based and private sector organizations. While the government sector mainly focuses on ministerial and regulatory functions, also including coordination and financing, the implementation and service delivery functions are being increasingly considered as the domain of both the government sector and the nongovernmental sectors, e.g. through Public Private Partnerships and the involvement of civil society. Governmental organizations carry out capacity development related functions through different organizational units like e.g. the Human Resources Departments (for human resources and training), the Research and Development Departments, Awareness Raising and the Internal Audit Departments (for monitoring and quality control of systems and procedures and implementation of business plans). These functions are mostly internally oriented and relate to the performance of their own organization and staff. An exception to this general set-up is the proposed General Directorate for Capacity Development of Service Providers of the PWA organizational structure, which is specifically geared towards the policies, strategies, programs, plans and financing of interventions to strengthen the water supply and wastewater providers. However, government organizations like MOLG, PWA, MOA, MENA, MOWA and MOH also perform awareness and outreach functions to inform and empower the general public, women and specific water users on issues like water-wise behavior (water demand and conservation), public health (pollution, sanitation) and environmental protection. On the implementation side, national and international financing organizations partner with the capacity development service providers, targeting a wide range of stakeholders, ranging from water leaders through formal tertiary education to the general public through informal water education (water literacy). These capacity development service providers include organizations like universities, research institutes, polytechnics, technical colleges, industrial secondary schools, vocational training centers, but also donor organizations, national and international NGOs, UNWRA, community based organizations, and national and international private sector organizations. The table on the next page presents an overview of the various stakeholders and their roles, distinguishing between functions like coordination(c), financing (F), ministerial (M), regulatory (R), infrastructure development (I), water service delivery (S) and capacity development service providers (CD). Policy and Strategy for Sector Capacity Development 4
The water sector comprises a wide range of stakeholders and sub-sectors, including the following: Sector Stakeholders Resources Supply Wastewater Irrigation Environment & Ecology Public Health Industrial Gender and Education & Training Ministry of Planning and Administrative Development C C C C C C C C C Ministry of Finance F F F F F F F F F Multilateral, Bilateral donors and financing institutions F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD (Inter)national Non-Governmental Organizations F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD F-I-CD Palestinian Authoirty C-M-R-I C-M C-M I I F-C Sector Regulatory Council (1) R R I I PWA Project Management Unit (2) I I I Ministry of Local Government C-M-R C-M-R I I Municipal Development and Loan Fund (MOLG) F-I F-I I I Municipalities R-I R-I I I Public Service Providers I-S I-S I I producers, operators, manufacturers, constructors (Private Sector)(3) I-S I-S I-S I-S I-S I-S I-S Ministry of Agriculture C-M-R-I I I Farmers' and Users' Organizations I-S Users/Service Providers' Customers Ministry of Environmental Affairs C-M-R-I C-M-R-I I Ministry of Health C-M-R-I I Ministry of National Economy C-M-R I Ministry of Women Affairs C-M-R-I Ministry of Education I C-M-R Ministry of Labor I I C-M-R Universities, Research Institutes, Poly-technics, Industrial Secondary Schools (MOE) CD CD CD CD CD CD CD CD CD Union of Service Providers CD CD International Service Providers CD CD M = (1) To be established C = (Donor) Coordination I = Infrastructure Development Ministerial (2) To be discontinued F = Finance R = Regulatory S = Service Delivery (3) PPP to be considered CD=Capacity Development Deliv Policy and Strategy for Sector Capacity Development 5
2. Process of policy formulation and approval Stakeholders All Stakeholders Core Team Reference Group Core Team PWA Reform Coordination Unit Core Team Sector COMSC Core Team Cabinet of Ministers Activities/Events Kick-off Meeting Process of policy drafting Consultation Workshop(s) Process of policy improvement Review of policy Process of policy improvement Approval of policy Process of policy finalisation Endorsement of policy, strategy The envisaged process of how to formulate and seek approval for the capacity development policy is described hereunder. It is proposed that PWA, through the DG Training and General Development, and assisted by the TPAT project, will lead the formulation process. Intensive stakeholders involvement is sought starting with a kick-off meeting for all stakeholders, during which the overall process will be explained and discussed, and during which a core team and a reference group are to be established. The participants to the kick-off meeting will be asked to elaborate and/or distribute any planned or ongoing initiatives regarding capacity development, both in terms of needs assessments and in terms of existing policies and strategies. The core group will analyze the wider framework of the new (draft) water law, water policy and water strategy, and the capacity development needs and/or policies and strategies, before actual drafting can start. The core team is expected to have regular 2- weekly meetings during which progress is discussed and work is agreed until the next meeting(s). Once a first draft is prepared, a workshop will be called to present and discuss the draft policy and strategy with the reference group. More workshops may be called depending on the quality of and the feed-back to the document. The approval process of the policy and the strategy will be two-tiered; first by the Sector Cabinet of Ministers Steering Committee, and second by the Cabinet of Ministers. Policy and Strategy for Sector Capacity Development 6
2.1 Composition of Core Group While recognizing the wide field of water sector stakeholders, an efficient and effective work method is needed to produce and agree on the capacity development policy, hence the suggestion to establish a core group and a reference group. A possible composition of the core group could include representatives from the following groups of organizations: Lead PWA Service Providers (WBWD, Small, Big, Union of Service Providers, Private Sector Operators) Capacity Development Service Providers (Universities, Research institutes, Educational establishments, Training institutes, (Inter)national NGOs, Consultant companies) Financing organizations (MOF, MDLF, (Inter)national NGOs, donors) Public Sector (MOLG, MOA, MENA, MOH, MOPAD, MOWA, MOEduc) Private sector (Operators, Consultants, Constructors, Manufacturers) Users (NGOs, CBOs, Farmers associations) 2.2 Capacity Development Needs assessment A high quality capacity development policy, which is agreed by the stakeholders, can only be achieved if a proper needs assessment lies at the basis of it. An example of a sector needs assessment is presented on the following page, which distinguishes between human resources capacity, organizational capacity and the enabling environment. These three levels can be understood as follows: Human resources: Refers to the process of changing attitudes and behaviors-imparting knowledge and developing skills while maximizing the benefits of participation, knowledge exchange and ownership; Organizational capacity: Focuses on the overall organizational performance and functioning capabilities as well as the ability of an organization to adapt to change; The enabling environment: Focuses on the overall policy framework in which individuals and organizations operate and interact with the external environment. The format can be used to rate or score the various levels and elements to identify and prioritize the main areas where future capacity development interventions should focus on. Moreover, and over time, the exercise can be repeated to monitor and evaluate the progress achieved. Policy and Strategy for Sector Capacity Development 7
Sector capacity score card Human Resources: Refers to the process of changing attitudes and behaviors-imparting knowledge and developing skills while maximizing the benefits of participation, knowledge exchange and ownership Score (1=very much so, 5= very much not so) 0 Job requirements and skill levels Training/retraining Career progression Accountability/ethics Access to information Personal/professional networking Performance/conduct Incentives/security Values, integrity and attitudes Morale and motivation Work redeployment and job sharing Inter-relationships and teamwork Communication skills Are jobs correctly defined and are the skills available? Is the appropriate learning taking place? Are individuals able to advance and develop professionally? Is responsibility effectively delegated and are individuals held accountable? Is there adequate access to needed information Are individuals exchanging knowledge with peers? Is performance effectively measured? Are these sufficient to promote excellence? Are these in place and maintained? Are these adequately maintained? Are there alternatives to the existing arrangements? Do individuals interact and form functional teams? Are these effective? Organizational capacity: Focuses on the overall organizational performance and functioning capabilities as well as the ability of an organization to adapt to change 0 Mission Culture/structure/competencies Process Human resources Financial resources Information resources Infrastructure Do the organizations have clearly defined mandates? Are organizations effectively structured and managed? Do institutional processes such as planning, quality management, monitoring and evaluation work effectively? Are the human resources adequate, skilled and developed? Are financial resources managed effectively and allocated appropriately to enable effective operation? Is required information available and effectively distributed? Are offices, vehicles and computers managed effectively? The enabling environment: Focuses on the overall policy framework in which individuals and organizations operate and interact with the external environment 0 Policy framework Legal/regulatory framework Management/accountability framework Economic framework Systems-level framework Process and relationships Are the strengths, weaknesses, opportunities and threats operating at the societal level clearly defined and well understood? Is the appropriate legislation in place, and are these laws effectively enforced? Are institutional responsibilities clearly defined, and are responsible institutions held accountable? Do markets function effectively and efficiently? Are the required human, financial and information resources available? Do the different institutions and processes interact and work together effectively? Total Score 0 2.3 Formulation of Capacity Development Objectives Once a proper capacity development needs assessment is carried out, the work on the formulation of a policy can start. This also includes the formulation of capacity development objectives. These are normally defined in terms of the changes in the following three capacity areas: (1) strength of stakeholder ownership, (2) efficiency of policy instruments and (3) effectiveness of organizational arrangements. Policy and Strategy for Sector Capacity Development 8
Strength of Stakeholder Ownership Commitment of social and political leaders Compatibility of social norms and values Stakeholder participation in setting priorities Stakeholder demand for accountability Transparency of information to stakeholders Efficiency of Policy Instruments Clarity in defining rights and responsibilities Consistency Legitimacy Incentives for compliance Ease of administration Risk for negative externalities Suitable flexibility Resistance to corruption Effectiveness of Organizational Arrangements Clarity of mission Achievement of outcomes Operational efficiency Financial viability and probity Communications and stakeholder relations Adaptability 2.4 Capacity development supply side considerations In designing the capacity development policy for the water sector, and in particular the supply side of it, and in order to create a unified and formalized system of capacity development, special consideration will be given to assess the feasibility of the following issues: Establishment of water sector training center (workshops technical/vocational level) Development of generic/uniform CD tools (e.g. business planning, annual performance evaluation, NRW) Establishment of certification of qualifications (e.g. operators) Development of Training-of-Trainers program Policy and Strategy for Sector Capacity Development 9
3. Process of policy action planning and implementation Once the capacity development policy are approved, the core team is expected to take the lead in the dissemination of the policy to the stakeholders. Individual stakeholder organizations are encouraged to prepare capacity development (action) plans, at the level of the organization and of its human resources, on how to implement the policy and strategy (1) within their organization and (2) towards their specific (external) target groups.. Organizational capacity development (action) plans, covering a 3-5 year period, and should be prepared by the relevant units and persons within the respective organizations. These plans should be approved by the organization itself, endorsed at national level, and updates should be made annually. As an example, in the case of PWA, the most likely units and persons to form a committee or task force under the coordination of the International Cooperation and Coordination Department, with representatives from the Human Resources Department, the Capacity Development Service Providers Department, the Research and Development Department and the Unit responsible for awareness raising of the general public. See the figure below, which also clearly illustrates the various internal and external capacity development relations of the different PWA units. Inside PWA International Cooperation and Coordination Capacity Development Coordination Committee to consider international funding offers Human Resources Capacity Developent Research and Development Communication & Awareness Raising Department 1 Service Provider 1 CD Service Provider 1 University/Research Institute 1 Target Group 1 Department 2 Service Provider 2 CD Service Provider 2 University/Research Institute 2 Target Group 2 Department 3 Service Provider 3 CD Service Provider 3 University/Research Institute 3 Target Group 3 Outside PWA Once prepared, this should be translated in to plans and related budgets necessary for the implementation of the capacity development activities. This same structure, responsible for capacity development (action) planning, (multi) annual planning and budgeting, can also be effectively and efficiently used for the subsequent implementation of the capacity development (action) plans within each of the stakeholder organizations. Policy and Strategy for Sector Capacity Development 10
4. Process of monitoring and evaluation the policy implementation Effective monitoring and evaluation mechanisms have to be put in place to review the progress and, ultimately, the final results of the capacity development policy. Similarly, organizational capacity development (action) plans, forming part of the national capacity development system, will need proper monitoring and evaluation mechanisms. The core team is expected to propose the establishment of unified implementation monitoring system for both the policy implementation and the implementation of the organizational capacity development (action) plans. The recently drafted water policy has proposed specific monitoring and evaluation arrangements. These are in line with the COM decision of September 2011 that each sector shall establish its own Sector Strategy Advisory Group. For the water sector this is still to be established, and will comprise selected representatives as members. This high level group, probably at the level of deputy ministers, will meet at least once per year to review and address the results and problems identified. Hence, it is suggested to set up a special capacity sub-committee under the Sector Strategy Advisory Group, most likely with the PWA GD Capacity Development as its secretary. This subcommittee will be responsible for the monitoring of the implementation of the capacity development policy, also to include the implementation of the organizational development (action) plans. Policy and Strategy for Sector Capacity Development 11