The Round Table as a Programme?

Page 1 of 59 402/94-4 e PIV Division 402 Environmental protection, Conservation of Natural Resources Dissemination of Appropriate Technologies (GATE) The Round Table as a Programme? Institutional Development caught between the Environment and Development - Options and Limitations Helmut Müller-Glodde Eschborn 1994 Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Table of Contents Preface Executive Summary I IX Preliminary Remarks 1 The Technical Cooperation Debate 1 Realising the UNCED Plan of Action - New Challenges for German Technical Cooperation 2 The Goal and Structure of this Study 5 1 What Do We Mean by Institutional Development in Environment? 9 1.1 Institutions in the Field of the Environment 9 1.2 Institutional Development in Environment 10 1.3 Capacity Development in the Context of Institutional Development 15 2 The Strategy 18

Page 2 of 59 2.1 The Common Goal as a Compass 18 2.2 Not Target Groups, Process Participants 19 2.3 Principles of Action 22 2.3.1 System Orientation 22 2.3.2 Process Orientation 22 2.3.3 Culture-Specific Orientation 23 2.3.4 Demand Orientation 23 2.3.5 Mediation and Conflict Orientation 24 2.3.6 Strategic Elements for Promising Action 25 2.4 Methodical Approach 25 2.4.1 The Problem as a Starting Point 25 2.4.2 The Vision as a Starting Point 26 2.5 Consultancy Approaches 27 2.5.1 Features of Subject-Specific Consultancy 28 2.5.2 Features of Ongoing Process Consultancy 29 3 Environmental Fields of Action of Technical Cooperation 31 3.1 Promoting Environmental Information and Monitoring 32 3.2 Advising Environmental Organisations 33 3.3 Advising on the Design and Use of Environmental Policy Instruments 34 3.4 Promoting Integrated Planning Systems 34 3.5 Advising on the Formulation, Updating and Enforcement of Environmental Legislation 34 3.6 Integrating Environmental Aspects into Sector Policies 35 3.7 Promoting PR Work and Environmental Education 36 3.8 Promoting Inter-Institutional Cooperation, Conflict Systems Management and Mediation 36 4 Forms of Institutional Process Consultancy 38 4.1 The Role of the Institutional Development Consultant 39 4.2 Instruments and Techniques of the Institutional Development Consultant 43 4.3 Phases of Consultancy 48 4.4 Intervention Strategies and the Integration of the Institutional Development Consultant 48 5 Institutional Development in Environment as a GTZ Promotion Approach 50 5.1 From the Project to the Programme 50 5.2 Programme Promotion as an Intervention Strategy of German Technical Cooperation: Demands, Preconditions and Chances 51 5.2.1 Coherence and Integration of the German 59 Contribution 59 5.2.2 Consultation and Coordination of External Contributions with Programme Participants 60 5.2.3 Decentralisation and Sustainability 60 5.2.4 Economic Viability 61

Page 3 of 59 5.3 Adapting Technical Cooperation Instruments 61 5.3.1 Preparatory and Orientation Phase 62 5.3.2 Programme Steering: Programme-Support Bodies and their Institutional Place 68 5.3.3 Programme Monitoring and Evaluation 75 5.4 Human Resources Management 80 5.4.1 Towards Flexible Human Resources Management 80 5.4.2 Changing Profiles of Expatriate Long- and Short-Term Experts 83 5.4.3 From a Meeting of the Minds to Institutional Cooperation 86 5.4.4 Comprehensive Human Resources Management Strategy rather than Isolated Training Measures 87 5.5 The Internal and External Structure of the GTZ 89 5.6 The Function and Role of the Pilot Project Institutional Development in Environment 93 5.7 Financing Options 94 5.7.1 Flexibility by Providing Funds for a Capacity Development Programme in the Field of the Environment 5.7.2 Capacity Development Programme in the Field of the Environment: A Practical Example of how Financial and Technical Cooperation can be Combined 94 95 6 Preconditions for Institutional Development 98 6.1 In the Partner Country 98 6.2 In Germany as the Promoting Country 99 7 The Round Table has Corners: The Long Trek towards New Strategic Alliances 102 Annex 107 Bibliography 109 The Author 115 Other Publications in this Series 117 Preface A debate is currently raging about the objectives and forms of development cooperation under the banner of "capacity building" or "capacity development", individual donor organisations, some working within the OECD, are rethinking their range of development policy instruments. This is evidently less a U-turn than an effort to expand the services provided and to make them more flexible, so that development cooperation can be better tailored to changing circumstances. This debate has not by-passed Technical Cooperation activities designed to promote environmental institutions. It is a field where the many unique features of environmental work must be taken into account, such as the complex causes of environmental problems, the large number of actors involved, the fragmented institutional responsibility and the major significance of the environmental policy and legislative framework. In the past, Technical Cooperation in the field of environmental institutions primarily took the form of consultancy services and training in technical and organisational areas (setting up measuring networking and laboratories, technical environmental protection, environmental impact assessments, standards, planning procedures). The experience that the GTZ has acquired over the last 10 years or so shows that this sort of approach is of limited use in achieving a more comprehensive development of local capacities in the field of the environment (or "capacity development in environment" as it is termed). This study builds on the experience of the GTZ and devises a framework for a long-term, holistic, participatory, processoriented, suprasectoral approach to institutional development in this field. Parts of the study make specific recommendations

Page 4 of 59 for action, while other parts present new ideas which have not yet been operationalised. It thus takes a broader view than the immediate practical necessities and goes beyond actual, practical experience to date. The ingredients which went into the study include not only the creativity of the author, the experience and ongoing work of the GTZ Pilot Project "Institutional Development in Environment", GTZ Division 402 (Environmental Protection, Conservation of Natural Resources, Dissemination of Appropriate Technologies (GATE)) and of other GTZ technical divisions, but also the GTZ's, Guidelines for Project Cycle Management (PCM), the experience of other donors, the work of the OECD (within the scope of the Task Force on Capacity Development in Environment for instance), to name but a few sources of inspiration. Although the study is designed to give new impetus and provide a longer term framework for the activities of the GTZ in the field of institutional development in environment, it also addresses individuals outside the GTZ, who are involved in planning projects, developing Technical Cooperation concepts and tackling fundamental issues of development cooperation. We hope that it will be a valuable contribution to the wider debate on the objectives and form of development cooperation in the field of the environment. Stephan Paulus Head of Pilot Project Institutional Development in Environment Wolfgang Morbach Head of GTZ Division 402 Environmental Protection, Conservation of Natural Resources Dissemination of Appropriate Technologies (GATE) In complex, networked, dynamic situations our brain makes mistakes: We focus on the irritating knots and cannot see the net; we do not appreciate that we cannot modify an individual factor in a system, without automatically affecting every other factor in that system, Can we do anything to change that? Dietrich Dörner "Die Logik des Mißlingens" Executive Summary 1. Reconciling the Demands for Environmental Protection and Development: A Challenge for International Cooperation At the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro in June 1992, the international community approved "Agenda 21", a detailed action plan for environmental and development policy, and declared that every individual is entitled to a healthy, productive life in harmony with nature (1). If this ambitious demand is to become reality, the states involved, their institutional structures and organisations, and their citizens will have to make major efforts. Accordingly, almost every chapter of Agenda 21 points out that forces within society will have to be mobilised and individual and institutional capacities strengthened in order to help reconcile the need for both environmental protection and development. Both industrialised and developing countries will have to go through a process of learning and of change if they are to successfully put into practice the UNCED plan of action, which means that German development cooperation will face new challenges, especially in terms of developing capacities to manage and conserve ever scarcer and threatened natural resources (capacity development in environment). A development policy geared to conserving the environment, for instance, will mean working for a favourable political framework, upgrading institutional structures and processes, using flexible steering instruments in the field of environmental policy as in other fields, and adopting suprasectoral, supra-media planning procedures which will result in integrated programme approaches. In this way institutions and the relevant framework within which they operate and change will become the real fields of action of a truly environmental Technical Cooperation. This study is a policy paper on this topic.

Page 5 of 59 2. The Concepts Used Environmental institutions include both actual organisations, i.e. formally structured bodies with specific roles such as environmental authorities, private umbrella organisations or non-governmental organisations, and social norms and values, such as the political framework, environmental programmes, communication patterns and social movements. The individual shapes the form and substance of these institutions through his behaviour and demands, and they in their turn affect the pattern of human life and the options open to the individual to act. Institutional Structures are the links which pave the way for the complex interaction between the three "variables"; the individual, the organisation and social norms. Institutional structures reveal the relations between these variables and the way they interact. lnstitutionalisation is a process in the course of which the behaviour and interaction of the "variables" involved in a system are typified, standardised and thus prescribed over a longer period; this process may result in the founding of new organisations or in new legislation being passed, or may usher in a change in norms and values. Institutional Development in Environment is a suprasectoral and supra media process in the course of which institutional structures are set up to boost the interaction between the three "variables" within the system, and to enhance the networking of these variables. It is also a methodical procedure to establish and enhance knowledge, skills, standards and structures of process participants, which comprises four components: human resources development, organisational consultancy, relevant legal, economic and social consultancy, and communication, cooperation and conflict consultancy. These consultancy approaches should be combined to give impetus to institutional change and to provide this process of change with constructive criticism and back-up. Capacity Development in this context is a long-term national process in which individuals boost their problem-solving skills and ability to act on the basis of their own experience, while the performance capacity of organisations and institutional structures is strengthened, with a view to helping ensure a sustainable, responsible utilisation of natural resources, which is compatible with the economic and social development goals of that society. 3. Strategic Elements of Capacity Development in Environment Environmental problems always affect a large number of people at various levels in many different sectors, which makes it impossible to gear capacity development approaches in this field to any specific "target groups" or "project executing agencies". They can only address actors who are to be involved in the processes to protect the environment and ensure an environmentally benign use of natural resources - at every level, in every sector. We do have a series of principles which govern the use of approaches of this sort. The measures must be seen as systematic impetuses and as part of a learning process; must be tailored to the culture and the economic conditions of the partner country, to the individual circumstances in question and to the resources available; should be desired and have been requested by the government of the partner country; should represent an integrative contribution to environmental mediation, to defining the interests of the groups involved and to conflict management. Thus the development of institutional capacities in the field of the environment demands not only the assignment of consultants to devise technical solutions to individual problems, but, more importantly, a situation-specific process moderation, resulting in improved management of complex environmental systems. On the basis of a specific problem structure or vision two different consultancy concepts can be pursued: whereas a short- to medium-term, subject-specific consultancy is generally required to deal with a clearly delimited task, medium- and long-term institutional processes involving learning and transformation processes require process-oriented consultancy. For Technical Cooperation, the latter means developing new forms of participation and new procedures to regulate conflicts and achieve consensus: the aim is to involve as many actors as possible, with their various interests, in a common learning process, with a view to promoting the formation of suprasectoral, supra-media environmental action groups; harmonising sector-specific planning and action approaches as far as possible; identifying conflicting economic, environmental and social policy goals, and encouraging a reconciliation of these different interests; promoting the acceptance of inter-institutional communication rules and coordination mechanisms; identifying the know-how, behaviour patterns and values of individuals, and combining these with environmentally sound activities. The four programme components (human resource development, organisational consultancy, legal, economic and social consultancy, and conflict management, communication, and cooperation consultancy) open up a number of fields of action, which offer opportunities for capacity development in environment. These include, for instance, the promotion of environmental information and monitoring systems, consultancy services for environmental organisations, e.g. regarding the design and use of appropriate instruments, the promotion of integrated planning systems, the provision of advice on drafting,

Page 6 of 59 updating and enforcing environmental legislation, the integration of environmental aspects into sector policies, as well as the promotion of PR work, environmental education, inter institutional cooperation, conflict management and mediation. 4. Forms of Institutional Process Consultancy Consultancy within the scope of (environmental) programme promotion is an instrument which can be used to integrate and structure fragmented, iterative (cyclic) and participatory planning and action processes. Depending on the scope of promotion and in line with the environmentally relevant institutional landscape, consultancy interventions can be either horizontal (at one level) or vertical (at various levels) in nature. The starting points of institutional process consultancy are the four programme components, and the concomitant capacity development measures. Various consultancy instruments and intervention techniques can be combined to suit the perspective of those involved and the focus of the programme in question. Since institutional developments are a reaction to constantly changing conditions within the system, a phase- and processoriented procedure is needed to influence them. The process of institutional development is cyclical, and goes through four closely linked phases: diagnosis (holistic problem analysis), formulation of objectives (devising alternative options), action planning, action and monitoring. The level at which the institutional development consultant should intervene is determined by the intervention strategy which must be agreed on by all parties involved. There are three typical types of intervention, which differ in their influence, intensity and in the role perception of those involved. Depending on the problem in hand, the institutional skills and knowledge, and the interests of the applicant who first sets the process of institutional development in motion, the consultant may become a coach, a facilitator or a promoter of this process. The consultant, in his capacity as a procedural specialist, thus coaches, facilitates and promotes institutional development throughout the various phases which the "variables" (the individual, the organisation and social norms) and the institutional structures go through. In this role he exerts an influence on both the organisational framework and on the choice of the methodical procedure, whereby he must always adapt the type of process consultancy to suit the given circumstances. The instruments and techniques he uses to this end can basically be broken down into diagnostic and design tools, although in practical institutional development it is not always possible to make such a clear-cut distinction. In addition to this, internal and external monitoring, evaluation and feedback techniques are part of all institutional development. Standardised instruments and techniques are rarely appropriate. 5. Institutional Development as a Capacity Development Programme Institutional development in the guise of a capacity development programme demands a lot of the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH, the promoting organisation, in terms of analytical skills, organisation and instruments. This applies, above all to the revision, invention and further development of Technical Cooperation instruments, and the way they are integrated into operations, in conjunction with impact analyses; the form and focus of the GTZ's internal and external structure (decentralisation); a more in-depth knowledge about state and non-governmental institutions, their economic, ecological and sociocultural framework and resources in individual countries and regions; a rethinking of the GTZ's human resources management strategy; the situation- and culture-specific use of the available instruments within the scope of a coherent promotion strategy worked out jointly by process participants (donors and recipients alike). 5.1 Programme Promotion The promotion of project-type, isolated solutions should be abandoned in favour of suprasectoral, supra-media programme approaches, which should be integrated into the partner country's national Agenda 21. An (environmental) programme, which would link various projects, could then comprise both measures at local level and steps to create a suitable policy framework at national level, or an "enabling policy environment" as it is termed. The programme partnerships that must be formed to promote the problem solving capacity of state and non-governmental (environmental) organisations demand longer promotion terms, a higher level of investment, and improved donor coordination. The promotion of environmental programmes also requires not only instruments to strengthen the performance capacity of a certain organisations in technical terms, or to help achieve a material project purpose, but more importantly instruments which will help strengthen institutional structures and the problem-solving abilities of process participants, as well as instruments to institutionalise appropriate mechanisms. This, in turn, has impacts on programme planning and steering, on monitoring and programme evaluation, on the profile of long and short-term experts and on the GTZ's internal and external

Page 7 of 59 structure. Customer orientation and involvement of process participants should be anchored in an open preparatory and orientation phase by means of a holistic problem analysis and diagnosis, and by the partner country and the donor countries drawing up a rough programme promotion strategy and entering into binding agreements. The sheer number and variety of process participants, whose activities must be coordinated, makes new forms of planning, steering and evaluation necessary for suprasectoral and supra-media institutional development. The programme-support bodies support and coordinate the process participants during the planning, implementation and monitoring of programme activities, many of which will run parallel to one another. The various process participants should form a new, joint system of action outside their own primary organisations within the process of capacity development, which should facilitate the process of learning and change. 5.2. Monitoring and Evaluation The process and performance goals of institutional development programmes in the field of the environment stress the qualitative aspects of organisational and ecological sustainability, which have to be recorded by means of a monitoring and evaluation system. Different methods are needed to record qualitative information and to interpret this than those generally used to gather quantitative data. Appropriate methods are needed with qualitative indicators and participatory data-gathering and analysis techniques, as is a process-oriented design which provides for the ongoing observation, documentation and interpretation of results, as well as a new perception of the role of the external evaluator. 5.3 Human Resources Management Institutional development programmes in the field of the environment demand not only a new understanding of the role of Technical Cooperation, but will also mean a trend towards longer promotion terms and flexible human resources management strategies. Institutional development consultants, who should be based in the partner country, could coordinate and monitor the suprasectoral environmental policy and technical dialogue among participants over a period of several years, in the capacity of programme or process manager. As representatives of the donor or donor consortium they would play an important part as intermediary between donors and recipients and would become familiar with the often incompatible procedures and strategies of these two sides. Highly qualified local experts and expatriate short-term experts could help them perform their many and varied tasks. Expatriate long- and short-term experts should be selected for their ability to work as an intermediary within the difficult institutional processes of change involved in capacity development initiatives. 5.4 Strengthening the GTZ's Organisational Culture If the GTZ were to decide to adopt programme-oriented institutional development in the form of a capacity development approach, it would have to adapt its external and internal structures to bring them into line with the new challenges in the medium to long term. The technical and administrative management structure of the GTZ in partner countries, especially in the countries where we find the thrust of German development cooperation, would have to be strengthened to allow for customer-oriented monitoring and participatory programme planning, and for intervention to be made economically viable and sustainable. One possible option, for Instance, would be to open a national or regional programme office in the partner country, which would be a decentralised management unit in which a team of local and expatriate experts provided the services requested within the scope of an agreed country programme. Thus, rather than seconding more long-term experts, the GTZ should develop a better pool of in-country skills and make the programme office responsible for suprasectoral tasks. By delegating responsibility for key tasks (environmental institutional development, organisational diagnosis, women in development, human resources development, lobbying, coaching, monitoring and impact analyses) to the programme office, the GTZ would be able to make savings through synergy on sides of both the donor and the recipient, and would avoid costly duplication. The internal structure of the GTZ which would be relieved of these tasks could then be organised in line with the external structure. 5.5 Linking Financial and Technical Cooperation Activities By linking Financial and Technical Cooperation activities to promote environmental institutions through capacity development programmes, German development cooperation has the chance to boost its effectiveness by synergy gains, for instance by drawing up joint country concepts and coherent promotion programmes. The lack of financial resources and of access to needs-oriented capital are often stumbling blocks for institutional change and can also impair the effectiveness of non-financial promotion instruments. The Financial Cooperation component of an environmental programme would involve providing a financial contribution, the use of which would be (co-) determined by the

Page 8 of 59 process participants on the basis of jointly negotiated terms of business. The Technical Cooperation component of an environmental programme would comprise a non-monetary institutional development package to help `strengthen the individual and collective ability of people to solve problems in heir own fields of action. This will automatically have an impact on organisations, social norms and institutional structures. 6. Preconditions for Institutional Development Institutional development approaches in the field of the environment can only be pursued if partner and promoting countries, and international organisations are willing to undertake structural and social adjustments. The partner countries themselves must be willing to introduce long overdue reform policies, which presupposes managerial skills and efficient administrative capacities. Institutional development in the field of the environment also requires the various actors to identify with the development programmes (the concept of "ownership"), and to commit themselves in the longterm, and demands that state and non governmental actors be able to participate at various levels on an equal basis, and be granted equal promotion. The promoting countries must be willing not only to provide the necessary financial, material and human resources, but also to question their own behaviour patterns ire-orientation of development cooperation instruments). International organisations, such as the UN agencies must build up the necessary institutional capacities and strengthen these, and must bring their influence to bear on the international economic situation. Theirs is the role of a supra-national moderator and co-ordinator, initiator and promoter, who pushes for the effective realisation and observance of international environmental agreements and decisions, such as Agenda 21. 7 The "Round Table" has Corners The planning and realisation of environmental programmes always involves political processes, in which actors with varying degrees of power attempt to present and defend their own interests. Thus conflicts arise, in particular involving actors at different levels within one country. But, this is not only a problem, it is also an opportunity - conflicts, which are not ignored, but dealt with are productive forces for change. Institutional development programmes can be found right in the middle of these fields of conflict, which must be patiently discussed time and again. This is the particular challenge facing institutional development consultants: finding a new starting point time after time. The global challenge is to change tack and put the world on a new course in an economically sustainable, ecologically sound and socially desirable way. Preliminary Remarks The Technical Cooperation Debate The ongoing international discussion about the light and shadows of Technical Cooperation has brought to light critical evaluations of its role to date (2), the instruments it uses and the disappointing level of effectiveness of these. The main points of the criticism levelled at Technical Cooperation are as follows. Weaknesses in diagnosing problems and in the design, implementation and evaluation of projects which are not properly integrated into the national development programme of the country in question; the excessive reliance on expatriate experts, and the failure to fully harness local know-how; Major shortcomings in the management skills in partner countries, and competition rather than coordination among donors; Offer-oriented Technical Cooperation with the resultant inefficient allocation of resources and the failure of the partner country to identify with development projects which they see as a foreign body (lack of ownership and commitment); Lack of incentives and low salaries paid to counterparts. In response to this criticism and the 1991 OECD/DAC report Principles for New Orientations in Technical Cooperation, many

Page 9 of 59 proposals have been made as to how to remedy the situation, including greater demand orientation and flexibilisation of instruments used. In general the ideas and principles advanced are geared to achieving a higher degree of self-reliance and a greater integration of Technical Cooperation projects in partner countries, so as to strengthen the capacities of individuals and institutions in these countries to solve problems and perform their tasks on a sustainable basis. Realising the UNCED Plan of Action - New Challenges for German Technical Cooperation Every organisation which is involved in poverty reduction and sustainable development automatically finds itself confronted with the question as to how an ever expanding world population can be assured of at least the bare necessities by a natural resource base which must be preserved and secured in the long term. The answers advanced depend very much on the perspective of the various actors involved, and vary widely: their interests are shaped by the individual economic and socio-cultural frameworks within which they live, by the level at which they work (international, national, regional or local), and by their affiliation to the state or non-governmental sector and to the formal or informal sector. Conflicts are only to be expected. If we are to ensure the environmentally sound utilisation and long-term securing of natural resources, all actors must take a coordinated approach, and this is only possible on the basis of coherent environmental programmes. The so-called Agenda 21, an action plan approved by the United Nations Conference on Environment and Development (UNCED) held in June 1992, which lays down detailed environmental and environmental policy guidelines is a good example of a step in the right direction. The states involved their institutional structures and organisations and indeed their citizens will, however, have to make phenomenal efforts at all levels if Agenda 21 is genuinely to be put into practice at supra-national level. This helps explain the high status accorded to "capacity development" in the action plan. It is a term which is often used world wide, but has never been unambiguously defined. It is only clear that German Technical Cooperation will thus be faced with new tasks. Almost every chapter of Agenda 21 points out the urgent need to strengthen appropriate local individual and institutional capacities and to mobilise forces within society to ensure the sustainable integration of the environment and development. For environmental policy is still very young in most countries of the South (and not only there). The institutional capacities for planning and realising environmental programmes are inadequate; environmental policy approaches are still limited to a few individual sectors of the economy; the enforcement and monitoring of environmental legislation leaves a lot to be desired. Environmental problems affect people at every level of a society, but environmental policy appears to be only the concern of central government, which rarely calls on the knowledge, skills and cooperation of downstream organisations at regional and local level, far less the individuals and organisations in the non-state sector when it comes to make decisions. In the countries of the South and the North alike, environmental problems are only recognised when the damage has already been done. Efforts are then made to remedy the damage in the form of sectoral approaches (as part of agricultural, industrial, energy or transport policy), as though individual problems could be tackled independently of the overall context of the environment and its (our) development. We need approaches which constantly attempt to restore the balance of the environment: they must be worked out within the scope of intersectoral and supra-media cooperation involving various organisations, and approved by actors from the state and non-state, formal and informal sectors (3). This demands changes in the behaviour of individuals, and in the structure and operations of organisations, and will require the creation of new institutional structures. The goal must then be to reconcile the demands of the environment and development, i.e. to identify development processes which are economically viable, ecologically sound and socially desirable. An integration of this sort needs not only appropriate steps on the part of the countries themselves, but also (within the scope of international cooperation) mutual support in the management of natural resources and in finding solutions to conflicts of interest. On the one hand every country should be in a position to design its own sustainable environmental and development programme - a national Agenda 21, on the basis of participation-oriented, decentralised, suprasectoral, supra-media information, planning, decision-making and coordination systems, which will also help achieve synergy gains. On the other hand it is up to external donors not only to adapt their own ecological and economic policies to encourage sustainable development world-wide, but also to develop strategies and instruments which are flexible enough to provide partner countries with effective support in their efforts to establish sustainable natural resource management. Support of this sort cannot take the form of a mere technical know-how transfer in certain fields, say the development of environmental information systems, promotion of environmental organisations, enhancing crafts and administrative capacities, the expansion of the physical infrastructure or the use of classic environmental instruments such as laying down maximum acceptable pollution levels and conducting environmental impact assessments. Support in these field alone is not enough, quite simply because they fail to take into account the overall context of environmental problems, and because requests for support are `only ever received once problems have already arisen and it is clear that action will have to be taken. Comprehensive solutions geared to conserving the environment, however, increasingly require the promotion of

Page 10 of 59 institutional structures and processes (inter-institutional communication and cooperation, conflict management); flexible Technical Cooperation instruments and environmental policy steering instruments (environmental legislation, ordinances, a system of economic incentives); a suprasectoral and supra-media plan leading to integrated programme approaches (system management and networking); enabling policy environments. The institutional framework of projects and the general political and administrative framework, which have until now largely been relegated to the "assumptions" column of project planning matrices, thus move to the centre stage of Technical Cooperation activities. This framework is shaped at national level by the institutional and functional design of the system of government in the country in question, by the chances citizens have to take part in political will-building and decision-making processes and by the impact these processes have in turn on the overall political system. In the interests of a process to reconcile the demands of the environment and development, greater use should be made of participatory procedures, communication consultancy instruments, human resources and organisational development instruments, and problem-solving, negotiating and conflict management instruments in order to influence this framework. It is evident that this is not readily feasible from outside a country. The governments, their institutions and organisations, and the people in the South and North alike must be willing and able to assess the potentials of their environment and to harness these to ensure long-term sustainable development. That is an ambitious goal to which Technical Cooperation can only make a modest contribution. The Goal and Structure of this Study Although the development of appropriate capacities is also important in our own part of the world, this study looks only at capacity development in the field of the environment in developing countries. It is thus a contribution to the debate on the preconditions for bringing together environment and development, the options for this and the limitations. It aims to spotlight the field of tension between short-term sectoral, technical project or programme objectives, and longer-term institutional, suprasectoral inter action processes. The term institutional development, seen as a capacity development approach, is explained in detail and rough guidelines drawn up for the GTZ's efforts to strengthen individual and institutional capacities in partner countries. Chapters 1 and 2 look at the development of institutions and their structures as a suprasectoral, supra-media process of learning by doing, in which various process participants at different levels gradually expand their individual and collective capacities. The third chapter identifies environmental fields of action for Technical Cooperation, which open a wide spectrum of possible activities for the GTZ. On the basis of the perception of the role of the institutional development consultant, chapter 4 presents typical types of process consultancy, instruments and intervention techniques. Depending on the consultancy commission, the agreed intervention strategy, the ongoing phase and the problems faced the consultant must be integrated into the process in a manner suitable for the system in question. In the fifth chapter we look at the need to renounce isolated project approaches with their high follow-on costs in favour of programme promotion as a process-oriented instrument used to integrate and structure fragmented, iterative and participatory planning and action cycles. This has an effect on the programme cycle, the profile of experts, the internal and external structure of the GTZ and on financing models: to ensure a changeover to successful institutional development, Technical Cooperation instruments must be more flexible in design and handling, a comprehensive human resources management strategy must be developed, the external structure of the GTZ strengthened and a capacity development fund set up as a vehicle for institutional development. Chapter 6 describes the preconditions that must be met if enabling frameworks for the national capacity development programmes of recipients and donors are to be created on the twin stages of international and national cooperation. The last chapter then looks at the "round table", with all its corners. In spite of the conflicts of interest which do exist, the actors must come together to form strategic alliances if the demands of conservation are to be reconciled with those of development. Conflict is also a chance to change things. All this is only possible over a long period of time, if at all. Thus, this study indicates a way to reconcile development and environment which is intended to show the direction that Technical Cooperation's modest contribution can take.

Page 11 of 59 1. What Do We Mean by Institutional Development in Environment? 1.1. Institutions in the Field of the Environment The term "institutions" in this context refers firstly to organisations, i.e. formally structured bodies which play a recognised role and behave in a way designed to achieve predetermined objectives. The spectrum of environmentally relevant organisations stretches from the classic environmental authority to ministries of the environment, universities, private umbrella organisations such as Chambers of Commerce and Industry and Chambers of Crafts and Trades, to individual professional associations, non-governmental organisations from the so-called "third sector" and village councils (4). Technical Cooperation is based on organisations: project executing agencies are generally organisations which play the role of intermediary between the relevant ministry and the target groups. We also understand "environmental institutions" to be social norms and values (e.g. environmental legislation, standards), political frameworks (e.g. procedures adopted to define, apply and monitor the observance of regulations), environmental programmes, behaviour and communication patterns, and also social movements, which shape the social interaction of the individuals who make up organisations and groups, and directly or indirectly influence the rules governing the use of natural resources. Individuals mould the form and the substance of these institutions through their behaviour and demands, while the institutions in their turn affect the patterns of individuals' lives and the options open to them. Institutional structures are the links, the lines of communications, which facilitate the complex interaction of the three "variables" in the system, the individual, the organisation and social norms. They reveal the relations between the variables and how they interact. Institutionalisation should be seen as a process in the course of which the behaviour and interaction of the "variables" within a system are typified, standardised and thus fixed in the longer term. This process can lead to the founding of new organisations, the adoption of new legislation or changes in norms and values. Fig. 1.1.1 "Variables" in the process of institutional development in environment 1.2. Institutional Development in Environment Institutional development in environment should be seen as a suprasectoral, supra-media process, which results in institutional structures that improve synergy and communication between the three "variables" in the system. The process participants from various parts of society thus gain experience which enables them increasingly to tackle environmental

Page 12 of 59 problems independently and to contribute to a sound utilisation of natural resources, which is more compatible with the economic and social development goals of their society. Institutional development in the field of the environment is a methodical procedure to develop and expand knowledge, skills, norms and structures among process participants, comprising four programme components: human resources development, organisational consultancy, legal, economic and social consultancy, and communication, cooperation and conflict consultancy. These related, but independent, programme components are intended to help achieve the following goals: (1) Individuals in their capacity as producers and consumers are in a position to develop their own skills in conjunction with others, and to take a positive attitude to necessary changes, without jeopardising the natural resource base through their actions. Fig. 1.2.1. Development of individual capacities: knowledge, skills, interaction patterns and potentials (human resources development) (2) The local formal and informal organisations are in a position to analyse complex environmental problems independently and responsibly, to plan, realise, evaluate and re-plan if necessary suprasectoral packages, in order to ensure that the basic needs of an increasing number of people can be met in the long term. Fig. 1.2.2. Setting up and strengthening effective individual organisations (organisational change)

Page 13 of 59 (3) A framework for the programme should be created such that the individuals and organisations can ensure that their various interests are taken into account in the political planning and decision-making processes regarding the use of the natural resource base. Fig. 1.2.3. Designing a favourable framework (changing social norms) = Individual state and non-governmental organisations at micro level = Collective organisations and consortia (state and non-governmental) = governmental / non-governmental organisations such as miniseries, associations = Norms at the various level

Page 14 of 59 = Structures as a link between the "variables" in the system (4) The institutional lines of communication and the structure of normative relations between the various "variables" in the system are clear; structures to ensure the coherent coordination of suprasectoral, supra media information, planning, decision-making and action systems have been institutionalised, as has a monitoring and evaluation system. Fig. 1.2.4. Steering, design and development of institutional structures (changing institutional structures) These ambitious goals can, naturally, only be achieved in the long term, provided partner countries are willing to initiate long overdue institutional reform processes; donors are willing not only to support their partner countries, but to take complementary steps in their own countries. Institutional development in the field of the environment should be seen as a systematic approach (5) which allows participants from various sectors, institutions and disciplines to join forces to ensure a sustainable use of natural resources. The ongoing transformation of social, economic and administrative norms and behaviour patterns should thus be geared more closely to coordinated, environmentally sound action. Action of this sort demands that all social systems relevant for the environment be taken into appropriate account, be they in the state sector, the private sector or the so-called "third sector" (between market, state and self-sufficiency), at international, national, regional and local level; coherent, subject-specific, participatory cooperation on the part of the many actors involved; for the quantitative and qualitative capacities of an individual organisation are inadequate to solve even one aspect of complex environmental problems;

Page 15 of 59 that all environmental media (water, land and air) be involved throughout; this also means a departure from isolated, sectorally-limited projects and programmes. 1.3. Capacity Development in the Context of Institutional Development Promising concepts such as capacity building and capacity development have acquired a high status in the course of the UNCED process. In general usage capacity building is understood to mean the creation and strengthening of individual and organisational capacities at micro level. Since the birth of Technical Cooperation, capacity building has been closely linked with the various promotion approaches and is primarily associated with training activities, know-how transfer, the creation of new, generally state-run, organisations and the enhancement of existing ones. A results-oriented training approach, capacity building aims to boost the performance capacity of individuals and organisations in partner countries. Capacity development in the field of the environment on the other hand places more emphasis on the process (6) in which individuals strengthen their own capacity to act and organisations or institutional structures boost their own efficiency. The focus is on the capacity of a society to perceive development and environmental problems and to solve these on a sustainable basis. While some proponents of this view would emphasis the system and structural analysis, others consider the development of institutional structures, legal and social consultancy or organisational development and human resources development more important. There can be no doubt that all these components have their part to play in a coherent capacity development concept, and that a well designed coordination of the various components can make for synergy gains. When we use the term capacity in the field of the environment, we mean the ability of actors in a given situation to foresee social changes; to identify complex environmental problems; to develop sustainable solutions to these problems; to make politically "wise" decisions; to develop suprasectoral and supra-media programmes; to mobilise and manage resources; to steer complex processes; to evaluate performances in terms of further procedure to be adopted. Capacities in the field of the environment are influenced and moulded above all by the social and historical structures, the socio-cultural context and the way problems are perceived and solved in a given society. The discussion of the full meaning of the concepts of "institutional development" and "institution building" generally takes as its starting point calls for greater sustainability of development activities. The term "institutional development" implies a promotion concept which goes beyond mere "institution building" (7). 2. The Strategy (8) 2.1. The Common Goal as a Compass Institutional development in the field of the environment means supporting the efforts of actors from various parts of society (from the state, private and so-called "third" sectors) to help ensure the sustainable use of natural resources at various levels (macro, meso and micro levels), in a way that is compatible with the economic and social development goals of their society. People within organisations at national, regional and local level are thus to become increasingly efficient and independent in the way they tackle environmental problems. In their attempts to boost efficiency, the members of an organisation independently draw up a joint plan designed to bring about sustainable changes within that organisation as regards the behaviour and relations patterns, attitudes and capacities of members; the organisational culture and climate; the communication and organisation structures and structural regulations (9); the integration of individual organisations in a certain social environment.