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International Finance Corporation World Bank

September 2001, Ginger Gibson / International Institute for Environment and Development (IIED), World Business Council for Sustainable Development (WBCSD)

Capacity building has become a widely used term for the development of skills at the community level. As the phrase is more widely used, it becomes less specific. Mining companies and governments may implement projects involving capacity building based on watered down and weakened versions of the concept. Hence, this paper seeks to clarify capacity building, specifically by defining key elements through questions that can be asked of projects involving its use. In this paper, a working definition of capacity building is: People helping people to build skills to change their own future. Skills can be built a number of levels, including at the level of the individual, organization, community or system. CoDevelopment Canada is a proponent of strengthening civil society through grassroots level organizing. The organization is cautious of the desire of mining companies and agencies to develop the capacity of communities.  CoDevelopment Canada can envision a future where these urges become top-down attempts to control the kind of capacity that is developed and those who are involved in programs. CoDevelopment Canada can foresee, for example, the desire of corporations and governments to influence indigenous peoples trying to develop leadership capacity over land and natural resources. 

By clarifying the term and its application, this paper aims to improve the distinction between capacity building, consultation, public relations by a corporation, and other forms of community development. First, a review of capacity building was conducted, as it is understood by various experts in the field. A number of questions emerge as key elements. These questions were used to clarify the concept, applying it to the work in Peru, Nicaragua and Bolivia.
1. Who is it for?
2. Who initiates it?
3. Who directs it? Who controls the funds?
4. What is the goal of capacity building?
5. Which levels of community are included?
6. How are new skills integrated?
7. What are the pitfalls to watch out for?