Community-led development: from planning to implementation
November 7, 2022
The traditional multinational business model has been characterized by a company defining a commercial strategy - whether in oil, mining or infrastructure - and then seeking projects on the ground that respond to a set of pre-determined profitability and operational criteria. While this model can in many cases lead to true "shared value" for companies, governments and in-country stakeholders, there is also a considerable risk that the projects become too skewed by the corporation's own profitability objectives and, more considerably, those of its shareholders.
A number of initiatives in business and human rights have sought to bring more power to stakeholders through due diligence obligations, as well as information requirements and consultation processes. That said, many of these mechanisms assume that the underlying business model will not change, and that the strategy defined in a company's headquarters is the one that should be followed on the ground, many thousands of kilometers away. Today, there is an opportunity to shift the thinking on this model, and to create projects that are truly driven foremost by what is needed by communities in emerging and frontier markets around the globe.
The evolution of community-led development models is an important step in this direction. These models seek to ensure that the voices of local communities are front and center in the development process, and that their needs and aspirations are given priority over other commercial interests. There are a number of different ways to operationalize such a model, as discussed in this briefing paper.
What is a community development plan?
Quite simply, a community development plan is a tool used by local communities to define and achieve development objectives. It generally includes an analysis of the current development situation in the community, key development priorities for the future, strategies and actions to achieve the development priorities and mechanisms for ensuring implementation and monitoring. It is a framework that can be used in many settings, ranging from small-scale communities such as schools and churches to larger-scale communities such as villages and urban neighborhoods.
The concept finds its origins in the field of community development, which emerged in the 1940s and 1950s in the United States as a way to address the needs of marginalized communities. The field has since expanded to encompass a wide range of development approaches, including community-based development, participatory development, asset-based development and economic development, among others.
Today, there are a number of successful projects that were born from community development plans. For example, in the cultural sector, the development of the National Folklore Collection in Mexico was based on a community development plan. The collection includes more than 1,000 pieces of Mexican folklore, which were gathered through a participatory process led by anthropologist Manuel Gamio. The project was designed to preserve and promote Mexican culture.
In the field of education, the Escuela Nueva model was born out of a community development plan in Colombia. The model is based on the principle that all children have a right to a quality education, regardless of their socioeconomic background. It has since been adapted and implemented in other countries, such as Peru, Guatemala and Honduras.
In the area of health, community development plans have also been used to improve access to health services. For example, in Ethiopia, community development plans have been used to increase access to primary health care services in rural areas, leading to increases in the number of health facilities and trained personnel, as well as improved access to essential medicines.
In the area of agriculture, community development plans have been used to improve food security. For example, in Mali, a community development plan was used to revive traditional seed production and promote ecological agriculture in the face of climate change. The project led to the development of more than 200 local seed varieties, which are now being grown by farmers across the country.
How are community development plans developed?
There is no one-size-fits-all answer to this question, as the development of a community development plan will vary depending on the size and resources of the community, the development priorities identified and the development approach adopted. However, there are some key steps that are generally involved in the development of a community development plan.
The first step is to assess the development situation in the community. This will involve conducting a needs assessment to identify the priority development needs of the community. A number of different methods can be used for this purpose, including questionnaires, surveys, focus group discussions, interviews and mapping exercises.
Once the development needs have been identified, the next step is to set development priorities. This will involve prioritizing the development needs in line with the available resources and capacity. It is important to involve all relevant stakeholders in this process, as they will be key to ensuring successful implementation of the development plan. It is equally important that the priorities be clearly prioritized and described, with current data and (where possible) projected data for the term of the project.
The next step is to develop strategies and actions to address the development priorities, such as the development of projects to strengthen the agricultural, energy and water value chains. In this case, the plan can provide a sketch of which projects the community wishes to engage in, such as crop production and processing, land clearing, reforestation, carbon credit offset, livestock raising or honey processing. In each case, the community will need to develop a target economic growth, and analyze its market access, competitive position and social impact narrative.
Once the strategies and actions have been identified, the next step is to develop a monitoring and evaluation plan. This will involve developing indicators to track progress and identify areas for improvement. It is important to involve all relevant stakeholders in this process, as they will be key to ensuring successful implementation of the development plan.
The final step is to develop an implementation plan. This will involve identifying who will be responsible for each task, when it will be carried out and how it will be financed. It is important to involve all relevant stakeholders in this process, as they will be key to ensuring successful implementation of the development plan. In this way, the plan can form the basis for engaging with potential project partners, including actors in the energy, infrastructure and agricultural sectors, investment funds, local authorities and development agencies.
What are the defining characteristics of a community development plan?
The community development plan is a tool that can be adapted for multiple contexts. There are no legal or regulatory requirements for creating one, although the community development plan process can be formalized through creating a legal or cooperative structure. Generally speaking, a community development plan should be:
Community-led: The development priorities should be defined by the community itself, through a participatory process. This ensures that the development priorities are relevant and responsive to the needs of the community. While organizers and advisers can be involved in the process, it is important for the plan to wholly reflect the objectives of the community. In addition, the development plan should take a holistic approach, considering all aspects of development that are relevant to the community, including social, economic, environmental and cultural development.
Inclusive: All members of the community should have an opportunity to participate in the development of the plan. This includes women, men, youth, minorities and other groups. Inclusive participation ensures that the development priorities reflect the needs and concerns of all members of the community. For example, a development priority for one group may be access to clean water, while another group’s development priority may be improving the quality of education. While it may be impossible to reach a perfect consensus, the development plan process should be iterative and allow for dialogue and revision.
Action-oriented: The development priorities should be translated into specific actions that can be implemented. These actions should be achievable and realistic, given the resources available to the community. For example, a priority might be to develop a community garden, which would require specific actions such as identifying a suitable location, sourcing funding and recruiting volunteers. Equally, a priority might be to reduce energy consumption, which would require specific actions such as awareness-raising campaigns and retrofitting homes with energy-efficient appliances.
Based on a clear analysis of the development situation: The development priorities should be based on a clear understanding of the development situation in the community. This analysis should include an assessment of the community's strengths, weaknesses, opportunities and threats. In addition, the development situation should be compared to development trends in other similar communities.
Achievable: The development priorities and actions should be achievable within the timeframe of the plan. They should also be realistic, given the resources available to the community. For example, if the community does not have access to land, it will not be possible to implement a priority project such as reforestation without first obtaining access.
Monitored and evaluated: There should be mechanisms in place to monitor and evaluate the implementation of the plan. This will help to ensure that the development priorities are being met and that the actions are having the desired effect. In addition, monitoring and evaluation can help to identify areas for improvement.
Why are community development plans critical tools for both multinationals and development institutions?
The current model adopted by many multinationals and development banks assumes that projects should be originated on the supply side versus the demand side. This, however, can often lead to distorted development outcomes, particularly in the current context of volatile commodity prices. While energy access is a worthy goal, care must be taken to ensure that projects accurately reflect the dynamics of local communities and economies.
From a long-term perspective, the urgency of development is, in some ways, a more suitable measure of determining how to prioritize projects. Bringing energy access to an economy that is already saturated may be more profitable in the short-term. Bringing energy access to a fledgling economy, however, can lead to stronger development outcomes over the long-term, although will likely imply some loss of capital at the outset.
When accurately integrated into a community development plan, this risk can be managed. Indeed, beginning the project with a plan from the demand side allows an appropriate mix of financing and technical expertise to be prepared. Specifically, blended finance arrangements can be tailored through a mix of grant funding, in-kind donations, equity and debt. Risks can be lowered by structuring ventures that include a mix of financial and corporate sponsors, while appointing development experts to ensure that development outcomes are monitored and achieved.
Which countries are leading the way on community development plans?
A number of countries have distinguished themselves by recognizing the rights of communities, including indigenous people, to develop and implement their own community plans, particularly in Latin America.
In this respect, Ecuador has been a leader, with its Constitution guaranteeing the right of indigenous people to "prior consultation" on development projects that affect their territories. This right was also enshrined in Ecuador's Law of Prior Consultation and Good Faith Negotiation with Indigenous Nationalities and Peoples, which came into effect in April 2014.
Bolivia has also adopted a series of measures to give indigenous people a say in development projects affecting their lands. In 2011, the country passed a law recognizing the "plurinational" character of the state, and giving indigenous people the right to participate in decisions on development projects affecting their territories. In Peru, meanwhile, a law on prior consultation came into effect in 2011, requiring the state to consult with indigenous people on development projects that affect their lands and resources, and gives them the right to veto such projects.
In Africa, a number of countries have also adopted community development plans. For example, in 2008, the government of Burkina Faso passed a law that requires the development of community development plans in consultation with local communities. The law also establishes the right of local communities to prior consultation on development projects that affect them. Similar measures have been adopted in Sierra Leone, South Africa and Mozambique.
In Nigeria, the federal government launched a National Community Development Programme (NCDP), which is designed to "empower and enable communities to take charge of their development". The NCDP is based on the principles of community-led development, and aims to involve communities in the development process, from planning to implementation and evaluation.
The government of Ghana has also adopted a community development approach to development, with the launch of the National Community-Based Infrastructure Programme (NCBIP). The NCBIP is based on the principle of "community-ownership" of development projects, and aims to involve communities in all stages of the development process, from planning to implementation and monitoring.
A number of Asian countries have also started to adopt community development plans, including Nepal and the Philippines, which have both launched community-based rural reconstruction programs aiming to involve communities in all stages of development, from planning to implementation and monitoring.
The same is true for development banks. The World Bank's Community-Driven Development Policy requires the development of community development plans in consultation with local communities. The Inter-American Development Bank's Operational Policies also requires the development of community development plans in consultation with local communities. In addition, the programme provides communities with the resources and technical support they need to develop and implement their own development plans.
What is the role of the private sector in community development plans?
It is important that each project bring together the right mix of financial and non-financial sponsors. Assuming that community-led development will be achieved by primarily financial means fails to recognize the need for capacity-building the technical expertise. Indeed, the greatest need in most community-led development projects is equipment, infrastructure and other inputs, which can be donated or made available by corporations on an in-kind basis. For example, it is much more efficient to have refurbished agricultural equipment made available than to have a loan to purchase and deliver such equipment at the market price.
In this sense, the private sector has an important role to play in the development of community development plans. Private companies can provide expertise and resources that can help to improve the quality of the plans, help implement the plans and monitor and evaluate their progress. In addition, the private sector can help to finance community development plans. Private companies can provide loans or equity financing to support the development of community development plans. They can also help to raise funds from other sources, such as philanthropic organizations or development banks. In some cases, the private sector can also invest equity in community development projects.
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