The purpose of the paper is to outline a practical perspective for testing performance in the process of institutional reform in developing countries.
The test is presented from a donor's perspective. The paper does so by introducing a framework for testing the sustainability, impact and replication of reforms, to achieve local development. These areas of performance are set against the institutional development agenda of structures, processes and contextual reforms. The test goes on to highlight the sustainable outcomes and institutional consolidation of such reforms. This is considered at community, local and central government levels.
Testing performance is an important part of United Nations Capital Development Fund (UNCDF) practice. Its current concerns for sustainability and policy impact are being enhanced by a more explicit connection between institutional reform, through decentralisation, and poverty impact.
The concepts outlined are designed to be of application to a donor concerned with seeking to achieve decentralisation through local development initiatives. The paper's value is as a reflection of current UNCDF policy experiments in the least developed countries (LDCs). These experiments are designed to enrich its practice and influence its partners in the field.
There are few normative frameworks for testing performance on institutional reform. This test is particularly acute in the LDCs, the primary focus for UNCDF work. This technical paper is an attempt to develop a framework to allow donors to test their own work concerning institutional reform, particularly at the local government level.
