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7.5.2 Social capital, community organisations and NGOs: Institutional design and capacity building

 
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7.5.2 Social capital, community organisations and NGOs: Institutional design and capacity building
   

Another key issue is that most of the poor do not have access to the wider social networks that are usually needed to sustain new enterprises. Since enterprise creation is fundamentally a social rather than a technical process, appropriate steps must be taken to create and nurture social networks. A closely related concern is the need to develop 'industrial clusters' within the informal sector (see Schmitz, 1997).

A key feature of pro-poor development programmes is the control of social funds by communities who are able to develop microprojects that combat poverty through employment creation. There is an urgent need, therefore, to develop the capacity of community institutions to manage this process effectively. Furthermore, most individual micro projects that are implemented will have a wide range of tasks which, in varying degrees, will require new and improved skills.

As noted earlier, there are pervasive concerns about the institutional capacity of NGOs to act as intermediaries in support of local economic and political development. While the promotion of self-organisation is an important objective, it is utopian to believe that most communities are capable of developing their own self-help organisations without considerable assistance from specialist NGOs as well as public organisations. Improving the management and facilitation skills of these organisations is, therefore, crucial. Curriculum and training methodologies need to be comprehensively revised in most countries in order for these skills to be effectively imparted.

EMPLOYMENT AND TRAINING PAPERS 43 Learning to change: Skills development among the economically vulnerable and socially excluded in developing countries Paul Bennell Employment and Training Department International Labour Office Geneva First published 1999 To learn more about this author, visit International Labour Organization's Website.

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