Community-driven development is most appropriately used for the provision of local goods, basic services and the management of natural resources. In the case of community-driven initiatives, the focus is on groups in a community that come together to take action. The benefits to the individuals in these groups must outweigh the costs of their participation. Groups should be embedded in the existing social organization. Groups have the capacity, leadership, knowledge and skills to manage the tasks.
Groups own and enforces their rules and regulations.
Participatory processes are the key building block for achieving these objectives. In community-driven projects, participation implies that communities are in control of initiation, planning, implementation, operation, maintenance and evaluation of development projects. Provide impartial information, especially about costs and benefits, to assist clients in making informed choices. Maintain demand orientation and build ownership throughout the project cycle by giving communities control and authority over decisions and resources for implementation, operation and evaluation. When people cooperate and work together they can overcome problems of coordination, risk, and limited information and individual skills.