# _Total and/orfiscal costs may be too high_

Some CDD islands of success are inherently not replicable because, like many boutiques, they are too costly for the masses. Total cost per community member may be high because the island of success relies on expensive technology, inputs, staff, and advisers. Mobilizing and training community members is cheaper: communities and local governments do not have to travel over large distances, nor charge management fees. Costly boutiques have excessive overhead costs, and poor transfer efficiency: too low a proportion of program costs relate to actual work at the community level. Even if costs per unit are reasonable, national scaling up may lead to excessive fiscal cost, because the approach fails to mobilize sufficient co-financing from communities and local governments. Donors that support boutiques may not be willing to support national scaling-up.

# _The_ **_uastitutional setting may_** _be hosile to CDD_

> The laws/regulations of national governments/ donors may not allow disbursement directly to communities. The central government may not authorize local governments or communities to provide services

> (education, primary health) to themselves, or levy user fees/taxes. Locally generated revenues may be centralized, rather than left for local use. The central government may fear the political consequences of empowering communities, local governments, and even NGOs. The social environment may deprive

> women and minorities of voice. Ethnic, religious and class conflict may undermine real participation by all.<sup>3</sup>

# _Difficulties arisingfrom co-prodution may not be mastered_

> Scaling up CDD implies the co-production of investments, outputs and services by many different stakeholders at many different levels: community workers, local government officials, NGOs, the private

> sector, technical specialists at all levels, administrators, program managers and bureaucrats, politicians and

> aid agency personnel. Three problems afflict co-production.

_Differences in values and experience of co-producers._ Community workers and local NOOs often do not understand how higher levels or sector specialists operate or can contribute. Sector specialists often underestimate latent community capacity. Higher-level administrators are used to strict controls and cannot understand how social capital can enable communities to hold their leaders accountable. Until program participants learn to adhere to a common set of values and approaches, scaling up will remain difficult.

_No clear assignment offunctions to different co-producers._ Scaling up requires precise assignment of a long list of functions (see Annex 1) to specific actors at different levels, and clear instructions on what they should do, how to do it, and _what tools to use_ (forms, questionnaires, technical approaches, training materials, etc.). The problem is compounded in multi-sectoral programs, where all sectors need to harmonize with common basic rules and procedures while using sectoral best practice and norms. Afield- _tested operational manual is often missing or incomplete_ i.e. does not contain sub-manuals and tools critical functions or levels. Operational manuals are too often designed in an office, not the field.

_Incompatible incentives of co-producers._ Co-producers lacking compatible incentives will either produce low-priority outputs that bring them rewards (such as reports or workshops) or obstruct the program. Public sector workers, such as teachers or extension agents, may not gain from the program. Technical specialists may lack incentives to produce the specific inputs required. Communities may lack incentives to co-finance the program. The central bureaucrat or sector manager may lose budgets and staff by devolving power. Field-tested roll-out logistics in a single district would unearth all these incentives issues, and help design an incentive-compatible operational manual.

> 3World Bank. Community Dnven Development: a Vision of Poverty Reduction through Empowerment Washington, D.C., Dec. 2000.

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