ir-a) PVOs and Local Institutions in Mozambican Rural Development: Identifying Strategies for Sustainability and Effectiveness A Pre-Design Study for PVO Support IIProject Submitted to USAID/Mozambique by A. Louis Helling, Independent Consultant with the assistance of Simedo Lopes June,1994 Purchase Order 656-0510-0-00-5101-00 PVO 11 institutional Study Fa Draft - 6/95 EXECUTIVE SUMMARY Introduction As a contribution to the design of the second Mozambique PVO Support Project, the Local Institutions Study was commissioned by USAID/Mozambique to address concerns regarding the relationships between PVO rural development programs and Mozambican institutions. Its objective is to provide guidance to USAID regarding program strategies and mechanisms which will promote local "ownership," field-level effectiveness, and increased sustainability of USAID/PVO supported activities in the areas of rural agricultural development, basic health services, and small-scale infrastructure provision as well as promote broadly participatory local governance and development management. The local institutions with which it deals are community-based institutions, Mozambican NGOs, local government, and local private businesses. The study addresses the basic question: How shouldPVOHI andPVOprogramsbe organized in order to realize the potential contributionsofsuch local institutions to effectively promotingandsustaining Mozambican rural development? The study was undertaken using a participatory methodology, based on consultation with key stakeholders including: PVO personnel, Mozambican NGO staff, rural community leaders and residents, sectoral and territorial government officials, and USAID personnel. Discussions were held at Maputo, provincial, district and local levels. Fieldwork was undertaken for one week each in Buzi District and Sofala Province; Baru6 District and Manica Province; and Morrumbada and Nicoadala Districts and Zambezia Prmvince. Feedback on preliminary findings was obtained from PVOs, Mozambican NGOs, and USAID, and study recommendations were revised in light of comments received. The study should be seen not as a purely technical/analytical exercise; the methodology employed attempts to capture and analyze implementor and participant insights into what local institutional arrangements are desirable and possible in rural Mozambique. Findings and Analysis PVO programs in rural Mozaml.ique face a challenging context including: rural resettlement and social instability, poor transport and communication infrastructure, weak market institutions and integration, and political and administrative flux. At the community level, human, financial, and institutional/leadership resources, while clearly improving, represent significant constraints on the ability of beneficiary groups to effectively assume responsibility for the organization and delivery of the basic development services currently delivered or supported by PVOs. Institutional intermediaries; including community-based associations (CBAs), local NGOs, and local govenments; frequently link participant/beneficiaries to PVO assistance. CBA models such as general commumty development groups, users' groups, and producers' groups have been promoted by PVOs with some success, but remain constrained by local capacities. Traditional authorities often play prominent roles in governance, but significantly less in management, of development initiatives; thus the importance of committee and associational structures which facilitate more inclusive participation and more flexible oreanization. PVO I lInstitutionalSludy Finalj. mift - 6/95 Local NGOs, with a few exceptions small and new, have begun to assume greater importance in rural development Several categories of development assistance NGOs have appeared in Mozambique, including: hometown-type associations, local affiliates of international NGOs, peak associations of CBAs, and religious, specialized/sectoral, civic cum development, and NGO association/service organizations. Identified NGO institutional needs and problems include: weak financial and administrative systems; limited programmatic capacities such as planning, management, and monitoring/evaluation; small local resource base which slows NGO ability to respond to beneficiary needs and initiatives; and limited technical skills and experience in the substantive content of their rural projects. NC Os not only offer the prospect of institutionalizing PVO sectoral development activities, they also represent significant new channels for the articulation of societal irerests and the organization of autonomous centers of development activity. While in general project funding for NGOs and training programs for NGO staff are increasingly available, technical assistance and institutional support are less so. This lack is especially acute in the case of newer and smaller NGOs and those based in the provinces. Thus there is a risk that NGOs in Mozambique may be characterized by "growth without development" during the next few years. District administration plays a changing and increasing role as both the operational iin;t for management of sectoral services and the governmental unit within which local democratization and governance reform is expected to be implemented. PVOs have generally chosen to coordinate ratheithan collaborate with district structures; often treating them as an implementing arm of the provincial sectoral directorates with whom PVO staff frequenil Woik,no're'closely ' PVO sect&tiI jprog'ams are characterized by some crosscuttng and some specific institioriat and sustainability issues. Several PVOs in rural Mozambique are very "perational," relying on~their own personnel such as sanitation and health animators, nurses, and agriculture extensionists at the service delivery level. Others work more extensively through local intermediaries. Irrespective of their operational approach, ,howevew;few PVOs organize training and assistance in other than technical subjects, often leavingimanagment and institutional capacity needs less well addressed. Nearly all local non~gvernmental and governmental intermediaries lack organizational skills and systems adequate to sustain PVO initiated activities. PVO efforts to institutionalize community-level structures for program implementation are more developed. Most function to mobilize participation, while relatively few to engage community or beneficiary governance. Although still very modest, PVOs have also begun to develop cost recovery mechanisms, especially for community-based services such as midwifery and well maintenance. Community-financed agriculture extension remains a speculaiv e hypothesis., In the near-term, cost recovery cannot be expected to meet capital expenses or to finalceongoing operational inputs such as niddle-level personnel, logistical support for field operations, and imported inputs such as medicines and vaccines. However, cost recmvery can contribute importantly to filling gaps in each of these areas and providing a resource base for effective decentralized management. Agriculture programs continue to rely on PVO logistics and distribution of inputs, As household production surpasses subsistence needs, marketing will become increasingly important. PVO promotion and facilitation of private sector linkages with farmers could ii J'VO 11 IasitutionalStudy FinalDrafl- 6/95 accelerate the development of commercial mechanisms. Small agro-industries and other local processing is a new feature both in rural areas and PVO programs, introducing the need for credit provision. Effective participant-governed producers' associations and cooperatives, while still quite rare in rural Mozambique, may also contribute usefully to market integration for both inputs and produce, as well as rural credit as it becomes useful. PVO health programs are generally more closely linked to government services, with the exception of some RENAMO areas. Nearly all rural health posts, and many rural districts, rely heavily on PVO and other foreign assistance not only for funds and materials but also for management and supervision. Most PVOs have focused on health animation and clinical services but few on increasing the self-reliance of health posts by promoting community governance, local management and cost recovery. Local revolving drug funds are rare and MEDIMOC/MOH distribution erratic; thus medicines are often unavailable unless brought to the field by PVOs. PVO rural water programs have moved significantly to the use ofprivate contractors for construction and local NGOs for community animation. Government has also begun to liberalize its own rural water program and institutions. Community maintenance committees and water user groups are increasingly common as is local resource mobilization/cost recovery for maintenance and repair. Pump spares are often difficult for rural communities to obtain; rural shops may require subsidies in order to maintain availability. Rural road maintenance and repair has been an area of limited PVO activity except in the context of food for work rehabilitation schemes. Local institutions for maintenance such as cantoneiro (linemen) or contract schemes will be needed to complement seasonal community self-help brigades, especially in sparsely populated areas. Recommendations In spite of continuing challenges rooted in social and economic instability and extremely limited financial,.institutional, and technical capacity, the prospects for rural development in Mozambique are increasingly promising. PVOs have contributed