Public Disclosure Authorized .51 " I I -11 I Public Disclosure Authorized i i7 nt "li ! 'Ini 1r; r I.-I Public Disclosure Authorized 0 i i Public Disclosure Authorized EMP * WERMENT AND POVERTY REDUCTION A So u rce book EMP * WERMENT AND POVERTY REDUCTION A So u rce book Edited by Deepa Narayan THE WORLD BANK Washington, DC © 2002 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 All rights reserved. First printing June 2002 1 2 3 4 05 04 03 02 The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. 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Contents Foreword ......................................... ix Acknowledgments ......................................... xi Acronyms and Abbreviations ......................................... xiii Summary ......................................... xvii The Meaning of Empowerment ........................................... xviii Four Key Elements ............ ............................... xix Application of Empowerment Approaches ............................... xxi Provision of basic services ................... ........................ xxi Improved local governance ........................ ................... xxii Improved national governance ........................................... xxii Pro-poor market development ........................................... xxiii Access to justice and legal aid ........................................... xxiii Conclusion ........................................... xxiii 1. Introduction ......................................... I Empowerment and Development Effectiveness ................ ........... 2 Empowerment and Development Effectiveness: Good Governance and Growth ..................... 2......................2 Empowerment and Development Effectiveness: Making Growth Pro-Poor ............................................ S Empowerment and Development Effectiveness: Project-Level Evidence ............................................ 7 Conclusion ............................................ 8 v vi Empowerment and Poverty Reduction: A Sourcebook The World Bank's Role ............ ............................. 9 Analysis, Evaluation, and Advice .......................................... 9 Convening .......................................... 9 Enabling .......................................... 9 Capacity Building ......................................... 10 Notes ......................................... 10 2. What Is Empowerment? .......................................... 13 Defining Empowerment .................. .......................... 13 Poor People's Assets and Capabilities ............................................ 14 Relationship between Individual and Collective Assets and Capabilities ............................................ 15 Institutional Reform and Empowerment ....................................... 16 No Single Model for Empowerment ............................................ 17 Four Elements of Empowerment ............................................ 18 Access to Information .............. .............................. 19 Inclusion and Participation ............................................ 20 Accountability ............................................ 21 Local Organizational Capacity ............................................ 22 The Empowerment Framework ............................................ 22 Empowerment in Context: Conditions Vary ................. ............ 24 Nature of Public Action ............................................ 24 Patterns of Social Exclusion and Conflict ...................................... 25 Extent of Decentralization ................... ......................... 26 Strength of Local-Level Institutions and Civil Society ........... ........ 26 Extent of Political Freedom ............................................ 27 Notes ............................................ 27 3. Applying Empowerment Principles ................. ............ 31 Provision of Basic Services ........................ .................... 32 Access to Information .............. .............................. 33 Inclusion and Participation ............................................ 35 Local Organizational Capacity ................................... ......... 36 Improved Local Governance ................................. ........... 38 Access to Information ............................................ 39 Inclusion and Participation: Planning, Budgeting, Rule Making, and Management ............................................ 40 Accountability ............................................ 42 Improved National Governance ............................................ 43 Access to Information ............................................ 45 Inclusion and Participation ............................................ 45 Contents vii Accountability: Citizen Monitoring ............................................. 48 Local Organizational Capacity ............................................. 49 Pro-Poor Market Development ............................................. 50 Business Development Support Services for Micro/SMEs ............................................. 52 Access to Financial Services ............................................. 59 Managing Vulnerability: Insurance and Housing .......................... 65 Access to Justice and Legal Aid ............................................. 66 Notes ............................................. 69 4. Lessons Learned ................. ............................ 75 Conclusion ............................................. 79 References and Background Papers ..................... ............. 81 5. Tools and Practices ........................ ..................... 97 1. Information and Communications Technology as a Tool for Empowerment ................. ............................ 99 2. Empowerment and the World Bank's Country Assistance Strategy for Indonesia ............................... .............. 125 3. Empowerment in the Vietnam Country Program ........... ......... 137 4. Peru Portfolio Review through an Empowerment Lens ........................ ..................... 143 5. Social Accountability Mechanisms in Programmatic and Structural Adjustment Loans ............................................. 149 6. Participatory Budgeting ............................................. 169 7. Information Disclosure ............................................. 181 8. Decentralization Strategies for Empowerment ......................... 201 9. Community-Driven Development ........................................... 209 10. Empowerment in Education ................................. 231 11. Institutional Innovations to Support Micro, Small, and Medium Enterprises ....................... ...................... 249 12. Institutional Innovations in Financial Services for the Poor ..... 259 13. Poor People's Organizations ................................. 271 14. Legal and Judicial Reform .................................. 289 15. Institutional and Governance Reviews .................................... 303 16. Citizen Report Cards .................... ......................... 317 17. World Bank Corruption Surveys . .............................327 18. Public Expenditure Tracking Surveys ...................................... 337 19. Private Enterprise Surveys of the Business Environment .......... 345 20. Participatory Poverty Diagnostics ........................................... 355 Foreword This book is an outgrowth of World Development Report 2000/2001: Attacking Poverty, which identified opportunity, empowerment, and security as critical focus areas in the design and execution of poverty reduction strategies. The centrality of empowerment for development effectiveness has since been recognized in the World Bank's Strategic Framework, which identifies empowering poor people and investing in their assets as one of two priority areas for World Bank support to client countries. This book highlights the World Bank's current think- ing on empowerment to