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Past Issue • Oct-Dec 2015

Capacity Building: A Key Driver of Economic Growth

Capacity Building: A Key Driver of Economic Growth

In spite of sustained attempts to build capacity, efforts have persistently fallen short of expectations in India and other developing nations. We need to re-examine, re-invent, re-imagine and re-double efforts to build capacity in various sectors at all levels.
It is hard to overstate the importance of capacity building in nation building. Human capacity, above all, has been the key determinant in the rise and fall of nations. Even today, the race among nations is not necessarily won by those with most resources, but by those who have the capacity to make the most effective use of those resources. It is for this reason that the Paris Declaration on Aid Effectiveness, signed by more than 100 multilateral and bilateral donors and developing countries urged developing countries to make capacity development a key goal of their national development strategies. This is not empty talk – these donors have also put their money where their mouth is. Each year, they spend more than $20 billion to enhance the capacity of developing countries to make and carry out development plans. That level of commitment reflects donors’ belief that their mission will not succeed unless recipients improve their ability to use the assistance that donors provide, as well as the other resources at their disposal.


  • Dr Prajapati Trivedi

    Dr Prajapati Trivedi

    Senior Fellow, Bharti Institute of Public Policy at the Indian School of Business. He is also a visiting faculty at the Harvard Kennedy School of Government. Earlier he was Secretary to the Government of India with the responsibility for Performance Management. In addition, he was Chairman of the National Authority for Chemical Weapons Convention. Prior to joining the Government of India, Dr Trivedi worked for the past fourteen years (19942009) as a Senior Economist for the World Bank in Washington, DC. He was also Economic Adviser to the Government of India from 1992-94.
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