A country’s capacity to effectively implement policies and programs has long been recognized as crucial for its progress. Inadequate capacity—for example, deficiencies in institutions and in the skills of their personnel—has left a long trail of disappointed expectations for faster reduction of poverty. Building stronger capacity has thus become a prominent priority in international development, as evidenced in such initiatives as the Paris Declaration for Aid Effectiveness and the Accra Agenda for Action.

community’s efforts to improve public expenditure and budget execution decisions would be more effective if done in collaboration with local independent monitoring organizations.