Japan Bank for International Cooperation
JBIC Research Paper No. 2, December 1999
AUTHORS:
Japan Bank for International Cooperation
ABSTRACT:
As Japan’s ODA loans are based on the principle of “self-help” efforts, organizational capacity of project/program executing organizations in recipient countries is of critical importance to the realization of development objectives of aid projects. “Institutions” are rules of the game, such as laws, regulations and customs, while “organizations” are groups of players created for achieving certain objectives, such as political, economic, social and educational groups. Characteristics of both institutions and organizations are significant factors that affect the courses and consequences of development. The analysis of this report mainly focuses on “organizational” capacity. This is because Japan’s ODA loans are executed mainly through projects, namely, supporting the improvement of capacity of executing agencies and the development of the country through the execution of projects. This report tries to examine the “organizational capacity” of executing agencies in a comprehensive manner and present a framework for analyses. It is hoped that the report can contribute to a better understanding of organizational capacity and to an improvement in ODA operation. First, the report discusses what kind of criteria should be used to assess organizational capacity of executing agencies and with what factors organizational capacity can be explained. Then, by applying the analytical framework to some actual cases, the report examines the relationship between performance and organizational capacity of the executing agencies.
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