Southern-Area Development Programme: How Communities Groups Function

The nature and quality of institutions are important determinants of economic growth. Yet, there is little consensus in the academic literature about exactly how institutions should be designed; how to move from a system of anachronistic or maladaptive institutions to a better set of institutions; and whether and how foreign donors can assist in this process. One policy that is often used by donors to encourage participatory democracy in low-income countries is “community driven development” (CDD). The United Nations defines community development as “a process where community members come together to take collective action and generate solutions to common problems.” Such institutions developed organically in the Anglo-Saxon world to meet exigent circumstances. Of course, Great Britain and its former colonies have a long history of participatory democracy and local government. One approach to the challenges facing the developing world is to foster such institutions in conditions that may have no tradition of participatory democracy or providing public goods through collective effort. As a result, many important public goods may be underprovided or not provided at all.