Networks and Capacity : A theme paper prepared for the study ‘Capacity, Change and Performance’ : Study on capacity, change and performance

Increasingly, we live in a world of networks. This is having a profound impact on the way we
organize at local, national and international levels (Church et al, 2002). The growth of
networks as an organizational form is widely seen as a response to an increasingly complex
and inter-connected world which has spawned an array of arrangements for collaboration
among actors with similar or shared interests. The network revolution has been fuelled by
rapid advances in information and communications technology (ICTs) which has opened up
new possibilities for information sharing and cooperation.

The impact of these changes has been felt in many domains, including the field of
international development where networks have become a significant force, bringing
together diverse actors to address a range of development challenges. With this revolution
comes the task of developing new ways of thinking and new tools to better understand and
deal with the opportunities and challenges associated with networks as an organizational
form.

Networks have existed for millennia, bringing together the poor and marginalized,
agriculturalists, political groups, academics and researchers, among others. Their existence
has served to underpin and strengthen relationships in societies and promote social capital.
In contemporary society, networks exist in diverse forms linking individuals and
organizations with a shared interest in exchanging ideas, generating knowledge or
mobilizing capacity for collective action.

Development practitioners have increasingly recognized the value of connecting actors
through networks, or other types of collaborative arrangements, as a way of addressing
development issues. This is reflected in the growing literature on development networks and
on related themes such as partnerships, program-based approaches and governing by
networks1
. What has been much less explored in the development literature is the link
between capacity issues and networks.

Much of the enthusiasm about networks in civil society organizations, governments and
international development agencies is rooted in a belief that the capacity of networks is
somehow greater than the sum of its parts. The basic assumption is that networks can
mobilize or generate capacity and have an impact on change processes which is greater
than that which could be achieved by individuals or organizations acting alone. The
suggestion, in other words, is that in networks 1+1> 2.

Despite this prevailing enthusiasm about networks, there is a concern that the conceptual
frameworks and approaches used to analyze and support capacity development in networks,
which are drawn substantially from the organizational development literature, are inadequate
for understanding and making choices about intervention strategies and for evaluating
capacity in networks.

The purpose of this paper is to:
(1) contribute to the conceptual understanding of capacity and capacity development in
relation to networks: what distinguishes networks from other organizational forms; what
capabilities are needed to make networks work effectively, and how these capabilities
develop over time.
(2) explore some of the implications for addressing capacity issues in networks, including
choices of intervention strategies.
This is one of five theme papers prepared under the European Centre for Development
Policy Management’s (ECDPM) study on Capacity, Change and Performance2
. A draft of
this paper was prepared drawing on the existing literature on networks and capacity
development, as well as several case studies of successful network experiences undertaken
in the context of the broader ECDPM study. The draft paper was then presented as a
discussion document at an ECDPM workshop, co-sponsored by SNV and UNDP, in The
Hague (September 20, 2005). The workshop brought together practitioners with a broad
range of network experiences in different contexts and with an interest in capacity issues.3

The authors are indebted to the workshop participants whose insights and feedback
contributed to enriching this paper conceptually and in making it relevant to practitioners.