PDC success factors

Key success factors for Concerted Development Plans at local levelThe case of the district of La Encañada, Cajamarca, Peru

Jorge Chávez Granadino

Challenges for extractive projectsin local developing areas

• Elevated poverty and exclusion levels

• High expectations on private investment

• Weak institutional development

• Limited positive impacts from mining tax-funded or direct social investment

Concerted Development Plans (CDP)

Peruvian local mandatory public instruments aimed to establish common territorial priorities set to guide the initiatives and investments of social, economic and institutional actors.

CDPs become the reference framework for local and regional policy making processes.

Local CDP´s key challenge

• Not to become just a formal public planning requisite

• Must promote a process of ample consensus for the improvement of public & private goals and investments

• Must generate or strenghten local management systems and capacities

La Encañada District´sCDP management system

• 2009-2010 CDP updating process led to the institutionalization of a management system to ensure continuity and follow up of the local plan

• It has operated and adjusted its functions and roles for almost three years (2011-2013)

SECRETARYSECRETARY

Institutional Development Round Table

Institutional Development Round Table

Social Development Round Table




Economic Development Round Table

Economic Development Round Table

LOCAL COORDINATION COMMITTEE (LCC)

LOCAL COORDINATION COMMITTEE (LCC)

• Representation• Harmonization• Prioritization• Evaluation• Reporting

• Implement LCC’s decisions

• Planning• Follow-up• Monitoring• Information

FunctionsFunctions

• Coordination• Planning• Monitoring &

evaluation• Capacity building• Support LCC• Project design• Project

management

Implementation of the CDP

Private Institutional

Plans


Plans

CDP result based investment initiatives

CDP result based investment initiatives

Community Development

Plans


Plans

National & Regional

Investments

National & Regional

Investments

Municipal Strategic Plan





• Annual Operational Plan

• Annual Participatory Budget



Plans


Plans

• Mining companies social investment

• Social Funds

• NGOs

• Churches

• Others



Plans


Plans

• Local communities self funded initiatives

• Local proposals for annual participatory budgets


National & Regional

Investments

National & Regional

Investments

• National Social Programs

• Sectorial investment plans

Capacity building

Preliminary results1. Improved investment follow up and allocation

• CDP Secretary gather and coordinate information from public, social and private investors through management system

• Regular public reports help preventing duplication or superposition of complementary investment plans

• Traceability and transparency in the use of public/private resources

Preliminary results

• By December 2012, 74 out of the 120 district’s villages have a Community Development Committee (CODECO)

• 81% of CODECOs have a Development Plan aligned to the CDP

• 32% of CODECOs are organized in networks

• Two thirds have executed at least one investment project through the CDP system

• By 2013, La Encañada ranks 18 in the national list of districts that increased the percentage of its investments through Participatory Budgets

2. Improved social coordination structures

Preliminary results

• Only public investment in CDP projects in 2011-12 represented around 77 million PEN (local budget for all purposes in that period was only 57 million, 45 million of it derived from mining tax income)

• It accounts for almost 14% of the estimated total budget of the 10 years period CDP duration, without considering private investments for 2011-12 period

3. Improved financial leverage

Key success factors1. Community involvement approach

• Legitimacy and consensus building through comprehensive information and consultation efforts, focused both in quantity and quality of procedures

• 75% of communities, almost 1000 leaders and citizens directly consulted to build and update local plans

• Participatory approach including social actors in every stage of planning and management, helped build trust and coordination, even in a local climate of conflict

Key success factors2. Institutional and capacity building orientation• Interests and concerns of all actors taken into account in

building the management system model

• Planning and management process strengthen local existing institutions, promoting faster assimilation of roles and functions

• Training, assistance and coaching for actors involved

• Main goal was not to make a plan, but setting a long term management process

Key success factors3. Territorial development and mining cycles• Exploration, exploitation and closing activities of several

large scale projects were evaluated as having serious impacts on key local development issues

• Local planning and management processes incorporated these potential impacts and opportunities in technical and financial projections

• Mining projects were encouraged to integrate local development concerns in the construction of their business cases

Key success factors4. Clear distinction of public and private roles

• Local authorities must lead concerted planning; companies may provide support but keeping their role as another local actor

• Clearly differentiating roles and functions of public and private actors regulates social expectations and demands

• Establishing shared territorial vision and priorities help companies to better focus their social investment strategies and resources allocation

PDC success factors

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