What is Capacity Building?

Capacity building means strengthening human, institutional, and infrastructure capacities, thereby stimulating economic development and addressing causes of poverty, so that developing countries can benefit fully from the global economy.

As the search for new markets leads to increasing investments in emerging markets, the business case for building capacity in education, health, infrastructure, and other local needs is increasing.

Successful capacity building requires robust public and private sector engagement and collaboration in order to build and strengthen human capital institutions and physical infrastructure in the developing world.

More specifically, capacity building includes programs to:

Strengthen the rule of law and good governance, labor standards and environmental stewardship so that workers are productive and safe, and citizens enjoy a higher quality of life.
Enhance the quality of education through use of new technologies and other means in an effort to create a dynamic workforce and well-informed citizenry.
Improve local business climates – through small- and medium-size enterprise development, enforcement of intellectual property rights, anti-corruption and transparency efforts, customs compliance and supply chain security – to promote investment, economic growth and poverty reduction.
Enhance the ability of developing countries to successfully participate in the global economy through training and technical assistance to engage in bilateral and multilateral trade negotiations.