Development as Capability Building: Foundation for Problem-Driven Change

Abstract

Development is widely understood as requiring stronger capability, yet there is little agreement about what capability is or how it is built. This paper argues that development is fundamentally a process of building the foundations of capability. Drawing on the capability approach, dynamic capability theory, and the state capability literature, it conceptualizes capability as the empowered ability to turn capacity into performance, and identifies seven mutually reinforcing building blocks that underpin it: contextually actionable know-what, contextually actionable know-how, intrinsic motivation, authorization, institutional navigation, resource mobilization, and strategic time and timing. The paper distinguishes between ordinary capability, which enables reliable execution of established tasks, and adaptive capability, which enables individuals, organizations, and societies to diagnose unfamiliar problems, learn, experiment, and create new ways of working. It argues that development depends particularly on strengthening the foundations of adaptive capability, from which new institutions, routines, and established capabilities emerge. The paper further suggests that these foundations are best developed through experiential, problem-driven learning rather than through training or technical assistance alone. Evidence from participant reflections in Problem-Driven Iterative Adaptation (PDIA) programs illustrates how these seven foundations can be strengthened through iterative engagement with real-world problems. The paper concludes that development interventions should be judged not only by the solutions they deliver, but by whether they leave behind stronger foundations for future problem solving and sustained positive change.