Bureaucratic and Technical Infrastructure: The processes by which information is received, processed, and stored underlie most local government functions. The existence of appropriate technology -databases, filing systems, is essential, for example, for the ability to collect taxes or user fees.
The Role of Civil Society: NGOs can often be a source of trained, experienced personnel and local construction, accounting, etc. firms can provide services on a case-by-case basis. The local government’s relationship with the private sector and demonstrated ability to contract out is an important, often overlooked part of "capacity." In assessing the community’s longer-term capacity, one would want to look at the depth and history of civil society organizations (is there one skillful community leader or a network?) as well as the number of private contracters and concentration of skills (i.e., Is there only one contractor who could move at any time or are there several firms that could provide technical help) in this area.
Decentralize or build local capacity? Which comes first?