The Overseas Development Institute (ODI) is Britain’s leading independent think tank on international development and humanitarian issues. The ODI Development and Public Finance group has been working with NYU to develop an analytical framework for understanding the impact of intergovernmental finance arrangements on public service delivery in developing nations. ODI tasked a Capstone team with testing this framework in the devolving water sector of Kenya. The team collected data and conducted field interviews with key Kenyan stakeholders, including subnational and nongovernmental officials in four counties: Nyeri, Kirinyaga, Kiambu, and Murang’a. With its findings, the team prepared a final report with recommendations for ODI to develop their efforts to reform intergovernmental financial arrangements and improve the delivery of water and other public services.

The Millennium Challenge Corporation (MCC), an independent US government agency, provides grants and assistance to countries that demonstrate a commitment to good governance, investments in people, and economic freedom. MCC engaged the Capstone team to research the investment climate and mechanisms for funding road infrastructure in Indonesia, at both the national and subnational levels. This research will aid MCC in developing a grant—known as a compact—to support targeted policy and institutional reforms. The team conducted an extensive literature review and in-person interviews in Jakarta with representatives from the central government agency, the World Bank, and the private sector. The final report examines the stages of the complex road infrastructure process: planning, financing and procurement, and implementation and monitoring. At each stage, the report assesses the various challenges identified by the team and offers recommendations for MCC to consider in the design of the second compact with the Government of Indonesia.