This note offers a conceptual framework for dealing with 1) institutional and capacity assessment; and 2) capacity development issues, mainly in the public sector areas. This framework will be particularly useful in the in the preparation of support to sector programmes and budget support exercises.

This issue of the quarterly journal "Capacity.org" focuses on methods that can help to understand the societal context in which capacity development takes place. One of these methods is systems thinking, in which organisations, sectors and societies are seen as systems composed of elements that interact with each other.