Undertaking Capacity Needs Assessment (CNA) is critical for organizing appropriate capacity development interventions. AESA organised four workshops on CNA of EAS in India, Sri Lanka, Bangladesh and Nepal with the following objectives. 
1. Identify capacity gaps among EAS providers 
2. Finalise a methodology for undertaking capacity needs assessment.

This is the third volume of the proceedings of the national conference on "Water for Food and Environment", which was held from June 9 -11, 2009 at the Bandaranaike Memorial International Conference Hall (BMICH). The volumes 1 and 2 have been produced as separate documents of this report series. In response to a call for abstracts, 81 abstracts were received from government institutes dealing with water resources and agriculture development, universities, other freelance researchers and researchers from the International Water Management Institute (IWMI).

The Challenge of Capacity Development: Working Towards Good Practice draws on four decades of documented experience provided by both bilateral and multilateral donors, as well as academic specialists, to help policy makers and practitioners think through effective approaches to capacity development and what challenges remain in the drive to boost country capacity. The analysis is underpinned by a conceptual framework which guides practitioners to view capacity development at three interrelated levels: individual, organisational and enabling environment levels.

Traditional approaches to innovation systems policymaking and governance often focus exclusively on the central provision of services, regulations, fiscal measures, and subsidies.

The purpose of this paper is to map some elements that can contribute to an IFAD strategy to stimulate and support pro-poor innovations. It is an initial or exploratory document that hopefully will add to an ongoing and necessary debate, and is not intended as a final position paper. The document is organized as follows.

The issue of regional differences in development has moved to the center of the development debate in Sri Lanka, partly after the release of regional poverty data. For the past many years, there have been significant and increasing differences between the Western province and the rest of the country in terms of per capita income levels, growth rates of per capita income, poverty rates, and the structure of provincial economies. The structure of the report is as follows: chapter two looks at the poverty/growth/agriculture nexus in the poorest regions of Sri Lanka.

This review's objectives were to examine the structure and performance of the agricultural research and extension systems (public and private) at the central and provincial levels, identify successes as well as constraints to improving the system s effectiveness for fostering innovation, and propose options for further policy and institutional development, drawing on lessons from international experience. The review focused principally on nonplantation crops, although its main recommendations apply across the agricultural sector.

This report demonstrates that financial cooperatives can be sustainable providers of financial services in rural areas and development assistance needs to consider supporting them as a means to enhance access to rural finance. It does not suggest that financial cooperatives are the only providers or the preferred channel in all circumstances. For financial cooperatives to function as sustainable institutions, governments need to provide an enabling environment, not exercise excessive control that restricts growth and consolidation, and not use them as channels to provide subsidized credit.