This publication sets out to identify who funds capacity building in rural Australia and the
implications of this research for institutional arrangements. A previous review of the relationship
between institutional arrangements and capacity building (Macadam et al, 2004) established the
principles which might lead to improved capacity building, However, this review did not quantify the
funding of capacity building.
This study is designed to inform funders of capacity building and those using capacity building as an
instrument of policy. It is based on a literature review and the collection of primary data through
interviews. As part of the study an inventory covering who provides funding for capacity building,
how much and with what effect was developed. To support this, two case studies were also
undertaken. The aim of the case studies was to find out in more detail what was available for capacity
building within a region as well as to study capacity building related to a specific issue (irrigation).