Institutions shape human interaction through systems of rules and norms, enabling stability, coordination, and progress. They are essential to how societies address development challenges, respond to crises, and pursue sustainability. Yet for much of the postcolonial era, institutional capacity was viewed narrowly—as the state’s technical ability to administer programmes and enforce rules. While this helped establish formal systems, it often overlooked participatory and adaptive dimensions that make institutions resilient and effective. Today, with increasingly complex challenges, institutional development must go beyond administrative reforms. It must engage a broad spectrum of actors—governments, the private sector, civil society, media, and informal networks—toward shared goals. Institutional capacity needs to be seen as a dynamic, society-wide capability to collaborate, learn, and adapt.
From the 1970s, multilaterals like the World Bank and International Monetary Fund invested in infrastructure across the Global South. By the 1990s, weak institutions and poor implementation exposed the limits of this approach. In response, the global agenda shifted to strengthening systems, focusing on decentralisation, governance reform, and long-term capacity. This shift is now central to the SDGs, especially SDG 16 (strong institutions) and SDG 17 (partnerships), which emphasise effective governance, cooperation, and resilience.
India’s experience reflects this transition. The Green and White Revolutions succeeded not just through technology, but through robust institutional ecosystems. Local innovations like Kudumbashree and Tamil Nadu’s mid-day meal scheme scaled into national programmes such as NRLM and PM-POSHAN. Yet, progress is uneven. As per NITI Aayog’s 2023 SDG Index, several states are lagging on key indicators like health, education, and gender equality. The challenge is often not innovation, but ensuring basic, equitable service delivery. Institutional capacity today must include not only systems and skills, but legitimacy, cross-sector coordination, and public engagement.
As we stand at the crossroads of unprecedented global challenges, the need to reimagine and strengthen institutional capacity has never been more urgent. Our institutions, governments, private sector entities, civil society, and international organisations, are the cornerstone of sustainable development, and their ability to adapt, innovate, and lead will define the trajectory of our collective future.
This forum brings together voices from policy, public enterprises, academia, international organisations, and civic networks across sectors to explore what it means to reimagine and develop institutional capacity today. By embracing innovative governance structures, forward-thinking policies, and inclusive approaches, we aim to chart a course that not only responds to immediate challenges but also anticipates future ones, ensuring institutions remain adaptable, equitable, and sustainable in the long term.