The Local Government Capacity Development (LGCD) program aims to support the institutionalization and piloting of social accountability approaches to foster local government responsiveness to community demand. This includes providing guidance on how PNPM principles of community empowerment and participatory planning can be mainstreamed into existing planning and service delivery mechanisms at the local level. The underlying development assumption is that improved responsiveness to community level demand will strengthen local level governance and improve service delivery, resulting in government services that are less expensive, of better quality, and more responsive to local needs and preferences. Organizationally, the LGCD project has together with SPADA (with its focus on improving development planning at the district level) formed the Local Governance Team. Phase One of the LGCD project has focused on analytical studies of lessons learned from various CDD programs and piloting a pro-poor planning and budgeting (P3B) toolkit.