Local institutions play a fundamentalrole in governing access to resources, shaping delivery ofservices, and determining the experience of governance atlocal level. They are the principal mechanism to channelexternal interventions, resources, and assistance to poorhouseholds, women, and disadvantaged groups. This notepresents the findings of a five-country research project,which focused on the role of local rural institutions andtheir institutional networks in shaping governance andlivelihoods outcomes in rural areas, particularly for moremarginal and disadvantaged populations. The first sectionoutlines the Institutional Analysis and Development (IAD)framework that guided the case studies and analysis. Thesecond summarizes key findings on how to promote bettergovernance and livelihoods outcomes through localinstitutions. Two of the major findings of the study arethat better performance on accountability is positivelyassociated with greater equity in benefit distribution; andthat stronger institutional linkages play a positive role inenhancing livelihoods, and in the distribution oflivelihoods benefits. The third section presentsimplications of the study. The note is relevant to a largeportfolio of World Bank development projects that partnerwith local institutions as entry points to achieve their objectives.
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