Capacity building requires that the people who are to benefit participate as much as possible, taking gender considerations into particular account. Development programmes shall be based on an analysis of the vulnerabilities and capacities of the people involved. This approach helps people help themselves by building upon their existing resources, strengths and skills. Development programmes should be sustainable in the long run.

National Society capacity building, or institutional development, aims to strengthen National Red Cross and Red Crescent Societies and their local network in order to achieve the characteristics of a well-functioning Society. Continuous improvement shall be pursued through regular self-assessments and other institutional development measures.

In developing their resources, National Societies shall give particular attention to the development of their volunteers and staff. Sources of funding shall be diversified and consistent with the Red Cross and Red Crescent mission. Beneficiary contributions and other forms of cost recovery should play an important role in National Societies' resource development.

Red Cross and Red Crescent programmes are primarily in three sectors: health, social and disaster preparedness. Priority needs shall be addressed on the basis of sectoral policies, Red Cross and Red Crescent criteria and the Federation's strategic plans. Disaster response, development and service delivery programmes shall be properly balanced and mutually reinforcing.

Each National Society should have a comprehensive development plan. The plan shall be based on priority needs in accordance with the Society's mission and on the Federation's strategic plans. It shall reflect what the Society can reasonably and effectively do. Partners should be consulted about the development plan and its various programmes. Monitoring and evaluation as well as accounts and audits are essential programme tools.

Development cooperation is a mechanism by which National Societies help build each other's capacity to carry out the global humanitarian mandate of the Red Cross and Red Crescent. Development assistance shall be channelled through National Societies to maximise the potential of the Federation. It shall be administered with economy, efficiency and effectiveness. Development cooperation shall be carried out within agreed guidelines and procedures. Delegates may be employed, with the consent of the National Society, to provide support and monitoring, to complement local expertise and to improve skills.

Each National Society has the responsibility for its own development and all Red Cross and Red Crescent activities within its country. Other Societies may contribute to programmes in accordance with a National Society's development plan. Development cooperation shall be based on mutual respect for the particular responsibilities of each National Society involved. The Federation promotes and facilitates the development process of National Societies and plays a leadership role in the coordination of development assistance.