This strategy featured in the framework of Agenda 21 as formulated at UNCED (Rio de Janeiro, 1992), coordinated by the United Nations Commission on Sustainable Development and implemented through national and local authorities. Agenda 21 recommended encouraging the organization of indigenous community-based organizations, private voluntary organizations and other forms of non-governmental entities which can contribute efforts to reduce poverty and improve the quality of life for low-income families.
The potential of community-based organizations has been shown in the success of the community contracts programme in Sri Lanka, where the community was represented by a legal entity and was involved in the planning and design of the proposed facility. It also opened a separate account for the funds involved. The community itself decided how to organize the work. In that country, from January 1986 to December 1988, a total of 83 community contracts were awarded to 70 different community development councils. The work included residential roads and drains, toilet blocks, water supply standposts, community buildings, repair and maintenance of buildings and infrastructure.