The degree to which those within the administrative and political arms of a municipality understand the scope and nature of the poverty within their jurisdiction varies considerably. In-depth understanding of the poor is patchy, and officials' confidence in their own knowledge is often exaggerated. Needless to say, the introduction of the private service operators to contexts in which there is little knowledge or understanding of the needs and dominating characteristics of poverty is unlikely to bring about changes in the quality of the lives of poor people. It is futile to speak of pro-poor private sector participation without such knowledge. Disempowered communities, a weak NGO sector, uninformed or powerless municipal officials and a lack of political will together create a bias that is impossible to counter.
Before formulating a service partnership (as with any activity targeting the poor), a municipality must first consolidate and/or confirm its understanding of the nature of poverty and poverty responses in the city. Evidence from poverty reduction programmes suggests that a process that promotes understanding of the community and the dynamics of their neighbourhoods, lanes and households is a key aspect of successful interventions. It is not only necessary to know how many poor people there are and where they live, but to understand who the poor are, the nature and varying capacities of households, and the role and capacity of individuals within those households. It is necessary to understand how households and individuals survive. Experience suggests that this step is frequently omitted from partnership development, and it is included here to remind municipal officials that the partnership approach does not preclude the need for an adequate understanding of poor communities' needs.