This is jargon but also a genuine difference in philosophy and approaches between capacity building vs. capacity development. Capacity building has an external orientation of ‘we will build their capacity’ and ‘capacity development’ has more of a partner orientation of ‘we’ll support their processes that develop the capacity to achieve their goals.’ There are a variety of definitions on the web and most feature a statement like:
Capacity-development is the process through which individuals, groups and organizations, and societies deploy, adapt, strengthen, and maintain the capabilities to define, plan and achieve their own development objectives.
The operative idea here is ongoing processes for the local actors’ objectives and priorities. For example, a one-time workshop to train people in how to use an informatics tool developed overseas may be valuable capacity-building. Conducting workshops and experiential training over time in locally-defined priority areas so that people can access new skills and tools on their own, train others, create new tools, and build their organizations would be capacity development.