Scott Guggenheim, the pioneer of the Kecamatan Development Program, began working for the government of Mexico in their Museum of Anthropology. He then decided to further his education, and returned to graduate school where he studied anthropology. During graduate school, he worked at the World Bank, where he focused on the negative impacts of their big investment projects. Guggenheim also spent a few years in Columbia, where he pursued his post-doctorate degree. Following finishing his education, he went to Somalia on behalf of the World Bank to conduct an environmental assessment for their project of building a dam. While working on this undertaking, he discovered that he was very interested in big projects pertaining to development. Therefore, he desired to continue working with the World Bank on such projects, and indiscriminately applied to five different offices around the world. Indonesia was the first to get back to him, so in 1994 he moved to the country and began working in the social capital-working group of the agency.
Guggenheim added Indonesia to a three-country study; consisting of Indonesia, Burkina Faso, and Bolivia; which looked at social capital and development. As part of this study, they found that projects run by communities are more multifunctional, participatory, and longer lasting than those which are done by development agencies. With this fact, and the knowledge of the struggling Indonesia community based development agencies, an example being the corruption of the Inpres Desa Tertingal grant program, Guggenheim knew that a program that worked directly with the villages would eliminate the money being pocketed by the leaders. Therefore, he spearheaded the creation of the Kecamatan Development Program (KDP) in 1998. This program distributes small grants directly to the villages, not going through intermediate people; thus creating greater accountability within the villages and less corruption.