Understanding and addressing the unintended effects of aid localisation

Abstract

Aid localisation is a decades-old endeavour recently catalysed by the 2016 Grand Bargain agreement. However, localisation’s unintended effects have yet to be assessed systematically. This study typologises five unintended effects in the context of Cordaid’s partnerships within the Just Future program: competition, administration, value, civic space, and climate effects. Through literature reviews and 15 key informant interviews, it finds most frequently and impactfully that localisation risks perpetuating hierarchies, as international NGOs favour partnerships with larger local NGOs that manage to meet donor requirements at the expense of community-based organisations (competition effect). In addition, it risks disproportionately increasing local administrative burdens due to donors’ low risk appetite and mistrustful perceptions of local capacities (administration effect). Localisation furthermore risks diverging from certain values, such as gender-related and LGBTQ+ rights, which are a priority for many international NGOs (value effect). Recommendations focus on adaptive management and providing technical assistance to smaller local NGOs.