EU Commissioner Janez Lenarčič’s recent musings that “the biggest barrier to localization is the capacity of local actors” attracted a good dose of well-deserved criticism. But one aspect of this debate does not get enough attention: the humanitarian sector handed the keys to greater localization to international organizations. Progress now entirely depends on their willingness to let go of power, which they have no incentive to do. That needs to change – with a Localization Index.
The inertia of localization – is the sector moving backwards?
We regularly speak with national NGOs as part of humanitarian research or evaluations at the Global Public Policy Institute (GPPi), an independent think tank. The Grand Bargain commitments have certainly triggered a flurry of genuinely well-meaning initiatives to support organizations that operate in their own national or local contexts. Yet each research interview we conduct with national NGOs suggests that progress on localization has plateaued or, even worse, reversed. Ethiopian NGOs, for instance, recently told us that they received more funding in 2017 due to the Grand Bargain commitments – only to see it drop back to previous levels a mere year later. And most subcontracts still do not cover national NGOs’ basic overhead, a story that is as old as the localization debate itself. Good luck trying to “fulfill all the criteria with regard to accountability, transparency, sound financial management” – as EU Commissioner Janez Lenarčič stresses – if the only staff costs you can claim from your international partners are those for transporting goods from A to B.
The European Commission is just one among many donors who perpetuate a system that requires money to flow through North-based organizations, UN agencies or pooled funds to reach organizations headquartered in the Global South. As long as we fail to address the inertia of this basic subcontracting logic, we need a better fix within it. Relying on the good faith of UN agencies and international NGOs won’t cut it – their internal incentive structures make them poor guardians of localization to begin with.
This blog is part of CDA’s From Where I Stand series, designed to listen to people most affected by aid as they explore and amplify their leadership experiences, stories, and lessons for the aid sector.
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