A double bill of USAID stories this week features a cut in assistance funding going to organizations based in low- and middle-income countries and some trenchant criticism of the NextGen contracts. We also look at how little funding flows to women’s rights, and how much more is needed.
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Wrong direction
Last year, my colleague Miguel Antonio Tamonan analyzed how much of USAID’s assistance funding went to organizations based in LMICs, with the intention of actually delivering services in that country. This year, we’ve repeated the analysis. The comparative data shows that while USAID’s assistance budget went up, its local funding went down by more than $200 million.
It might be wise not to read too much into this. The period covered predates Administrator Samantha Power’s Georgetown speech in which she committed to greater local funding. And there are a number of potential reasons why last year might be an anomaly, among them funding being absorbed by COVID-19 and a handful of big funding programs for South African NGOs coming to an end, distorting the overall figures. A USAID spokesperson says that the agency is already lowering barriers to entry and engaging with more organizations in the localization process.
Still, it’s not an auspicious start for USAID’s drive to 25%.
USAID: How assistance funding for local partners fell in 2021 (Pro)
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The Inter-American Development Bank has approved a $250 million loan to support economic recovery in Ecuador, focusing on strengthening the social protection system, growing female employment, and increasing “green jobs” in sectors linked to the country’s environmental objectives.
Funding activity
CABEI. $10M to support the construction sector in Guatemala.
EU. €25M ($26M) for people in Ukraine and Moldova affected by Russia's war in Ukraine.
JICA. ¥50B ($383M) to strengthen the health care system in Thailand.
USAID. $387M to provide additional humanitarian assistance in Ukraine.
WB. $300M to create a more inclusive business environment and strengthen gender equality in the Democratic Republic of Congo.
Money where your mouth is
USAID issued a request for proposals on one of its biggest ever contracts earlier this year — the $4.1 billion Integrated Procurement Service Agent award, which covers malaria and maternal and family health, among other things.
I was sent a recent review of the contract by Unlock Aid, a campaigning group whose members are interested in innovation in procurement, some of whom do business with USAID. Their opinion: some good, some bad, could do better overall.
In particular, two things stood out for me: they feel the contract favors big legacy contractors over smaller innovative organizations, and there could be more transparency around whether targets are being hit.
More USAID: Latest NextGen contract criticized over innovation, transparency [Pro]
Charity ends at home?
Sweden is set to become the biggest recipient of its own aid.
The traditionally generous Nordic country has set aside more than 10 billion Swedish kronor, equivalent to around $1 billion, to manage the influx of Ukrainian refugees it expects over the coming months. The result will be felt across multilateral agencies and eventually in LMICs, which will receive millions less than promised to build health systems and fight endemic diseases. A local NGO called the decision “shameful.”
It’s not yet clear whether Sweden is an outlier, but it seems unlikely to be the only country taking this approach. As pledges of aid for Ukraine stack up, it’s worth wondering how much of that money will be taken from the pockets of low-income countries.
Sweden: $1B in foreign aid for Ukrainian refugees at home
+ Catch up on all our coverage of the humanitarian response to the war in Ukraine including our up-to-date funding tracker of the country’s aid donors
Women’s rights — underfunded
Women’s rights organizations are getting only a tiny fraction of all funding from both ODA and philanthropists, according to a report published last week, and it needs to change.
The “Lighting the Way” report, published by nonprofit advisory firm The Bridgespan Group and Shake the Table, a group that connects donors to organizations focused on social and economic justice, says philanthropists should invest about $1.5 billion annually in women’s rights organizations if they want to support feminist movements worldwide.
Report: Feminist groups need additional $6B in philanthropic support
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About the author
David Ainsworth@daveainsworth4
David Ainsworth is business editor at Devex, where he writes about finance and funding issues for development institutions. He was previously a senior writer and editor for magazines specializing in nonprofits in the U.K. and worked as a policy and communications specialist in the nonprofit sector for a number of years. His team specializes in understanding reports and data and what it teaches us about how development functions.
