The United States Agency for International Development’s approach to localization overestimates the funding that flows to local organizations, aid transparency campaigners Publish What You Fund said last week. Should it stick with its current approach, the agency could imperil its goal of spending a quarter of its funding toward local entities by 2025, the nonprofit said.
The United Kingdom-based organization said in a report that USAID’s approach was too loose, and could be abused by some international aid agencies who could use it to pass themselves off as local entities.
How the agency decides what makes up a local organization is at the heart of what localization will look like for USAID, which can shape the way the U.S. spends its foreign aid for years to come. Administrator Samantha Power wants 25% of the agency’s funding to go toward local organizations by 2025, and five years after that, have half of its projects be led by local communities.
About the author
Omar Mohammed
Omar Mohammed is a Foreign Aid Business Reporter based in New York. Prior to joining Devex, he was a Knight-Bagehot fellow in business and economics reporting at Columbia University Graduate School of Journalism. He has nearly a decade of experience as a journalist and he previously covered companies and the economies of East Africa for Reuters, Bloomberg, and Quartz.
