Building Financial Sustainability through Localization

Today’s global development and humanitarian challenges are vast, demanding, and complex. They are also inherently local, shaped by the unique histories, power dynamics, and other factors specific to each context in which they occur. Our responses to these challenges must build on the priorities, knowledge, and aspirations of the people who live them every day and know them best. Donors like USAID and global institutions like UN Habitat share common views on how to engage and strengthen capacities of local stakeholders to drive development outcomes that are broadly inclusive and impactful.

This session will explore the commonalities, strengths, and challenges that complex development agencies face in advancing localization. USAID’s localization efforts include: (a) adapting our policies and programs, (b) shifting power to local actors, (3) channeling a larger portion of funding directly to local partners, and (d) serving as a global advocate and thought leader. USAID holds itself accountable for this work by tracking two metrics. First, the percent of USAID’s programmatic funding that is channeled directly to local partners, and second the percent of USAID’s programs that are locally led—that are designed, implemented, and measured in ways that elevate local leadership.

UN Habitat localizes the SDGs under the framework of Local2030. Local2030 is a network of UN agencies that support the local actors’ delivery of the SDGs, with a focus on the most marginalized communities. It is a convergence point between local and regional governments and their associations, national governments, businesses, community-based organizations, and other local actors, and the United Nations system. Local2030 supports local leaders in collaboratively incubating and sharing solutions, unlocking bottlenecks and implementing strategies that advance the SDGs at the local level.

This session will explore two approaches undertaken by USAID and UNHabitat that seek to advance locally led development. These include both directing resources to local partners and supporting domestic resource mobilization. The panel, made up of local partners and staff representatives from USAID and UN Habitat, will speak to approaches that enable local communities to invest in effective public financial management, ultimately ensuring local partners and communities will have the best opportunity for success.