From words to action: Locally led development in Norwegian civil society support

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Locally led development received increasing international and national attention, both as a principle of power displacement and as a strategy to achieve more effective, sustainable and equitable assistance. Publications from, among others OECD, ODI, CGD and The Share Trust shows that when local actors gain real decision-making power and control over resources, the accuracy, relevance and long-term sustainability of development work increases. Local organizations and networks have a better understanding of context, needs and policy realities, and are thus better equipped to tailor solutions that work — and that last.

Locally led development provides increased accountability to communities, strengthens social inclusion and reduces transaction costs compared to northern intermediaries. Among other things, CGD and Share Trust have documented that programs implemented by local actors can be more than 30% more cost-effective. At the same time, the ODI highlights that many so-called “localization initiatives” in practice perpetuate asymmetric power relations, where local actors are primarily used for implementation — not for design and management. Real locally-led development therefore requires a shift in both funding structures, measurement systems and institutional incentives — whereby power, funds and trust are moved out of northern aid environments and into the communities the aid is intended to support.

Partnerships and local anchoring are elevated in both policy and practice, but current systems leave little real control to local actors. Norway has given its support through international commitments, and local organisations, networks and donors are also calling for change. Yet little happens. Local organizations rarely receive direct funding, and their role is often limited to the implementation of projects defined and managed by Norwegian actors — who often have both definition power, decision-making power and control over resources.

Almost none of the Norwegian aid goes directly to local organisations, while over NOK 9 billion is channelled through Norwegian NGOs. For the OECD total channelled more than 90% of civil society funds through organizations based in the Global North. This asymmetry is reinforced by management's rigid requirements, short-term horizons and a narrow focus on results. A large proportion of the money channelled through Norwegian civil society organisations also remains in Norway (see analysis in Appendix 1).

Global aid cuts are forcing necessary changes in the future of aid. Despite major cuts overall, they provide an opportunity to rebalance and shift a greater share of resources and influence to players in the global south — and to establish more equal partnerships. It also provides an opportunity to think more radically about how Norwegian civil society support is structured.

Norad and some organizations have begun experimenting with alternative forms of cooperation and support arrangements, but the development still lacks political grounding and structural follow-up. In particular, there is a lack of a critical look at how the current special treatment of and partially tied support to Norwegian organisations is an obstacle to locally led development.

The sum total of Norad's professional and management requirements, including low tolerance for deviations, is in practice impossible to satisfy for local partners. The result is the construction of heavy management systems at the Norwegian partner, and that much of the professional and administrative resources remain there, rather than being transferred to local partners. When this is the situation after more than 50 years of Norwegian aid, it indicates that new measures are needed. A clearer distinction between support for organisational building and for service delivery, with clear performance requirements also for organisational building, can be an instrument.

If Norway is to succeed in promoting locally-led development, real and partly unpleasant measures must be taken. It involves moving power, money and jobs. We need to change the way we work together, and reform the systems we use to manage and assess aid.

This note examines how Norwegian organisations, Norad and the Ministry for Foreign Affairs can promote more equitable and effective locally led development over civil society support — and why the time has come to go from words wilt action.

The Memorandum highlights four concrete barriers (Chapter 3) to locally-led development and identifies five concrete steps (Chapter 4) that must be taken in order for good intentions to turn into real change — and for Norway to contribute to a more sustainable and long-term development driven by local actors.

They five central grips What needs to be done to strengthen locally led development are:

1. Move power and resources: Increase the share of funds that go directly to local organizations, and reduce the share that goes to Norwegian partners.
2. Changing the way we work together: Build partnerships characterized by more trust, equality and local definition power.
3. Reform requirements and guidelines: Better adaptation to local contexts with greater flexibility and simplification.
4. Think again about risk: Share risks and recognize mistakes as part of learning and development.
5. Use tools to measure local leadership: Introduce the localization ladder to follow developments in ownership and decision-making power.

Below we present a number of concrete and actionable recommendations to strengthen locally-led development in Norwegian civil society support.

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