As International Aid Pulls Back, Local Governments Are Moving Forward—and NGOs Must Evolve to Support Them

As the United States and other major donors scale back international aid, the development sector finds itself at a critical crossroads. This trend, driven by shifting political priorities and budget reallocations, leaves behind more than just a financial gap—it upends the very architecture of how development has historically operated. It also offers a long-overdue opportunity: to fundamentally rethink power dynamics and invest in the leadership of local governments and systems.

For decades, development aid has operated on a model where donor countries and large international NGOs have driven the agenda, designing, funding, and often implementing programs across the Global South. This model often sidelines the local institutions that are closest to the people these programs intend to serve.

As funding recedes, we stand at an inflection point—one that invites us to try to move beyond top-down models and toward a more just and empowering development system. The question now is whether we will take this opportunity to decolonize aid and build systems that are locally owned, contextually relevant, and sustainable.

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Coalition builder, strategic manager and team leader, and technical specialist in gender and economic inclusion programs for the poorest with financial inclusion, livelihoods and social protection. In 2017 Aude co-created a new Global Partnership within the World Bank Social Protection and Jobs Unit (SPJ), the Partnership for Economic Inclusion (PEI), to help governments develop, implement, and […]

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