I’ve spent over a decade working in international development, and if there’s one lesson that has stuck with me, it’s this: the most impactful projects are the ones designed and led by local communities. Yet for decades, the development sector operated on a top-down model where decisions were made in New York or London, and local actors were reduced to implementers. That’s where localisation comes in. At its core, localisation is about shifting power—financial, decision-making, and programmatic—to local actors. It’s not just a trendy term; it’s a fundamental rethinking of how aid works.

Why Localisation Matters: Beyond Buzzwords

I remember a project in rural Kenya. A large international NGO had designed a health programme based on data from WHO reports, but they never talked to the local health workers. The result? They built a clinic in a location where no one lived, and stocked it with medicines that expired before distribution. The local community knew the right spot—a crossroads where three villages met—but they weren’t asked. That failure cost millions and, worse, eroded trust. This is the reality localisation aims to fix.

The Problem with Top-Down Aid

Top-down aid assumes that outsiders know best. It ignores local context, existing capacities, and power dynamics. Research by the OECD shows that only 2% of humanitarian funding goes directly to local and national actors. Despite repeated commitments (like the Grand Bargain in 2016), progress has been slow. Why? Because shifting power is uncomfortable for those who hold it.

A Personal Encounter with a Failed Project

Visiting that Kenyan clinic in 2019 was heartbreaking. The shiny building stood empty, while mothers walked an extra three hours to a different health post. When I spoke to the county health minister, he said, “We told them the village centre was over the hill, but they had already bought the land.” That waste could have been avoided if local actors had been in the lead from day one.

Key Principles of Localisation

Localisation isn’t a one-size-fits-all. But from my work with grassroots organisations, I’ve seen five principles that make it work:

PrincipleWhat It MeansExample
Power ShiftDecision-making authority rests with local actorsCommunity boards approve project budgets
Direct FundingMoney flows directly to local organisations, not through multiple intermediariesUN agencies pass funds directly to local NGOs
Local LeadershipLocal staff lead design, implementation, and M&EProject managers hired from the region
Flexible SupportDonors adapt timelines and reporting to local realitiesQuarterly reports instead of monthly, to reduce admin burden
Mutual AccountabilityBoth international and local actors are held accountable to communitiesJoint evaluations with community representatives

Shifting Power to Local Actors

This is the hardest part. It means international staff stepping back, and local staff stepping up. In practice, it involves rewriting job descriptions, changing hiring practices, and—often—firing expats who resist. I’ve seen it work: in a WASH project in Uganda, when we handed budget control to a local cooperative, they repaired 20 wells in two months—something the international team had struggled to do in a year.

Funding Flexibility and Direct Access

Direct funding is easier said than done. Many donors still insist on onerous due diligence requirements that small local NGOs can’t meet. A solution is to use pooled funds or intermediary grant-makers (like national NGOs) that can absorb the risk. The Start Network is a good example—they channel money through local members with minimal bureaucracy.

Local Leadership in Decision-Making

Local leaders should be at the table from proposal stage. That means translating documents, holding meetings in local languages, and scheduling around local calendars. In a project in Bangladesh, we changed the steering committee membership to include three community representatives who had veto power over any activity. That built trust and relevance.

How to Implement Localisation in Your Organisation

Based on my experience advising several INGOs, here are the steps that actually work:

Step 1: Assess Your Current Power Dynamics

Map where decisions are made. Who signs off on budgets? Who designs the logframe? Who hires field staff? You might be surprised: many organisations talk local but still centralise power. Use a power audit tool (like the one from ALNAP) to visualise it.

Step 2: Reallocate Funding Mechanisms

Move at least 25% of your programme budget to direct or sub-grants to local partners. Set up a small grants window with simplified application forms. In one project in Nepal, we reduced the form from 40 pages to 5 pages, and the number of local applicants tripled.

Step 3: Build Long-Term Partnerships

Localisation isn’t transactional; it’s relational. Commit to multi-year funding (at least 3 years) to allow local organisations to build capacity. Invest in joint learning events, not just training. I’ve seen partnerships fail when they treat local actors as vendors rather than allies.

Common Challenges (and How to Overcome Them)

Donor Rigidity

Many donors require detailed budgets line by line, which kills flexibility. Solution: negotiate for a percentage of unrestricted funds (at least 10-20%) that local partners can reallocate as needs change.

Capacity Concerns

International staff often argue that local organisations lack financial management skills. But the real issue is often unrealistic expectations. Provide mentorship, not just compliance audits. In Somalia, we paired local NGOs with a fiscal agent for the first year, and by year two, they managed independently.

Measuring Impact

Traditional indicators (e.g., number of beneficiaries) favour large projects. Localisation requires new metrics—like community satisfaction, decision-making power, or sustainability rate. Co-design M&E frameworks with communities.

FAQ: Localisation in the Development Sector

How is localisation different from decentralisation or community participation?
Decentralisation is about shifting administrative functions within a government; community participation is about consultation. Localisation goes further—it transfers authority and resources to local actors, not just involving them. In my experience, many organisations claim participation but still control the purse strings. That’s not localisation.
What are the biggest barriers to localisation that donors ignore?
Risk aversion is the silent killer. Donors are terrified of corruption stories, so they pile on compliance requirements that favour large international NGOs. Yet the evidence (see ODI research) shows that local actors have lower overhead costs and better long-term outcomes. We need to shift from risk avoidance to risk management.
Does localisation mean international NGOs should shut down?
Not at all. Their role changes from implementer to facilitator—providing technical support, advocacy platforms, and bridging funding. I’ve seen INGOs add huge value by using their global voice to amplify local demands. What should stop is the colonial model of parachuting expats to lead projects.
How can small local NGOs start practicing localisation without waiting for donors?
They can start internally: diversify their own board (include more community voices), be transparent about their own budgets, and sub-grant to even smaller community groups. Localisation isn’t just for outsiders. In Kenya, a local network of women’s groups collectively pooled funds and redistributed to grassroots initiatives—self-localisation in action.

* This article is based on personal field experience and reviewed against ALNAP and OECD guidance.