Source · Select Committees · International Development Committee

Recommendation 5

5 Paragraph: 20

Further, the FCDO should increase the amount of UK aid funding that goes directly to...

Conclusion
Further, the FCDO should increase the amount of UK aid funding that goes directly to locally led civil society organisations. It should reconsider how it conceptualises and calculates risk and work with local civil society organisations to undertake the due diligence and administration associated with bidding for FCDO contracts.
Paragraph Reference: 20
Government Response Acknowledged
HM Government Acknowledged
The UK has reiterated its commitment to a more locally-led approach to development and humanitarian assistance as part of our IDS. Making this shift is arguably one of the most important challenges facing the entire aid sector, and it is one which we want to address collectively. The UK is a signatory to the Grand Bargain and the Good Humanitarian Donorship Principles, which include commitments on localisation. As a signatory of the Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee (DAC) Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Assistance we have committed to “promote and invest in the leadership of local civil society actors in partner countries or territories”. As a signatory of the Busan Partnership for Effective Development Co-operation, we have committed to creating an “enabling environment […] that maximises the contributions of Civil Society Organisations to development.” The FCDO has several programmes and initiatives to advance localisation. Our overseas network, with its deep understanding of the context and relationships with local actors, is best placed to partner with local organisations. We have also looked at how better to support localisation through our central programming. Examples include: • An innovative, long-term programme partnership between the FCDO and Comic Relief - singled out for praise by ICAI in its 2020 follow-up review on our partnership with civil society - will invest up to £60m (£30m from FCDO) over 10 years into building the capacity of civil society organisations (CSOs) in Ghana, Zambia and Malawi. • A tailored central programme to support Disabled People’s Rights Organisations. • A new programme supporting Women’s Rights Organisations in developing countries. • The Digital Access Programme (up to £85m), whose innovative blended delivery approach engages with a wide range of specialised local organisations to promote digital inclusion in underserved communities in five countries. The UK continues to invest in initiatives to support localisation in the humanitarian sphere, including the creation of the Start Network, Humanitarian Learning Academy, and the Humanitarian to Humanitarian (H2H) Network. We are supporting the Start Fund in setting up five new country-based hubs over the next three years to support the expansion of national and local NGO membership, and a tiered due diligence model to reduce the barriers to accessing funding whilst building capabilities. Start Fund Bangladesh now has over 50% of its membership as local/national actors. The FCDO has supported the piloting of Start Fund Nepal and is designing a similar non-UN pooled funding mechanism for Northern Syria. The FCDO has sought, where possible, to localise its Ukraine response, working closely with the Ukrainian government. We have funded a programme with an NGO Consortium in Ukraine, which was co-designed with CSOs in Ukraine and Poland and will enable funding to be channelled to national and local organisations. The UK is the largest global donor to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA)’s Country based Pooled Funds (CBPFs), which allow donors to pool their contributions into single, unearmarked funds to support local humanitarian efforts. By pooling funding, it is possible to agree harmonized standards, better coordinate responses and reduce the need for organisations to navigate the funding processes of numerous donors. The UK provided $182 million to the CBPFs in 2020, and $165 million in 2021. In 2021, CBPFs allocated $977 million of the $1.13 billion received from donors to partners, of which $338 million (nearly 35%), was allocated to national NGOs. Once geographical funding allocations have been made, decisions on how funding is made available are taken by the FCDO teams in country. Teams consider all options available to achieve development aims for that country, which includes working with local civil society and non-profit organisations, local academia and research bodies. A comprehensive programme management learning and development offer is available to