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USAID’s measurement approach is undermining its progress on localization and its goal to diversify its local partner base

By Sally Paxton and Henry Lewis | Jun 20, 2024 | Blog, News

The US Agency for International Development (USAID) has made a bold
commitment to the localization agenda: it has set a target that 25% of its funding will go directly to local partners by 2025. However, our new analysis shows that how USAID defines and measures localization is actually undermining its progress and at odds with its aim to increase the diversity of local partners and amplify under-represented voices. It is allowing perverse incentives – such as affiliates of international organizations to be counted as local – and leaving significant funding opportunities – such as projectized funding that currently goes to UN agencies and multilaterals – untapped for local partners.

How transparent is DFI climate finance?

By Ryan Anderton | Jun 13, 2024 | Blog

Development finance institutions (DFIs) are increasingly pivotal in the climate finance landscape. As they channel more resources to climate finance, and prepare for a new global goal for low- and middle-income countries, Ryan Anderton investigates what exactly we know about current DFI climate investments. In short, he finds a messy picture. Enhanced transparency is crucial if we want to ensure that climate finance is valid, accountable and, most importantly, effective.

Is IDA’s Private Sector Window mobilizing the private sector?

By Sally Paxton | May 8, 2024 | Blog

Since the establishment of the International Development Association’s (IDA’s) Private Sector Window (PSW), there have been concerns about its structure, use of blended finance, and the inability to measure its progress and impact. With the start of IDA21 replenishment discussions, it is an appropriate time to analyze the PSW – especially to understand whether and how it is mobilizing the private sector. Finally, in the context of broader MDB reform efforts, how do we scale up private capital mobilization to close the significant financial gaps needed to meet the Sustainable Development Goals?

Watch now: Improving the measurement and disclosure of private capital mobilisation by MDBs/DFIs

By Sam Cavenett | Apr 16, 2024 | Events, News

This event, co-hosted with CGD, marked the launch of our new proposed approach for measuring and disclosing private capital mobilisation. Key public and private stakeholders discussed the importance of mobilising more private capital in emerging markets and developing economies, how MDB approaches need to evolve, and the best ways to disclose, assess, and report on their performance.

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