U.S. Catholic agency says proposed bill will improve aid effectiveness

A Proposed Bill to Enhance Collaboration with Local Organizations for Aid Efficiency and Effectiveness

The Locally-Led Development and Humanitarian Response Act, introduced in both the Senate and House on March 20, aims to incentivize the U.S. Agency for International Development (USAID) to increase collaboration with local organizations. The bill has been referred to the Foreign Affairs Committee in both chambers and still needs to overcome several hurdles before votes can take place.

Support for the Bill

In a statement released on March 20, Bill O’Keefe, the Catholic Relief Services executive vice president for Mission, Mobilization, and Advocacy, expressed full support for the objectives of the bill as a step towards lasting change. O’Keefe emphasized the need for international assistance to shift towards more direct funding and genuine empowerment of local organizations in implementing, evaluating, and leading their own development. He also highlighted the previous efforts of USAID to strengthen local organizations’ capacity and increase resource allocation to them, but noted that lack of agreement and will across implementing agencies, Congress, and USAID have hindered lasting change.

Objectives of the Bill

The bill aims to make development and humanitarian assistance programs more effective and sustainable by placing local communities at the forefront. It seeks to allocate a larger share of funding directly to local leaders, reduce burdens on local partners, and create incentives for USAID to strengthen projects led by local communities. Presently, only about 10 percent of all USAID funding goes to local entities.

Key Provisions of the Bill

• Making it easier for local organizations to submit grant applications in their native languages
• Authorizing USAID to provide local organizations with time extensions to report certain requirements
• Authorizing USAID to limit competition to local organizations for awards of up to $25 million
• Requiring USAID to submit an annual report on progress to advance locally-led development and humanitarian response, including information on funding implemented directly and indirectly by local entities and the extent of local leadership in USAID programs

The Path Forward

Last year, O’Keefe testified to the Senate Foreign Relations Committee that humanitarian and development assistance were at a crossroads. He emphasized that Congress now has to decide which path to take. The first path involves underestimating and underinvesting in local organizations, directing the majority of assistance to international organizations and implementing partners. The second path, exemplified by this bill, focuses on advancing more locally-led development and humanitarian response. This path is expected to improve aid efficiency and effectiveness, lead to more sustainable programs, and provide a foundation for resilient systems.

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SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
• SDG 2: Zero Hunger
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 16: Peace, Justice, and Strong Institutions
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.1: By 2030, eradicate extreme poverty for all people everywhere.
• Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious, and sufficient food all year round.
• Target 5.c: Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.
• Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all.
• Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies, and practices and promoting appropriate legislation, policies, and action in this regard.
• Target 16.6: Develop effective, accountable, and transparent institutions at all levels.
• Target 17.9: Enhance international support for implementing effective and targeted capacity-building in developing countries to support national plans to implement all the Sustainable Development Goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 1.1.1: Proportion of population below the international poverty line, by sex, age, employment status, and geographical location.
• Indicator 2.1.1: Prevalence of undernourishment.
• Indicator 5.c.1: Proportion of countries with systems to track and make public allocations for gender equality and women’s empowerment.
• Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider.
• Indicator 10.3.1: Proportion of population reporting having personally felt discriminated against or harassed in the previous 12 months on the basis of a ground of discrimination prohibited under international human rights law.
• Indicator 16.6.2: Proportion of population satisfied with their last experience of public services.
• Indicator 17.9.1: Dollar value of all resources made available to strengthen statistical capacity in developing countries.

Table: SDGs, Targets, and Indicators

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