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Locally managed funds: a route to pro-poor urban development

Diana Mitlin

Briefing, 4 pages

Most aid programmes in informal urban settlements are inefficient and unaccountable to the people they want to help. But there is an effective alternative: locally managed funds run by community savings organisations. Local funds can overcome systemic barriers and link government and community stakeholders, bringing improved living conditions that are scaled up through networks of local groups. As the Millennium Development Goals transition to new Sustainable Development Goals, international agencies can improve their reach and impact in cities by integrating support for local funds into their aid programmes.

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