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Local level finance: community-led contributions to delivering urban development

Wayne Shand

Briefing, 4 pages

The scale and ambition of the Sustainable Development Goals (SDGs) creates a challenge to transform the way in which urban development is funded, managed and delivered. Estimates suggest that low- and lowermiddle income nations may need to increase public and private expenditure by over US$1 trillion per year to achieve the SDGs.1 When employed alongside traditional sources of public and private finance, organised lowincome communities can make an important contribution to development through the use of networks at city and national levels, by aligning community savings with government and donor funds and adding organisational capacity for delivery. Moreover, communities can have a unique role in supporting the targeting of interventions to enhance the impact of development investment. This briefing provides an overview of how community finance has been used across the Global South to stimulate and deliver local-level development.

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IIED is researching the benefits and challenges of devolving development and climate finance to the local level, and is helping to build local-level capacity to access and manage resources.

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Money where it matters: local finance to implement the Sustainable Development Goals and Paris Agreement