Information for G04082
Local development with global finance
The most effective way to reduce poverty and respond to climate change varies by location. This means that local actors — local governments, community organisations, NGOs, local businesses and others — have a critical role in sustainable development. They are best placed to know local concerns and priorities, whether an improved water supply, access to clean energy for cooking or microcredit after an environmental disaster. However, knowledgeable local actors too often lack the finance, authority or voice to act effectively.
Drawing on more than 25 years of work on local finance, IIED is now building international awareness of the benefits of decentralising finance, and building local capacities to access and manage those resources. We continue to support specific initiatives, and are currently partnering with local and national actors in Kenya and Tanzania to channel finance to the local level.
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.