Passing the Buck: The Economics of Localizing International Aid
The Share Trust’s Passing the Buck studies analyzed Country-Based Pooled Fund (CBPF) projects in Myanmar, Nigeria, Sudan, and Ukraine, reinforcing both the moral and practical case for shifting more power and funding to local actors.
The findings come at a pivotal moment. In 2025, the UN announced a “Humanitarian Reset” aimed at increasing efficiency, reducing bureaucracy, and devolving more decision-making and resources to local organizations. At the same time, the United States committed $2 billion to UNOCHA and its CBPFs, significantly expanding resources for humanitarian response.
Across all four countries studied, local NGO partners delivered programming that was 10–19% more cost-efficient than international partners. The analysis also found that channeling just 25% of humanitarian assistance through local actors in these contexts could have unlocked an estimated $600 million in additional humanitarian impact in a single year.
Download the two page summary to explore the data, methodology, and recommendations behind these findings.
Passing the Buck: The Economics Of Localizing Aid
A study by the Share Trust and the Warande Advisory Centre estimates the economic implications of shifting 25% of Official Development Assistance (ODA) - aligned with Grand Bargain and USAID commitments - from international to local intermediary structures.
The analysis estimates that local intermediaries could deliver programming that is 32% more cost efficient than international intermediaries, by reducing layers of expenditure on international staff costs and indirect or overhead costs. Applied to the ODA funding flows allocated to UN/INGOs in 2018 ($54bn), this would equate to US$4.3bn annually. The shift in funding is modeled using equitable rates, rather than business-as-usual rates which currently impede local actors from meeting the needs of their communities, resulting in an additional redeployment of $680m per year in salary and overhead costs to local actors.
The report also outlines a possible transition fund to help with this 25% shift over the course of 8 years.