From an aid to an investment mindset: rebalancing partnerships for economic and social impact?

In recent years, the landscape of international development has grappled with systemic challenges that have hindered progress towards sustainable and equitable partnerships. One such challenge has been the lack of transparency and clarity around existing funding initiatives such as the EU’s Global Gateway. The confusion surrounding these mechanisms often undermines accountability and trust – especially from local actors. By creating scope for the diversion of development funding, this lack of clarity can exacerbate inequalities and restrict local community impact. This issue is particularly prevalent in traditional donor-recipient models, which often perpetuate dependency and fail to empower local communities. Furthermore, the growing burden of debt in low- and middle-income countries (LMICs), exacerbated by unsustainable financing practices, has underscored the urgent need for a paradigm shift in international development instruments. These issues highlight the urgent need for a more equitable and inclusive approach to international development, one that prioritises the shared priorities and perspectives of partner regions. Only by meaningful dialogue and collaboration between local actors and funding bodies can sustainable partnerships take place.

The following questions are intended to guide the Working Group’s discussion:

• How can international partnership strategies ensure that the shared priorities of partner regions are accurately identified and addressed in their implementation?
• How can funding entities empower local actors and communities to play a more active role in shaping development initiatives through more collaborative and inclusive partnerships?
• How can international funding mechanisms enhance transparency and accountability to ensure that resources are effectively allocated and utilised for their intended purposes?
• How can financing practices ensure an alignment with the long-term interests and capacities of recipient countries, reducing the risk of debt distress and fostering economic resilience?

This Working Group will redefine how partnerships are made, focusing on shared priorities with partner regions and moving beyond the traditional donor-recipient model. Participants are expected to contribute insights and recommendations on improving transparency, fostering meaningful dialogue and encouraging innovation in funding. By addressing these critical areas, the group aims to develop a more equitable and effective framework for international partnerships, ensuring sustainable and mutually beneficial outcomes.

In recent years, the devastating impact of climate change and its associated natural disasters has underscored the vulnerability of communities and the urgent need for resilient infrastructure. Additionally, civil society representatives have largely advocated for greater equity and inclusion, shedding light on disparities surrounding access to essential services and resources. As these trends highlight the critical intersection between infrastructure development and community welfare, a challenge arises: there is a lack of standardised clauses for implementing community and social dividends within commissioning and funding processes. Although trailed in various governmental contexts, such clauses have often relied on individual foresight and leadership rather than being standard prerequisites for enhancing social and economic development. Social clauses should be woven into commissioning and funding processes by the EU, development banks, and other stakeholders, fostering community and social dividends. Although trailed in various governmental contexts, such clauses have often relied on individual foresight and leadership rather than being standard prerequisites for enhancing social and economic development. Commissioning, which profoundly shapes the allocation and utilisation of resources, should be reevaluated to ensure that community priorities are effectively integrated into development strategies.

The following questions are intended to guide the Working Group’s discussion:

•  What specific steps can be taken to standardise social clauses in commissioning and funding processes to ensure consistent community and social dividends?
• How can we effectively engage local communities in commissioning processes to accurately identify and prioritise their needs and preferences?
• What policy measures can be introduced to ensure that social and community dividends are integral components of all commissioning and funding processes?
• How can the impact of community and social dividends be measured and evaluated to ensure long-term benefits and continuous improvement in commissioning practices?

This Working Group will define how to maximise community impact and return on investment at the local and regional levels through innovative commissioning and funding practices. Participants are expected to engage in constructive dialogue by drawing on their expertise and experience, to develop actionable recommendations for integrating social clauses and promoting the realisation of community and social dividends. Drawing on their expertise and experience, participants will seek to identify practical solutions on how to ensure that investments in partnerships lead to positive social outcomes, benefiting communities both regionally and locally.