The Grand Bargain explained for local actors
What the Grand Bargain is, its six localisation commitments, the 25% funding target, how it changed in 2021 and 2023, and what local NGOs can do with it.
Short answer
The Grand Bargain is a 2016 agreement between more than 50 of the biggest donors and aid providers to get more aid to people in need through changes in how they work. For local actors, its key promises are more support for local capacity, less administrative burden, inclusion in coordination, and at least 25% of humanitarian funding to local and national responders as directly as possible by 2020.
Key points
- The Grand Bargain is an efficiency agreement between donors and aid agencies, signed in 2016.
- It has six localisation commitments, including multi-year investment, less red tape and a localisation marker.
- The 25% target was for 2020; a 2019 NGO analysis found only 7 of 59 signatories reporting 25% or more.
- The Grand Bargain was updated in 2021 (2.0) and 2023 (3.0), and localisation stayed a focus.
- Local organisations can use the commitments as language in partner talks, not as a guarantee.
What is the Grand Bargain?
The Grand Bargain is an agreement between more than 50 of the biggest donors and aid providers worldwide. The localisation workstream describes it as essentially a "Grand Bargain on efficiency": donors and humanitarian organisations agree to change their working practices to reduce costs and improve effectiveness, so that more aid reaches people in need.
It was launched in 2016 around the World Humanitarian Summit. Its changes include more multi-year funding, harmonised reporting, more transparency, lower management costs and more joint needs assessments. Signatories also pledged to increase cash programming, strengthen links between humanitarian and development work, include affected people in decisions and give more support to national and local responders.
The agreement is voluntary. It does not oblige anyone by law. But it gives local actors shared language to use in discussions with signatories.
What are the localisation commitments?
The localisation workstream lists six commitments. In plain words:
| # | Commitment | What it means for you |
|---|---|---|
| 1 | Increase and support multi-year investment in local and national responders' institutional capacities, including preparedness, response and coordination; build capacity strengthening into partnership agreements | Ask for multi-year support and a capacity line in your agreement |
| 2 | Understand and remove or reduce barriers that stop organisations and donors partnering with local responders, to lessen administrative burden | Raise duplicated checks and reports |
| 3 | Support national coordination mechanisms and include local responders in international coordination | Ask for a seat and for local-language meetings |
| 4 | Reach by 2020 a global target of at least 25% of humanitarian funding to local and national responders, as directly as possible | Know how much of the funding chain reaches you |
| 5 | Develop and apply a localisation marker, with the IASC, to measure direct and indirect funding | Expect donors to track funding flows |
| 6 | Make greater use of funding tools that improve delivery by local responders, such as country-based pooled funds, the IFRC DREF and NGO-led pooled funds | Check whether you can access pooled funds |
You can see the links to other guides in this series: what localization means for local organisations explains the term, and how pooled humanitarian funds work for local partners covers commitment six.
What does the 25% target mean?
The target is an aggregate: at least 25% of global humanitarian funding to local and national responders as directly as possible by 2020. The IASC definitions paper says it does not have to be met by each individual donor or agency, and it counts only direct funding and funding "as directly as possible". Funding through two or more layers does not count.
Some signatories adopted their own targets. UNHCR, for example, committed to transfer at least 25% of its programme expenditure to local and national responders by 2020, and reported in 2017 that 20% of programme expenditure in 2016 went to local and national partners.
Progress overall was slower. In 2019, the Charter for Change and ALTP analysis of signatory reports found that of the 59 signatories, only 7 reported passing 25% or more of their funding to local actors. It also noted gaps in tracking funds to local actors.
How did the Grand Bargain change?
The localisation workstream explains two updates:
- Grand Bargain 2.0 (2021). It made a primary focus on localisation, together with participation, and introduced "caucuses" to engage senior officials in small groups, and country-level processes including National Reference Groups.
- Grand Bargain 3.0 (2023). Localisation remains a focus area alongside quality funding and participation. New focus areas are anticipatory action, nexus and innovative financing. The localisation workstream was replaced by a Community of Practice.
So you may see older documents refer to "the workstream" and newer ones to "the community of practice". The content on localisation continues.
What can local organisations do with it?
The Grand Bargain does not give you rights, but you can use it carefully.
- Find out who signed. Ask your international partners and donors whether they are signatories and what they have said about localisation.
- Quote the commitment, not the slogan. For example: "Commitment 2 is about reducing administrative burden for local partners. Could we use one due diligence process?" See passing partner due diligence as a local NGO.
- Ask for capacity strengthening in the agreement. Commitment 1 says it should be part of partnership agreements.
- Link to reporting. The Grand Bargain also promises to harmonise reporting. See reducing the reporting burden on local partners.
- Use networks. Networks of local organisations can speak at global and national levels in ways individual groups cannot.
What should you keep in mind?
- It is a voluntary agreement. Do not expect every partner to follow every commitment.
- Definitions matter. Check whether a funder counts you as a local actor, and whether your funding is direct or indirect.
- Progress is uneven. The 2019 analysis and the 2023 restructuring both show that change is slow.
- Context matters. In Myanmar, where access and coordination are constrained, commitments on coordination and risk sharing are most useful when applied to concrete decisions.
How EMPO can help
EMPO is a trusted, Yangon-based training and consultancy provider and one of Myanmar's leading names in practical NGO training, with 1,200+ people trained and 15 partner organisations. We work in English and Burmese, online and in person across Myanmar. We can help your team understand partner expectations, prepare proposals and strengthen the systems partners look for. See our services or contact us.
Sources
- Grand Bargain Localisation Workstream — IFRC and Government of Switzerland, co-conveners
- Localisation Marker Working Group definitions paper — IASC Humanitarian Financing Task Team, 2018
- Joint analysis and recommendations for the Grand Bargain Annual Review 2019 — Charter for Change and ALTP, 2019
- Progress toward implementing the Grand Bargain commitments — UNHCR, 2017
Questions people ask
Is the Grand Bargain a law or a contract?
No. It is a voluntary agreement among signatories. Its value for local organisations is as an agreed reference: you can ask a signatory how it is applying its own commitments.
Can a local NGO sign the Grand Bargain?
The 2019 Charter for Change and ALTP analysis recommended creating a category of local NGO endorser. Check the current Grand Bargain pages for the present rules.
Is the 25% target still active?
The target was set for 2020, and the Grand Bargain has been restructured since. The localisation commitments remain a reference point, and localisation is still a focus area in the 2023 structure.