One of the greatest obstacles to localising aid (i.e. transferring aid to local rather than international actors) is the perception among donors that it is much riskier than non-localised aid, where the donor appears more able to manage directly the risks of funds being misspent. This report finds that this perception may be incorrect, and that non-localised aid may potentially have higher risks of programme and strategic failure. It sets out an approach for donors who wish to analyse the risks involved in localising aid.
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