Localization as a funding concept

Somaha Foundation defines localization as strengthening local organizations and communities by increasing their independence and self-determination. This includes the development and application of content-specific/technical, organizational, and financial capacities – direct partner strengthening through enablement and empowerment – as well as developing a supportive context for organizations and communities – indirect partner strengthening through improved framework conditions.

Somaha foundation’s localization concept

An important value of the Somaha Foundation is sustainability. The foundation is convinced that only strong, independent, and self-determined local organizations and communities can be economically sustainable. Therefore, Somaha Foundation relies on the strong involvement of local organizations and communities to achieve greater impact. Insofar, localization is an approach for Somaha Foundation to maximize its impact in accordance with its purpose. The concept of localization was initially introduced in the humanitarian sector (cf. box). Somaha Foundation applies it in all three of its themes, i.e., in its support for people in need, in its commitment to an open and diverse society, and in its engagement to protect nature from exploitation and destruction.

Somaha Foundation promotes Swiss organizations in localization. In doing so, the foundation supports its funding partners in developing concepts and tools for localization and applying them to enable and empower local (partner-) organizations and communities. In this sense, localization is a process.

The degree of localization is an expression of progress in this process. Insofar, localization reflects the state and nature of the partnership between international non-governmental organizations (INGOs) and local organizations or communities. The following table shows the spectrum of possible manifestations of localization.

Localization in the humanitarian sector

In the humanitarian sector, localization refers to a principle adopted as part of the Grand Bargain at the 2016 World Humanitarian Summit. Localization aims to improve the effectiveness and efficiency of the humanitarian system by strengthening the role and direct and long-term funding of local actors and organizations.

This requires a shift of decision-making power to the local level. Humanitarian assistance is considered "locally led" once local actors are fully involved in all project phases and, where possible, lead the project. Therefore, decentralization and the decision-making power of local actors are key elements of localization.

The following table shows the spectrum of possible manifestations of localization.

Level of organizations and communities

Together with its funding partners, Somaha Foundation aims to strengthen local organizations and communities so that they acquire all the content-specific/technical, financial, and organizational capacities necessary for their independence (enablement). It is equally important that INGOs collaborate in equitable partnerships with local organizations and communities (empowerment).

Enablement involves developing the capacities of local organizations and communities in three areas:

Content-specific/technical capacities enable independent implementation of local projects.
Financial capacities include skills in accounting, financial planning, and fundraising. Financial independence does not necessarily mean getting by without external funding, but not being entirely dependent on individual funding sources.
Organizational capacities include management and leadership skills, particularly the ability to establish an expedient organization with adequate processes.

By supporting these three areas, a holistic strengthening of local capacities and resources can be achieved.

Often, local organizations are significantly dependent on INGOs. This results in unbalanced power relations. Localization, therefore, involves both enabling local organizations and empowering them. This means involving local organizations both in fundraising and in the use of resources. The latter is done, among other things, in projects in the following phases:

Project initiation: Needs assessment, conceptualization, development of baselines, and identification and securing of necessary resources.
Project planning: Preparation of a detailed project plan and definition of responsibilities and accountabilities.
Project execution: Execution of the actual project work.
Project monitoring: Recording and assessing the progress of the project.
Project closure: Completion and evaluation of the project.

A prerequisite for a trust-based and equitable partnership of local organizations and communities with INGOs is mutual understanding and accountability, as well as open and honest communication. For INGOs, empowering their local partners may require them to relinquish responsibilities and redefine themselves and their role in the partnership.

Level of the framework conditions

Local framework conditions are critical for the creation and development of established organizations (facilitation). They thus have a significant impact on the independence and self-determination of local organizations and communities.

Institutional and legal framework conditions are particularly relevant. These include the formal norms and rules as well as the political structures and practices in a society that determine the interactions between individuals, groups, and organizations. For example, the creation of organizations may be hindered by bureaucratic barriers or facilitated by legal certainty.

Social processes describe the social interactions and behavioral patterns of society: the acceptance and commitment of local organizations and communities are crucial for successful localization. The participation of these actors in local, national, and international decision-making processes and discourses allows the perspectives of affected communities to be heard. This includes the opportunity to participate in knowledge transfer which involves sharing knowledge, experience, and expertise and creating networks that empower local organizations and communities to become independent.

Active participation in shaping the framework conditions may facilitate local actors in forming their development processes in a more self-determined manner and expand their scope for action.

Degree of localization

At the level of organizations and communities, the localization model follows the logic of a maturity model. The model describes the stage of development of organizations, processes, or projects based on certain criteria and classifies them into different degrees. With the Somaha localization model, the progress of the localization process may be mapped. Progress may vary between levels. For example, the framework conditions may be conducive to the development of local organizations, but their capacity to act is limited due to a strongly asymmetrical power relation with INGOs. Conversely, it is conceivable that all the prerequisites for organizational development are in place at the organizational level, but that the framework conditions may prove to be an obstacle.