Localization as a funding concept
The concept of localization originally stems from humanitarian aid. Somaha Foundation understands it as strengthening local organizations through independence and self-determination. This approach is relevant across all three thematic areas of the foundation: supporting people in need, promoting an open and diverse society, and protecting nature from exploitation and destruction.
Somaha foundation’s localization concept
An important value of Somaha Foundation is sustainability. The foundation is convinced that only strong, independent, and self-determined local organizations can be economically sustainable. To maximize impact, the foundation therefore supports strong local organizations. Insofar, localization is an approach for Somaha Foundation to maximize its impact in accordance with its purpose.
Somaha Foundation supports its funding partners in strengthening their local partners. In this sense, localization is a process. The degree of localization is an expression of progress made in this process. Insofar, localization reflects the status and nature of the collaboration between international non-governmental organizations (INGOs) and local organizations (LOs). The following table shows the spectrum of possible degrees of localization.
The Four Dimensions of Localization
The Somaha localization model describes localization on four dimensions:
A. Capacity of the LO
Expertise, strategy, structure, processes, and resources
B. Partnership between INGO and LO
Leadership, decision-making, quality assurance, communication, core funding, transparency, and fundraising
C. Transformation of the INGO
Strategy, direct funding, structure, culture, leadership and risk-sharing
D. Context
Rule of law, political stability, civic space, and economic stability, and advocacy
The Five Degrees of Localization
The degree of localization is presented in five maturity stages in the Somaha Localization Model. It can vary across the dimensions of the model:
No → Limited → Partial → Advanced → Complete Localization
LO: Local Organization, INGO: International Non-Governmental Organization
The Four Dimensions of the Localization Model
The Somaha Localization Model describes localization across four dimensions:
A. Local organizational capacity
The first dimension concerns the capacity of a LO, defined as its organizational strength. This involves expertise, strategy, and structure. Additionally, the model assesses whether processes are standardized and systematically refined. It also examines working conditions for personnel, including protective measures and opportunities for professional development. Another aspect concerns finances, particularly the income diversification and the level of reserves. The model also assesses the extent to which the LO promotes the involvement of local communities in project design and implementation, as well as the structure of governance. Finally, it examines the reliability of internal control mechanisms.
B. Partnership between INGO and LO
The second dimension concerns the quality of cooperation between the INGO and the LO. The focus is on how the partnership model and leadership roles are defined and to what extent the local organization is involved in decision-making, project management, and the use of funds. Equally important is the agreement governing the cooperation, particularly regarding the duration of the partnership, quality assurance, and external communication. Consideration is also given to the extent to which capacities are mutually evaluated and whether capacity-building measures meet the needs of the LO. Additionally, attention is paid to whether budgets are appropriately allocated, and core functions are sufficiently funded. Another key focus is on budget transparency. Finally, the process addresses joint resource mobilization (fundraising).
C. Transformation of INGO
The third dimension examines the extent to which an INGO’s internal processes and structures are designed to strengthen LOs in a sustainable manner. Shifts in the division of roles require comprehensive organizational development on the part of the INGO — from strategy and financing to governance. The focus is on the extent to which the INGO’s strategy includes measurable goals for internal change processes and is geared toward strengthening LOs. The nature and scope of direct funding for LOs and the structure of the INGO are also examined. Additionally, the analysis illustrates how the INGO reflects on power dynamics, legitimacy, and trust-building, and to what extent it values the culture, norms, and knowledge of LOs and incorporates them into project planning and implementation. Whether local perspectives play a central role for the INGO also depends on the composition and role of top leadership. Finally, risk-sharing between the INGO and the LO is relevant.
Somaha Foundation supports its partners particularly in the transformation process – knowing that the process varies depending on the context and framework conditions.
D. Context
The fourth dimension describes institutional and legal framework conditions. The more favorable these conditions are, the stronger LOs can become. To this end, data is collected on the extent to which laws and legal institutions protect fundamental rights (rule of law), how stable and predictable the country’s political environment is (political stability), how freely civil society organizations can express themselves and participate in political processes (civil society space), and how stable and predictable the local economy is (economic stability). For the further development of these framework conditions, the division of tasks between INGO and LO in advocacy and representation is relevant.
The Five Degrees of Localization
At the dimension of local organizational capacity, the localization model is based on the logic of a maturity model. Within this framework, the stage of development of organizations and processes is described based on various criteria and classified on a spectrum ranging from «unsystematic» to «optimized». The Somaha Localization Model applies a similar spectrum at all dimensions, ranging from «no localization» to «complete localization». This reflects the state of localization or the progress of the localization process. This progress may vary across the different dimensions. For example, while the framework conditions may be conducive to the development of LOs, a partnership on equal footing is only possible to a limited extent due to a highly asymmetrical balance of power with INGOs. Conversely, it is conceivable that at the organizational level, all prerequisites for their development are in place, yet the framework conditions stand in the way of this.
Somaha Localization Assessment
Based on the localization model and in consultation with INGOs and LOs, the Foundation has developed the Somaha Localization Assessment with measurable indicators. This assessment allows for an evaluation of the relationship between INGOs and LOs with regard to localization. From this, development potential can be identified with short- and long-term goals, and a concrete change process can be initiated, planned, and implemented.
The Localization Assessment comprises 31 indicators across the four dimensions of the localization model. The following figures show an example of an assessment result.
^ Figure: Example of a graphical analysis of an assessment
While Somaha Foundation is convinced that greater localization is generally desirable, a higher degree of localization should not necessarily be sought at every dimension or in every situation. This is particularly evident at the dimension of local organizational capacity: while the criteria used are good indicators of a LO’s strength, they can also reflect an organization’s size or degree of formalization. They are therefore imprecise. Small or informally organized LOs can also be effective. In this respect, the results of an assessment must always be interpreted with caution and in light of the specific context.
Potential applications for the assessment
Somaha Foundation uses its localization model and assessment to work with its funding partners, typically INGOs, to take stock of the current situation and discuss potential next steps in a structured manner. This provides a solid foundation for setting short- and long-term goals, as well as for adjusting or refining the focus areas within a joint project, if necessary. The foundation does not use the assessment for evaluation in the sense of an audit, but rather as a tool to promote dialogue and shared learning. In this way, it supports its efforts to deploy its resources in a targeted and effective manner in line with the foundation’s mission and theories of change. For collaboration with potential funding partners, it is not the degree of the localization process that is decisive, but rather their openness to embracing and helping to shape change.
Somaha Foundation makes the Localization Assessment available to all interested parties free of charge. INGOs and LOs can use it to take stock of their relationship, identify needs, or develop their collaboration in a structured way.
Donors and other stakeholders can also use the tool to reflect on how they can help strengthen LOs and thereby make their own funding activities more effective and sustainable.
If you are interested, we would be happy to provide you with the localization assessment.
Please contact us by email at office@somaha-stiftung.ch.