Local Capacity vs. Foreign Dependency: A Delicate Balance

For over a decade at The Courtney Jordan Foundation (CJF), we have operated at the intersection of global philanthropy and local empowerment. Working across countries like Sri Lanka, Bangladesh, and the Philippines, I have seen firsthand how the tension between foreign aid and local capacity plays out. While foreign aid can be life-saving and transformative, prolonged dependence on it can stifle self-sufficiency and delay systemic change. The challenge—and opportunity—lies in ensuring that international assistance builds local capacity rather than replacing it.

The Dependency Dilemma

Critics of foreign aid have long warned against what economists call the “dependency syndrome.” Rooted in dependency theory, this critique suggests that long-term aid can erode local initiative and perpetuate cycles of need. The World Bank’s 2023 Development Report acknowledges this, stating that aid must be designed to “graduate communities from aid to autonomy.”

In Sri Lanka, where CJF operates across 19 districts, we’ve witnessed how foreign-led solutions can sometimes miss the mark. A 2022 report by the Centre for Poverty Analysis (CEPA) found that over 40% of aid projects in rural districts lacked long-term sustainability once foreign teams exited. That’s why our approach emphasizes co-creation with local stakeholders from the start.

Capacity Building as a Strategy

We adopt Amartya Sen’s Capability Approach, which stresses expanding people’s freedoms and capacities rather than just delivering goods or services. In Bangladesh, CJF’s micro-grant program—delivered in partnership with local NGOs—has supported over 4,000 women entrepreneurs in launching self-sustaining businesses. These are not one-time donations; they are stepping stones to independence.

Through a localized model, we prioritize:

Skills Training: In the Philippines, over 2,500 students have graduated from CJF Code School, gaining employment in the tech sector.
Institutional Strengthening: We invest in local education boards, health clinics, and cooperatives to ensure systemic resilience.
Monitoring and Evaluation: We use results-based frameworks (RBM) and real-time data analytics to track project outcomes and adapt in real-time.

Redefining Roles: NGOs and Multilateral Agencies

NGOs like ours are increasingly acting as capacity enablers, not just service providers. Meanwhile, multilateral agencies are shifting their roles too. The UNDP’s 2021 Strategic Plan emphasizes “national ownership” and “local governance systems.” Similarly, the World Bank’s Localizing Development framework calls for channeling more funds directly to community-based organizations (CBOs).

In Bangladesh, our collaboration with UN Women allowed us to localize training content for youth development programs, ensuring cultural relevance and community buy-in. In the Philippines, our renewable energy projects—supported by international donors—are managed entirely by trained local cooperatives.

Ensuring Accountability

Building local capacity doesn’t mean abandoning accountability. We embed accountability through:

Community Scorecards
Participatory Budgeting
Open Data Platforms

Our Sri Lanka hub uses digital dashboards for all stakeholders—donors, communities, and local leaders—to track project KPIs in real-time. This transparency builds trust and ensures that aid is a catalyst, not a crutch.

The Road Ahead

Foreign aid, when done right, is a bridge—not a destination. As NGOs and multilateral actors, we must treat local empowerment as the north star. At The Courtney Jordan Foundation, our mission is rooted in the belief that the best solutions are those that outlive our presence. By investing in people, strengthening systems, and ensuring transparency, we can transform dependency into dignity.

Let’s build a future where communities don’t just survive—they thrive.

Sources:

World Bank, Development Report 2023
CEPA Sri Lanka Aid Effectiveness Review, 2022
UNDP Strategic Plan, 2021–2025
CJF Program Data (2023 Annual Impact Review)