Decreasing funds while repatriation is a distant destiny: can localisation be an answer to the protracted Rohingya crisis?

The Rohingya crisis, one of the most prolonged and complex humanitarian challenges of our time, continues without a clear resolution. Seven years since its onset, despite concerted international efforts, the hope of repatriation for millions of Rohingya refugees remains distant. These refugees, primarily residing in Bangladesh, live under precarious conditions as voluntary repatriation back to Myanmar remains unlikely.

The issue of repatriation, seen by many as the ultimate solution to the crisis, is hindered by multiple factors. Myanmar’s internal instability, continued persecution of Rohingya communities, and the lack of legal guarantees of citizenship for the returning refugees create insurmountable barriers. As a result, the prospects of repatriation have grown increasingly bleak, forcing international actors and host countries like Bangladesh to seek alternative, sustainable solutions for managing the displaced population.

Simultaneously, the global humanitarian aid landscape is under immense strain. Rising humanitarian needs across the globe have outpaced available resources. This shrinking pool of funding further compounds the challenges faced by the Rohingya population. As a result, the concept of localisation – shifting leadership of humanitarian operations to local actors – has gained traction as a potential solution to enhance the efficiency and sustainability of aid delivery.

This article explores whether localisation could offer a sustainable, long-term solution to the Rohingya crisis. It delves into the broader implications of shrinking global humanitarian funding and the evolution of localisation through key international frameworks such as the Grand Bargain, Grand Bargain 2.0, and Grand Bargain beyond 2023.

The funding crisis in humanitarian aid

Global humanitarian needs have reached unprecedented levels, with a record number of people requiring assistance. In 2024, the United Nations Office for the Coordination of Humanitarian Affairs (UN OCHA) projected that nearly 300 million people worldwide would require humanitarian assistance, and the global requirement for humanitarian aid is $46.4 billion, aimed at supporting 180.5 million people out of 299.4 million in need. However, the available funding has consistently fallen short, creating a widening gap that leaves many humanitarian programmes underfunded, including those assisting the Rohingya. The 2024 Joint Response Plan for the Rohingya crisis is requesting $852.4 million to support 1.35 million people, including about 1 million Rohingya refugees in Cox’s Bazar and Bhasan Char, and 350,000 affected Bangladeshi host communities. In 2023, Bangladesh received only 50% of the requested funds, continuing a downward trend. Since 2017, the gap between humanitarian needs and funding has grown, with shortfalls increasing from 27% in 2017 to 51% in 2022, reflecting a global crisis as humanitarian needs outpace available resources.

The funding crisis is particularly concerning for protracted crises like that of the Rohingya. After years of displacement, the crisis no longer commands the same level of international attention, with global focus shifting to newer emergencies. Shifting to more developmental approaches, such as fostering self-reliance, is not feasible in Bangladesh due to legal restrictions preventing refugees from formal employment or integration. This limits long-term solutions and underscores the critical need for sustained humanitarian support to ensure basic services and protection for the Rohingya population.

At the heart of this challenge is the recognition that traditional models of humanitarian aid may not be sustainable in the face of decreasing resources. Localisation, which seeks to enable and support local actors’ greater decision-making power and access to funding, has emerged as a promising approach to address these challenges.

The evolution of localisation: from the Grand Bargain to ‘Beyond 2023’

The concept of localisation has undergone significant development, particularly since the launch of the Grand Bargain during the World Humanitarian Summit in 2016. The Grand Bargain aimed to make humanitarian aid more efficient by increasing funding to local and national responders, reducing operational costs, and improving coordination among donors and aid organisations. One of its key targets was to direct at least 25% of humanitarian funding to local actors, empowering them to lead crisis-response efforts.

Building on this framework, the Grand Bargain 2.0 was introduced in 2021, placing a stronger emphasis on quality funding and accountability to affected populations. The new iteration highlighted the need for collaboration between international and local actors, streamlining funding mechanisms to ensure that aid becomes more predictable and effective. Localisation remained central to this initiative, reinforcing the importance of transferring decision-making power to local organisations.

Looking ahead, the Grand Bargain beyond 2023 marks a significant turning point, driven by the realisation that despite progress, key commitments – particularly on localisation and funding – remained unmet. This new phase aims to accelerate structural changes by moving from high-level principles to actionable outcomes, ensuring local organisations receive direct funding and capacity-building. The shift reflects lessons learned from the original Grand Bargain, recognising the need for long-term sustainability and empowering local actors to independently lead humanitarian efforts with the necessary resources and institutional support.

The promise and potential of localisation

Localisation, at its core, empowers local actors – community-based organisations, local non-governmental organisations (NGOs), and local governments – to take a leading role in humanitarian responses. Local actors, often possessing a deeper understanding of the local context, culture and networks, are better positioned to provide targeted, efficient and sustainable assistance compared to international organisations, which may lack such contextual knowledge.

An ODI study underscores the importance of localisation in protracted crises, examining how local actors in Bangladesh have contributed to supporting the Rohingya population. The study highlights the potential for increased support to local actors, arguing that this could lead to more efficient use of limited resources and ensure that aid reaches those most in need.

Localisation not only improves the efficiency of aid delivery but also offers the potential for long-term sustainability. By building the capacity of local actors, the international community can foster greater resilience within host countries like Bangladesh. This, in turn, reduces dependence on international humanitarian assistance and paves the way for a more self-sufficient humanitarian response system.

Challenges and barriers to localisation

Despite the potential benefits of localisation, several significant challenges hinder its full realisation, particularly in the context of the Rohingya crisis. One of the most pressing barriers is the limited capacity of local organisations to manage large-scale humanitarian operations. International NGOs (INGOs) and UN agencies often possess extensive experience, resources and technical expertise that local actors may lack. This gap in infrastructure, funding and operational capacity can impede local organisations from effectively coordinating complex interventions.

Additionally, there is a disparity in funding allocation. While the Grand Bargain sets a target of directing at least 25% of humanitarian funding to local actors, this has not been fully realised. Most local organisations continue to receive a fraction of the funding required to scale up their operations, limiting their ability to play a more prominent role in crisis responses.

Moreover, localisation efforts are often stalled by trust issues between international and local actors. International organisations, which control the flow of funds, are frequently reluctant to relinquish control or share resources with local actors. This lack of trust, coupled with bureaucratic hurdles in accessing international funding, continues to limit the ability of local organisations to meaningfully contribute to the response.

Localisation in the Rohingya crisis: a critical examination

In the Rohingya crisis, localisation presents both opportunities and challenges. On the one hand, local organisations in Bangladesh have demonstrated resilience and adaptability in responding to the needs of Rohingya refugees. There have been successful collaborations between local NGOs and international agencies in delivering aid to the Rohingya. This partnership model leverages the strengths of both local and international actors, providing immediate relief while building the capacity of local organisations for the future.

However, the success of localisation in the Rohingya response ultimately depends on the willingness of international donors and agencies to empower local actors. A 2021 review of the Grand Bargain notes that while localisation is widely supported in principle, its implementation is often hindered by bureaucratic challenges and a lack of trust. Local organisations are frequently sidelined, with international agencies retaining control over most decisions and resources.

To overcome these barriers, international actors must be willing to share power and resources with local organisations. This requires not only a shift in funding practices but also a change in the mindset of international agencies toward fostering true partnerships with local actors.

The way forward: enhancing localisation for the Rohingya crisis

To fully realise the potential of localisation in the Rohingya crisis, several key steps must be taken:

1. Increase direct funding to local actors: Increasing direct funding to local actors is crucial for improving the effectiveness of humanitarian responses. While the Grand Bargain aims to allocate 25% of such funding to local organisations, there is a growing consensus that this figure could be significantly higher. As frontline responders, local actors have deep insight into their communities’ needs and remain engaged throughout the crisis. Directly funding them is also highly cost-effective, ensuring more resources reach those most in need. This shift would strengthen local ownership of humanitarian initiatives, boosting sustainability, accountability and resilience.

2. Capacity-building for local organisations: Investing in the capacity of local organisations is vital for the success of localisation. This includes providing training with international actors in areas such as project management, financial management and coordination. Moreover, international agencies should prioritise knowledge transfer and technical support to build operational capacity among local organisations. However, the phenomenon of local actors, once trained and experienced, moving to higher-paying jobs with international NGOs or the UN is not uncommon, and it is indeed happening in countries like Bangladesh. This trend can create a ‘brain drain’ effect within local organisations, where skilled personnel are drawn away by the promise of better salaries and job security offered by international agencies. As a result, local organisations often face challenges in retaining talent, which can undermine their capacity and sustainability over time. International agencies could consider offering technical support without siphoning off local talent, and instead, look for ways to ensure knowledge transfer strengthens local institutions rather than depleting them of their most qualified staff.

3. Foster collaborative partnerships: Localisation must be seen as a collaborative effort between local and international actors. By building partnerships that leverage the strengths of both, humanitarian responses can become more effective and sustainable. International organisations should transition from leading interventions to supporting and enabling local actors to take the lead.

4. Strengthen accountability mechanisms: Robust accountability mechanisms are crucial to ensuring local actors remain transparent and responsible in their use of funds. While fund misuse is a frequently discussed issue among local organisations, it often stems from capacity limitations rather than intentional misconduct. Strengthening accountability can be achieved by implementing enhanced, yet streamlined, reporting systems that do not overwhelm local organisations. Additionally, integrating community feedback mechanisms and establishing independent oversight bodies to regularly assess the performance and impact of initiatives will further enhance transparency. These measures enable local actors to concentrate on delivering effective services, while simultaneously building trust with donors and communities.

The way forward for local organisations

For local organisations to thrive within a localised humanitarian framework, addressing internal challenges and strengthening governance structures is essential. Key actions include:

1. Enhancing governance and accountability: Establishing a well-defined, independent board of directors with diverse expertise is crucial for improving governance. This board should operate without undue influence from founders or individuals in powerful positions. Clear decision-making structures will strengthen accountability and enhance organisational effectiveness. Robust mechanisms will also help address issues like fund misuse, which, while often attributed to lack of capacity rather than deliberate intent, remains a critical concern for local organisations. Enhanced oversight ensures better financial management and transparency.

2. Eliminating nepotism and one-person leadership: Local organisations must move away from nepotism and ‘one-man-army’ leadership, where power is overly centralised. Transparent, merit-based hiring processes and inclusive decision-making will foster shared leadership and a culture of responsibility. This also helps to safeguard against potential mismanagement of funds by distributing decision-making power across the organisation.

3. Offering competitive salaries and benefits: Although local organisations may not match INGOs or the UN in pay, providing competitive compensation, benefits and non-monetary incentives can help retain staff and reduce the outflow of talent to international agencies. Proper compensation structures also reduce the temptation for unethical practices like fund misuse.

4. Providing career growth opportunities: Establish clear pathways for professional development and career advancement. Showing staff that they have long-term prospects within the organisation can boost retention, especially in roles that focus on financial stewardship and governance, reducing the risk of fund mismanagement.

5. Fostering a strong organisational culture: Cultivate a positive and inclusive work environment that values staff contributions, enhancing job satisfaction and loyalty. A strong culture of integrity can reduce fund misuse by fostering ethical behaviour across all levels of the organisation.

6. Investing overhead in capacity-building: Instead of viewing overhead purely as administrative costs, organisations should strategically invest a portion of indirect cost recovery into capacity-building. This can include training in leadership, technical skills and organisational development, enabling staff to manage projects and engage effectively with international partners. Capacity-building also ensures that financial controls are in place to mitigate risks of mismanagement.

7. Decentralising power and empowering senior management: Delegating decision-making power to senior management teams allows for greater agility and resilience in crisis response. Empowered leadership can also ensure better financial oversight, preventing any single person from exerting unchecked control over funds.

8. Investing in leadership roles: Empower local staff with leadership roles and decision-making authority to foster a sense of ownership and commitment to the organisation’s mission. This helps in maintaining financial integrity and accountability.

9. Building long-term vision: Align staff with the organisation’s long-term goals, emphasising the impact they can have within their communities. A strong vision encourages staff to act in the organisation’s best interests, reducing the risk of fund misuse.

10. Implementing flexible working conditions: Offering flexible hours or remote work options can improve work–life balance, making positions more attractive and helping to retain talent. Satisfied employees are less likely to engage in unethical practices like fund mismanagement.

11. Strengthening monitoring and evaluation systems: Develop robust internal monitoring and evaluation systems to assess performance and impact. Regular audits, community feedback and beneficiary input will enhance transparency and ensure resources are used effectively. These systems play a critical role in preventing fund misuse by identifying issues early and promoting accountability.

By focusing on these reforms and collaborating with international actors, local organisations can not only maximise their potential to lead in humanitarian responses, such as in the Rohingya crisis, but also build a sustainable and resilient operational model that retains talent, ensures effective fund management, and fosters long-term impact.

Conclusion

As the Rohingya crisis continues without a clear resolution and global humanitarian funding grows increasingly limited, localisation offers a promising way forward. Empowering local actors to lead humanitarian efforts can foster more resilient, self-sufficient systems capable of addressing the ongoing needs of the Rohingya population. However, to fully unlock localisation’s potential, it is crucial to invest in building local capacity, increase direct funding to local organisations, and establish robust accountability mechanisms. If these challenges are effectively addressed, localisation could not only provide a sustainable solution to the protracted Rohingya crisis, but its success in this context could serve as a model for similar crises worldwide.

Abdul Mannan is Deputy Director of the Society for Health Extension and Development (SHED)