Summary of the Global Donor Working Group on Land session at the Annual General Assembly of the Global Donor Platform for Rural Development from 26 November 2024. This text is written with the assistance of AI tools.
On November 27, 2024, the Global Donor Working Group on Land convened a session as part of the Global Donor Platform for Rural Development Annual General Assembly (AGA). Under the theme “Redefining and enhancing the quality of finance for sustainable development: How to better reach Indigenous Peoples and local communities,” this session focused on optimizing Official Development Assistance (ODA) to address the needs and rights of Indigenous Peoples and Local Communities (IPLCs). The session spotlighted practical approaches to improving the inclusivity, efficiency, and impact of development finance amidst intensifying global crises.
The session sought to answer three core questions:
- How can finance and ODA be redefined to better serve local needs?
- How can power dynamics shift toward recipient communities?
- What models ensure finance addresses critical issues like land tenure, climate adaptation, and biodiversity conservation?
Speakers emphasized that achieving sustainable transformation requires moving beyond traditional top-down financial mechanisms. As Jenny Lopez from the UK Foreign, Commonwealth, and Development Office (FCDO) noted, “the problem isn’t merely the amount of aid but the quality of delivery, which must prioritize local leadership and needs.”
Insights from the Forest Tenure Pledge
Jenny Lopez highlighted the Forest Tenure Pledge, a commitment by 25 donors to channel $1.7 billion toward advancing IPLC forest tenure rights. While nearly 79% of this commitment has been disbursed, only 10% of funds have reached IPLCs directly—an improvement from earlier years but still inadequate. Lopez underlined that scaling up direct funding and simplifying due diligence requirements are critical to fostering greater IPLC agency.
The challenges of intermediaries
A recurring theme was the role of intermediaries in funding flows. While intermediaries often facilitate technical and administrative tasks, participants like Birgitte Feiring, director of consultancy firm Charapa, stressed the need to redefine their roles. Feiring suggested distinguishing between:
- Strategic allies who provide technical support,
- Project partners who assist with fund disbursement and program implementation, and
- Pure intermediaries whose sole role is transferring funds.
Indigenous leaders, including Basiru Isa of REPALEAC, expressed frustration with the disproportionate reliance on intermediaries. "We need donors to trust us and adapt their procedures to our realities," Isa stated, highlighting the exclusionary nature of standard donor processes.
Models of progress: The IFAD experience
Margherita Loddoni of the International Fund for Agricultural Development (IFAD) shared insights from the Indigenous Peoples Assistance Facility (IPAF). Operational since 2006, IPAF channels small grants (up to $70,000) to IPLCs via regional indigenous organizations. Loddoni emphasized IPAF's evolution, including decentralization and efforts to link grassroots projects with national policy frameworks.
This decentralized model has funded over 200 projects globally and serves as a template for empowering IPLCs while addressing challenges like low institutional capacity.
Recommendations for a just transition
The discussions concluded with clear calls to action:
- Increase Direct Funding: IPLCs should receive a minimum of 25% of all funds directly to address their priorities.
- Redefine Partnerships: Establish new funding models that prioritize IPLC agency while leveraging intermediaries as needed.
- Expand Focus Beyond Forests: Support diverse ecosystems such as rangelands, recognizing the role of pastoralists and other communities in conservation.
- Simplify Processes: Replace rigid reporting requirements with innovative methods, such as video documentation, to lower barriers for IPLCs.
Closing reflections
As Ward Anseeuw of FAO observed, the session underscored the urgency of devolving decision-making power to local levels. He cited encouraging trends, such as the increasing allocation of funds to IPLCs, while emphasizing the need for structural changes in donor systems.
Ultimately, the session served as a rallying cry for greater equity, flexibility, and inclusiveness in development finance. While significant progress has been made, the global community must accelerate efforts to ensure IPLCs are not only beneficiaries but drivers of sustainable development.
As Henry Bonsu aptly summarized, "These are the custodians of our forests, lands, and ecosystems. Their birthright must be recognized—not just for global benefits but as a matter of justice."