A new era in global aid: Why locally led, market-based solutions are the best route to resilience

The current US administration’s dismantling of USAID, coupled with proposed foreign aid cuts by European governments – including the UK, Netherlands, Belgium and France – has sent shockwaves through the development community. These actions have exposed a long-standing vulnerability: a global aid model overly reliant on the sustained generosity of a few donor nations.

What has become unmistakably clear is that the future of development lies in true partnership — with former aid recipient countries leading the way. Solutions must be grounded in community priorities, shaped by local wisdom and powered by shared investment. Only then can we build resilient systems that transcend volatile global funding and unlock lasting, self-determined progress.

Humanitarian aid will always be essential in moments of crisis, but we must shift the broader narrative – from one of ongoing charity to investing in self-sufficiency. Countries and communities must be empowered not as passive recipients, but as the architects of their own development futures.

Programmes thrive when they are locally led. The development sector must centre decision-making power and resources in the hands of national governments, community leaders and local institutions. By collaborating on market-based solutions with these partners, we can better align priorities, create sustainable jobs and enhance long-term healthcare, education and economic outcomes.

Too often, the systems that connect people to tools, services or infrastructure are treated as afterthoughts. However, distribution, maintenance and financing models are the backbone of long-term impact. When these systems are implemented hand in hand with local communities, we see better delivery, stronger ownership and more durable outcomes. Extending focus from what is implemented to how it’s maintained and sustained is key.

Impact extends far beyond just distribution numbers. Every stage of service delivery is critical – from design to distribution to implementing systems conducive to long-term community benefit. In the mobility sector, World Bicycle Relief has delivered nearly a million bicycles – but our investments in seeding an entire ecosystem to meet local demand are arguably more consequential for moving from project cycles to sustained, multi-generational progress. Teams on the ground train mechanics, develop retail outlets and make spare parts accessible. This approach results in more durable products and businesses that thrive and drive long-term employment and improved gender equality within local economies. As we move further into this century, which will increasingly be shaped by geopolitical uncertainty and climate change, scaling infrastructure that is built to last will be critical.

A market-based, community-centred approach is often essential to promote extended programme benefits. For example, One Acre Fund helps smallholder farmers increase their income by supplying high-quality seeds and connecting them with financing, training and market support. One Acre's built-in reinsurance fund also helps insulate farmers from climate-related shocks. This economically sustainable organizational model is rooted in community needs and is designed to protect farming communities from the unique risks they face.

Evidence Action’s Safe Water Now programme is another successful example of a cost-effective, diversified funding structure. Their organization has reached nearly 10 million people with clean water. By using hybrid models that engage the public, private and social enterprise sectors, the programme has proved to be more resilient than many other aid models. Through these examples, we see the future of development: locally driven, partnership-based solutions that facilitate lasting opportunities from the ground up.

As our development models evolve, so must the metrics defining their progress. Traditional indicators often fail to capture the magnitude of transformation that economically sustainable programmes can produce. Success in many of the most meaningful projects I’ve seen during my time in the sector can be measured by the degree of added autonomy and equity in the region. In fact, a randomized controlled trial conducted by IDinsight in Zambia revealed that women who received mobility tools saw a nearly 50% increase in income during the worst drought in 30 years, compared to those without similar access to transportation.

This moment also calls for us to take stock of the practical lessons learned through years of on-the-ground partnership and delivery. Nearly 20 years ago, my team began our close work with dairy farmers in Zambia who faced significant mobility barriers. Together, we customized bicycles equipped to travel across the landscape between points A and B to get their milk to collection centres. As organizations themselves now face conversations around resilience, those same skills of analysis and adaptation that have always existed in the development sector can now be applied to the emerging funding landscape.

In 2025, the world entered a new chapter of global aid, as the development sector moves past traditional philanthropic models. We are at an inflection point where, alongside our community partners, we have opportunities to create new blueprints for progress that are built to last. Foreign aid alone is no longer enough to meet the challenges ahead. Instead, leaders must lean into grassroots development, support sustainable ecosystems and collaborate on market-based solutions tailored to each community we serve.