Local management of aid-funded projects

Local management means giving responsibility for the implementation and management of development projects to people and institutions in the recipient country. The main arguments for local management are that it offers the potential to increase the responsibility and accountability of national institutions and should help to build a cadre of experienced local project managers. These are all important contributions to sustainable development. There are, however, some constraints on the effectiveness of local management, including the limited supply of good managers and the difficulty of ensuring adherence by those implementing projects to donors' procedures and regulations. The role of donor agencies under local management is yet to be clearly defined. Donor agencies will face difficult professional judgments on whether, when and how to intervene where projects are not being competently managed by national institutions.