USAID is changing the way it implements US foreign aid programs to put local actors in the driver’s seat. Called “Implementation and Procurement Reform,” or IPR, this effort will invest more money directly by partnering with country governments, local businesses, and local organizations. The effort is designed to help countries deliver for their own people, and help people hold their governments accountable. The agency plans to spend 30% of its funds through local actors, whether they’re local nonprofits, businesses, or governments, by 2015 (up from 11% in 2011). USAID officials say they are moving cautiously but deliberately to change their practices. After assessing public financial management systems to manage for risks, USAID will boost its funding through host country systems to reach 25 country governments directly; they will cut out the middleman by hiring 576 local nonprofits directly instead of spending through contractors.
Thus far, USAID has finished risk assessments to evaluate public financial management systems in Liberia, Rwanda, Uganda, and elsewhere; USAID is training their officials on how to better engage local organizations to help them build their competencies and compete for US assistance