New Report: Transitioning Power, Partnerships and Financing in International Cooperation

The international cooperation sector is in a period of profound transition. As global aid budgets decline and needs continue to rise due to conflict, climate impacts, and economic shocks, traditional Official Development Assistance (ODA) models are increasingly stretched. Compliance-heavy, donor-controlled approaches are proving less effective in responding to today’s complex challenges.

Transitioning Power, Partnerships and Financing in International Cooperation, a new report commissioned by Cooperation Canada and authored by Rachel Logel Carmichael and Michael Wodzicki, explores how emerging approaches can help address these limitations. The report focuses on delegated financing and innovative partnerships as practical tools to advance equity, shared ownership and more effective international cooperation.

Delegated financing shifts authority and decision-making power over resources closer to those delivering and experiencing impact, emphasizing trust, flexibility and shared governance. Innovative partnerships move beyond hierarchical models toward collaboration grounded in reciprocity, risk-sharing and adaptability.

The study was undertaken by Nexus Cooperation Inc. and examines six existing models: the Equality Fund, the Canadian Humanitarian Assistance Fund, the Fund for Innovation and Transformation, the Local Response Pooled Fund South Sudan, the Mulago Foundation and the Scandinavian Ministry of Foreign Affairs framework agreements.

The analysis draws on desk research, ten key informant interviews, and a validation workshop held on 23 September 2025. Each model was assessed using four criteria—delegated responsibility, innovative financing mechanisms, power shift and replicability—while integrating Anti-Racism, Equity, Diversity, Inclusion and Justice principles throughout.

The report offers timely insights for funders, policymakers, and practitioners seeking to reimagine power, partnerships and financing in international cooperation.

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