Four mechanisms to enhance the effectiveness of development cooperation

This research is part of the broader question of transnational governance strategies for sustainable development, a field which Professors Cappellaro and Mele have been exploring for years, supported by funding from SDA Bocconi School of Management.

In a previous paper, the authors analyzed coordination mechanisms between agencies’ headquarters and local offices, at a time when agencies operated independently. Today, with inter-agency collaboration becoming increasingly common, now they’re asking: How can clusters of agencies harmonize their operations and adapt to the specific needs of local contexts?

Using a comparative case study approach based on 115 interviews, the analysis of over 700 documents, and direct observation, the research team examined eight UN pilot clusters active from 2007 to 2015 in Albania, Cape Verde, Mozambique, Pakistan, Rwanda, Tanzania, Uruguay, and Vietnam.

Document analysis and interviews with key stakeholders (mainly within UN agencies)helped identify clusters whose collaborative experiences were particularly productive. The findings revealed that the most successful clusters adopted innovative practices, such as joint planning instead of traditional individual agency planning. Strong cohesion among agencies also cut transaction costs for local governments, shifting the burden of coordination to the UN system. Additionally, the most effective clusters got local governments involved in decision-making processes, fostering a deeper sense of ownership of the initiatives.

Clusters with better outcomes aligned more closely with national priorities, reduced duplication, and enhanced sustainability. In some cases, clusters also strengthened political relationships with local institutions and collaborated with various stakeholders, securing additional resources from donor countries and promoting policies on sensitive issues such as human rights.

In cases where reform implementation proved more challenging, there was a lack of sufficient internal cohesion, which limited the ability to develop effective joint strategies and fully engage local governments.

The study identifies the four mechanisms described below, the first two for creating a cohesive identity within clusters, followed by two for adapting to local contexts:

• Integrating operations on a functional level.
  This involves integrating management activities and operations among different agencies within the cluster. In successful cases, organizations moved from operational planning in individual agencies to joint planning based on synergies and shared goals.
• Developing a unified collective voice.
  Effective clusters adopted a unified communication approach both internally and externally. In the most successful cases, agencies centralized communication with local governments and media, ensuring consistent messaging and greater credibility. This shored up the cluster’s role as a trusted partner to local institutions, fostering trust and collaboration.

• Sharing authority with local stakeholders.
  In some contexts, clusters invited local governments to participate in decision-making, for example, by including them in management committees and resource allocation processes. This inclusion made initiatives more relevant and better aligned with the needs of communities and their representatives, enhancing their sense of ownership.
• Adapting to local contexts.
  Successful clusters demonstrated the ability to tailor strategies to local specificities. In one instance, a cluster leveraged the UN's global expertise to address complex local issues such as natural resource management and human rights. In another, the cluster absorbed the administrative costs associated with higher coordination levels, lessening the bureaucratic burden on local governments and fostering trust among partners.

As international cooperation often operates in countries where there is an authoritarian regime or inefficient governance, engaging with local authorities has sometimes been overlooked or treated as a necessary evil to be avoided as much as possible. Instead, this  study clearly shows that investing in structured collaboration mechanisms not only improves outcomes but also strengthens trust between international and local partners. By sharing authority with local stakeholders and tailoring strategies to specific contexts, the most effective collaborations lower transaction costs (at least for local institutions) and amplify the impact of policies.

Giulia Cappellaro, Valentina Mele, Shaz Ansari. “Bridging Global Mandates and Local Realities: Intermediary clusters and interorganizational collaboration for international development.” Organization Studies, 0(0). DOI: https://doi.org/10.1177/01708406241298398.