SCoP Town Hall: The crisis in development finance and the need for a more systematic focus on transformational scaling

Description

As announced in our recent Newsletter #32, in this townhall meeting we would like to give you all an opportunity to share with each other and with us your perspective on the crisis in development and climate assistance and how the scaling agenda needs to be adapted to respond to the crisis. We will also brief you on how the Scaling Community of Practice is responding at this critical moment.  In particular, we will brief you on the Community’s campaign to mainstream scaling in development and climate action, listen to your ideas and perspectives, and explore ways to involve you actively in the Mainstreaming Campaign going forward.

From disruption to direction: Rethinking international development with insights from the SCoP Townhall

In response to the crisis in development finance and urgent need for a systematic focus on transformational scaling, the Scaling Community of Practice convened an extraordinary townhall on April 2, 2025. The meeting collected feedback from almost 50 members about their experiences and gathered guidance on how the community could be most helpful during these challenging times. This wasn’t a space for updates or business-as-usual dialogue. It was a collective opportunity to re-group and re-focus on what matters most: achieving sustainable international development that improves the lives of a meaningful portion of the global population.

Below are the key takeaways from the session, which focused not only on the consequences of the global funding crisis, but on the opportunity it presents to reimagine international development altogether.

1. This Isn’t Just a Funding Crisis—It’s a Systemic Shift

The immediate trigger may be the U.S. freeze on development and humanitarian funding, but as Lan Mercado (CRS) reminded the group, this crisis has deeper roots. Donors like Sweden and the Netherlands had already begun slashing aid, setting off a wave of layoffs, program closures, and growing instability across the sector.

The more fundamental issue is a shift in power—one that threatens the survival of national civil society organizations, particularly those dependent on international NGOs as intermediaries, with little in the way of reserves or direct donor access. To address this, localization must go beyond rhetoric. As several speakers emphasized, this is not about inclusion or capacity building—it’s about local actors owning the agenda, shaping partnerships, and designing solutions. Participants identified localization and a re-shaping of international power structures as the main opportunities presented by the funding crisis. We see locally lead transformative scaling as a key to making the most of remaining resources, mitigating the effects of future upheavals, and developing a more equitable and just future.

Takeaway: Funding cuts are not a temporary disruption; they mark a redefinition of the system. Adaptation now requires structural transformation. The future of development is locally led. If an initiative isn’t shifting power to local leadership, it’s not possible to scale—it’s just reinforcing dependency.

2. Scaling Must Be Redefined—And Mainstreamed

The Townhall affirmed that scaling remains realistic—even necessary—in this moment, but only if we’re clear about what kind of scaling we mean.

Transformational scaling isn’t about replicating pilot projects or growing budgets. It’s about changing systems. It requires long-term strategies, political will, and alignment across sectors and institutions. It demands letting go of supply-driven, short-term projects that don’t last.

That’s why SCoP is launching a five-year campaign to mainstream scaling across the global development and climate ecosystem. This campaign will go beyond funders to include governments, local civil society, private sector actors, multilateral institutions, and academic networks.

Takeaway: The goal isn’t more scaling—it’s better scaling. Scaling that sticks, that shifts systems, and that’s owned by the communities it serves.

3. This Campaign Will Only Work If It’s Collaborative

The campaign strategy—outlined by Johannes Linn and supported by new team members including Simon Winter—emphasizes building a broad, cross-sector coalition. That means not just targeting funders, but also mobilizing implementers, advocates, researchers, and host governments.

It also means turning SCoP itself from a learning network into an engine for collective action. This will mean focusing on advocacy, knowledge creation, and influencing global standards and norms in the coming years. The campaign will be formally housed under Dalberg Catalyst, enabling the community to raise funds, support core staff, and pursue long-term sustainability—without becoming a top-down organization.

Takeaway: Everyone has a role to play. Whether you’re a funder, implementer, researcher, or advocate, this campaign needs your voice, your networks, and your leadership.

4. “Don’t Waste a Good Crisis” Means Acting Now

Multiple speakers—including Lan, Charlotte Coogan, and Larry Cooley—underscored the urgency of the moment. This is not a time for analysis paralysis or incremental reform. The current crisis may be painful, but it offers a rare opportunity to remake the system.

Momentum is already building: regional philanthropic efforts like the Asia Climate Philanthropy Advisory Council are stepping in where donors are retreating. New thinking is emerging on power-sharing, systems change, and sustainable finance. The question is not whether transformation is needed. It’s whether we’re bold enough to drive it.

Takeaway: This is an inflection point. Either the development system breaks—and takes many of its partners down with it—or we use this moment to build something stronger, more just, and more effective.

What Comes Next?

The campaign team is actively soliciting feedback, partnerships, and participation. Upcoming consultations, advocacy work, and strategy development will be co-created with the community. SCoP isn’t asking for spectators—it’s calling for co-builders.

If you or your organization are ready to contribute—whether through thought leadership, policy advocacy, funder engagement, or field-level collaboration—reach out. This work is urgent. And it’s shared.

Final takeaway: The old model is collapsing. The only question is: what will we build in its place?

To join the campaign, share feedback, or get involved, connect with the SCoP team through their website or contact Charlotte Coogan ([email protected]).

Larry Cooley

Larry Cooley is Founder and President Emeritus of Management Systems International and a specialist in managing large system change. He currently serves as Chair of the Governing Council of the Society for International Development and is the author of widely used methodologies for managing policy change, scaling innovation, entrepreneurship development, and results-based management. Larry is an elected Fellow of the U.S. National Academy of Public Administration and a non-resident senior fellow at the Brookings Institution; a Trustee of Elma Philanthropies; founder and co-curator of the Global Community of Practice on Scaling Development Outcomes, and Co-Chair of its Working Group on Monitoring and Evaluation

Johannes Linn

Johannes F. Linn is a Non-resident Senior Fellow at the Brookings Institution, a Distinguished Resident Scholar at the Emerging Markets Forum in Washington, D.C., a Senior Fellow at the Results for Development Institute and a Senior Research Fellow at the International Initiative for Impact Evaluation. He is co-founder and co-chair of the international Scaling Community of Practice. He currently serves as Global Facilitator for the Systematic Observation Financing Facility (SOFF) of the World Meteorological Organization (WMO). From 2005-2010 he was Director of the Wolfensohn Center for Development at the Brookings Institution in Washington, DC. Before that, he worked for three decades at the World Bank, including as Vice President for Financial Policy and Resource Mobilization and as Vice President for Europe and Central Asia. He holds a bachelor degree from Oxford University and a doctorate in economics from Cornell University.

 
Lan Mercado

Lan Mercado is the CRS Director of Catalyzing Scale through Evidence (CASCADE). She has over two decades of experience in senior leadership positions with INGOs where she led organizational change and managed large and complex development, humanitarian and conservation portfolios, working with diverse teams across geographies. Lan served in various senior roles in Oxfam including Co-Director for Strategy and Feminist Futures, Asia Regional Director, Deputy Director for Global Campaigns and Philippines Country Director. Prior to joining CRS, she was World Wide Fund for Nature’s Asia Pacific Regional Director. She also served as an Advisor to the Association of Southeast Asian Nations (ASEAN). She is known as an innovative and pragmatic visionary with an empowering and facilitative leadership style. Lan has a B.A. in Communications and has done post-graduate studies in sustainable development and environmental science and management. She was a fellow at the Transnational NGOs Initiative of the Maxwell School of Citizenship and Public Affairs, Syracuse University.

Charlotte Coogan

Charlotte has a small, independent consulting firm where she strives to use the most rigorous possible methods to answer decision-relevant questions for actors in the international development space through a collaborative approach to research. She tries to serve as a bridge between the vast evidence base on food security and nutrition topics and the actionable needs of specific stakeholders. She has a decade of experience in international development and a PhD in Nutritional Epidemiology from the University of North Carolina at Chapel Hill.

Simon Winter

Simon Winter became SFSA Executive Director in 2017. He joined from TechnoServe, where he had been SVP, Development in Washington, D.C, and previously led operations in sub-Saharan Africa. From 2015-2017, Simon was also a Senior Fellow of the Mossavar-Rahmani Center at the Harvard Kennedy School of Government. He is a member of the Griffith Foods Sustainability Advisory Council, the Dalberg Trust Board, the ACRE Africa Board, and, the TechnoServe, South Africa Board. He is an adviser to the World Economic Forum’s food and agriculture work, including being an Ambassador for the Food Innovation Hubs.  He is an adviser to the Steering Committee of the Farm to Market Alliance, where he served as Chair from 2019 to 2023. Past board roles include: Root Capital and a founding member of the Aspen Network of Development Entrepreneurs Steering Committee. His earlier career included management positions at McKinsey & Co, development consulting, economic planning for a Ministry in Botswana, and roles on three continents with Barclay’s Bank. A UK citizen, Simon holds a PhD in Economics from SOAS, London.