Uncomfortable but necessary: A new approach to development funding

At a time when the climate crisis intensifies and social inequalities increase, there is an urgent need to rethink traditional development funding, to make sure that it better serves the communities that need it most. EIT Climate-KIC, is contributing to this effort by advocating for more collaboration and inclusivity, pushing for a shift in power dynamics that prioritises local leadership and innovation. In this opinion piece, EIT Climate-KIC Head of Philanthropy, Melody Song, explains that embracing discomfort and rethinking our roles in the development sector are essential steps toward creating lasting, equitable change. 

On December 5, 2023, the inaugural Shift the Power Global Summit convened in Bogotá, Colombia. This three-day event was more than just another gathering—it marked a pivotal moment in the effort to redefine development funding. With 700 delegates from 76 countries, the summit moved the conversation on decolonising international aid from rhetoric to actionable change. 

But this wasn’t the first attempt to change the paradigm. Seven years ago, at the Global Summit on Community Philanthropy in Johannesburg, the hashtag #ShiftThePower had already emerged as a rallying cry for change. Adeso, a grassroots aid organisation based in Kenya was present then and recently reflected on this evolution ahead of the Bogotá event. Its CEO Degan Ali, critiqued the “unhealthy power dynamics” between aid organisations and funders In a blog post she argues that a shift toward “philanthropic capital” has allowed Adeso to embrace more creative, locally led solutions. 

While such approaches are vital, shifting power in development initiatives also requires deeper collective unlearning, self-transformation, and a redefinition of roles within the sector. A pioneering voice in this paradigm shift is the System Innovation Learning Partnership (SILP), funded by the Swedish International Development Agency (Sida) in collaboration with EIT Climate-KIC. The initiative embraces discomfort as a catalyst for change, using participatory grant-making to redefine development funding and power dynamics. 

Real change begins with a willingness to change ourselves 

In my work advocating for Justice, Access, Inclusion, Diversity, and Equity (JAIDE), I have observed that organisations often think that establishing guidelines is enough to bring about change. True inclusivity demands more—it requires individuals to challenge deep-seated mindsets and experience the discomfort of doing so, both from the top down and the bottom up. 

As a member of a marginalised group, I have learned to navigate the dominant culture through code-switching, while also facing the discomfort of speaking out against discrimination and injustice. Similarly, individuals from majority cultures—especially leaders—must confront the discomfort of recognising differences and embracing diverse voices, narratives, and norms. 

When it comes to development funding, shifting the power from donors to grantees compels us to reevaluate our roles, whether as donors, community members, or intermediary organisations. Adapting to new roles, or even designing ourselves out of the equation, is something we truly need to contemplate. 

Shifting the power is part of the future, and is full of unknowns 

The global COVID-19 pandemic has profoundly impacted our usual ways of thinking and operating. It has disrupted our conventional reference points, forcing us all to adapt to a future full of uncertainties.  

Now, we know the discomfort that comes with acknowledging our own limitations and vulnerability, with saying that “we do not have all the answers”.   

To me, this also touches on the legacy of colonialism. Historical power imbalances complicate efforts to create fair and equitable practices in international development. But a lot of people in this space are committed to navigating this uncertainty. And we need to partner with one another.  

The discomfort of a new dynamic 

Transformation is not just about self-change—it extends to our relationships with others. Adjusting to new dynamics can be uncomfortable. Rather than acting as a traditional funder, Sida has partnered with EIT Climate-KIC on a journey to explore experimental funding practices. The organisation has placed trust in how their funds are allocated, whether to the intermediary (EIT Climate-KIC) or to grassroots organisations that co-decide on funding allocation. Indeed, one of the most significant insights that came out of the SILP Experimentation Fund is the difference between outcome-based funding and learning-based funding. 

This approach differs significantly from conventional philanthropic funding, which is often outcome-based and constrained by compliance and risk management. The shift from a transactional relationship to one focused on mutual learning has disrupted the old balance, making the new dynamics uncomfortable yet necessary and more impactful. 

Bringing people along 

The Shift the Power movement is about transforming personal relationships. The most important—and most uncomfortable—aspect of this shift is the commitment to bring others along, not just those who share our views. 

I hope we can embrace and celebrate discomfort as we work towards a more equitable future. 

Listen to the last season of EIT Climate-KIC podcast How Could We? with grantees and community-grant makers from the SILP cohort coming from India, Indonesia and Uganda, to hear more about how to transform development funding and what impact initiatives like the System Innovation Learning Partnership (SILP) have on the communities they work with.