A force field for funding: philanthrocapitalism and localisation in Dutch development

Increasingly, international non-governmental organisations (INGOs) have become dependent on major donors. Known as philanthrocapitalism, this was critiqued for a lack of democracy and downward accountability, leading to a concentration of power among a privileged few. Simultaneously, the call for localisation increased, which refers to more inclusion and empowerment of INGOs’ local partners. In this article, we interrogate how Dutch INGOs deal with attracting major donors on the one hand (i.e. philanthrocapitalism) and demands for increasing downward accountability (i.e. localisation) on the other. Based on interviews, work experience and report analysis, we explore these allegedly contradictory movements and analyse the power dynamics regarding its four attributes of knowledge, capacity, authority and accountability. We argue that, although power can be found at all levels in the ‘force field’ between philanthrocapitalism and localisation, funding relations create space for repression and therefore the concentration of power among major donors functions largely as an obstacle to localisation.