Shifting the Development Sector from Capacity Building to Capacity Exchange

The development sector has long relied on traditional capacity-building models, where external actors train and build the capabilities of local organizations. While well-intentioned, this approach often perpetuates a top-down dynamic that overlooks the expertise and knowledge local organizations already possess.

It’s time for a shift.

As someone who has led USAID's Partnerships Incubator and worked closely with non-U.S.-based organizations over the last twenty years in agriculture, water, public health, and other USAID focus areas, I’ve seen the powerful potential of capacity exchange—a more collaborative model that fosters mutual learning and joint problem-solving. Capacity exchange is about building skills or transferring knowledge from one side to the other, with all parties benefiting from the encounter.

This approach elevates local actors as equal partners in development, fostering resilience, self-reliance, and long-term leadership among local organizations.

What is Capacity Exchange?

Capacity exchange represents the next step in strengthening local institutions. Unlike traditional capacity building, which can feel like a one-way transaction, capacity exchange emphasizes mutual learning. It recognizes that local organizations have valuable insights to share and that donors and international partners can learn as much as they teach.

While capacity building based on jointly identified needs of a local organization remains a component, capacity exchange looks beyond training, fostering collaboration and co-creation to identify problems and solutions together. This creates more equal partnerships and shifts away from the hierarchical nature of traditional models.

Encouraging a Shift Toward Capacity Exchange

From my experience, capacity exchange aligns closely with the principles of localization—it positions local actors as development leaders, giving them the space and opportunity to shape their own futures. This shift is essential to ensure local organizations can become self-reliant and capable of scaling initiatives without relying on external support.

One of the challenges in localization is the perception that capacity building can be hierarchical or even seen as slightly derogatory or colonialist. Capacity exchange, however, embraces the idea that everyone has something to contribute and learn, regardless of their background. It builds stronger, more resilient systems through mutual respect.

Last summer, I had the privilege of leading and participating in a training session with over 40 leaders of non-U.S.-based organizations at a workshop in Tunisia. It was a true example of "capacity exchange"—a dynamic and inspiring experience where knowledge flowed both ways. I was inspired by the depth of information shared, and the learning profoundly expanded my understanding, offering new perspectives that have stayed with me since.

Designing More Two-Way Programs

To operationalize capacity exchange, we must design more two-way programs encouraging collaboration at every stage. Begin with participatory needs assessments to determine local organizations' specific needs and strengths. This approach fosters an exchange of knowledge that benefits both sides. In addition to traditional areas like governance or financial management, we must create space for local actors to share context-specific insights and innovative approaches that can enrich donor strategies.

In reality, we must be students of each other. My experience in the Dominican Republic with two organizations focused on public health initiatives provided me with a wealth of knowledge I could apply in similar settings. These exchanges influenced mindsets, informed future decision-making, and provided contextual knowledge that stimulated innovation.

Outcomes of Capacity Exchange

At its core, capacity exchange leads to stronger, more sustainable local institutions. It enhances the skills and knowledge of all participants and fosters a new generation of leaders within local organizations. Over time, this approach strengthens local capacity to innovate, manage, and scale development efforts independently.

The long-term impact? A development sector where local organizations are not dependent on external support but are empowered to lead.

As we look to the future of development, capacity exchange offers a pathway to true localization. By shifting away from traditional capacity building and embracing the principles of mutual learning, we can create stronger, more sustainable outcomes. It’s time to move from a top-down approach to a model where local actors are true partners, shaping their own development agendas and leading their communities to lasting success.

#Localization #CapacityExchange #Resilience #Development #Partnerships #LocalLeadership #USAID #Sustainability

Dr. Donna Vincent Roa, Practice Director of Localization and Special Initiatives at Panagora Group , is a certified prompt engineer, accredited business communicator (ABC), and certified development project manager (CDPM?). As former Project Director for USAID's Partnerships Incubator, she led a pilot initiative designed to reshape USAID's engagement with local and nontraditional partners through innovative tools and capacity exchange. In this context, she managed 35 USAID buy-ins from 13 bureaus and 22 missions and served 78+ partners. She also served as Chief of Party for USAID’s Securing Water for Food Technical Assistance Facility, supporting 40 water-ag innovators across 35 countries.

Globally recognized for her expertise in innovation, water, and sustainability, Dr. Roa holds a doctorate in international communication and has authored numerous articles, four books, and over 100 LinkedIn articles. A voice actor who is currently working on her fifth book, Color Catalog: Voice Actor Workbook, she hosts the Chief of Party to Chief of Party: Success in Your First 90 Days podcast.