Can Civil Society and IFIs Build a New Social Contract?

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The development sector is going through one of the most significant periods of disruption in recent history.

Aid budgets are shrinking. Humanitarian needs are increasing. Climate shocks are becoming more severe. Democratic spaces are narrowing in many countries. Public trust in institutions is declining. At the same time, expectations of development actors continue to grow.

Across Africa and beyond, communities are being asked to do more with less. Civil society organisations (CSOs) are facing funding uncertainty, staff reductions, and growing pressure to demonstrate impact. International Financial Institutions (IFIs), including multilateral development banks and international financing bodies, are under pressure to deliver large-scale solutions to increasingly complex challenges.

In this environment, collaboration is no longer optional. It is essential.

Yet one challenge continues to undermine our collective effectiveness, we often speak different languages.

Not different spoken languages, but different development languages.

Civil society speaks about rights, participation, empowerment, inclusion, community ownership, social justice, and accountability.

International Financial Institutions speak about investments, fiscal sustainability, economic growth, risk management, leverage, value for money, and development outcomes.

Both groups care about improving people’s lives. Both want stronger communities, better governance, economic opportunity, and sustainable development. Yet because they frame problems and solutions differently, they often struggle to work together effectively.

The result is missed opportunities, fragmented efforts, and development interventions that fail to fully benefit from the strengths of both worlds.

The question we should be asking is simple:

How do we bridge the language gap between civil society and international financial institutions to create genuinely shared development outcomes?

The Problem Is Not Intentions. It Is Translation.

Over the years, I have sat in meetings involving civil society leaders, donor agencies, development banks, foundations, and government officials.

One observation stands out.

Most disagreements are not actually about objectives.

They are about interpretation.

When a community organisation speaks about strengthening local leadership, an IFI may ask about measurable outcomes, risk assessments, and financial sustainability.

When an IFI discusses economic reform, a CSO may worry about how the proposed changes will affect vulnerable communities.

When civil society talks about participation, IFIs may hear additional costs and delays.

When IFIs talk about efficiency, communities may hear exclusion and top-down decision-making.

Often, both sides are talking about the same destination but using different maps.

The challenge is not a lack of commitment to development. The challenge is a lack of translation.

Civil Society Understands People. IFIs Understand Systems.

One of the greatest mistakes we make is assuming that one perspective is more valuable than the other.

Civil society organisations possess something that no financial model can fully capture: proximity.

They work directly with communities. They understand local realities. They see how policies affect people in practice rather than theory. They often identify emerging issues long before they appear in government reports or donor strategies.

International Financial Institutions bring a different but equally important strength.

They understand macroeconomic systems. They mobilise significant financial resources. They influence policy reforms. They help governments address structural challenges that individual projects cannot solve.

The problem is not that one side is right and the other is wrong.

The problem is that each side often undervalues what the other brings to the table.

The future of development requires both perspectives.

Communities need investments that improve systems.

Systems need community knowledge to ensure those investments actually work.

Moving Beyond Consultation Towards Co-Creation

One area where this divide becomes most visible is participation.

Many development programmes include consultations with communities. However, consultation is not the same as co-creation.

Too often, projects are designed first and discussed later.

Communities are invited to comment on decisions that have already been made.

Civil society organisations are asked to validate priorities rather than shape them.

By the time local actors enter the conversation, the budget, objectives, indicators, and timelines have often been determined.

This creates frustration.

Communities feel unheard.

CSOs feel instrumentalised.

Development institutions feel they have met participation requirements.

Everyone leaves dissatisfied.

Co-creation requires something fundamentally different.

It requires involving local actors from the beginning, not simply as beneficiaries or implementers, but as partners in defining the problem and designing the solution.

When communities participate early, projects become more relevant, more sustainable, and more likely to succeed.

From Risk Management to Impact Generation

Historically, many development institutions have viewed civil society engagement primarily through the lens of risk management.

Communities were consulted to prevent conflict.

Grievance mechanisms were created to avoid project disruptions.

Stakeholder engagement became a compliance exercise.

While these approaches have value, they are no longer sufficient.

The most successful development initiatives increasingly recognise that civil society contributes far more than risk reduction.

Civil society creates trust.

Civil society generates legitimacy.

Civil society facilitates local ownership.

Civil society strengthens accountability.

Civil society helps ensure that investments translate into meaningful improvements in people’s lives.

The conversation must therefore shift from asking, “How do we manage community risk?” to asking, “How do we generate greater impact together?”

That shift changes everything.

Rethinking What Success Looks Like

Another major challenge is how we define success.

Development institutions often focus on outputs.

How many schools were built?

How many kilometres of road were completed?

How many people received services?

These indicators matter.

However, they only tell part of the story.

Civil society organisations often focus on outcomes that are harder to measure but equally important.

Do people have greater agency?

Are communities more resilient?

Has trust increased?

Are citizens more capable of influencing decisions that affect their lives?

Have power dynamics shifted?

Development is not simply about what gets delivered.

It is about what changes because of what gets delivered.

A road matters.

But what matters even more is whether that road expands opportunities.

A school matters.

But what matters even more is whether children learn and thrive.

Funding matters.

But what matters even more is whether people become better equipped to shape their own futures.

The future of development requires measurement systems that capture both outputs and transformation.

The Missing Conversation About Power

At the heart of this discussion lies a deeper issue: power.

Many of the tensions between CSOs and IFIs are ultimately questions about who decides.

Who defines priorities?

Who controls resources?

Who sets the indicators?

Who determines success?

Who carries the risk?

Who receives the credit?

For decades, development financing has largely flowed through systems where decisions are made far from the communities most affected.

Despite progress in localisation discussions, many local actors still struggle to access direct funding, influence strategy, or shape investment decisions.

Bridging the language gap therefore requires more than new terminology.

It requires greater willingness to share power.

Without addressing power, localisation remains a slogan rather than a reality.

Building a Shared Development Vocabulary

So what might a shared language look like?

Instead of talking only about financial returns, we can talk about social returns.

Instead of discussing beneficiaries, we can talk about partners and co-creators.

Instead of focusing exclusively on project outputs, we can emphasise human capabilities and resilience.

Instead of viewing accountability as upward reporting, we can embrace mutual accountability between funders, implementers, governments, and communities.

Instead of debating whether technical expertise or lived experience matters more, we can recognise that both are essential.

A shared vocabulary does not mean abandoning different perspectives.

It means creating enough common ground for meaningful collaboration.

What Needs to Change?

Several practical shifts could help bridge this divide.

Development institutions should invest more intentionally in long-term relationships with civil society rather than engaging organisations only during project cycles.

Financing mechanisms should become more accessible to local actors, particularly smaller and community-based organisations.

Both CSOs and IFIs need spaces for continuous dialogue where trust can be built before crises emerge.

Success metrics should include measures of local ownership, community resilience, and institutional strengthening alongside traditional performance indicators.

We need more professionals who can operate across both worlds, people who understand community realities and financial systems, who can translate between grassroots priorities and institutional requirements.

The Future Depends on Partnership

The development challenges we face today are too complex for any single actor to solve alone.

Governments cannot do it alone.

Civil society cannot do it alone.

Philanthropy cannot do it alone.

International Financial Institutions cannot do it alone.

The future belongs to those who can collaborate across boundaries, bridge divides, and build shared solutions.

Bridging the language gap between CSOs and IFIs is not simply a technical exercise.

It is a strategic imperative.

In a world facing overlapping crises, the question is no longer whether we should work together.

The question is whether we can learn to understand each other well enough to do so effectively.

If we succeed, we will unlock new possibilities for development that is more inclusive, more sustainable, and more deeply rooted in the aspirations of the people it is meant to serve.

And perhaps that is where real development begins, not with funding, projects, or institutions, but with a shared understanding of the future we are trying to build together.

Charles Vandyck
Charles Vandyck
Charles Kojo Vandyck is a development practitioner, thought leader, and advocate for transformative change in majority-world communities. As the Head of Capacity Development at WACSI and a member of the RINGO Systems Change initiative, Charles has been instrumental in strengthening civil society organisations to drive sustainable, community-led impact. With credentials as a certified Change the Game Academy Master Trainer and an IFC-Learning and Performance Institute Trainer, he blends a wealth of practical expertise with a deep passion for leadership development, organisational growth, and systems transformation. Charles is also a recognised podcaster, amplifying critical conversations on global development, equity, and innovation.

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