Networked Finance Mechanism Event Reflections

by Sandrina Da Cruz, Solutions Director at NEAR

NEAR hosted an event on the sidelines of this year’s United Nations General Assembly (UNGA) entitled, “Financing Global South Futures.” The discussion focused on NEAR’s recommendation of a Networked Financing Mechanism (NFM) – what if locally led Global South financing mechanisms were interconnected and optimized to learn from and strengthen each other and collectively garner increased resources for community-identified priorities?

This was my first time attending UNGA. And what an incredible debut – the air was filled with tensions – grasping to reasons to remain hopeful, calling for urgent action, suppressing disillusionment, and creating space for actionable, bold visions. NEAR was ready! After all, one of our values is to be a disruptor, “We are fundamentally changing the aid sector. We spark new conversations, bringing creative problem solving to shift power in an outdated system, paving the way for what comes next.”

Imagine an intimate gathering of leaders from across the philanthropic, local and international NGO and bilateral domains. No panels or formal presentations. The 20 guests arrived in time to quickly eat breakfast, hug old friends and meet new colleagues. And then we got to work. This was an action-oriented conversation to pressure test a networked financing concept anchored in collaboration and learning, that centres local leaders, challenges western-centric models, and decentralises decision-making.

All participants had received a draft concept note containing the thinking behind and the objectives of the Networked Financing Mechanism “NFM”. NEAR was clear that this was an invitation to co-design with us: to offer constructive critique, observations and ideas. Most of our time together was dedicated to taking turns reflecting, sharing ideas, asking questions, and building on each other’s insights through the following questions:

What’s exciting and holds protentional about the NFM concept?
What doubts do you have? What are the biggest risks in pursuing a model like this?
What would you need to know/see to build trust and include the NFM into your own strategies?
What’s unclear?

Participants were excited that NEAR started the conversation with the principles of the NFM – equity, transparency, local ownership, accountability, flexibility, and sustainability. They asked questions about how to design a decentralized, Global South-led governance model – one that does not replicate the failures of the current system. One person mentioned that risk sharing “is the nut we have to crack”. We were cautioned against only pursuing the reallocation of institutional funding and to consider alternate partnerships and financing. We were encouraged to swiftly move towards action, design and test prototypes at scale. We heard from multiple guest that they wished we had more time to discuss and design together which we’re taking as a positive sign!

We’re grateful for the inspiring visions and constructive feedback shared by these co-designers which will shape the design of the networked financing mechanism. NEAR will be hosting additional pressure testing events and publishing a paper on this topic in the coming weeks which will be shared with all members.

A colleague who recently joined the NEAR secretariat and is an “UNGA veteran” reflected that she had not experienced an UNGA gathering that created such a trusted space for open, candid and constructive dialogue. I hope this experience empowers us to engage in local, national and international gatherings as our authentic selves. Authenticity builds trust, trust strengthens partnerships, and together we’re constructing a new imagination of what’s possible for the emerging system.

NEAR MEMBERS: Please reach out to the Regional Representative for your area with your ideas and recommendations and if you want to be involved in this initiative.

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