International humanitarian funding is not increasing fast enough to keep up with rising humanitarian need worldwide. This means the way humanitarian aid is delivered must become more effective and efficient.
The Grand Bargain is the only structured initiative that brings together local and international non-governmental organisations (NGOs), donors, the Red Cross and Red Crescent Movement and United Nations (UN) agencies to improve the efficiency and effectiveness of the humanitarian action.
This agreement was furthered in 2021 with the Grand Bargain 2.0. This initiative made the process aid delivery even more focused, with high-level political priorities including quality funding, localisation and participation.
The Grand Bargain 2.0 introduced the concept of the political caucus, which addresses humanitarian challenges at the political level. It also proposed the establishment of National Reference Groups (NRGs), led by local and national actors, to help unlock funding and provide greater support to local responders.
In 2023, signatories reviewed the progress made and decided to launch a new Grand Bargain framework for 2023-2026. Signatories agreed to continue delivering on localisation, quality funding and participation as well as to strengthen anticipatory action, financing mechanisms and the Humanitarian-Development-Peace Nexus.
