Why are local communities still sidelined in conservation and development projects?

Projects financed by development agencies do not always meet expectations once applied in relation to what was raised on paper. A study, with the participation of the Institute of Environmental Science and Technology and the UAB, has analyzed this when local communities are not considered and proposes some changes that should be made to solve it.
For decades, we have recognized that projects linking environmental conservation with local community development are most successful when they are participatory. This has led to the widespread adoption of promises of participation and collaboration in project designs. Yet, in practice, local communities frequently find themselves treated as subjects of aid rather than collaborators in projects that profoundly affect their lands and livelihoods.
In our research, we sought to understand why this persistent gap between rhetoric and reality exists. We went directly to the source, interviewing project managers at four of the world’s most influential development agencies operating in Latin America: the World Bank, USAID (before Trump's dismantling), the Inter-American Development Bank, and the German Development Bank (KfW).
Our investigation revealed a powerful internal "project management logic" that systematically undermines genuine local collaboration. We analyzed this logic through two interconnected dimensions: the organizational structure of the agencies and the individual mentalities of their staff.
Structurally, we found these agencies are driven by internal pressures that sideline genuine participation. Their focus is overwhelmingly on managing their own financial and reputational risk, which fosters a "hands-off" approach to community engagement, often delegating this critical work to external consultants. Project managers are under intense pressure to disburse large sums of money quickly and meet rigid deadlines. Success is measured by hitting internal targets, not by the quality of relationships built on the ground.
This setup shapes the mindset of even the most progressive staff. A personal motivation to build a project in direct local collaboration is overwritten by career paths that reward risk management, budget commitment, and measurable results. Ultimately, community engagement becomes a box-ticking exercise. Consultation means presenting pre-approved plans for feedback, not co-creating solutions across the project cycle.
For true change to occur, a deep cultural and structural transformation is required. Development agencies must fundamentally restructure their operations and underpinning norms. This includes creating career incentives that explicitly reward deliberative community engagement, allowing for flexible project timelines that accommodate trust-building, and, most critically, developing legal mechanisms to transfer real decision-making authority and financial control to local institutions. Only then can we move beyond promises on paper and build the equitable partnerships necessary for just and sustainable outcomes.
Louise Marie Busck-Lumholt
Department of Strategy and Innovation (SI)
Copenhagen Business School
Esteve Corbera
Catalan Institution for Research and Advanced Studies (ICREA)
Institute of Environmental Science and Technology
Universitat Autònoma de Barcelona
Ole Mertz
Department of Geosciences and Natural Resource Management
University of Copenhagen
References
Busck-Lumholt, L. M., Corbera, E., & Mertz, O. (2024). Why Target Communities Remain Subjects Rather than Partners of Development Agencies in Integrated Conservation and Development Projects in Latin America. European Journal of Development Research, 37(1), 100-123. https://doi.org/10.1057/s41287-024-00658-5.