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Sustainable development depends on local actors leading efforts to improve their communities and working inclusively and collectively to see those efforts through. For this reason, local capacity strengthening is and has been a foundational component of USAID programming. Effective local capacity strengthening can propel inclusive economic growth; advance improvements in essential health, food and nutrition, and education services and systems; and cultivate democratic governance. Local capacity strengthening also can address underlying factors of fragility, bolster local humanitarian response systems, and enhance resilience to shocks and stresses. As a result, effective local capacity strengthening supports countries to prevent, mitigate, and recover from crises. Ultimately, the capacity of local actors is a key determinant of the success of USAID and its partners in achieving and sustaining humanitarian and development gains around the world. Moreover, across the global humanitarian and development landscape, a consensus has emerged about the importance of capacity strengthening—which is inclusive and locally led—in contributing to sustainable development. However, despite this emerging consensus, USAID has never had a unifying and authoritative Agency policy on local capacity strengthening. This policy fills that gap and affirms USAID global leadership by providing the Agency with a vision for effective local capacity strengthening that builds on the consensus across the development landscape, feedback from local actors and partners, and years of implementation experience and evidence. This new vision will be grounded in a commitment to partnerships based on mutual respect and reciprocity and through which local actors from all backgrounds and cultures have their voices heard, exercise their unique capabilities, and lead their country’s development. USAID support for local capacity strengthening must be programmed in a way that builds on the existing strengths of local actors and systems, responds to dynamic country and regional contexts, and aligns with USAID strategic priorities. This means that approaches to local capacity strengthening will vary. To support coherent implementation of local capacity strengthening across sectors and diverse contexts, USAID’s Local Capacity Strengthening Policy establishes an Agency-wide vision based on a shared commitment to a set of principles that will guide all relevant USAID humanitarian assistance and development programming.