If you’ve spent any time in the development space, you’ve likely come across firms like Chemonics, Palladium, Adam Smith International, DAI, or Oxford Policy Management (not to mention us, Lapnos). Or, more recently, local and hybrid consultancies working directly with governments, funders, or multilaterals.
But for those outside the industry—or even working adjacent to it—the term international development firm can feel vague, even opaque.
So what exactly do these firms do? How are they different from NGOs or multilaterals? And what role do they play in shaping policy and delivery in low- and middle-income countries?
Let’s break it down.
First, What Is International Development?
At its core, international development is about improving economic, social, and governance outcomes in countries facing systemic challenges. It spans:
- Poverty reduction
- Health and education access
- Public sector reform
- Climate resilience
- Infrastructure and service delivery
- Democratic governance and institution-building
This work is supported by a vast ecosystem of actors: governments, donors, multilaterals (like the UN or World Bank), NGOs, civil society, and—yes—private firms.
So Where Do Firms Fit In?
International development firms are professional service providers that offer technical expertise, operational support, and implementation capacity to public sector actors. Most are contracted by donors, multilaterals, or governments to help design, implement, and evaluate development programs.
These firms are not grant-receiving charities, nor are they pure academic institutions. They operate at the intersection of:
- Policy consulting
- Program delivery
- Systems strengthening
- Technical assistance
- Monitoring, evaluation, and learning (MEL)
Think of them as delivery partners—brought in to solve complex problems, plug capacity gaps, or accelerate reform.
What Kinds of Services Do They Provide?
Here’s a snapshot of what a development firm might do on a typical engagement:
1. Public Sector Reform Design
- Advising governments on how to reform institutions, improve performance, or implement policies
- Designing reform roadmaps for sectors like health, finance, civil service, or education
2. Technical Assistance and Capacity Building
- Deploying advisors or specialists to work inside ministries or agencies
- Coaching civil servants, designing training programs, or embedding new management tools
3. Program Implementation
- Supporting the rollout of donor-funded initiatives (e.g., health campaigns, infrastructure upgrades, governance reforms)
- Managing delivery teams that coordinate actors across levels of government
4. Monitoring, Evaluation, and Learning (MEL)
- Designing MEL systems that track performance and outcomes
- Conducting evaluations, learning reviews, and adaptive management support
5. Digital Transformation and Data Systems
- Supporting the development of digital public infrastructure or information systems
- Helping governments use data for decision-making
6. Policy Research and Political Economy Analysis
- Generating insights on how institutions function and how change happens in practice
- Helping clients understand bottlenecks, incentives, and political feasibility
Who Hires Development Firms?
Most development firms work with:
- Bilateral donors (e.g., USAID, FCDO, GIZ, Global Affairs Canada)
- Multilateral organizations (e.g., World Bank, UNDP, AfDB)
- Foundations and philanthropic actors (e.g., Gates Foundation, Rockefeller, etc.)
- National and subnational governments
- Development finance institutions (DFIs)
- Large implementing NGOs or consortiums
They may serve as lead implementers, subcontractors, or technical partners depending on the project.
Are They For-Profit?
Yes—most international development firms operate as for-profit entities, though their missions are typically aligned with public impact. They are compensated for services rendered, not for achieving profit margins per se.
That said, there is growing interest in social enterprise models, local firms, and hybrid organizations that combine business discipline with development values.
How Are They Different from NGOs?
While both contribute to development outcomes, there are key differences:
| NGOs | Development Firms | |
|---|---|---|
| Funding Source | Grants and donations | Service contracts |
| Business Model | Non-profit | For-profit or social enterprise |
| Typical Work | Community-level delivery, advocacy | Policy reform, technical assistance, MEL |
| Primary Clients | Donors, foundations, communities | Governments, donors, multilaterals |
| Scale of Engagement | Often localized | Often national or systemic |
Many projects feature both—firms designing and managing systems, NGOs delivering on the ground.
Why Do Governments Work With Firms?
Government ministries or agencies often face constraints:
- Limited bandwidth to design or manage large programs
- Skills gaps in specialized areas (e.g., data analytics, procurement, policy design)
- Need for neutral conveners who can bridge silos or work across levels of government
Development firms can complement internal capacity, bring in specialized expertise, or act as catalysts for reform.
But Aren’t There Criticisms?
Yes—and they’re important to acknowledge.
Common concerns include:
- Outsourcing too much authority to external actors
- Crowding out local expertise
- Short-termism driven by project cycles
- Accountability gaps—working for donors rather than local citizens
- Profit motives potentially overriding development goals
These criticisms underscore the need for firms to work with governments, not around them—and to ensure their work strengthens, not supplants, local systems.
How Lapnos Approaches the Role Differently
At Lapnos, we define ourselves as a public sector delivery firm focused on institutional reform, implementation support, and MEL. What sets us apart:
- We work primarily with governments, not just donors
- We embed inside public systems, not outside them
- We invest in learning and adaptive delivery, not just fixed solutions
- We prioritize local ownership, coalition-building, and long-term capability
Our teams combine policy, operations, behavioral science, and data to help public institutions execute complex reforms in real time.
We believe international development firms should act as partners, not vendors—focused on shared goals, grounded in context, and committed to impact that outlasts any single contract.
Final Thoughts
The international development firm model is not perfect—but when done well, it can play a critical role in strengthening public institutions, delivering services, and enabling reform.
As the development landscape evolves—toward localization, systems thinking, and adaptive approaches—firms must evolve too.
Not just in what they do, but how they do it.
Because development isn’t just about delivering projects. It’s about working in partnership to build systems, shift power, and improve outcomes where they matter most.
