The European Union (EU) has recognised that the transition from institutions towards family and community-based care needs to be prioritised for children globally. However, the process of transforming systems of care is complex and securing its quality implementation with EU funding may be equally intricate. As a leading and influential international development donor, the EU has the potential to drive forward successful care transformation for children across the world.

This report sets out the evidence about the harm that institutions can cause and presents the case for prioritising family and community-based alternatives to institutional care. It outlines EU expenditure on transforming systems of care, highlighting positive examples, as well as instances where a stronger focus on the transition from institutional to family and community-based care could have resulted in better outcomes for the target group. It also explores the barriers that have been hindering progress towards greater care transformation globally and makes recommendations for change.

It is hoped that this report will be of use to:

• EU institutions, executive agencies consultative and advisory bodies

• governments across the world

• multilaterals, civil society and other stakeholders.