932 Interaction Seminar final GDA

Slide2: 

USAID’s Global Development Alliance The Global Development Alliance: USAID’s Business Model for the 21st Century “Because of the profound change in the last ten years in the source of money flows into the developing world, we need to focus more attention on linkages, partnerships, and alliances. We will now make investments in tandem with NGOs and PVOs, with the private sector and with foundations. USAID has not done this on a very large scale in the past, and that’s what we have begun to do now.” USAID Administrator, Andrew S. Natsios July 24, 2002

Slide3: 

U.S. Total Flows to the Developing World in 2002: $71.5 BN

Slide4: 

Giving from top 15 foundations in 2000 Bill and Melinda Gates Foundation $994 million Ford Foundation $652 million Lilly Endowment $583 million David and Lucille Packard Foundation $533 million Robert Wood Johnson Foundation $351 million Remaining 10 foundations $1.7 billion TOTAL $4.8 billion

Slide5: 

Why a Global Development Alliance ? Respond to a changing global environment Increase USAID’s effectiveness and impact in meeting development objectives Leverage additional resources for development activities Improve the quality of partnerships “Given the facts, it only makes sense to work with these new actors. To do so we created a special pillar…called the Global Development Alliance.” Andrew S. Natsios May 30, 2002 Why USAID sees the need to do business differently:

Slide6: 

What is the GDA Business Model? The collaboration of USAID and private partners to collectively define and solve a problem A catalyst to identify and mobilize ideas, efforts, and resources An expanded, sustainable business model for development assistance A central element of USAID's strategic assessment, planning and programming efforts

Slide7: 

Responsible Partnerships GDA Believes in “Corporate Social Responsibility” not “Corporate Welfare” GDA performs Due Diligence on the following issues: Human Rights Financial Soundness Labor Conditions Environmental Accountability Affirmative Action Standards

Slide8: 

USAID Directly Benefits from Its Historic and Ongoing Relationships with NGOs A different reach Independent resources Unique approaches Community linkages Strategic design input Partnering expertise Constituency building

Slide9: 

Potential Contributions by Private Enterprise Foreign direct investment Leading practices Improved conditions for workers Ability to utilize buying power to affect change (e.g. certified timber, shade grown coffee)

Slide10: 

What is an “Alliance” ? A public-private alliance is a relationship between USAID and public and/or private entities which: Jointly defines a development problem and its solution Recognizes the value of shared resources, risks and rewards in pursuit of a common developmental objective Engages new partners and/or traditional partners in new ways to meet the development challenge Uses new instruments or innovative approaches Entails significant resource leveraging (>1:1)

Slide11: 

Keys to Successful Alliances Strategic fit Long-term focus Clarity Flexibility Modality Benefits

Slide12: 

Mechanisms for Collaboration Shared Objectives Clear understanding of roles Separate Funding tracks Memorandum of Understanding (MOU) Pooled Resources: Agreed upon and legally binding governance structures New or existing 501(c)3 or Public International Organization (PIO) Common Funding Track Parallel Financing:

Slide13: 

Summary of Alliance Activity Up to 75 alliances with USAID funding totaling approximately $130 million Africa: ($29.0 million) 37 regional and country-specific alliances in Agriculture, Environment, Education, and Economic Growth Europe/Eurasia: ($23.8 mm) 11 regional country-specific alliances in Agriculture, Education, Democracy & Governance, Environment, and Economic Growth Latin America: ($22.2mm) 8 regional and country-specific alliances in Environment, Education, and Economic Growth Asia/Near East: ($29.0 mm) 9 regional and country-specific alliances in Agriculture, Education and Environment 12 global alliances ($29.7 mm) in Agriculture, Environment, Health, and Education

Slide14: 

Sustainable Forest Products Alliance (SFPA) An alliance between Certified Forest Product Council (CFPC) and the World Wildlife Fund (WWF) SFPA encourages responsible forest management by increasing market demand for certified forest products and connecting producers who adopt sustainable management practices. The partners are: a) creating a market b) improving management c) reducing the illegal trade d) supporting policy reform e) developing alliance opportunities for non-timber forest products USAID and the Forest Service manage agreements and provide country knowledge and support WWF works with suppliers to develop and apply responsible forestry principles CFPC undertakes knowledge integration, market development, communications, and convening activities. USAID leverages approximately $6.5 mm for the SFPA at global alliance level with approximately $12mm coming from private sources including Ikea and Home Depot.

Slide15: 

USAID/Peru Economic Service Centers Alliance USAID/Peru, Buenaventura Mining Company, and a local consortium including an NGO and a local private university have partnered to operate an Economic Service Center in an example of “franchising” a successful model that USAID had developed USAID/Peru operates 10 Economic Service Centers (ESCs) as part of its poverty reduction program ESCs provide access to current and projected information about markets, financial and transportation services, facilitate commercial contacts between buyers and local producers as well as providing technical assistance to local entrepreneurs Buenaventura Mining Company sought to create an ESC in the Huancavelica department to contribute income and employment opportunities in the area as part of its on-going policy to assist communities where the mine operates Buenaventura is providing up to $1.1 mm and USAID/Peru is providing up to $140,000 thus leveraging USAID at almost 8:1

Slide16: 

Global Development Alliance Contacts For further information on USAID’s Global Development Alliance, visit the GDA website at http://www.usaid.gov/gda/ or contact: Holly Wise: hwise@usaid.gov; (202) 712-4406 Curt Reintsma: creintsma@usaid.gov; (202) 712-4018 Lorie Dobbins: ldobbins@usaid.gov; (202) 712-1805 Bryan Kurtz: bkurtz@usaid.gov; (202) 712-1607 Jack Hawkins: jahawkins@usaid.gov; (202) 712-5941 Dan Runde: drunde@usaid.gov; (202) 712-0438 Mary Tyler Holmes: mholmes@usaid.gov; (202) 712-4418