Global Development Alliance

Dan Runde, Director GDA

September, 2006
U.S. Resource Flows to the Developing World in 2003:
$112.6 billion

U.S. Governm ent Other Country

A ssistance (Israel,Russia, etc.) (Part II)
U.S. Governm ent
Official Developm ent
1%
A ssistance (Part I) U.S. Foundation Giving A broad
14% 2%
U.S. Corp Foundation Giving
A broad/US Corp Giving A broad
1%
U.S. NGO Grants A broad
U.S. Private Capital Flow s to the 3%
Developing Wo rld (FDI and Net
Cap Markets) U.S. B ased Religious
45% Organizations
7%
U.S. Universities and Collegs
Foreign Student Scholarships
Personal Rem ittances from U.S.
to Developing World 2%
25%

Source: Bureau of Economic Analysis; Conference Board; Foundation Center; Faith Based Groups; and USAID Internal Estimates.
USAID’s Global Development Alliance

“So we have established the Global Development Alliance to combine the

assets of government and business and civil society to work in
partnership on implementing sustainable development programs. And
that’s where you come in, we need you, governments, businesses and
the organizations of civil society to work in support of these pressing
human needs, individually in your daily actions, and together in effective
goal-oriented partnerships.”
-Colin Powell
“Because of the profound change in the last 10 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.”
-Andrew Natsios
Alliance Summary for FY 02 – 05*

Approximately 400 alliances Agency-wide

With over $1.4 billion in USAID funds
leveraging over $4.6 billion in partner resources

• Africa: 97 country-specific & 29 regional totaling $1.41b

• Asia/Near East: 55 country & 7 regional totaling $303m
• Europe & Eurasia: 52 country & 9 regional totaling $307m
• Latin America: 72 country & 22 regional totaling $443m
• Worldwide: 54 global alliances totaling $3.573b

This information is updated regularly and subject to change

Base: 2006 Matrix
What is the GDA Public-Private Alliance Model?
A public-private alliance is a relationship between
USAID and public and/or private entities which:
• Jointly defines a development problem and its solution
• Values shared resources, risks and rewards
• Engages new partners and/or traditional partners
• Uses new innovative approaches
• Entails significant resource leveraging (>1:1)
Why Companies Partner for Development

 Expand Markets / Test New Products

 Commitment to local Communities, Environment
(CSR)
 Philanthropy
 Improve Image

 Access to USAID expertise

Mutually Beneficial Alliances
Contributions by partners
USAID
• Funding
• Development expertise
• Long-term in-country
presence
• Network of local and global
partners
• Policy influence
Partner
• Funding
• Markets and purchasing
power
• Activity design better
connected to market realities
• Technology and intellectual
property
• Skills, services and expertise
• Synergies resulting from
joint efforts
Types of Alliance Partners

Foundations / Private Trade

Philanthropists Businesses Associations
Examples: • British Petroleum • Asian Broadcasting
• Aga Khan Foundation Union
• Cisco Systems
• Bill & Melinda Gates • Business Against
Foundation • Ernst & Young
Crime
• Ford Foundation • General Mills
• Guinea Chamber of
• Gillette Foundation • Home Depot Mines
• Kellogg Foundation • Johnson and Johnson • National Coffee
• Motorola Association
• Levi Strauss
Foundation • Nike, Inc. • National Forestry
Chamber
• Rockefeller Foundation • Procter & Gamble
• Zambia Coffee Growers
• Starbucks Association
• Visa
Public-Private Alliance Case Studies

Conflict Mitigation
• AlvarAlice and Restorative Justice

Diaspora
• Pan American Development Foundation

Investment
• Mali Sugar Project Alliance

Corporate Social Responsibility

• Business Committee against HIV/AIDS (Odebrecht)
Conflict Mitigation: AlvarAlice Foundation’s Restorative
Justice Project
Alliance Snapshot
Country: Colombia
Partner: AlvarAlice
Foundation, Sugar Cane
Processors, Corona
Foundation and others
Partner Contribution: $1.7m
USAID Contribution: $1.7m
Goal: Assist war-torn communities
by demobilizing paramilitary and
guerrilla combatants and
reintegrating them into society
The program:
1.) Allows juvenile offenders to take
responsibility for their actions by apologizing to
the victims and communities, paying
reparations, and asking for forgiveness
2.) Creates university course curricula based on
humanitarian law and restorative justice
principles
3.) Provides agricultural assistance to farmers
to improve economic opportunities
Diaspora: Hometown Associations and the Pan
American Development Foundation

Goal: To formalize the flow of

Alliance Snapshot remittances into tangible
community development projects
Countries: Haiti, El
Salvador, and Mexico Alliance partners will work with local NGOs
and private sector organizations on
Partners: PADF and economic development projects:
Hometown Associations
• In Haiti, revenue generating and
Partner Contribution: environmentally friendly fruit trees will be
$154,000 purchased and planted
USAID Contribution: • In El Salvador, cooperatives will receive
$300,000 assistance to produce, process and
market fruit for local and export markets
• In Mexico, partners will produce, process
and market nopal (an edible cactus) and
other agricultural products
Investment: Mali Sugar Project Alliance

Alliance Snapshot Goal: Support Malian economy

expansion by mobilizing funds to
Country: Mali
prove the feasibility of a program to
Partner: Schaffer and grow and process sugar for local
Associates International, consumption and exportation.
Malian Ministry of
Industry, Government The program:
Office du Niger 1.) Grows and process 8,000 tons of sugarcane
per day, about five times the country’s current
Partners Contributions: capacity.
$893,000
2.) Creates 2,000 direct full time and more than
USAID Contribution: 3,000 seasonal jobs.
$892,000 3.) Provides the largest return on investment of
any public-private alliance to date.
CSR: Business Committee against HIV/AIDS (Odebrecht)

Alliance Snapshot Goal: Joins and support the efforts

of the government and private
Country: Angola
companies in the fight against
Partner: Odebrecht, HIV/AIDS in the workforce.
Nestlé,Refriando,SDM,
The program:
Sistec, Tropica, Coca-
Cola, Esso Angola, 1.) Share experiences relating to the activities
Cosal Barloworld, of each Program and participate in external
Catoca Mining Society. campaigns.
2.) Provides incentive and support to
companies in the development of their
programs to fight HIV/AIDS.
3.) Promotes updating courses on the theme
based on the experience of each member and
establish common themes for internal
campaign.
Conclusion – South south partnership

Some points to emphasize on:

 Diasporas and Remittances
 Many strong diasporas active and helping their home
countries
 For instance the African Diaspora remits – through informal
and formal channels- an estimate $45bn per year.
 Encourage global CSR practices for Southern Multinationals
and Parastatals (mining, forestry, oil and gas).
 Support enabling environments that allow for increased south-
south trade, financial services, the development of private
philanthropy including community foundations.
 Explore sub-regional groupings or associations
Here to Help You

GDA Office :
• Dan Runde- Drunde@usaid.gov
– Phone: 202-712.0438

• Visit our web site for more information

– www.usaid.gov/gda