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INNOVATION IN DEVELOPMENT: THE POWER OF ALLIANCE BUILDING

INNOVATION IN DEVELOPMENT: THE POWER OF ALLIANCE BUILDING. Office of Global Development Alliances. Global Change Spurs Innovation. The problems of international business and international development are increasingly intersecting.

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INNOVATION IN DEVELOPMENT: THE POWER OF ALLIANCE BUILDING

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  1. INNOVATION IN DEVELOPMENT:THE POWER OF ALLIANCE BUILDING Office of Global Development Alliances

  2. Global Change Spurs Innovation • The problems of international business and international development are increasingly intersecting. • In a globalized world there are no single actor solutions that can bring sustained results. • Global Development Alliances (GDAs) forge partnerships that mobilize the ideas, networks, systems and funding of governments, businesses and civil society for solutions to shared problems.

  3. The Changing Course of Resource Flows • In 1970, 70% of resources going from the U.S. to the developing world came from the public sector and just 30% was from the private sector. • Today, 85% of the resources come from the private sector and only %15 comes from the public sector.

  4. U.S. Total Flows to the Developing World in 2003 Source: Bureau of Economic Analysis; Conference Board; Foundation Center; Faith Based Groups; and USAID Internal Estimates.

  5. GDA Forges Public-Private Alliances • The GDA was launched by former Secretary of State Powell in May, 2001. • Through 2005, GDA has fostered over 400 alliances, in more than 80 developing countries. • GDA has leveraged $4.6 billion from its investment of $1.4 billion.

  6. GDA Operates as a Social Venture Fund • USAID uses aid dollars to attract private investment, philanthropic and other public donors, amassing capital in amounts that can provide enduring scale to economic development initiatives. • This public-private leverage is approaching a 4:1 match, demonstrating the adaptability of the venture model to global development.

  7. Up to Date With Today’s Challenges • New GDAs cover: • Avian Influenza • ICT Solutions • Access to Markets • Human Rights • Labor Standards • Alternative Energy • Organic and Sustainable Agriculture • Clean Water • Education • HIV/AIDS

  8. Alliances supported by USAID • Entra21 (Incentive Fund International Youth Foundation) • Innovative Lending for Sustainable Coffee (EcoLogic Finance) • Rainforest Alliance • Continuous Improvement in the Apparel Workplace

  9. Entra21 Incentive Fund • Goal: • Access to training, internships, mentoring, and placement services to youth in Latin America and the Caribbean. Teaching life skills as well as skills in information and communications technology, both keys to the job market. Train 17,000 youths in 18 countries with job placement for half of them. • Partners: • Cisco Systems, Microsoft, Lucent Technologies, Merrill Lynch, Gap, Nike, Nokia, Shell, Unocal Foundation, International Youth Foundation, Multilateral Investment Fund of the Inter-American Development Bank • Funding: • $28 million total for 3 years • USAID: $3 million • Other partners: $25 million

  10. Innovative Lending for Sustainable Coffee • Goal: • Multi-million dollar sustainable producer cooperative inventory financing fund, or consortium of funds. The funds will promote growing sustainable coffee by significantly increasing working capital financing for developing country sustainable coffee producers. • Partners: • Green Mountain Coffee Roasters • EcoLogic Finance • Starbucks • Enterprise Ventures (EEV) • Funding: • $2.4 million total • USAID: $1.2 million • Other partners: $ 1.2 million

  11. Rainforest Alliance • Goal: • Increase the volume and value of sales for key certified products to improve rural livelihoods and well-being in Central America and Mexico by: 1) increasing market access for certified products; 2) improving environmental management, and 3) expanding the sustainable certification process for improved producer competitiveness • Partners: • Citigroup, AMANCO, Balzac Brothers & Co., Boyd Coffee Company, Cascadia Forest Goods, Chiquita, Ford Foundation, IKEA, Pfizer, Procter & Gamble • Funding: • $78.6 million total • USAID: $8.6 million • Other partners: $70 million

  12. Continuous Improvement in the Apparel Workplace • Goal: • to increase the competitiveness of the apparel and textile industry by improving labor standards at the workplace level • Partners: • Gap Inc., Timberland, Limited Brands, DAI, Social Accountability International, International Textile, Garment and Leather Workers’ Federation • Funding: • $3.2 million for 2 years • USAID: $2 million • Other partners: $1.2 million

  13. Incentives for Business • Risk mitigation • Increased market share • Reputation enhanced through CSR • Leverage of USAID assets -- Collaboration with policymakers and governments • 40 years of development experience • Long-term in-country presence • Significant multi-year funding • Network of local and global partners • Proven models for local settings

  14. GDA is Number One!

  15. The Power of Partnerships!

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