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Global Development Alliance
Please note: All linked documents are in PDF format
| Objective |
FY 2003
| FY 2004 |
FY 2005 |
FY 2006 |
| Institutionalizing Alliance Building |
4,000 |
4,960 |
3,000 |
3,000 |
| Public-Private Alliance Building |
25,800 |
10,000 |
7,000 |
7,000 |
| Total (in thousands of dollars) |
25,800 |
14,960 |
10,000 |
10,000 |
Excludes P.L. 480. See Program Annex.
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The Development Challenge: As one of USAID's four pillars, the Global Development Alliance (GDA) recognizes the major change in the relative importance of U.S. public and private financial resource flows to the developing world. In the 1970s, 70% of resource flows from the United States to the developing world were from official U.S. development assistance while 30% were private. In 2003, total U.S. flows to the developing world surpassed $112.6 billion and private flows - a combination of corporate direct investment, remittances, and philanthropic programs of corporate and private foundations, universities and private voluntary organizations - represented 85% of such resources. Because of this shift in foreign investment, the need for public-private collaboration becomes clear. GDA seeks to engage private partners strategically in supporting U.S. government development and foreign policy priorities. The creation of public-private alliances with new as well as traditional partners aims to marry USAID development expertise with both the corporate sector's resources, technology and innovative talent and the non-profit sector's understanding of development issues and ability to deliver assistance at the field level. Working together toward common goals, in concert with host country authorities, alliance partners are able to achieve far more than they could individually. The beneficiaries of this effort are those people living in poverty in developing and transition countries who receive expanded and often higher quality services because of these public-private alliances.
The joint Department of State - USAID Strategic Plan, FY 2004-2009, makes the explicit commitment to foster a more democratic and prosperous world integrated into the global economy. The Plan identifies the strategic goals of promoting democracy and human rights, economic prosperity and security, and addressing pressing social and environmental issues as part of the broader U.S. foreign policy objective to promote worldwide stability and security. It articulates the intention to "build public-private partnerships that leverage resources, strengthen international cooperation, and help other countries build their institutional capacity…" to manage their problems.
The USAID Program: The GDA Secretariat, a temporary unit charged with initiating public-private alliance creation and integrating public-private alliances as a primary business model for USAID, is mandated with the following objectives:
- change the way the Agency - at all levels and in all regions and sectors - defines its role vis-à-vis other actors in international development;
- reach out to new partners to work in concert with them and maximize collective achievements in improving the economic, social, and political conditions of people in the developing world;
- work with USAID's traditional partners in this changing environment to engage them in new and creative ways; and
- clearly demonstrate the commitment of the U.S. Government, through its foreign assistance programs, to work innovatively with others to achieve significant progress in addressing developing country needs.
While most of the funding for alliances comes from other USAID operating units in USAID/Washington and in the field, the GDA Secretariat does fund some alliances from an incentive fund. However, it is important to note that the GDA Secretariat does not manage any of the alliances. All alliances are managed and reported by individual operating units in USAID/Washington and in the field.
Other Program Elements: One hallmark of public-private alliances is engaging non-traditional USAID partners. USAID has partnered with nearly 700 different organizations worldwide in FY 2002 and FY 2003. These comprise both US and host country organizations, including: 215 private businesses, 179 nongovernmental organizations (including faith-based organizations), 67 foundations, 61 trade associations, 11 bilateral donors, 18 multilateral donors, 75 federal or national government agencies, 17 local government agencies, 50 higher learning institutions, and 5 regional organizations. Many of these partners had no prior experience as a USAID implementing partner or cooperating agency. Some of USAID's traditional not-for-profit partners have become active themselves in recruiting alliance partners. USAID also conducts due diligence on potential alliance partners, examining their public records from a variety of perspectives including product offering, workplace/labor issues, human rights issues, international operations, social responsibility programs, and environmental record.
Other Donors: Principal bilateral and multilateral donors strongly support GDA's public-private alliance approach. In fact, a number of them have realized the value in this approach and have launched similar public-private alliance initiatives. United Nations agencies are active in a number of alliances, especially health, education, and humanitarian assistance. Bilateral donors, particularly the U.K., Japan, Canada, the Netherlands, and Germany, are also alliance members. As long as strictly private resources constitute at least 25% of total alliance funding, there is no restriction on the participation of public sector entities from other countries in USAID alliances.
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