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Global Development Alliance
>> Return to Home Page >> Central Programs >>Global Development Alliance Dollars thousands
Program Pillars Child Survival & Disease Programs Fund Development Assistance International Disaster Assistance Total Economic Growth & Agriculture 110,000 110,000 Global Health 25,000 25,000 Conflict Prevention & Developmental Relief 25,000 25,000 Total 25,000 110,000 25,000 25,000 The Global Development Alliance (GDA) is USAID's business model for the 21st Century - our commitment to change the way we implement our assistance mandate. We will serve as a catalyst to mobilize the ideas, efforts, and resources of the public sector, corporate America and non-governmental organizations1 in support of shared objectives.
In the post-Cold War era, international development remains central to the fulfillment of US strategic interests. Countries and regions where human potential is fulfilled are less prone to violent conflict and instability. Growing economies managed by democratic political systems provide secure markets for US goods and services. Globalization removes barriers to the exchange of information, technology, finance, goods and services. If properly managed, globalization can lead to productivity increases and economic prosperity. Globalization can also exacerbate the gaps between rich and poor, thereby undermining economies and political institutions.
The post-Cold War era is also marked by inensified regional and intrastate condlicts, and a marked increase in global health challenges, including HIV/AIDS, tuberculosis and malaria, among others. Both of these phonomena threaten to reverse development gains in many parts of the world.
In this context-Globalization and Regonal Conflict-USAID will focus its attention on the following areas and is requesting funds to begin implementing the GDA in FY 2002 as follows: 1) $110 million for promoting economic growth to reduce poverty, and stimulating agricultural development to reduce hunger, 2) $25 million for reducing global health threats, and 3) $25 million for preventing country, regional, and intra-state conflicts and for providing developmental relief.
The Global Development Alliance (GDA)-our new way of doing business-is based on USAID's recognition of significant changes in the environment of economic development assistance. No longer are governments, international organizations and multinational development banks the only assistance donors; nor is Official Development Assistance the only source of fundng for international economic development. Rather, over the past 20 years, there have been a growing number of new actors on the scene: foundations, corporations and even individuals are now providing development assistance financing, while PVOs and NGOs bring other assets to bear on development challenges. As a result, the U.S. Government is not the only, or perhaps even the largest, source of U.S. funding and human resources being applied to the development challenge.
USAID, however, has a unique international development mandate within the U.S. Government, a critical role within the foreign affairs community headed by the Secretary of State, and unparalleled long-term experience with, and access to, host-country governments. USAID's extensive field presence and technical expertise provide its comparative advantage to catalyze, integrate, coordinate, and facilitate a public-private alliance among U.S. development assistance actors.
The GDA will be a fundamental reorientation in how USAID sees itself in the context of international development assistance, in how we relate to our traditional partners, and in how we seek out and develop alliances with new partners. To stimulate movement toward the new business model, USAID will use dedicated resources and expertise to catalyze and forge alliances with the range of public and private actors in the development assistance arena. USAID will continue to deploy resources where private funding is not available and for activities where the governmental role is clear and pre-eminent.
The GDA will have three primary means to achieving results in the sectoral pillars or priority focus areas:
- Improve the Quality and Extent of Partnerships with Non-Governmental Organizations: The strength of non-governmental organizations is their ability to deliver services and technical assistance to some of the most disadvantaged populations in many of the countries in which USAID operates. In addition, they are especially well positioned to act as mentors and builders of their host-country counterpart organizations. Under the GDA USAID will simplify and streamline registration and procurement practices and provide greater flexibility in implementation of programs. Core support and organizational strengthening grants will be provided to PVOs and NGOs not well established in the overseas development field, linking these organizations with experienced USAID NGO partners. Incentive mechanisms will be developed to encourage innovation and increased non-governmental financing.
- Increase/Enhance Non-Governmental Financing of Development Assistance: Over the past decade, it has become clear that U.S. corporations investing or doing business overseas must be good corporate citizens. As a result, many firms find themselves devoting considerable resources to education, health, family planning, environment and other similar programs that are not part of their core business experience. At the same time, USAID and/or its PVO/NGO partners are carrying out similar programs. Therefore, it makes sense to facilitate linkages between the corporate social responsibility programs of U.S. corporations and the social services programs being carried out by USAID and/or its PVO and NGO partners. In addition, USAID will seek to work with the growing number of U.S. foundations with significant resources and interests in addressing overseas development issues.
- Enhance Policy Reform Through Advocacy: Under the GDA USAID wiould actively engage the expertise and resources of American corporations in technology transfer, trade and investment and policy and regulatory reform. In that way, we have the opportunity and the ability to link the interests of corporations with those of the host country ina manner that will be beneficial to both. Developing country governments often hesitate to carry through with policy reform because the benefits are not immediately evident; on the other hand, corporations are often reluctant to make investments because the policy environment is not favorable, or sufficiently stable, to justify such investments. In this suituation, USAID can play a highly constructive role in bringing the two parties together to provide the policy environment conducive to long term economic growth and development.
1 Non-governmental organizations include private voluntary organizations, universities, foundations, and policy research insitutions.
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Last Updated on: May 29, 2002 |
