Monday, March 27, 2023

Washington, DC

ADMINISTRATOR POWER: Thank you so much. It is completely wonderful to be here, and to be among such dedicated advocates and public servants.

Mohammed, thank you for coming to USAID and leading our innovation work and team. Thanks to Shannon, our esteemed director of our Anti Corruption Task Force for conceptualizing and spearheading this Grand Challenge. A huge thanks, as well to the semifinalists who served on our panel today and so elegantly captured why the JET Minerals Challenge will counter corruption in a crucial emerging industry.

I also want to thank the BHP Foundation, the Chandler Foundation, and Amazon for their support. Their contributions are going to help take the finalists’ ideas from concept to reality. Now again back to our semifinalists. I want to offer them the biggest thanks.

We issue Challenges like these for particularly daunting, complex, and evolving, cutting edge problems – where we are urgently trying to tap new sources of expertise and creativity to find solutions. And, of course, right now we know – and as the panelists just spoke to – corrupt actors are robbing nations of the prosperity that green minerals could be generating, and that is one of these types of cutting edge problems that we need really creative solutions to.

The billions of dollars of investment that are going to flow toward green minerals in the coming years could spur much-needed economic growth for nations that are rich in these minerals, and it could help the world transition to a more sustainable future at the very same time. So this is an amazing opportunity that comes around once, once a generation, if you're lucky. Usually, you know, something this radical, this important doesn't happen very often at all.

But if we keep letting these supply chains be plagued by backroom deals, bribes, and exploitation of all kinds, then the gains from this incredible opportunity are, in fact, going to go to kleptocrats instead of communities. And the price of corruption will levy a tax on businesses that are trying to invest in sustainable technologies. That's going to change their cost benefit in a manner that is going to deter the kind of investment – sustainable investment – that we're looking for.

So we all have an interest in protecting these supply chains of the future, and we issued a Challenge. We turned to you all for the best ideas on how to do it. Thank you for answering the call and doing so so brilliantly. The incredible ideas that we've heard about already today are a testament to the quality of the submissions we received. So it is a real feat to have made it to the semifinals, and so congratulations on that. If you saw the pool of ideas that have been generated through this Challenge, you would, I think, feel extra special and really understand just how substantial the achievement of your conceptualization of what you're proposing has been.

We received a whole host of potentially game changing ideas – too many for us to even cover in this one session. Now, take Impact Facility’s proposal. In the Democratic Republic of the Congo, for example, the payments between buyers and miners are often done with cash, which allows for little oversight. Little oversight means it is much easier for buyers to expand and to short miners, and bribe government officials for looking the other way. So Impact Facility is working to digitize payments. This would create a virtual receipt of transactions so that money cannot flow under the table.

Take the Responsible Mining Business Integrity tool. Some mining companies have established anti-corruption policies and procedures to mitigate the risk of perpetuating corruption, but they are experts in mining. They are not experts in preventing corruption. So these policies are not always effective in practice.

Transparency International Australia is working to scale up an online tool that evaluates the strength of each company's current anti-corruption policies and develops tailor-made solutions to strengthen those that need strengthening.

Perekezi ASM Consultants also has a transformative idea in Malawi. Mining conglomerates rushed to Malawi to open new mines. A lack of regulation and oversight often allows government negotiators to be taken advantage of by these conglomerates. They have massive bargaining advantage – bargaining advantages, massive resources. Or sometimes they are bribed to put their own interests above the people's interests. ASM is looking to open the licensing and contracting process for new mines to the public and work with civil society to equip them with the tools and the know-how to hold officials and companies accountable for corrupt practices.

Each and every one of these ideas deserves to be put into practice. And we so wish that we would be the ones to fund them all. But here's the exciting part – now a ton of great ideas are open and ripe for investment from many quarters, not just from USAID. Businesses or foundations should consider supporting these innovators. No good idea should go unused.

There will be more chances to engage with this Grand Challenge. Even before this competition concludes, we will launch the next one, which is focused on using data to prevent and expose corruption. From individuals using data to bring down oligarchs by tracking their yachts as we've seen, to organizations using artificial intelligence to detect procurement fraud, creative uses of data offer an innovative way to root out entrenched corruption. So please look out for more information in the coming months to submit your ideas or to contribute to our future innovators.

Stay in touch! Even if USAID again is not the direct funder, we may be able to help put you in touch with others – in a progress beyond programs way – because we are focused not only on what we do but on what needs doing out in the world.

And Lord knows these ideas need funding, need backing, and would make the world a less corrupt place and give communities much more power to hold companies and government actors accountable.

Congratulations again to our semifinalists and good luck.

Thank you and back to you.

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