Public-Private Partnerships

USAID introduced the Global Development Alliance (GDA) concept in May 2001 as a fundamental reorientation as to how it works in the context of international development assistance, how it relates to traditional partners, and how it seeks out and develops new relationships. This reorientation, which entails working with non-traditional partners, including the private sector, is a reflection in the shift in resource flows to the developing world. Thirty years ago, 70% of resource flows from the US to the developing world came in the form of Official Development Assistance. Today, 80% of those resource flows come from foreign direct investment, private donations, remittances, and other non-governmental sources. Official Development Assistance accounts for only 14% of these resource flows today, underscoring the increasing importance of the private sector in the development process. For more information on USAID’s GDA programs worldwide, click here .

At USAID/El Salvador, partnerships are a way for the strengths of the private and public sectors to complement each other. By joining forces, our assistance to the people of El Salvador can be significantly expanded. Partnerships can take a number of forms, with many types of organizations. Some public-private partnerships are GDAs, which have formal requirements, while other public-private partnerships are less structured.

To qualify as a GDA:

• Successful proposals will bring at least a 1:1 resource leveraging, meaning that the partner(s) will collectively contribute resources that are at least equal if not greater than the level contributed by USAID.
• Partners are expected to bring significant new resources, ideas, technologies, and/or partners to address development problems in countries where USAID is working.
• Partners can be foundations; US and non-US non-governmental organizations (NGOs); US and non-US private businesses; business and trade associations; international organizations; US and non-US colleges and universities; US cities and states; other US government agencies; civic groups; other donor governments; host country governments; regional organizations; host country parastatals; philanthropic leaders including venture capitalists; public figures; advocacy groups.

Q: WHAT DOES USAID/ EL SALVADOR BRING TO ALLIANCES?

A: USAID as an effective alliance partner offers:

• Long-term country presence with commitment to economic growth, democratic and social development, and crisis response
• Working relationships with developing country governments, U.S. and local private sector, and civil society entities
• Knowledge of language, culture, customs, and political context
• Project and financial management expertise, including monitoring and evaluation
• Experience in working with U.S., third country, and local private sector and civil society entities
• Ability to undertake policy, social, and investment research

Q: IS USAID SEEKING ONLY A FEW LARGE ALLIANCES WITH LARGE COMPANIES AND LARGE FOUNDATIONS?

A: No. Having different types and sizes of alliances allows for innovation.

Q: CAN ALLIANCES INCLUDE NON-U.S. PARTNERS?

A: Yes. A partial list of the kinds of non-U.S. partners which can make up an alliance are: international non-governmental organizations (NGOs), multi-national private businesses and other financial institutions, host country private businesses, host country governments, bi-lateral and multi-later donor organizations, host country parastatals, and international universities.

Q: WHAT RESOURCES ARE AVAILABLE FOR POTENTIAL ALLIANCES?

A: USAID/El Salvador sets aside a special budget for alliance building, whose amount varies. Besides these financial resources, each of the three technical offices (Human Investment, Democracy and Governance and Economic Growth) include in some of their programs an alliance component, which has a separate budget.

Q: WHAT IS THE GDA ANNUAL PROGRAM STATEMENT (APS)?

A: The Annual Program Statement is a solicitation for partnerships, issued by the GDA Secretariat at USAID/Washington. This solicitation provides a “window of opportunity” for resource partners that include companies, foundations, and other donors to engage USAID and vice versa. Concept papers on partnering with USAID/ El Salvador should be sent directly to the Mission, care of Gerardo Tablas (gtablas@usaid.gov). The current APS is valid through September 30, 2011 although concept papers are being accepted by the Mission on a rolling basis. The full text of the APS can be found here.

Q: WHO DO I CONTACT IF I HAVE RESOURCES AND AM INTERESTED IN ENTERING INTO AN ALLIANCE WITH USAID/ EL SALVADOR?

A: The Public- Private Partnerships are managed out of the Program Office at USAID/ El Salvador. Please contact Gerardo Tablas at gtablas@usaid.gov. In addition, you may want to speak with the Strategic Objective Teams (i.e., Economic Growth, Human Investment and Democracy and Governance) who work in sectors that your proposal focuses on.

Q: WHAT ARE SOME REASONS THAT A TENTATIVE PARTNERSHIP MIGHT NOT COME TO FRUITION?

A: USAID is required to undertake a due diligence study on any entity with which it enters a partnership. We look into corporate image, social responsibility, environmental accountability, and financial soundness. We are also prohibited from engaging with partners whose primary business is the manufacture or sale of alcohol, tobacco, or firearms. In addition, we must ensure that the company’s goals do not conflict with our own. Having an early discussion with USAID staff can be a good chance to ensure that USAID’s and the partners’ goals are aligned. Lastly, USAID work is focused on a few geographic areas, and we do not tend to work outside of those areas.