Building Development Alliances

OVERVIEW
There has been a fundamental shift over the past two decades in the sources of funding for economic development around the world.  An arena once dominated by official governmental assistance is now a stage for many actors.  Non-government resources account today for 80% of the resource flow to developing economies, compared to just 30% in the 1970s.  Many of these non-public resources are from the private sector.

There is also growing pressure on companies to innovate and to leverage their core competencies to help find solutions to the problems of poverty and development, such as: lack of access to medicines, water and sanitation; energy and food security; digital technology, credit and education.   In short, business is being called upon to be a ‘force for good’ while remaining com-petitive and profitable.

This changing environment has required USAID, as the largest global bilateral donor, to rethink its development assistance strategy and create partnerships with the private sector, often referred to as public-private alliances or cross-sector partnerships. Within USAID they are known as Global Development Alliances.  The alliance model incorporates pooled knowledge, skills, and re-sources of USAID, the private sector and other partners.  It brings shared responsibilities and resource commitments to a particular collaborative activity.  In creating such a relationship, USAID and its partners jointly identify solutions that capitalize on the expertise that each entity brings to the table.  By working with partners, alliances have a multiplier effect by generating a greater impact than would have been realized if the partners worked independently. 

Multi-stakeholder partnerships can be powerful catalysts for change and valuable mechanisms for delivering efficient, effective and equitable solutions to development challenges. 

PROGRAM FOCUS
USAID’s Global Development Alliance serves as a catalyst to mobilize ideas, efforts and resources of the public and private sectors, and non-governmental organizations in support of shared objectives. Being in partnership allows USAID to build long-term quality relationships with other key players in society, quality relationships that stand the test of time, and enable important projects and programs to be developed appropriately to specific circumstances, and to become self-sustaining over time.  There are a number of projects where USAID/Albania is currently developing through partnerships with local government, business and others.  We welcome the interest of new partners.

WHAT IS A GLOBAL DEVELOPMENT ALLIANCE?
An alliance is an agreement between two or more parties to jointly define a development problem and jointly contribute to its solution. 

Alliance partners share resources, risks, and rewards in pursuit of an objective that can be better achieved working together.  Its purpose: to bring about greater results through the combined strengths of multiple partners to address a development problem.  The driving force is the recognition that each party is able to provide significant resources that the other does not have, and that together the parties can achieve greater value, more efficiently, than they could on their own. 

USAID’s guidelines for the GDA model currently seek a minimum 1:1 matching of resources via alliances.  While national and local governments and other foreign aid donors are welcome members of alliances, private sector talent and know-how are key to maximizing the impact of projects.

ALLIANCE PARTNERS MAY INCLUDE:

• Private Businesses, Business and Trade Associations
• Foundations
• Philanthropic Leaders including Venture Capitalists
• NGOs, Charitable Organizations
• Regional, International Organizations
• Colleges, Universities
• Civic Groups
• Other Donor Governments, Aid Agencies , National Governments
• Advocacy Groups
• Others

CONTACT: 
John Brannaman, USAID Program Officer 
Brunilda Muca, USAID/Albania GDA Advisor
Tel: +355 42 247 285
http://albania.usaid.gov/