Global Development Alliance & Conservation March 22, 2005 Kim Kim Yee

Presentation Overview The GDA Model Conservation Enterprise Development & GDA Case Study: QMM/Pact/USAID

What is the GDA Business Model? A public-private alliance is a relationship between USAID and public and/or private entities which: Jointly defines a development problem and its solution Values shared resources, risks and rewards Engages new partners and/or traditional partners Uses new innovative approaches Entails significant resource leveraging (>1:1)

Why does USAID see the need to do business differently? To: Respond to a changing global environment Increase USAID’s reach and effectiveness in meeting development objectives Improve the quality of existing partnerships Leverage additional resources for development activities

Benefits of Working with USAID Collaboration with policy makers and key institutions Development expertise Long-term presence Access to non-traditional markets Network of local and global partners

Partner Contributions Corporations, Foundations, NGOs & Other Organizations provide: Funding Markets & Purchasing Power Activity Design Better Connected to Market Realities Technology & Intellectual Property Skills, Services & Expertise

290 Alliances – with over 1,000 partners – operating in 98 countries Approximately $1.1 billion in USAID funding Leveraging over $3.7 billion in partner resources * data updated frequently and subject to change Summary of USAID Public-Private Alliances FY *

Breakdown of GDA Activities FY

GDA & Conservation Development 44 alliances focused on environmental protection and conservation – Average leverage ratio: 1:2.9 Partners in Conservation Alliances include: Asian Development Bank, BP, Chiquita, Citigroup, Conservation International, Goldman Sachs, IKEA, Innovation Resource Management, Pfizer, Purdue University, UN Foundation, World Wildlife Fund

Conservation Alliances in Africa 11 Alliances USAID funding: $44.4 million Partner contribution: $47.4 million Partners: Rio Tinto Africa Wildlife Foundation World Wildlife Fund

Case Study: QMM-Pact Alliance Mitigating environmental degradation and rural poverty QMM (Rio Tinto) –Interests in three major mineral deposits in remote, undeveloped but environmentally rich Anosy region –Disseminates research within investment zone via LARO regional development framework Linking Actors for Regional Opportunities (LARO) –Implemented by PACT and QMM –Supports Anosy regional development framework –Integrates environmental issues as a cross-cutting concern within local and regional planning and development framework

In essence: Links local and regional planning framework to national development agenda Possibility of expanding into ‘mega’ alliance Case Study: QMM-Pact Alliance Mitigating environmental degradation and rural poverty

Interim Results Fort Dauphin Urban Development Plan designated a World Bank ‘growth pole’ –Alliance could expand into ‘mega’ alliance involving Rio Tinto investment decision and World Bank support of international sea port, highway, and free trade zone original alliance would keep environmental issues on table at local and regional level Community education in resource management –120,000 seedling nursery to reforest 120 hectares in Anosy –professional aquaculture training center planned Case Study: QMM-Pact Alliance Mitigating environmental degradation and rural poverty

Lesson 1 Natural resource management programmed through democracy and governance framework results in integrated, cross-cutting concern for environment Democracy and governance framework better allows new partners to join alliance –local –regional –federal –transnational Case Study: QMM-Pact Alliance Mitigating environmental degradation and rural poverty

Lesson 2 Extractive partner timeline differs from donor timeline –Rio Tinto 15 year presence exploring mining interests in Anosy decision pending on $500 million investment over years –USAID programs typically last 1-5 years strategies 3-10 years Case Study: QMM-Pact Alliance Mitigating environmental degradation and rural poverty

Lesson 2, continued Extractive partner timeline differs from donor timeline pro –Private sector partner closer to long term development focus con –Private sector partner can hold off on substantive contributions in short/medium run QMM-Pact Alliance

West Africa Sustainable Tree Crops Program Improve economic and social well-being of smallholders and environmental sustainability of tree crop farms Finance Alliance for Sustainable Trade Affordable credit to “green farmers” International Tree Planting Program Planting trees to improve soil and water conservation Brings in job training, improved health and agriculture techniques Other Conservation-related Alliances