USAID Global Development Alliance September 13, 2005

U.S. Total Flows to the Developing World in 2003 Source: Bureau of Economic Analysis; Conference Board; Foundation Center; Faith Based Groups; and USAID Internal Estimates.

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

Funding Skills, services and expertise Technology and intellectual property Activity design better connected to market realities Markets and purchasing power Synergies resulting from joint efforts Funding Development expertise Long-term in-country presence Network of local and global partners Policy influence USAIDPartner What We Offer Each Other

Alliance Summary FY02-04 ~290 alliances Agency-wide Over $1.1 billion in USAID funds leveraging over $3.7 billion in partner resources In Latin America: ~62 alliances Over $103 million in USAID funds leveraging over $251 million in partner resources

Alliance Spotlight: Laureate Education Banvivienda Laureate/Universidad Interamericana de Panama USAID 20% of students’ tuition placed in trust $235,000 Loan guarantees $5M in student loans Goal: To make university education available to low and middle class students

Alliance Spotlight: Entra 21 Goal: Train youths in ICT skills to equip them for the 21 st century workforce Entra 21 Partners: USAID International Youth Foundation (IYF) IADB Several technology companies including Microsoft and Lucent Results: Programs in 16 countries in LAC >10,500 jobless youth have been trained; many have found jobs

Alliance Spotlight: Remittances for Economic Growth Alliance Goal: Lower remittance transaction costs and create broader access to financial services Partners: USAID World Council of Credit Unions Mexico’s Credit Union network Results: >25,000 remittance transfers (~$11 million) sent through alliance Lower costs and industry-wide competition led to a 50% reduction in transaction costs