1. Responding to Monterrey Creating Mechanisms to Increase Funding for Social Programs to Alleviate Poverty National Endowments for Social Action L. Ronald Scheman, Director General, IACD

2. Objectives Develop viable mechanisms to attract additional financial resources to meet the countries’ development priorities Promote collaboration among the stakeholders and enhance meaningful public-private sector and civil society involvement in the development processes

3. Political context Summit of the Americas UN Millennium Declaration Monterrey Consensus OAS General Assembly Ministerial Meetings

4. Rationale Improve the enabling environment as a basis for fulfilling the goals of Monterrey and the Millennium Challenge Account –Transparency –Public/private partnerships –Involvement of civil society Institutional structure that will generate confidence & have credibility with donors Many individual bond holders create new environment for donations of debt

5. The Need National institutions with multi-partite governance dedicated to poverty alleviation and delivery of social services There is not one solution that will fit all challenges The IACD offers NESA as a basis for discussion in how to address the resources challenges facing development cooperation in the region

6. NESA - Mechanism Governance by partnership of government, private sector, and civil society Tax-exempt institution Professional management Result-based quality projects Transparency and accountability in operations Delivery of services by collaboration of civil society organizations with government

7. Governance of NESA: A Second Tier Development Institution Board of Directors Advisory Board - Distinguished Development Experts - Donors - OAS, IDB, ECLAC Professional Management Board of Auditors and Evaluation Nominees Government Private Sector Civil Society

8. NESA - Potential Resources Non-reimbursable Official Development Assistance Private contributions, through the Potential offered by tax-exempt institutions Conversion of public and private debt and bondholder contributions

9. Monterrey Criteria: Increase Grants: Reduce Debt Objective – Rechanneling debt through contributions of debt to NESA Donor Developing Country NESA Grants to Social and Poverty Alleviation Projects Interest + Principal Donates Loan A Renegotiates and Pays Interest Loan A Original Transaction Conversion Loans A, B, C

10. Building on past experiences Multi-partite concertation: Acuerdo Nacional in Peru, Convergencia in Nicaragua Foundations to attract private funding: Luso- American foundation, National Endowment for Democracy – U.S. Debt conversion mechanisms: Canada’s line of credit for housing in Central America, Italy’s initiatives in the Andean countries