1. Private Sector Investment in LAC Meeting the MDG Audra Jones Inter-American Foundation FOCAL. September 13, 2005

2. Inter-American Foundation Experimental and independent agency of USG funding self-help initiatives among low-income populations in LAC – Open call for proposals for local NGOs and base groups – Annual budget of USD18MM (congressionally appropriated) Primary programs funded: – Business development/productive activities – Food production – Cultural Expression – Community Services – Eco-Development Over USD 570MM 4,500 grants to NGOs and base groups throughout LAC

3. IAF in Partnerships with the Private Sector 1991-2005: Partnership History – More than 75 co-funding agreements & tax-free contributions – USD 32MM leveraged from the private sector National Companies – Arcor, S.A. (Argentina)- O Boticaio (Brazil) – ACP (Colombia) - PDVSA (Venezuela) MNEs – Falconbridge (DR)- JP Morgan (Mexico) – Levis Strauss (Regional)- Conoco-Phillips (Venezuela) Others: US and Local Chambers of Commerce Centers for Corporate Social Responsibility www.iaf.gov (Corporate Outreach/Case Studies) www.iaf.gov

4. Partnership Results Grassroots Development Framework. Measure tangible and intangible results by project FY2004 Results: – Private Sector resources mobilized USD 500,000 * – Results reported by men and women in LAC tied to private sector and IAF investment in grassroots development: 51,000 report better living conditions 5,700 report improved dietary conditions 9,600 report access to medical attention 3,900 report acquired and applied civic participation learning 5,200 report acquired and applied environmental learning * Data does not include results from RedEAmerica

5. RedEAmerica In 2002 IAF established the Network of Corporation Foundations and Companies for Grassroots Development or RedEAmerica Common vision “to make grassroots development the cornerstone for poverty reduction in LAC” targeting support from corporations and corporate foundations As of 2005, more than 57 members in 12 countries: – USD 2MM/annually to fund grassroots development initiatives – Sharing best practices in grant making, monitoring and evaluation – Independent Secretariat – Proposed Global Fund to attract private investment for LAC www.redeamerica.org

6. IAF & Private Sector Support Enabling Environment for Entrepreneurship Goal: IAF partners with the private sector to link business with low income entrepreneurs as part of their corporate supply chain -- through research & development, distribution, product development or supply of raw materials. Desired result: Create a sustainable enabling environment for grassroots entrepreneurship to succeed in “globalization” Private sector can play a lead role in shaping a more inclusive marketplace for grassroots entrepreneurs by transferring/fostering their access to: – Capital- Technology – Market access- Business networks IAF Pilot Projects: – Daimler Chrysler, Brazil- Manpa, SA, Venezuela