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

USAID Partner

What We Offer Each Other

Alliance Summary FY02-04

~290 alliances Agency-wideOver $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

USAID20% of students’ tuition placed in trust

$235,000Loan 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 21st 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