FROM THE PRESIDENT

Dear IGD friends and supporters,

IGD is committed to two complementary strategies for engaging business leaders in the fight against global poverty: bringing the voice and influence of business to bear on U.S. policies that impact poverty and development, and catalyzing business initiatives to increase investment and growth in developing countries.

At the 2009 National Summit in Washington, D.C., these strategies were endorsed by President Obama’s National Security Advisor General Jim Jones and corporate leaders such as Neville Isdell of Coca-Cola, Jeff Immelt of GE and Terry McGraw of McGraw-Hill.

We are driving an ambitious work plan for 2010 and beyond. On the policy front, our priorities are foreign assistance reform, trade for development, and promoting an integrated U.S. strategy for global development. Our recently published Business Case for Foreign Aid Reform outlines ways business can help reform foreign assistance. IGD recently endorsed a white paper on trade and development in Africa that was submitted as written comment to the Senate Finance Committee. In addition, IGD is collaborating with like-minded groups to organize convening events in Washington, D.C. about the role of business in development.

The Frontier 100 network, which was launched last May, now includes 35 CEOs from the United States and 10 African countries, working together on initiatives to achieve faster economic growth and greater poverty reduction. The network’s initiative to increase access to investment for small and medium enterprises, or SMEs, responds to what many call the “missing middle” in developing countries – the lack of access to capital by businesses poised for growth.

During the first quarter of 2010, we have been encouraged by members of Congress’ commitment to improving trade preferences and we are hopeful that the Obama administration’s reviews of U.S. development efforts will initiate a smarter, more coherent development strategy. More effective U.S. policies will help create the conditions where private enterprise can thrive in developing countries.

Thank you for your continued support of IGD and our work.

Best regards,
Jennifer Potter, President & CEO

BUSINESS CASE FOR FOREIGN AID REFORM

IGD has written a new paper that demonstrates why the effectiveness of foreign aid is a critical concern to U.S. business. The Business Case for Foreign Aid Reform argues that one of the best ways to boost growth and expand opportunity around the world is to improve the impact of U.S. foreign assistance. Our aid programs will have greater impact if we apply fundamental business principles, and successful reform will in turn give immense value back to business.

Read the summary | Download the complete publication

Learn more about U.S. foreign assistance and the need for reform

TRADE AND DEVELOPMENT IN AFRICA

IGD joined with a number of business associations, development organizations, think tanks and companies – all of whom support reforming U.S. trade preferences programs – to endorse a recent white paper on trade and development in Africa. Sub-Saharan Africa faces unique challenges in harnessing the power of trade for development and poverty reduction.

While expansive and reliable market access is necessary to development, it is not always sufficient. Complementary investments to ease existing barriers to production and trade – locally, nationally, regionally and internationally – are critical. This proposal describes the need for supply-side investments and outlines ways in which the U.S. government could better integrate its aid programs and trade policy to more effectively promote development.

This paper is being broadly distributed to policymakers and was submitted as written testimony for a recent Senate Finance Committee hearing to review U.S. trade preference programs.

Download the white paper

Learn more about trade for development

ADMINISTRATION UPDATE

Secretary of State Hillary Clinton appeared in early February before the House andSenate authorizing and appropriations committees to justify the President’s FY2011 budget request for the international affairs account. In her testimony at each hearing, she singled out development as one of the administration’s three priorities for international affairs spending.

The following week, USAID Administrator Raj Shah appeared before the House Committee on Foreign Affairs and House State, Foreign Operations Appropriations Subcommittee to talk specifically about the USAID budget and the Administration’s budget priorities for development. He emphasized global health, food security and programs that focus on results. Some highlights from his testimony:

Investment in development has never been more strategically important than it is today…The investments we make today are a bulwark against current and future threats - both seen and unseen - and a down payment for future peace and prosperity around the world.

With the combined investments proposed in global health, food security, climate change and humanitarian assistance, we will save lives and help make people less vulnerable to poverty and the threat of instability that extreme poverty breeds. In so doing, we honor our basic values, strengthen our national security and promote our national interests.

We must also strengthen USAID's capacities to identify, implement and rigorously evaluate new and existing approaches that reward efficiency, effectiveness and sustainability…And most important, we must stay relentlessly focused on results - which means establishing baseline data, measuring progress, being transparent about both our successes and our failures - learning from both and improving our approach as we go forward.

Read Dr. Shah’s full testimony

FRONTIER 100 UPDATE

IGD will hold the second Frontier 100 Annual Forum in Dakar, Senegal, April 14-15, 2010. The forum will bring together CEOs and business unit leaders from Africa and the United States to set the strategic direction for Frontier 100, build relationships and share knowledge on business opportunities and lessons learned.

The network’s SME initiative aims to increase access to investment for high-potential small and medium enterprises. The unique value our approach brings is reduced transaction costs as a result of direct endorsements from our CEOs of SMEs in their value chains and local markets. Frontier 100 CEOs are committed to facilitating investments and providing management assistance to high potential SMEs. In a short pilot phase, seven SMEs have been endorsed, such as Shindika Group, a cotton ginnery that contracts with over 10,000 cotton farmers in 102 villages in Tanzania. Shindika seeks investment to move up the value chain, which will provide the company additional capacity to contract with more low-income farmers.

Frontier 100 welcomes new members Stephen Cashin, CEO, Pan African Capital Group; Mteto Nyati, Managing Director, Microsoft, South Africa; Austin Okere, Founder & CEO, Computer Warehouse Group; Len Brand, Managing Director, South Africa, Deere & Company and Mark Tunmer, Group Chief Executive, Imara Holdings.

Member profile: Mteto Nyati
Managing Director, Microsoft, South Africa

Mr. Nyati is the Managing Director of Microsoft South Africa. Prior tojoining Microsoft, he held a series of senior executive roles at IBM, including Director of Global Technology Services for South and Central Africa. He was also the recipient of IBM’s prestigious Golden Circle award and Yale University’s World Fellows on Global Leadership.

Learn more about Frontier 100

HERNANDO DE SOTO

At an event hosted by IGD in January, renowned economist Hernando de Soto argued that property rights and rule of law are keys to long-term global poverty reduction.

Mr. de Soto explained the broad reaching significance property rights have historically had in thedevelopment of successful societies. He shared his recent experiences in Peru, helping to bring people from the shadow economy into the formal economy, and discussed the informal laws that exist in Haiti and the importance of establishing rule of law as part of long-term rebuilding efforts there.

Through the Institute for Liberty and Democracy, Hernando de Soto provides assistance to help developing country governments furnish their citizens with fundamental legal tools so they can participate in both local and international markets. IGD strongly supports solutions like these, which enable poverty reduction through economic growth in developing countries.

NETWORK NOTES

In addition to the new Frontier 100 members mentioned above, IGD is honored to welcome Michael Strianese, President & CEO, L-3 Communications Holdings, Inc. as a member of the IGD Leadership Council.

IGD is pleased to announce that John N. Heathcliff has joined the staff as Vice President of Development. John brings more than 20 years of development experience in senior roles and is working with the staff and board to create and strengthen funding opportunities and strategic partnerships to support IGD’s work.

SUPPORT IGD

Your contributions help champion smarter foreign assistance strategies and trade policies, and support Frontier 100 initiatives to drive business growth and reduce poverty in Africa.

Donations to IGD are tax-deductible and can be made securely online.

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