WHAT DOES BUSINESS HAVE TO DO WITH FOREIGN AID?

IGD is writing a new paper that demonstrates why aid reform should be a critical concern to U.S. business. Some key points from the argument:

Our economic health and security are inextricably linked with the prosperity and stability of the rest of the world. As leaders of U.S. companies that are engaged in global markets and that increasingly source from and sell in developing countries, IGD partners have a vested interest in promoting economic development around the world.

One of the best ways to boost growth and expand opportunity is to improve the impact of U.S. foreign assistance. U.S. aid programs have posted significant successes, but our aid dollars would have greater impact if we applied some fundamental business principles to our aid strategies.

The unique perspective of business leaders – on the importance of economic growth, job creation, measurable outcomes and effective use of resources – could add great value to the process of improving foreign aid. Successful reform, in turn, would give immense value back to business – through healthier, better-educated workers and suppliers, a larger pool of potential customers, greater investment opportunities, and a more stable global economy.

UPDATE: The Business Case for Foreign Aid Reform is now available:

Read the summary

Download the complete publication

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

PRESIDENTIAL STUDY DIRECTIVE

IGD commends President Obama for issuing a Presidential Study Directive (PSD) that requires a government-wide review of U.S. development efforts and an updating of strategic priorities. Co-chaired by National Security Advisor General Jim Jones and National Economic Council Director Dr. Lawrence Summers, this comprehensive study is a critical step in the process of creating a smarter, more effective and more comprehensive development strategy.

The Presidential Study Directive builds on the momentum created by House and Senate bills that would initiate broad reform of U.S. foreign aid as well as the State Department's Quadrennial Diplomacy and Development Review process.

On December 9, IGD Leadership Council members sent letters to General Jones and Dr. Summers urging a comprehensive development strategy that effectively leverages all of the government’s policy tools to advance economic opportunity and reduce global poverty.

TAKE ACTION
To show your support for a stronger U.S. global development strategy, add your name to this petition to the White House, sponsored by the Modernizing Foreign Assistance Network (MFAN), of which IGD is a member. Signatures will be collected through December 22, 2009.

U.S. GOVERNMENT’S DEVELOPMENT LEADERSHIP NAMED

USAID Administrator nominated
On November 10, President Obama nominated Dr. Rajiv Shah to head the United States Agency for International Development (USAID). His nomination was confirmed on December 8 by the Senate Foreign Relations Committee (SFRC) and will now go before the full Senate. Dr. Shah is currently serving as the Under Secretary of Agriculture for Research, Education and Economics and prior to that served as the Director for Agricultural Development at the Bill & Melinda Gates Foundation.

At his confirmation hearing before the SFRC, Dr. Shah said he would be deeply involved in the Presidential Study Directive. He will also co-chair the State Department’s Quadrennial Diplomacy and Development Review.

”If confirmed, I plan to work with this committee and consult with the broader development community and those it seeks to impact to help craft and implement a development strategy that delivers on the President’s and Secretary’s vision of USAID as the world’s premiere development agency.” -Dr. Rajiv Shah

IGD is hopeful that Dr. Shah’s depth and breadth of knowledge and experience will enable him to be a strong voice for development at the highest levels of U.S. policy making.

Millennium Challenge Corporation CEO confirmed
After confirmation by the full Senate in late November, Daniel Yohannes, an Ethiopian-born banking executive and private investor, was sworn in as CEO of the Millennium Challenge Corporation (MCC) on December 7. In testimony before the Senate Foreign Relations Committee, Yohannes affirmed his commitment to the U.S. government’s goal of reducing global poverty and pledged to lead the MCC with “passion and humility.” IGD looks forward to supporting MCC’s mission to reduce poverty through economic growth under its new CEO.

OPIC President nominated
On November 23, President Obama nominated Elizabeth Littlefield as president of the Overseas Private Investment Corporation (OPIC). She is currently a director of the World Bank and CEO of the Consultative Group to Assist the Poor (CGAP), a multi-donor microfinance organization. Her confirmation hearing has not yet been scheduled.

LEGISLATIVE UPDATE

Business-NGO coalition releases trade preference reform proposal
On December 1, a diverse group of development organizations, companies and business associations, including IGD, released a joint proposal for improving U.S. trade preference programs. The proposal outlines ways to ensure that our preference programs effectively promote development. Programs must catalyze production opportunities and should exhibit the following qualities:

• Reliable, predictable and long-term
• Simple to use
• Sensitive to beneficiaries’ vulnerabilities
• Linked to targeted policies and programs to build capacity to participate in markets and take full advantage of preferential market access

Congressman McDermott introduces New Partnership for Trade Development Act
On November 18, Rep. Jim McDermott (D-WA) introduced legislation - the New Partnership for Trade Development Act - to remove barriers to the U.S. market for products from the world’s poorest countries. The act aims to protect African countries from erosion of the preferences they currently receive for apparel under the African Growth and Opportunity Act (AGOA).

IGD applauds the legislation and commends Rep. McDermott for including a strong emphasis on providing U.S. aid for trade capacity building – assistance that is designed to help developing countries secure real economic gains from increased market access and expanded trade. The New Partnership for Trade Development Act is an important step toward a more comprehensive U.S. strategy that leverages both aid and trade to promote global development.

Foreign aid reform bill passes senate committee
The Foreign Assistance Revitalization and Accountability Act of 2009 (S.1524) was approved by the Senate Foreign Relations Committee on November 17 by a vote of 14-3. Introduced by Chairman John Kerry (D-MA), Ranking Member Richard Lugar (R-IN) and Senators Menendez (D-NJ) and Risch (R-ID) in July, the legislation would begin to rebuild the policy expertise and capacity of USAID and require more rigorous evaluation and greater transparency of U.S. foreign assistance programs.

FRONTIER 100 UPDATE

The Frontier 100 network’s first targeted initiative - access to finance - seeks to support small and medium enterprises (SMEs) in Frontier 100 value chains. Currently SMEs are being selected for investment, mentorship and other forms of support.

The network is creating a new initiative that seeks to increase investment in Africa by improving perceptions of investors. On December 14, Frontier 100 CEOs will agree to the framework of this initiative including target audiences, key messages and effective mechanisms to influence investors.

Additionally Frontier 100 is preparing for its second Annual Forum to be held in Dakar, Senegal, April 14-15, 2010. The Forum will bring together CEOs and business unit leaders from the United States and Africa to set the strategic direction for Frontier 100; build relationships to enable further business growth and investment; and share knowledge on lessons learned, best practices and opportunities.

Member profile: Mizinga Melu
CEO and Managing Director, Standard Chartered Bank, Zambia

Ms. Melu is the first Zambian to head Standard Chartered Bank of Zambia. Prior to being appointed CEO, Ms. Melu served as the Global Head of Development Organizations for Standard Chartered Bank. Throughout her career with the bank, she has held a variety of senior positions. Ms. Melu is helping Frontier 100 in the access to finance initiative.

Learn more about Frontier 100

NETWORK NOTES

IGD is honored to welcome David Goldberg, CEO, SurveyMonkey and Charles Slaughter, Founder, Travelsmith and President, Living Goods to its Board of Directors.

IGD also welcomes Mark Malloch-Brown, Former Administrator, United Nations Development Programme (UNDP) to its Leadership Council.

Board and Leadership Council members advise IGD on strategic direction and recently approved the organization’s strategic plan for 2010-2012.

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.