IGD and Brookings present: The Role of Business in Development
How Private Investment Can Catalyze Economic Growth and Reduce Poverty

On May 3rd, Global Economy and Development at Brookings and the Initiative for Global Development will host a panel discussion on the role of business in catalyzing economic growth and reducing poverty and how U.S. development programs can help create an environment for market-led growth.

As the Obama administration reviews U.S. global development efforts and Congress seeks to improve development assistance, this event will focus on the need for greater coordination of U.S. aid, trade and investment programs, and how to effectively work across sectors. Daniel Yohannes, Millennium Challenge Corporation CEO, will provide opening remarks.

Speakers
Jennifer Potter, President & CEO, Initiative for Global Development (IGD)
Kemal Dervis, Vice President and Director, Global Economy and Development, Brookings and IGD Leadership Council member
Justin Chinyanta, Chairman & CEO, Loita Capital Partners International LTD, South Africa and IGD Frontier 100 member
Chad Holliday, Former Chairman & CEO, E.I. du Pont de Nemours and Company
Tim M. Solso, Chairman & CEO, Cummins Inc. and IGD Board member

Update: Read highlights from the event.

Focus on Agricultural Development

Expanding agricultural productivity and increasing agricultural markets are essential components to achieving global food security and poverty reduction. The Obama administration continues to move forward on its commitment - $3.5 billion over three years - to advance food security. IGD supports the administration’s assertion that public investments will not be sustainable, nor have the intended economic impact, without leveraging private investment.

On April 21st, IGD, the Hewlett Foundation, TransFarm Africa and the German Marshall Fund of the United States convened agricultural development experts and representatives from agribusiness companies to discuss barriers to investment in food insecure regions and opportunities to improve the investment climate. Companies represented included Bunge North America, Caterpillar, DuPont, FedEx, John Deere and Mars. An advisor to the President of Mali and the head of USAID in Mali also participated and gave a valuable African perspective. IGD will continue to work with U.S. and African business leaders to facilitate conversation and collect recommendations on food security.

On April 22nd, the U.S. government joined with Canada, Spain, South Korea and the Bill & Melinda Gates Foundation to launch the Global Agriculture and Food Security Program, a multilateral trust fund to help the world’s poorest farmers grow more food and lift themselves out of hunger and poverty. Learn more by reading the op-ed by Bill Gates and Treasury Secretary Timothy Geithner.

On April 23rd, the Senate Foreign Relations Committee held a hearing on the Global Food Security Act, legislation introduced by Sens. Richard Lugar (R-IN) and Bob Casey (D-PA) that would improve the U.S. emergency food assistance response and promote long-term food security and agricultural development through research, education and extension programs. The hearing emphasized coordination, the role of women in agriculture, and the need to increase capacity at USAID. Read ONE’s commentary on the hearing or watch the hearing at the Senate website.

Over the next several months, IGD will be consolidating concrete business recommendations for the U.S. government’s agricultural development strategies.

Administration Update

The Obama administration continues to review U.S. global development policy through two separate but related processes – the Quadrennial Diplomacy and Development Review (QDDR) launched by the State Department and the Presidential Study Directive on Global Development Policy. Release of the QDDR interim report was discussed at a high level National Security Council Deputies’ Committee meeting last week but as of now there is no firm date for publication.

One of the most compelling visual examples highlighting the need for reform of U.S. development policy is the chart at left, designed by Lael Brainard, previously with the Brookings Institution and recently confirmed as Under Secretary of the Treasury for International Affairs. It illustrates all of the government departments, agencies and offices that have a role in U.S. foreign assistance programs and their many, sometimes conflicting, objectives.
To join the conversation about ways to make U.S. foreign assistance more effective and accountable, check out MFAN’s QDDR blog series, featuring experts including George Ingram, David Beckmann and IGD President & CEO Jennifer Potter.

USAID Administrator Raj Shah recently testified before the Senate Appropriations Subcommittee on State and Foreign Operations on the FY 2011 budget request for USAID. Shah described this year as a “once-in-a-lifetime” opportunity for foreign assistance reform. He said: “…We hope to roll out a new policy-planning, evaluation and budget capability at AID that will allow us to be more accountable and make smarter decisions and real resource trade-offs so that we’re not just chasing every need in an environment where needs are endless.” For further commentary, read MFAN’s analysis.

On April 14th, MCC CEO Daniel Yohannes testified before the House Appropriations Subcommittee on State and Foreign Operations on the FY 2011 budget request for the MCC. His three top priorities for furthering the MCC’s mission of reducing poverty through economic growth: “being innovative,” “leveraging partnerships” and “delivering results and showing impact.” Read Mr. Yohannes’ blog post | Read his full testimony

Learn more about the MCC and read some of their success stories on the MCC blog.

The Business Case for Foreign Aid Reform

This IGD publication 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

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