Foreign Assistance: Public-Private Partnerships (PPPs)

development policy over the last decade. Goal 8 of the United Nations' Millennium Development Goals emphasizes working with the private sector to increase global access to information technology and pharmaceuticals. The "transformational diplomacy" initiative in the George W. Bush Administration included "engaging the private sector" among its six areas of focus. The Obama Administration's U.S. Global Development Policy, announced in September 2010, aims to "leverage the private sector, philanthropic, and non-governmental organizations, and diaspora communities." U.S. development agencies, such as the U.S. Agency for International Development (USAID), have reported participating in 1,600 public-private partnerships (PPPs) with more than 3,000 different partners between 2001 and 2012. A key issue in evaluating public-private partnerships (PPPs) in development is determining what constitutes a partnership. USAID defines its Global Development Alliances (GDAs) as having a 1:1 leverage of USAID resources, a nontraditional partner, a jointly defined solution to a social or economic development problem, shared risks and results, and sustainability. The Department of State describes "new generation public-private partnerships" as a collaborative working relationship with non-governmental partners in which the goals, structure, and responsibilities are mutually determined, and decision-making is shared. The U.S. government has been involved in various public-private partnerships over the years. The U.S. Agency for International Development (USAID) has reported participating in 1,600 public-private partnerships (PPPs) with more than 3,000 different partners between 2001 and 2012. These partnerships have been used to address a range of development challenges, including poverty reduction, health, and economic growth, in countries around the world. Public-private partnerships have been viewed as an opportunity to leverage resources, mobilize industry expertise and networks, and bring new ideas to development projects. Partnering with the private sector is also widely believed to increase the likelihood that programs will continue after government aid has ended. From the private sector perspective, partnering with a government agency can bring development experience, access to government officials, credibility, and scale. However, public-private partnerships have also received mixed reviews. Critics argue that inadequate data exist to demonstrate that these efforts are the most effective way to use limited development resources. Others have expressed concern that PPPs may divert resources away from proven development programs or recipients. Additionally, some have raised concerns that PPPs may lead to outsourcing of U.S. jobs. The use of public-private partnerships in development has been driven by successive administrations with limited congressional involvement. However, recent reviews of U.S. foreign policy, together with increasing budget constraints, may spur congressional action on foreign assistance reauthorization or reform. As part of this effort, Congress may consider several issues that affect or are affected by the use of PPPs, including budget and procurement policies, interagency leadership, international commitments, and the role of aid within broader development policy. The U.S. government has also been involved in various public-private partnerships with other bilateral and multilateral development agencies. The World Bank, for example, has reported participating in over 1,000 public-private partnerships (PPPs) with private sector partners between 2001 and 2012. These partnerships have been used to address a range of development challenges, including poverty reduction, health, and economic growth, in countries around the world. The use of public-private partnerships in development has been driven by successive administrations with limited congressional involvement. However, recent reviews of U.S. foreign policy, together with increasing budget constraints, may spur congressional action on foreign assistance reauthorization or reform. As part of this effort, Congress may consider several issues that affect or are affected by