Global Development Alliance: Achieving Goals by Working Together

This collaboration is essential to achieving the mission of ending extreme poverty and also provides the private sector with opportunities to advance core business interests. By working together, USAID and the private sector can leverage their respective expertise, capabilities, and resources to develop and implement market-based solutions that foster business success and drive sustainable social and economic growth. Private sector collaboration with USAID can take various forms, including public-private partnerships (PPPs). Since 2001, USAID has established over 1,600 partnerships with diverse private sector actors, including U.S. and global corporations, local businesses, financial institutions, and entrepreneurs. These partnerships have achieved development outcomes and positive results for business in a range of areas where core business interests align with USAID priorities. The Global Development Alliance (GDA) is USAID's model for building partnerships with the private sector. A GDA is a partnership involving USAID, the private sector, and other organizations working together to jointly develop and implement activities that leverage their respective assets and expertise. These partnerships are based on complementary objectives and aligned interests, employ market-based approaches to addressing development challenges, and leverage contributions from the private sector for greater development impact. By working together, USAID and the private sector have successfully addressed critical challenges in dozens of countries worldwide and various issue areas, including agriculture, climate change, education, energy, entrepreneurship, food security, health, water and sanitation, and workforce development. USAID's partnerships with the private sector provide businesses with opportunities to achieve core business interests and corporate sustainability priorities. These partnerships have improved supply chain quality and reliability, expanded access to new customer markets, reduced operating costs, improved workforce productivity, increased access to skilled talent, and strengthened relationships with key stakeholders. The GDA Annual Program Statement (APS) is a framework for building high-impact partnerships between USAID, the private sector, and other organizations. The APS provides a structure for identifying interests and objectives, determining alignment, and jointly examining and leveraging expertise, resources, and resources to develop and implement solutions to identified challenges. Under the GDA APS, private sector engagement with USAID is essential, and the robust participation of the private sector is a defining characteristic. The GDA APS invites and encourages the private sector to reach out directly to USAID and requires other interested organizations to connect USAID with prospective private sector partners. The private sector refers to private for-profit entities, private equity or financial institutions, private investors, private business associations, and private foundations. Most GDAs will also involve other organizations whose expertise and capabilities are critical to solving problems and challenges. All prospective partners are expected to identify the expertise, capabilities, and resources they will mobilize and apply to a proposed GDA. In addition, GDAs require the value of contributions from private sector partners to equal or exceed the level of funding requested of USAID. The most effective GDAs emerge from a deep understanding of private sector interests and USAID development objectives, as well as direct consultations between USAID and the private sector. The best way to get started with a GDA depends on the type of partner taking the initiative to develop the GDA. Private sector partners should contact [email protected] or the USAID office with which they seek to work, while other partners should read and follow the guidance in the GDA APS. Before submitting a concept paper under the GDA APS, prospective partners should review USAID development priorities, identify and engage prospective private sector partners, and connect the private sector partners with USAID. If these actions identify committed private sector partners and lead to promising ideas, organizations can continue the co-creation process by submitting a concept paper under the GDA APS.