1. Interaction Private Sector Working Group Discussion with USAID Global Partnerships January 30, 2014

2. Agenda Introductions Past, Present & Future of Private Sector Engagement –Why is private sector engagement important? –How does USAID approach private sector engagement? –What do we see as the future “game changers” in engaging the private sector in development? Globally & at USAID specifically? Discussion

3. Introductions Sarah Glass Senior Alliance Advisor, USAID Global Partnerships 6+ Years Experience in the Private Sector ; 6+ Years Experience in International & Community Development Focus on USAID’s partnership strategy for science, technology, innovation and new models for development Helen Cho Foreign Service Program Officer, USAID Global Partnerships 2 Years with USAID Global Partnerships; 3 Years with USAID’s Mission in Namibia USAID relationship manager for Qualcomm

4. Increase the Agency’s creation and integration of partnerships with the private sector in producing sustainable development impact How we achieve it Advisory Services Strategic Partnerships Help the Agency build better partnerships Serve Missions, Bureaus and Offices, assisting them in identifying and implementing new partnership opportunities Build innovative partnerships ourselves Create, develop and implement new partnerships that address agency priorities and demonstrate innovation Our Goal 4 Introductions: The USAID Global Partnerships Team

5. U.S. Resource Flows to the Developing World in 1970: $22.8 Billion Private Flows 87% Public Flows 13% US Official Development Assistance 73% Private Flows 27% Global Context: The Power of the Private Sector U.S. Resource Flows to the Developing World in 2010: $204.5 Billion 5 Private Philanthropy 12% ODA 9% Private Investment 50% Remittances 29%

6. 78% % of CEOs believe companies should engage in partnerships to address development and sustainability goals 4 billion # customers P&G reaches each day 98% % of net increase in working age population coming from developing countries $2.5 trillion Total annual revenue for USAID’s ‘top 40’ corporate partners 6 Global Context: The Power of the Private Sector

7. Private Sector Engagement at USAID 7 By the Numbers… Since 2001, USAID has built over 1,500 public-private partnerships involving more than 3,500 unique partner organizations, with an estimated value of more than $20 billion in public and private funds. Leveraged nearly $3 in partner contributions for every $1 of USAID funding. In 2013, USAID had over 200 active partnerships with the private sector. These partnerships leverage approximately $3.20 in both cash and in-kind contributions from partner organizations for each $1.00 USAID invests.

8. Private Sector Engagement at USAID 8 BEYOND The Numbers… Partnership. Innovation. Results. Seeking opportunities to improve the way USAID and the broader sector approach development — focusing on increasing effectiveness and delivering results

9. USAID’s Tools for Private Sector Engagement 9 Shared Value Partnerships e.g. GDAs Prizes & Open Innovation e.g. GCD, DIV Investment Facilitation e.g. PCGA Multi-Stakeholder Alliances e.g. New Alliance Credit Guarantees e.g. DCA

10. Regardless of the Tool, Private Sector Partnerships Are About Finding Shared Interests Harness private sector expertise, assets, & resources Catalyze investment & mobilize financing. Promote more inclusive and sustainable business practices. Collaborate to tackle systemic, societal challenges that impact business. Drive innovation at the intersection of business and development. Develop and grow targeted sectors and value chains. Aligning our interests in engaging with the private sector…

11. 11 Achieve Sustainability Goals Reduce enviro impact; positive impact on employees, communities Drive Growth & Profitability Revenue Growth, New Markets, New Customers, New Products Attract & Retain Talent Employee engagement, recruitment Strengthen Brand, Reputation, Relationships Improve corporate image. Build relationships with governments, communities. Secure “license to operate” Innovate To enable business outcomes: reduced cost, increased profitability, improved quality and efficiency Mitigate Risk Political Risk, Operating Risk, Commercial Risk, etc. Regardless of the Tool, Private Sector Partnerships Are About Finding Shared Interests To our partners’ business drivers…

12. What are the “game changers” of the future?

13. How to capitalize on the opportunities ahead Unlocking the potential of this moment will require new types of partnerships –engaging the private sector, the public sector and the social sector to exchange knowledge and work together across industries and sectors in new ways.

14. Discussion We want to hear from you! What are your thoughts, questions and perspectives?