Peace Day 2015 Highlights Growing Impact of Private-Sector Partnerships

International Day of Peace has been observed around the world on 21 September every year since 1982.  The United Nations (UN) General Assembly established this day to coincide with its opening session, which is held on the third Tuesday in September.  According to the UN General Assembly, September 21 commemorates “devotion to strengthening the ideals of peace, both within and among all nations and peoples.” In 2001, by unanimous vote, the General Assembly established September 21 as an annual day of non-violence and cease-fire.

The theme of this year’s commemoration, “Partnerships for Peace – Dignity for All,” aims to highlight the importance of collaboration between all segments of society and to strive for peace.  The theme also highlights a shift in the way the UN and other international organizations view the sources of foreign assistance. Over the last 30 years, private giving has surpassed ODA and now accounts for nearly 80% of development assistance. The work of the UN would not be possible without thousands of partnerships between the private sector and civil society.

2015 International Day of Peace Poster (Source: UN)
2015 International Day of Peace Poster (Source: UN)

Following this year’s International Day of Peace, several major multinational corporations from a variety of industries partnered with the UN’s World Food Programme (WFP) to help raise awareness about the vital role that food assistance plays in creating a more peaceful world.  These companies donated digital and television network time for a 30 second advertisement that shines a spotlight on WFP’s work. The advertising campaign, currently airing in 38 countries, is meant to show consumers how they can support the refugees and displaced people who are struggling to feed their families. According to WFP Executive Director Ertharin Cousin, “Food assistance plays a powerful role in times of conflict by saving lives and alleviating suffering. Food brings and keeps families together. Food security gives families hope during desperate times while eliminating the need for families to resort to extreme and harmful measures as the only option for survival.” The WFP’s emergency response fund will use the money raised by this effort to help its most critical operations, like those in Syria, Iraq, South Sudan and Yemen.

McDonald’s is spearheading the multi-million dollar Peace Day.  When the fast food corporation approached the UN to discuss a potential partnership, UN officials asked the company to raise awareness of the refugee crisis and encourage people to donate to the WFP.  McDonald’s CEO Steve Easterbrook did not hesitate and issued a statement: “If anyone can help an international effort to help feed refugees and the fight against hunger, it’s us.”  McDonald’s went on to enlist the support of global philanthropy leaders like Google, Facebook, DreamWorks Animation, United Airlines, MasterCard, OMD, and Twitter, as well as other food and beverage giants like Cargill, McCain Foods, and Burger King.

The WFP has been outspoken in its praise of McDonald’s and its partners for their efforts in the Peace Day campaign.  Jay Aldous, WFP Director of Private Sector Partnerships, noted that “The private sector has a significant role to play in ending hunger and promoting peace…And this global effort is a powerful example of brands coming together with one voice to make a tangible impact in the lives of vulnerable people.”  As conflicts in the Middle East escalate the refugee crisis and stretch humanitarian resources, McDonald’s can be commended for both the timeliness and scale of its campaign.

In collaboration with WFP, McDonald’s and its Peace Day campaign partners illustrate the ever-growing need and impact of private sector philanthropy in global humanitarian assistance. As Ms. Cousin noted, “Humanity has one future together. This effort provides a great example of people and companies joining forces to make sure we achieve the goal of a zero hunger future.”

Public-Private Partnerships: The Key to Successfully Implementing the SDGs

The Brookings Institution and the Organization for Economic Co-operation and Development (OECD) recently partnered to present a talk on utilizing public-private partnerships (PPPs) in order to effectively implement the United Nations’ (UN) Sustainable Development Goals (SDG). The SDGs are a list of goals, proposed by the UN, that target issues related to health, poverty, hunger, inequality, education, and climate change. According to the expert panel, partnerships connect decision-makers at the global level with the private sector, local governments, and civil society in an effort to capitalize on their specific strengths and balance their weaknesses.

Bill Gates speaking at a press conference at the end of the GAVI Alliance pledging event
Bill Gates speaking at a press conference at the end of the GAVI Alliance pledging event

For example, Gavi, The Vaccine Alliance, is a PPP that provides access to vaccines in developing countries. The major players in this alliance consist of the World Health Organization, UNICEF, The World Bank, and the Bill and Melinda Gates Foundation. Together, these organizations have successfully contributed scientific research, vaccines, and financial tools. According to Gavi, “Since its launch in 2000, [the alliance] has helped developing countries to prevent more than 7 million future deaths…Gavi support has contributed to the immunization of an additional 500 million children.” Gavi’s objectives were strategically implemented to produce results that protect developing populations and improve healthcare, which aligns with SDG 3 that aims to “ensure healthy lives and promote well-being for all at all ages.”

Partnerships are arguably the driving force behind the successful implementation of the SDGs. Governments are often slow and unreliable, while existing institutions like private corporations and civil society organizations have “on the ground” experience navigating the challenges inherent to their industry. The success of a PPP is determined by inclusivity, local implementation and ownership, transparency, accountability, political engagement, and strong focus on results. According to a study conducted by the OECD, “effective partnerships must have strong leadership, be country-led and context specific, apply the right type of action for the challenge, and maintain a clear focus on results.”

The SDGs also focus on more specific goals such as improving infrastructure, conserving oceans, and sustaining energy, which leaves room for partnerships to narrow their focus and innovate, particularly in the private sector. According to Devex, “Business leaders are still trying to understand the concept of sustainability, too, and how to integrate it into their business models.” The ODA method of developed countries donating funds to developing countries is ineffective since monetary aid does not specifically encourage the creation of new and sustainable systems. According to the Wall Street Journal, “Over the past 60 years at least $1 trillion of development-related aid has been transferred from rich countries to Africa. Yet real per-capita income today is lower than it was in the 1970s.” As is often the case, this money is lost in transit and never reaches the local level due to corrupt bureaucracies and weak relations with civil society organizations. Financial contributions from the private sector, when combined with effectual and enabling political leadership, move beyond temporary alleviation to foster a more permanent impact.

Public-private partnerships are a vital part of Goal 16, which seeks to “promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.” Ultimately, PPPs allow for a more inclusive and communicative atmosphere conducive to tackling important development issues on a more direct and practical platform that enables self-sufficiency and citizen accountability. If the SDGs are to be achieved, the vital role of PPPs cannot be ignored.

The European Migrant Crisis: A Silver-Lining for German Industry and Society?

As migrants flood into Europe from countries like Afghanistan, Iraq, Nigeria, Kosovo, and especially Syria, European leaders and policymakers face a great challenge.  Coming on the heels of the Greek debt crisis, the recent influx of migrants is testing the European Union once again. The responses and policy proposals from EU member states vary greatly, but the majority are focused on securing borders rather than protecting the rights of migrants and refugees.  In the short run, the migrant crisis may be a burden on most of Europe, but in the long run, it could present an economic opportunity.

A Silver-Lining

Europe’s surging migrant population could be a valuable resource for sustained economic growth in those countries that possess the foresight to invest in them now.  Many European economies face demographic challenges as fertility rates fall to 1.3 – below the replacement rate of 2.1 – while the average age increases.  In 2014, 19 of the top 20 countries with percent of population ages 65 and above were European countries.  This dramatic demographic change poses a serious threat to future productivity.  Europe is in need of fresh young workers to counter its feeble birth rate and aging population.

Germanys Response

So far, Germany has led the humanitarian charge, unveiling some of the most generous asylum policies in the EU.  One week ago, Germany’s Chancellor Angela Merkel pledged to spend $6.6 billion to cope with the roughly 800,000 migrants and refugees expected to enter the country this year.  Unfortunately, without similar refugee support from nearby countries—most notably Hungary—Germany was overwhelmed by the flow of asylum seekers and decided to temporarily close its border with Austria.

Refugees arrive at the train station in Saalfeld, Germany (Source: Jens Meyer)
Refugees arrive at the train station in Saalfeld, Germany (Source: Jens Meyer)

In spite of the border closure, the continued acceptance of refugees is economically sensible.  As of 2014, Germany had the world’s third highest percentage of individuals 65 years and older (21%), coupled with the world’s fourth lowest percent of population between the ages of 0 and 14 (13%).  According to the German government’s Federal Institute for Research on Building, Urban Affairs and Spatial Development, if this trend continues, the number of working age people in Germany (about 45 million) will shrink by 8.5 million by 2030 and another 8.7 million by 2050. Put another way, Germany will lose over 37 percent of its working age population in just 35 years.  The largest economy in Europe cannot be sustained without more workers.

Industry as a Catalyst for Integration

As migrants and refugees enter a host country, one of the main issues that they face is integration with and acceptance by the native population.  A successful way to avoid this problem is to provide opportunities for migrants and refugees to quickly contribute to the workforce and the country’s overall welfare.  Private-sector investment is crucial in this process.  Fortunately, several corporations have already started to make an impact on the refugee and migrant populations in Germany.

Ulrich Grillo, Head of the Federation of German Industries (BDI), said last week: “If we can integrate [refugees] quickly into the jobs market, we’ll be helping the refugees, but also helping ourselves.” In addition to speaking about the economic benefits of refugees, BDI has proposed changes to Germany’s labor laws and regulations and even sought assurances that migrants who do find employment will not be deported.

Corporate leaders in the automobile industry, one of the largest sources of employment in the country, have been the most outspoken in their support of migrant and refugee employment programs.  Dieter Zetsche, the CEO of Daimler-Benz and a global leader in corporate philanthropy and human capital investment, said that his company would take steps to recruit new employees from the incoming pool of refugees.  In addition to investing in refugee capital, the famous automobile maker also joined in the relief effort.  A few months ago, Daimler Trucks, in collaboration with the Frankfurt-based aid organization “Wings of Help”, initiated a mobile relief effort in the Turkey-Syria border region. A fleet of eight Actros semitrailer trucks, provided by Daimler-Benz, carried some 120 tons of relief supplies to those in need.

More recently, Matthias Müller, the CEO of Porsche AG, called for industry leaders to “take a clear stand against xenophobia and extremism.” Muller’s statement is especially important in light of the recent attacks on refugee residences. VW’s Porsche luxury-car division will also provide language training and counseling to refugees. The impact of language instruction, in particular, cannot be understated.  The ability to communicate in German is a necessary step towards successful societal and workforce integration.

Europe’s refugee crisis may be viewed as a political problem, but it can be an economic and social opportunity. The actions of corporations like Porsche and Daimler, as well as organizations like BDI, demonstrate that refugees can be invaluable contributors to economic and social development. Moreover, by encouraging private-sector investment in refugees governments can transform the current migrant crisis into an economic and social turning point for both Germany and the European Union.

The Unsung Heroes of Global Humanitarian Assistance

August 19th marked the 12th annual World Humanitarian Day, which celebrates humanitarian assistance in developing countries. World Humanitarian Day began in 2003, dedicated to the twenty-two aid workers who were killed by the bombing at UN headquarters in Baghdad that year. According to the World Health Organization, “82.5 million people in 37 countries need humanitarian assistance.” While foreign aid and international NGOs are play an important role in humanitarian response, the efforts made by local aid workers are just as important. A core part of a functioning civil society, local aid workers are often more sensitive and attuned to the needs of the local population since they share a common culture, environment, and language. Given their unique position, local aid workers are typically the first to respond to a crisis, thereby reducing the number of lives lost and damages incurred from the outset. For example, local aid workers were delivering assistance to those affected by the Ebola outbreak in 2014, six months prior to the World Health Organization’s declaration of a public health emergency.

Unlike their unwieldy international counterparts, local aid workers are better equipped to combat some of humanitarian assistance’s greatest weaknesses, including the timely, low cost, and culturally sensitive distribution of aid. Local aid workers can also access areas, people and knowledge that many foreign parties are unable to tap. In spite of their essential role in crisis management and their capacity to promote sustained philanthropic development, local aid workers often lack the resources marshalled by larger international groups. According to a research study conducted by Oxfam, “Between 2007 and 2013, the resources provided directly to [local aid workers] averaged less than 2 percent of total annual humanitarian assistance.”

People free a man from the rubble of a destroyed building after an earthquake hit Nepal on April 25th 2015. (Source: EPA/Narendra Shrestha)
People free a man from the rubble of a destroyed building after an earthquake hit Nepal on April 25th 2015. (Source: EPA/Narendra Shrestha)

Though mobilizing local aid workers is a more effective solution in most emergency situations, without adequate funding and resources, local aid workers are unable to properly address and respond to a crisis. In response to the Nepal Earthquake that struck in April 2015, the Nepal Flash Appeal distributed $422 million to over 70 organizations, but Nepalese organizations received just 0.8% of those funds. In spite of their limited funding, approximately 1,800 local Nepalese aid workers led relief and recovery efforts to minimize the damage caused by the earthquake, compared to approximately 450 Indian aid workers who responded.

In addition to the paltry funds and resources, local aid workers are also more susceptible to on-the-ground hazards. According to the Overseas Development Institute, “attacks on aid workers have steadily risen over the years, from 90 violent attacks in 2001, to 308 incidents in 2011, with the majority of attacks directed towards local aid workers.” Particularly in those countries racked by civil war and cultural conflict, local aid workers may be caught in crossfire, while international aid workers can depend on the protection of foreign and domestic governments.

Emphasizing the importance of local aid workers may be the first step in realizing World Humanitarian Day’s mission to commemorate those who have risked their lives to help other people. In advance of the upcoming World Humanitarian Summit, scheduled to take place in Turkey in 2016, it is imperative that policy-makers embark on initiatives that recognize, strengthen, and protect the crucial role of local aid workers in global humanitarian assistance. To maximize the efforts of local aid workers, communication with international civil society organizations must be improved, funding must be increased, and the distribution of resources must be better organized. When all of these needs are met, the world will be better equipped to confront future disasters and humanitarian crises.

Stranger Than Fiction

What happens when you combine The Office and development work? You get The Samaritans, a mockumentary of life working in an NGO. The show focuses on the daily operations of an NGO in Kenya called Aid for Aid. It satirizes the bureaucratic inefficiencies of the modern day aid industry and its love of development

The new country Director, Scott.
The new country Director, Scott.

The pilot episode introduces the characters and a dysfunctional organization that may be harming Kenya’s development as opposed to helping it. Incorporating a very relevant theme, the first two episodes of The Samaritan focus on how the organization counterproductively applies for its largest grant ever. This is a large part of the daily minutia of actual NGOs who rely heavily on grant funding. In another scene that may hit a little too close to home, Scott, the new country Director at Aid for Aid, uses the words “barriers to change”, “capacity building”, and “political economy” to send a message that says absolutely nothing about Aid for Aid’s mission and goals. While NGOs may use their vocabulary to a little more effect, you can find NGO papers littered with these exact same words. Maybe from an outsider’s perspective what is a norm in NGO culture might seem borderline absurd.

The show’s scenarios and hi-jinx may seem extreme and unbelievable but many of the story lines come from true stories of people working in NGOs. The show’s website even has a contact section where they encourage actual NGO workers to submit their own real life experiences with NGO inefficiencies. The show’s creator, Hussein Kurji, says inspiration for the show came from a story of a real NGO, whose mission was rhino preservation, holding an auction with top prize being a rhino hunt. Does Kurji’s inspiration and plotlines seem absurd? Absolutely. But he says that since airing he has gotten many responses from NGO workers saying The Samaritans is more truth than fiction.

Kurji hopes his satire of the aid industry will create a dialogue about the industry’s shortcomings. What works and what does not work in the aid industry? Already the show’s popularity is growing. A range of media sites such as the BBC, Buzzfeed, and Devex have all run articles about The Samaritans. This show could generate a new conversation about the accountability of NGOs and the increasingly bureaucratic nature of grant making and development work. Are these changes making development work increasingly ineffective, as Kurji seems to propose from his show? The increasing buzz surrounding The Samaritans may be what the development industry needs to start a conversation about NGO accountability.

Aid for Aid's logo
Aid for Aid’s logo

The Samaritans is a groundbreaking concept not just because of its commentary on the aid industry but also because of its origins. Begun by a Kenyan production company, Kenya is not known for its entertainment industry, especially not television. The preferred entertainment method is radio. But Kurji has worked against the odds to create a show that is not only funny but has a social commentary relevant to both developed and developing countries. Kurji did not even have the money to initially create the show. He relied on the support of 74 Kickstarter backers to fund the first season. The show still needs funding help so it is currently selling the first two episodes online for $5.

It remains to be seen whether the aid industry will address Kurji’s NGO commentary. But regardless, he can be proud in knowing that he has shed light on a topic that has mostly gone unnoticed. As NGOs adopt more business-like attributes, perhaps we in the development community should consider how we are holding NGOs and ourselves accountable for quality development work. Does the NGO industry exist to serve workers’ martyr complexes like the characters in The Samaritan or are they actually there to serve developing nations?

When All Else Falls, Remittances Rise

After the recent military ousting of president Morsi by the Egyptian military, the US has decided to put a cap on military aid to the tumultuous country. This is not the first time. Back in August, the U.S. had cut some of its economic aid to the Egyptian government. Cutting off military aid may have a louder effect, considering military aid to Egypt greatly  surpasses economic aid. Thus far, the Egyptian government has been expectedly peeved in response to these actions.

With government aid in the news, it’s relevant to look at some of the other financial flows to Egypt. At CGP, we try to get a more complete picture of foreign assistance by looking at investment, philanthropy, and remittances.

With the recent turmoil, investment, the most fickle of the four flows, has subsided after the sharp rise in the spring of 2013. Much of this earlier rise came from neighboring Arab nations, after Europe and the US pulled out. Since the military takeover, sources suggest that all in all FDI has dried up and billions have been lost.

Continue reading

Cutting Corruption by Raising Government Salaries?

Corruption is a common barrier to development—it deters governments and individuals from investing in certain types of aid assistance and development projects. Instead of allowing funds to flow safely and efficiently between groups, corruption adds overhead costs to projects and usually demands bribes for bypassing bureaucratic red tape. Worst of all, people suffer when their governments incessantly block aid and reap the benefits themselves. This is also why some development theorists maintain that government and institutions need to be reformed in order to actually achieve development goals.

But what if there was a simple solution for all of this? What if there was a way to ensure that the government was not corrupt, and would facilitate growth and foreign investments? Continue reading