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.”

Advertisements

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.

Haven “Of the People, For the People, By the People”

It sounds reasonable to assume that a high crime rate correlates with political, economical, and social turbulence. But Nicaragua, a country lying in the center of Central America, defies this apparent logic. Despite its reputation as the second poorest country in the western hemisphere, Nicaragua has made remarkable strides in public security compared to its regional neighbors, the Northern Triangle– El Salvador, Guatemala, and Honduras. In 2012, the homicide rate in Nicaragua was 11.3 per 100,000 persons, less than one-third of the rates seen for its three northern neighbors.

From CentralAmericanPolitics

Nicaragua’s public safety profile is an even bigger surprise once you consider its economic, political, and geographical reality. As mentioned, Nicaragua’s living standard is one of the lowest among its regional neighbors with almost half the population in unemployment and homelessness. The wage rate for police officers, set at $120 a month, as well as their availability, 18 per 10,000 persons, is just as bad as the country’s poverty level. Politically, it has only been forty years since the revolutionary knock-over of the Somoza family dictatorship, and the foreign-intervened guerilla war against the subsequent authoritarian Sandinista regime. Such a short history of recovery is a fair enough excuse for Nicaragua to have security irregularities as past remains. What takes people aback the most is probably that Nicaragua has eschewed violence by drug traffickers and youth gangs like the MARAS or BARRIOS that have defined Central and South America for centuries. While Nicaragua shares a border with Honduras, a country pegged as one of the most dangerous areas in the world with the largest presence of the Maras, it has little identified indigenous terrorism and organized crimes.

It is neither stellar sociopolitical stability nor geographic prerogative that undergirds Nicaragua’s peace-mongering environment. Then, what? The most sounding answer lies in “preventive, proactive, community-oriented police model.”

Four decades of civil war the in Northern Triangle occurred at the end of the twentieth century, though they all differed in intensity, nature, and longevity. These conflicts caused these nations to develop national security policies that engagee the military in reactionary and repressive fashion. In contrast to their iron-fist policies, Nicaragua’s police system, while still retaining the pattern of military engagement in public security, proactively seeks to create a safe social environment. For example, the Nicaragua National Police (PNN) has created specialist bodies for youth violence and intra-family and sexual violence, which take up 20% of the national crime rate. These bodies carry out comprehensive three stage responses – transforming local environments, cooperating with local NGOs and health centers for victim support, and vocational training and education.

Even more telling of the country’s success, is the community-oriented aspect of the police model. A 1995 Constitutional Reform has given the PNN its own General Directorate and greater independence, which allows it freedom from political games. Under the centralized leadership, its operation is enrooted in a strong police-society partnership in a decentralized manner. There are usually broad channels of communication with local residents such as community assemblies and direct linkages with the people. In each district, there is a sector police chief, responsible for paying door-to-door visits to residents, building close ties with them, and inviting them for neighborhood watch activities. Among 100,000 volunteers nationwide assisting the PNN in both crime detection and victim support are some professionals like law and psychology students, as well as some experienced former gang members and victims of violence, and NGOs. The fact that Nicaragua has social culture of parochialism and small-township, resulting in close community ties, complements the picture.

Aminta Granera Sacasa

Nicaragua is not completely spared from the threats of violence. There are still 25,000 or so youth gangs. They are small in scale and often do not have foreign connections. But it is a logical sequence that the Mara gangs, contained in the North for now, may move south and reach these youths, especially at the wake of the Central America border control agreement which allows free movement of citizens between Nicaragua, El Salvador, Guatemala, and Honduras. Threats from a Mexican Mob, the Zetas cannot be ignored, as well. The persistence of low income, high poverty level further “legitimizes” participation in cocaine smuggling and investments. Above all, fraud in 2008 municipal elections, and the Police Directorate’s neglect of the limit on a five-year term, a writ-large departure from democratic order, pose a greatest disturbance to the philosophy of the country’s legal system.

Nicaragua has done a fair job so far, fair enough for the neighboring countries to learn from, though not replicate, its police model. Whether it will continue to be exemplary depends first on the collective effort by its regional partners to contain and ultimately eradicate organized crime groups. What remains of greater importance is to strive to live by a pillar that ensures equality of all people both politically and economically.

Into the Twilight

An aging population can pose many challenges to both families and developing nations. In China where the dominance of traditional filial pieties have dictated social norms, manly elders fear having no warrant for filial support after retirement due to changing norms. At this juncture, a brilliant trend-spotter, Starcastle offers a promising alternative. Starcastle is a Shanghai-based joint venture company between a large Chinese conglomerate, Fosun Group, and an American hedge-fund giant, Fortress Investment Group, that caters to hospitable senior living communities for retired elders. A stereotypical life of quiet retirement is unheard of at Starcastle. Instead, classy, up-to-date activities like tai chi, calligraphy, dances, social media messaging, and gaming in open-air cafés invigorate the facility and the lives of its residents.

The vibrant scenes playing out in this “castle” reflect a prominent trend in China’s social service market. Attracted by the country’s aging population, major U.S. firms including Emeritus Corp., Life Care Services LLC, and John C. Erikson have broken into the Chinese market in a tight consultation with Chinese firms, developers, and government officials. Small-scale government sponsorship like tax incentives and direct financial support for private nursing institutions dates back to as early as the 1950s. The number of institutions established, however, was not even close to being enough to care for the country’s elderly population, and poor infrastructure, service quality, and prices never appealed to the Chinese people. Reflecting on its past failure to build up the senior services market, the Chinese government made some effort itself to increase participation by allocating a huge block of land in Beijing for senior housing, overtly relying on the private sector in developing senior care.

Source: The Economist

Services for the aging population in China do in fact need a serious overhaul. In 2000, China’s 60-year-and-older population reached approximately 10% of the total population. Chinese government officials project that one third of China’s population will be over retirement age by 2050. Many blame the demographic fallout on the 1979 One-Child Policy, which dramatically shifted population balance. Increasing life expectancy has also contributed to the problem. In 1980, life expectancy for both sexes was 64 years. In 2001, it rose to 78.1 years. When these numbers are tied together with the average retirement age – 55 for female and 60 for male – it turns out that the elderly have a significant portion of their lives left after retirement.

 

The developing senior care sector is also in response to another noteworthy demographic trend – the rise of the urban middle class. The increase in China’s middle class population has been extraordinary. By 2022, more than 45% of the population is expected to be categorized as middle income earners. Right now, the mass middle class accounts for more than half of that number, but many expect the upper middle class, who can pay a premium for quality products and discretionary services, to become the new mainstream. Senior care does not come cheap. Starcastle primarily targets wealthy business owners in Shanghai who are capable of paying high costs for independent-living apartments, nurse care, housekeeping, and healthy meals. Rising labor and service costs, prices for land-use rights, and costs involved in the overall process inevitably drive the industry to target the rich for profitability. Senior care communities are attainable only for the powerful middle class, at least for now.

Of course, current efforts by foreign firms and domestic developers are not enough to entirely fend off the burden of caring for the aging population. There is still a large chunk of the population, mostly in rural areas, who cannot take part in this upmarket industry. China’s remarkable economic growth may also stall, dragging down middle-class ambitions with it. Chinese government’s ambiguous guidelines on its censorship and regulations on private, especially foreign, firms may put a halt to the deluge of development efforts in elderly care, as well.

In most developed countries, social benefit programs along with the long-lived culture of planning for post-retirement have been a cornerstone for caring for the elderly. China’s unique social, economic, and cultural environments  requires a new or revised development model that suits China’s characteristics. Amidst many uncertainties, one thing seems to be clear though; greater government participation and subsidies beyond allowing foreigners to participate is needed, so that all can comfortably live out the twilight of their lives.

The Beginning of a Beautiful Partnership?

The growing importance of the private sector is becoming a widely acknowledged fact in the development community. Now the problem for the development community is deciding how to properly incorporate the private sector into a public sector dominated field. Public-private partnerships seemed to be the solution, but effective and lasting partnerships are few and far between. To address the issue, The Partnering Initiative has released a paper titled “Unleashing the Power of Business: A practical roadmap to systematically scale up the engagement of business as a partner in development”. The paper provides recommendations for how the development community can promote public-private partnerships and ultimately take advantage of the advantages the private sectors provides to development work.

imagesIn order for public-private partnerships to be successful, the paper describes the need for what they call an “eco-system of support”. According to the authors, this eco-system is necessary for the successful fostering of public-private partnerships. The requirements include:

  • Funding organizations – partnerships must have financial support
  • Intermediary organizations – Organizations initiating partnerships
  • Training organizations and universities – necessary for capacity building
  • Consultancies – further support for partnership development
  • Research institutes – measures success of partnerships

Without the above five criteria, it becomes very difficult to foster strong partnerships.

The authors then provide a course of action within the specified ecosystem that will successfully develop public-private partnerships. The authors based the course of action on the perceived barriers including: lack of trust, timelines, communication difficulties, power dynamics, and differing priorities. The five critical steps include:

  1. Screen Shot 2014-03-21 at 11.18.14 AMDeveloping trust between sectors – Done through increased communication and prioritization of a common interest
  2. Collaboration and aligning of development priorities – Streamline development process by creating joint development programs centered around combined development goals and resource partnerships
  3. Develop local platforms for partnership – Committees that create collaborative environment and reduce overall risk posed to private companies
  4. Measure partnership results and effectiveness – Evaluation of whether partnerships are having the desired impact
  5. Develop institutional capacity to maintain partnerships – Create support structure and training program to improve organization preparedness for partnerships

With such an extensive action plan, the question of ownership is crucial. Who is responsible for developing and evaluating partnerships? The authors argue that ownership must come from a cross-sectoral group, either created solely for this purpose or already in existence. Public-private partnerships involve a variety of development groups: local, international, public, private. A cross-sectoral group is the most appropriate owner because it will have representatives from the many parties involved in public-private partnerships.

A major concern with the course of action, however, is the bureaucratic nature of developing partnerships. Creating a cross-sectoral group to oversee partnerships, build institutional capacity, and evaluate performance is only going to contribute to the already bureaucratic nature of development work. The authors address this issue in the paper and claim the solution is to prioritize specific action. But this is not a realistic solution. Anyone working in development will say that having a common goal is not enough to overcome the constraints of bureaucracy. This course of action could just add more red tape for development organizations to get through.

images-1A course of action to foster public-private partnerships is absolutely necessary. The public sector needs to embrace the growing importance of the private sector and make room for it in the development sector. But is this approach truly the best way? The added bureaucracy alone seems daunting but the realism of achieving these goals must also be a consideration. The action plan sounds like a fine proposal but does not seem to be strongly grounded in the actual nature of development. The first point alone, improving trust between organizations, is a lofty goal. Those in the public sector do not trust each other after working together for decades. It does not seem realistic to assume private and public actors would suddenly trust one another after simply an increase in communication. Can we also expect these companies to directly align their goals?

Realistic or not, The Partnering Initiative has made a large contribution to the growing field of public-private partnerships by identifying key barriers and possible courses of action. It explores a topic with minimal research and opens the door for future studies on enhancing public-private partnerships.

A Not So Indecent Proposal

Last week the White House Administration released the budget proposal for Fiscal Year 2015 (FY15). The proposal included a $700 million (1.4%) overall decrease in foreign assistance compared to the FY14 levels. Some assert this is the manifestation of the American public’s disapproval and disregard for foreign assistance and international development. In reality, however, the new budget demonstrates a continued commitment to foreign assistance and the Obama Administration’s reprioritizing of development goals.

imgresThe overall decrease in aid is largely due to America’s reduced presence in Afghanistan and Pakistan, whose operations formerly made up large parts of the US foreign aid budget. The new budget would not entirely remove aid to these countries, but would remove several on the ground operations focused on post-conflict reconstruction. The country would not necessarily lose its direct monetary assistance from the US, but would lose its technical assistance in infrastructure rebuilding. The decrease in US technical assistance equates to a high monetary loss for each country and makes it appear as though the US is scaling back its overall foreign assistance program. Rather, the US is maintaining its overall monetary assistance but decreasing its capital assistance in certain countries.

The dire picture many paint of the FY15 budget ignores the many strategic aid increases the Obama Administration proposes. The FY15 budget proposal would increase funding for the US Trade and Development Agency (USTDA) by 22%. This agency’s purpose in foreign assistance is to connect American companies with infrastructure investment opportunities in developing nations. By increasing funding for USTDA, the Obama Administration seems to be encouraging the development of public-private partnerships between US private companies and developing countries. This demonstrates not only a shift in America’s approach to foreign aid but also demonstrates the government’s recognition of the large role private corporations could play in the future of development.

imagesThe proposal would also increase funding for the US Millennium Challenge Corporation (MCC), which focuses on aid for countries prioritized by the UN’s Millennium Development Goals (MDG). While overall funding may fall, the increased funding for the MCC demonstrates a stronger commitment to UN development initiatives. The proposal suggests that the US is beginning to prioritize not only its own development interests but global development issues as well.

What does Obama’s budget proposal indicate about his views for the future of US foreign aid? The budget demonstrates a shift in foreign aid priorities. Previously, US foreign aid focused heavily on infrastructure improvements and post-conflict rebuilding. America was especially involved in rebuilding war torn countries in the Middle East. Just look at Afghanistan or Pakistan or Syria as examples. But with a decrease in technical aid towards those countries and an increase in funding to the USTDA, Obama seems to be outsourcing infrastructure reconstruction to private companies. The administration would instead have the US government prioritize economic development. This becomes especially apparent when also considering the increased funding for the MCC. The MCC and the UN’s MDGs focus more on economic and community development in addition to overall capacity building.

This is an interesting approach to foreign aid because Obama appears to be taking advantage of the growing role of private companies in development. Development is no longer just for DAC donors or federal governments. Public-private partnerships have the potential to transform and improve foreign assistance. Using Obama’s strategy, if the private sector focuses on infrastructure development that leaves the US government free to prioritize economic development.

Japan Sprints to Myanmar’s Aid

Until recently Myanmar – also known as Burma – was considered a pariah state, virtually inaccessible to the outside world, and ruled by a repressive military junta with an appalling human rights record. The U.S. and E.U. placed sanctions on the country during the 1980s, but since the establishment of a new nominally-civilian government in 2010, Myanmar has passed sweeping reforms in hopes of opening and developing the country.

The rest of the world has not hesitated to use this opening: foreign governments and multi-lateral institutions, are boosting their aid and development packages after decades of absence that left the country of 60 million people one of the poorest in Asia. Private firms, too, are vying for access to the “next economic frontier” and perhaps one of the last major untapped markets.

While the U.S., E.U., World Bank, and Asian Development Bank have each committed hundreds of millions in development aid, so far Japan has been one of the most eager donors.

Continue reading