Professional Documents
Culture Documents
Alliances
⁄
Transform Aid
I
By Andrew S. Natsios
⁄Illustration by Michelle Thompson
The dual goals of scalability and sustainability
have eluded many development projects. In re-
cent years, however, the United States Agency
for International Development (USAID) has
n 1994, 800,000 Rwandans were mur-
reached out to corporations, nonprofits, and dered in the last genocide of the 20th
even private citizens to build alliances that are century. When Paul Kagame became
president of Rwanda, the nation’s econ-
making large-scale, long-term change. In this omy was still in shambles, with few
article, the former head of USAID describes the resources other than its people and its coffee crop. But
public-private partnership model that his agen- Rwanda’s coffee beans were of such poor quality and
unappealing taste that they were sold at the lowest pos-
cy forged, the successes that the model has sible prices. Traders made most of the modest profits,
won, and the struggles that it continues to face. leaving growers impoverished.
To make Rwanda’s coffee crop more profitable, the
United States Agency for International Development (usaid) and the Rwandan govern-
ment organized an unusual alliance between coffee farmers and several international
coffee companies, including Starbucks Corp. and Green Mountain Coffee Roasters
Inc. The alliance trained the farmers to process specialty coffee beans that would fetch
premium prices. usaid played a central role in linking the coffee farmers to U.S. coffee
retailers, as well as in training farmers in how to grow and process the coffee to meet
high specialty coffee standards. usaid also helped coffee farmers secure bank loans to
buy or upgrade equipment.
By 2006, exports of Rwandan specialty coffee had grown to $8 million, and coffee
farmers’ per capita income had more than quadrupled, from $75 per year in 2001 to
$400 per year in 2006. Starbucks and Green Mountain Coffee ranked Rwandan spe-
cialty coffee as the best of the best.
Like usaid in Rwanda, other donor government aid agencies are increasingly
working with corporations and nongovernmental organizations (ngos) to encour-
age economic development in poor countries. At least 10 bilateral aid agencies (that
is, government agencies in a single country—such as usaid and the Department for
Sustainable Tree 2003 USAID West Africa Help farmers grow better cocoa Taught 33,000 farmers in five countries
Crops Program World Cocoa Link farmers with markets Benefitted 69,000 farmers through
Foundation Teach farmers business skills knowledge diffusion
Global cocoa industry Organize cooperatives Increased participants’ yields
Bill & Melinda Gates Protect surrounding Decreased pesticide use
Foundation environment Raised payments to participants
Continuous 2004 USAID Guatemala Improve compliance with inter- Trained 809 workers in 47 factories on labor rights
Improvement Gap El Salvador national labor standards and responsibilities
in the Central Wal-Mart Honduras Increase competitiveness of the Trained 614 labor ministry inspectors, some 50
American Workplace Limited Brands Nicaragua Central American textile sector percent of the region’s inspectors
Timberland Dominican Raise productivity by improving Implemented antidiscrimination manual
Billabong
DAI
Water and Develop- 2005 USAID 21 countries Increase access to clean water Angola: Built 10 public water taps that serve
ment Alliance Coca-Cola in Africa, Asia, Manage watersheds sustainably 23,000 people
Global Environment Latin America, Use water more efficiently Ethiopia: Built 45 wells, public showers, washing
& Technology and the Improve sanitation and hygiene basins, and latrines that serve 40,000 people
Foundation Middle East Egypt: Established technologies for wastewater
Local partners treatment
MTV EXIT 2007 USAID Europe Raise awareness and increase Filmed three documentaries on human trafficking
(End Trafficking and MTV Europe Asia prevention of human trafficking Launched animated film
Exploitation) Foundation Produced videos with bands such as Radiohead
and the Killers
Partnered with more than 100 NGOs
Distributed hundreds of thousands of brochures
in more than 25 languages
Reached out to millions of young people through
concerts and music festivals