PROMOTING SUSTAINABLE SOCIAL AND ECONOMIC DEVELOPMENT IN BRAZIL THROUGH INNOVATIVE

MECHANISMS

Jennifer AdamsUSAID/Brazil Mission Director

Salvador, BAApril 2008

USAID – U.S. Agency for International Development

Independent U.S.G. agency, created in 1961 Implements humanitarian assistance, and sustainable social

and economic development programs Works in partnershippartnership with NGOs, public and private sector In Brazil, USAID addresses global impact issuesglobal impact issues in the areas

of: Energy, Environment, Health, Youth Employment, Trafficking in Persons, Micro and Small Enterprises, and Corporate Social Responsibility

Works to strengthenstrengthen the strategic relation Brazil-U.S.relation Brazil-U.S. by forging partnerships; sharing good practices; and developing sustainable and innovative mechanismsinnovative mechanisms

Global Development Alliance - GDA

Mechanism for creating strategic strategic alliancesalliances

AlignAlign public and private sectors interestsinterests with USAID’s strategic development objectives

CombinesCombines the strengthsstrengths, capabilitiescapabilities, skillsskills and resourcesresources from each partner to create sustainable solutions

Example of a GDA project in Latin America

Entra 21Entra 21

Entra 21 is a $ 25 million public-private alliance among USAID, the Inter-American Development Bank's Multilateral Investment Fund, the International Youth Foundation and several technology companies including Cisco Systems, Lucent Technologies and Microsoft.

This alliance is co-financing 40 locally conceived and executed projects to train 12,000 youth, from 20 countries in Latin America, in skills related to information and communication technology.

Example of a GDA project in Brazil

Responsible Sourcing Partnership ProjectResponsible Sourcing Partnership Project

USAID partnered TransFair USA, Café Bom Dia, and Wal-Mart in a three-year, $1.9 million public-private agreement to promote sustainable economic growth in Brazil by supporting farmers producing Fair Trade and Organic Certified coffee and cooperatives with technical and trade-related training, and infrastructure investment.

Development Credit Authority – DCA

Credit GuaranteeCredit Guarantee mechanism How it works:

Improves access to local private capitalaccess to local private capital Risk is sharedRisk is shared to encourage lending - cover up to 50% of a

lender’s risk in providing financing Uses credit for the development of sustainable and sustainable and

profitable social economic activitiesprofitable social economic activities Resources are maximizedResources are maximized - Resources can leverage up to

25 times the per-dollar-impact

Example of a DCA project in Peru

USAID has set up loan portfolio guarantees with three financial institutions to improve access to credit for Peru’s smaller enterprises, especially those focused on alternative development. The guarantees are intended to diminish the risk financial institutions perceive in lending to agribusinesses and promote longer-term lending to microenterprises. In total, the three guarantees cover up to US$7 million, encouraging the financial institutions to lend in targeted geographic areas and to improve lending in rural areas - especially for the agro-industrial sector. Nearly 1,000 loans have already been made, supporting local microenterprises.

The Corporate Social Responsibility Initiative

Launched by U.S. Ambassador Sobel in October 2006

PartnershipPartnership among U.S. Mission in BrazilU.S. Mission in Brazil (Embassy + USAID), the American Chamber of CommerceAmerican Chamber of Commerce and 30 U.S. companiesU.S. companies (group has expanded over 60 companies)

Objectives:- Improve visibilityvisibility- Promote partnershipspartnerships - Share good practicesgood practices

Mission Statement and Group Identity

““Strengthen public and private Strengthen public and private alliancesalliances to to optimizeoptimize and and enhanceenhance US CSR investments in Brazil towards sustainably US CSR investments in Brazil towards sustainably achieving the achieving the Millennium Development GoalsMillennium Development Goals.”.”

Results

Several partnershipspartnerships established

– U.S. Brazil Higher Education PartnershipU.S. Brazil Higher Education Partnership(Ford and Microsoft)

– CSR Challenge FundCSR Challenge Fund (Microsoft, Dow, Fedex and Accenture interested)

– Responsible SourcingResponsible Sourcing (Wal-Mart/Sam’s Club and Café Bom Dia)

– Education Education (IBM, Intel, Microsoft, and Sun Microsystems)

– Youth Ambassadors ProgramYouth Ambassadors Program

Results

Increased visibilityvisibility Group identityidentity (+Unidos roughly translated as “more united”)– CSR workshopsworkshops (Jeffrey Sachs and Ray Chambers)– Volunteer weekVolunteer week October 1-5, 2007 (Theme: environment)– CSR websitewebsite launched (

www.embaixada-americana.org.br/csr-index.php)

Results

Good practices

1st Social Partnership Workshop of the +Unidos - May 2008

CSR ReportCSR Report – being prepared by GIFE- The study is collecting and analyzing information on the private social private social

investmentsinvestments made in 2006 and 2007 by 48 U.S. companiesU.S. companies that participate in the U.S. Embassy CSR Initiative

- Objectives- Systemize opportunitiesopportunities and challengeschallenges- Exchange informationinformation and knowledge- Point out trendstrends

- To be releasedreleased on August 2008August 2008

CSR Report

Preliminary findings U.S. CSR investmentsCSR investments cover a vast areavast area within the country (urban

and rural areas) Investments are concentrated in the areas of educationeducation, healthhealth,

environmentenvironment, and community developmentcommunity development There are several opportunitiesopportunities for jointjoint cooperationcooperation on similar similar

projects projects – Cummins/Wal-Mart/Whirlpool are already cooperating as an outcome of the report

Companies’Companies’ effortsefforts to promote social transformationsocial transformation shall be boostedboosted and multipliedmultiplied after the release of the report

THANK YOU !THANK YOU !