Practice of Partnership

We’ve reached the end of the Practice of Partnership series. We’ve discussed how local partnership can help grow economies and businesses, strengthen democracy, and provide the drive and innovation to help countries meet their climate change goals. As we’ve seen, driving local partnership isn’t a one-sized-fits-all approach because local partners aren’t a monolith. They include local businesses, NGOs, civil society organizations, investors, corporations, and government bodies. That means partnership needs to work for partners on their terms, not just the ones that international development is accustomed to. Two projects from our portfolio that are looking at new ways to work with local entities on their terms are INVEST and Human Capital Development or HCD+.

Colombia’s deep-seated democratic traditions have been put to the test by decades of armed conflict. Over the past 50 years, thousands of people have been murdered and millions affected by violence. High levels of inequality and eroding trust between citizens and government institutions have also tested the country’s democracy and rule of law. Against this backdrop, USAID and the Government of Colombia are bringing together organizations of varying footprints, attributes, and perspectives in an effort to enhance institutional accountability and transparency, improve public services, boost civic participation, and better include minority groups.

Show Notes:

• World Bank Colombia

Guests:

• Carla Aguilar, Chief of Party, Responsible Governance, DAI
• Karen Hussmann, Chief of Party, Partners for Transparency, DAI
• Andrés Hernández, Executive Director, Transparencia por Colombia
• Juliana Forero Montes, Project Coordinator, Cordupaz

Crisis upon crisis has beset the country of Lebanon, home to hundreds of thousands of Syrian refugees, Palestinians, diverse religious communities, and an even more diverse political landscape. Political failures have repeatedly brought the country to halt, most recently in 2020 when the country’s financial sector collapsed. Since then, financial and business innovation has been helping to bring the country back from the brink. A new cadre of investors is catalyzing economic growth and creating an entirely new financial system in the process. On this episode, we look at how investment bankers and venture capitalists are planting the seeds of Lebanon’s recovery through partnership.

Show Notes:

• World Bank Report Lebanon
• The State of Digital Investments in MENA

Guests:

• Chris LylePrincipal, CrossBoundary
• Mark RostalChief of Party, DAI
• Ramzi FarahManaging Director, Razor Capital
• Nicolas PhotiadesPartner, Orion Financial Solutions

A global shift is underway. The trend toward de-globalization, influenced by our climate crisis, the pandemic experience, Russia’s invasion of Ukraine, and growing attention to dislocation and inequalities within national economies has caused many countries to turn inward. Advocates of free trade as the answer to global growth face increasingly tough questions.

“Place-based economics” lies at the center of an emerging order, which encourages businesses to reassess the value of localized suppliers and supply chains rather than relying exclusively on highly globalized ones. It also puts business resiliency on par with efficiency. In other words, it acknowledges that chasing profit solely by maximizing efficiencies puts businesses at risk in times of shock or uncertainty. Local options and local content can make for better, stronger, more resilient networks. That’s the same discussion many development practitioners are having now. So, let’s join the conversation between international development and global business.

References

• World Trade Organization: local content definition (bit.ly/3QwAaEK)

• World Bank: Mozambique Economic Update: Growth Slows Amid Challenging Global Conditions and Rising Fiscal Risks (bit.ly/3s0hTpg)

• Chatham House: How can Mozambique manage its debt crisis? (https://bit.ly/3DO3G1d)

• World Bank: Mozambique Economic Update (https://bit.ly/47lTgU5)

By any measure, Vietnam is a huge success story. In the space of just 20 years, from 2000 to 2020, the country’s GDP grew from US$31 billion to $346 billion. But alongside these substantial achievements, carbon emissions have grown sevenfold since 2000, making Vietnam the world’s 19th largest carbon emitter.

The government has pledged the country would reach net zero by 2050, but Vietnam faces increasing challenges around reducing fossil fuel-based energy, transportation, and industrial processing. In May 2023, the government approved the Power Development Plan 8, which lays out how it will reach its green energy goals. Wind and solar power, which Vietnam hopes will account for 60 percent of its energy generation by 2050, are crucial parts of the plan, but to put that plan into place the government will need to attract billions in investment. So it’s charting a path to change its future, through partnership.

References

• World Bank: Vietnam Country Climate and Development Report (https://bit.ly/wb-vietnam-report)

• Climate Watch Data Vietnam (https://bit.ly/climate-watch)

• EU’s Corporate Sustainability Reporting Directive (https://bit.ly/eu-csrp)

• Vietnam’s true carbon threat: its kingdom of 50m motorbikes (https://s.nikkei.com/3DcMG4h)

• Vietnam firm launches country’s largest solar far amid renewables drive (https://reut.rs/3pJnLT1)

• Vietnam Government Approves Power Development Plan 8 (https://bit.ly/plan-8)

• Vietnam has a poor environmental scorecard (https://bit.ly/vietnam-scorecard)

There’s an old African proverb that says if you want to fast, go alone, but if you want to go far, go together. In other words, people and relationships lie at the heart of success. At DAI, we depend on our partners. Not just our co-implementers and small businesses, but crucially our local partners in the countries where we work. Development is inherently local and collaborative – local leadership and participation are essential.