Devex Executive Review Spring 2013 by Devex

Devex Executive Review Spring 2013

A lasting legacy? Hillary Clintonâ&#x20AC;&#x2122;s impact on international development

Big pharmaâ&#x20AC;&#x2122;s pro-poor business

Devex Impact: Where business meets development

Why recruiting just got easier

Exclusive to Devex Executive Members

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- Geeta Rao Gupta, UNICEF deputy executive director

- Queen Rania of Jordan

“We usually say there is always a Plan B, but there is no Planet B.”

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- Jan Eliasson, U.N. deputy secretary-general

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Stronger than we thought Raj Kumar, president & editor-in-chief of Devex Ever since Lehman Brothers came tumbling down some four years ago, the development community has been bracing for aftershocks. To be sure, there were immediate impacts, particularly in terms of corporate and individual donations to NGOs. But what of the threatened cuts to official foreign aid budgets? It turns out that the politics of foreign aid had changed in a fundamental way, making support for development assistance stronger than we thought. In North America, what was once a top-tier battle between major political parties turned into a rare area of agreement. During the Bush and first Obama administrations, vicious partisanship was put on hold over HIV, malaria, democratization, infrastructure, market opening and aid for national security purposes. And the most recent major threat to U.S. aid budgets — the so-called “sequestration” — has led to a 5 percent cut to foreign aid, at a time when annual aid budgets exceed $30 billion compared to less than $10 billion in the 1990s. The story in Canada is similar: The tenure of conservative Prime Minister Stephen Harper has led to a

multiyear freeze, but not deep cuts, in that country’s aid. The U.K.’s conservative government continues to “ringfence” its aid budget even as it pursues tough cuts to domestic public expenditures. And amid the eurozone crisis, governments across the continent have by and large kept the faith with developing countries, holding development aid budget levels at or near their precrisis levels (Germany, for example, cut its 2013 development ministry by 2 percent versus 2012). The European Commission budget, which seems likely to pass the European Parliament this spring, is nothing to cheer about but it effectively freezes aid budgets at prior levels. Japan’s political turmoil and continuing deflation over the past few years has not been good for its significant foreign assistance budget, but cuts have been modest and there are even areas where the world’s third-largest economy is expanding its role. And emerging powers from Australia to South Korea to India largely shrugged off the financial crisis and have continued a rapid increase in development financing. None of this is to say that even modest cuts to development aid are trivial. After all, minor reductions in ODA can directly cost lives during famines and conflict. AIDS patients

dependent on medications provided through global health programs literally have their lives at stake during budget negotiations. And a flattening out of official development assistance means new opportunities — ending polio, modernizing government ministries, or bringing broadband to rural Africa among them — may be delayed.

their social contract. That includes their relationship with developing countries. In this new environment, even maintaining aid budgets over the coming decade will be difficult. More focus will be placed on aid effectiveness and new sources of development financing, including wealthy philanthropists, corporate giving and impact investing.

But there is a lesson in the way the development community has — remarkably — weathered the storm of the financial crisis. Connecting publics to development works. What advocacy groups like the ONE campaign, United Nations Foundation and U.S. Global Leadership Coalition, what policy shops like ODI, the Center for Global Development and Brookings, and what international NGOs like Oxfam, CARE and Catholic Relief Services have done is to build a levy of public support around foreign aid that held even as the seas rose. Those efforts, from involving celebrities to leveraging multimedia platforms to putting complex data in plain terms for legislators and voters, worked.

All of this is for the good, so long as it is additive. For although there is much to be optimistic about in the developing world, we are not yet near development aid’s obsolescence.

The coalitions of business, religious and progressive groups which have defended development these past few years will continue to be needed. What was a fiscal crisis is now becoming a structural economic challenge. Wealthy nations, burdened by aging populations and rising health care and pension costs, are beginning to reassess

Devex Timeline

September - February

Highlights from our daily breaking news coverage 67th session of the U.N. General Assembly opens

Justine Greening, the new U.K. aid chief

Andrew Mitchell becomes chief whip, later resigns

Event highlights include the launch of Education First, new partners on Sustainable Energy for All and pledges for women’s empowerment and polio eradication – and more calls for U.N. reform

World Bank annual meetings in Tokyo Jim Yong Kim: “We must grow from being a ‘knowledge’ bank to being a ‘solutions’ bank”

09-14

EU offers $203M “biggest assistance package ever” to Somalia, to strengthen education, security, judiciary

European Development Days return to Brussels

Victory for Martin Dahinden: Swiss development cooperation secures funding hike through 2016

15 Clinton Global Initiative focuses on ‘designing for impact’

More than $1.1B for 2013: Finland keeps core aid budget flat (above, Heidi Hautala, minister for int’l dev’t)

Hillary Clinton challenges donors to expand their networks of partners; Devex captures leaders’ reactions

23-25 Norway ups 2013 aid to $5.3B

September

AFD priorities announced, NGO funding to double by 2017 (above, Director Dov Zerah)

October

15-20

19-20 2013 EU budget gets the green light; nearly $13B for “Global Europe” account

African Union summit ends without DRC peace deal

At the Devex interview studio, international movers and shakers discuss the event’s central themes: food security, inclusive growth and private sector engagement in development

US President Barack Obama wins re-election

Ireland suspends aid to Uganda over funding misuse

Foreign aid leaders call for “bolder” moves on funding and reform (above, Obama and Vice President Joe Biden)

Other donors follow suit; Uganda starts repaying months later

In Rome, the Committee on World Food Security approves 2-year, inclusive consultation process to develop principles for responsible agricultural investments

Myanmar hosts first dev’t cooperation forum; days later, World Bank and ADB fully resume operations there

16-17 Sweden eyes $5.8B or 1 percent of GNI for ODA in 2013 (above, Gunilla Carlsson, minister for int’l dev’t cooperation)

Climate change talks in Doha wrap up two weeks after heated debate about the Kyoto Protocol’s successor and financing the Green Climate Fund

30 Announced: World Bank’s consolidated investment lending policy, to take effect in 2013

Board also approves new grant funding approach to accelerate impact

German parliament approves first foreign aid cut in years, totaling $113M in 2013

Palestinians win U.N. nonmember observer state status

World AIDS Day Days earlier, the U.S. unveils a new PEPFAR blueprint and strategy to achieve an AIDS-free generation

2013 UN appeal: $8.5B Somalia, South Sudan and Sudan account for $3.44B

05 Ireland shaves 2013 aid budget, to $657M

The next day, Mali pledging conference focuses on military intervention as EU and other donors craft post-crisis plans

December

No cuts to EU foreign aid: 2014-2020 budget framework approved

UNDP reform plan takes shape

Helen Clark updates executive board on tough cuts ahead

MCC announces compact-eligible countries: Liberia, Morocco, Niger, Sierra Leone, Tanzania

UNEP strengthened after “historic gathering” in Nairobi

U.N. pledging conference for Syria exceeds $1.5B target

Somalia back in donors’ good graces: President visits Washington donors, later travels to Brussels, London

17 Released: DfID’s new code of conduct for suppliers, part of the agency’s ongoing rollout of value-for-money policies

05 November

U.S. State Department creates Office of Global Health Diplomacy, headed by Global AIDS Coordinator Eric Goosby

29 UK aid cut to India: No new grants, focus on technical assistance

At CAREC meeting, donors plan $23 billion in projects in Central Asia

The next Global Fund executive director: Mark Dybul

John Kerry takes over from Hillary Clinton as U.S. secretary of state

18-22

30 U.N. and partners launch $30.5M appeal for Mozambique flood relief after weeks of heavy rains

18 January

February

Exclusive Feature

Opinion leaders @ Devex

Global development’s star player hangs up her jersey By Elizabeth Becker, Devex correspondent

Few U.S. secretaries of state have reached the iconic stature of Hillary Rodham Clinton. She left that office on Feb. 1 after four years with her rock-star status solidified and the informal title of the most famous woman in the world. Given her high-power profile, Clinton surprised many by eschewing the usual path toward greatness for this country’s top diplomat. Departing from at least five decades of tradition, Clinton did not concentrate on solving intractable conflicts like those in Afghanistan and Israel, searching for a Nobel Peace Prize. Those wars were handed over to special advisors close to her: the late Richard Holbrooke in Afghanistan and George Mitchell in Israel. (Neither brokered a peace deal.) Instead, she focused much of her attention and energy on international development, on issues considered small bore if well-meaning: saving children from dying of preventable diseases, connecting poor farmers to markets as part of a new food security program, and improving the lot of women whose lack of education and resources are at the core of some of the world’s thorniest challenges. For Clinton, these weren’t “soft” issues but part of a “smart power” agenda crucial to U.S. economic and national security interests. And it was a focus that came naturally to the former first lady, who famously declared, at a 1995 U.N. conference in Beijing, that “women’s rights are human rights.” Clinton left office having visited more countries than any of her predecessors. In the process, she helped to write the script for a new type of U.S. engagement abroad, one in which international development is a central pillar. No doubt development did not achieve equal footing with diplomacy and defense during Clinton’s tenure, as many within the aid community may have hoped, but more than a dozen experts interviewed for this article — on and off the record — say she has elevated its importance beyond any historical equivalent. But has a higher profile for development led to better results? On this point, Clinton’s record is mixed. Reforms and new initiatives are incomplete, congressional support for foreign aid uncertain, and the alphabet soup of development programs spread across more than 20 agencies. Will the push this powerful woman gave to development be enough to carry her efforts forward even after she’s gone? John Kerry, her successor, has largely been silent on aid, and in a rare joint appearance with President Barack Obama on the CBS “60 Minutes” television program shortly before she left office, only Clinton mentioned development while her boss described his foreign policy successes in classic terms of winding down wars and pushing back al-Qaida.

Hope and change In 2008, when Barack Obama was first elected president, he promised to double foreign aid within five years — a pledge he soon retreated from as the magnitude of the financial crisis became clearer. Many in the aid community had lobbied for a Cabinet-level aid agency that would operate independently of the State Department, but neither President Obama nor Secretary Clinton made a public commitment to that idea. And when a massive earthquake devastated Haiti, Clinton made clear that State was leading the U.S. response and Rajiv Shah, the newly minted U.S. Agency for International Development administrator, reported to her. That press conference, in January 2010, captured Clinton’s attitude toward development cooperation. She took control of the resources available and tried to make sure the job got done, without regard to bolstering the independence of USAID. It ruffled some feathers, but many in the aid community decided it was a plus having someone in charge who was as committed to development and as politically influential as Clinton. Nancy Birdsall, a founder and director of the Center for Global Development, is one of many aid veterans who have mixed emotions about Clinton’s tenure. She praised Clinton’s commitment to the issues and said she had expected the incoming secretary of state to be “terrific,” but would now rate her overall performance as “merely good.” “I just wish as secretary, she had pushed for more autonomy and more of a policy role for USAID on decisions where the development voice is sorely needed alongside diplomacy and defense,” Birdsall said in an email. “The reality is that during her tenure, a lot of ‘development’ was run (and not particularly well) by the State Department.” Birdsall captured what has become a hotly debated question: Was Clinton’s intention to build up USAID undermined by her conviction that the best way to protect the agency was to keep it under the firm control of the State Department? Read the full story at devex.com/news/hillaryclinton

“Nonprofit work often uses emotions to obfuscate the lack of tangible results, but my rejection of an inflexible definition of costeffectiveness is not about emotions.” From “What’s the impact of one pink dress?” by Jacob Lief, Ubuntu Education Fund co-founder and president

“Agencies providing international aid are committed to ‘do no harm,’ but in the long run, aid dependency does just that.” From “Investing in Africa: A sustainable means to end aid dependency” by Bekele Geleta, IFRC secretary-general

“Those of us who are parents know that the sun and moon rise around our children. Those working in development know that young people have the strength to move the sun and the moon … and sometimes more.” From “Why USAID’s new youth policy will boost development” by Susan Reichle, assistant to the administrator for USAID's bureau of policy, planning and learning

“Many people think of the poor as the responsibility of the state or mere recipients of aid. They are not. … They, too, are creative entrepreneurs and value-conscious consumers who contribute to prosperity by doing their share. In fact, if you are in business, you would be foolish to ignore this market of 4 billion people with an estimated $5 trillion in purchasing power.” From “Business for the poor is not poor business” by Imoni Akpofure, director of IFC’s Western Europe department

Devex upgrades the world's most comprehensive global development job board

Executive Appointments The last few months have seen leadership changes at a variety of institutions, including the Asian Development Bank, Global Fund, Oxfam and within the U.S. and other governments. Here’s a selection: African Union: Pierre Buyoya, high representative for Mali and the Sahel ADB: Takehiko Nakao, president (nominee); Bruce Davis, vice president for administration and corporate management; Christopher Stephens, general counsel Australian Ministry for Foreign Affairs: James Gilling, ambassador for HIV and AIDS, tuberculosis and malaria Austrian Development Agency: Martin Ledolter, managing director Christian Aid: Rowan Williams, chairman of the board of trustees CIVICUS: Dhananjayan Sriskandarajah, secretary-general Consortium for Street Children: Colin Nee, CEO EEAS: Stephan Auer, director for multilateral relations and global issues

In the end, international development is about the people. It’s about malaria eradication experts and governance consultants, relief logisticians and project managers. It’s about people working across cultures and time zones to improve lives. Connecting the right people with each other is crucial to the success of development assistance, and to the success or any organization providing it. The newly upgraded Devex jobs board makes it easier than ever for recruiters to find the right talent and keep track of their work, and for organizations to succeed in today’s complex, competitive environment.

For recruiters, a personal dashboard Recruiters often spend days, weeks – yes, months – searching for the right candidate to join a field mission or work at the home office. That’s a lot of networking and sifting through dozens, sometimes hundreds of resumes. Our new-and-improved jobs board makes that process more efficient and effective than ever. Recruiters often follow strict rules when choosing job candidates, whether they are imposed by the organization or an external donor. One job may require fluency in French, another EU citizenship, or a doctor who’s practiced for more than two decades and lives in New York City. Whatever the case, recruiters tend to get flooded with resumes, including many that don’t fit basic requirements. Devex members with a recruitment account are now able to filter applicants based on whether or not they meet non-negotiable requirements spelled out in the job ad. Candidates can still apply even if they don’t meet those requirements, but they’ll be warned.

Devex members who access their recruitment account now find a personalized dashboard that features their most recent job postings and other content tailored to their needs, like Recruitment Insights, which explore ways to engage and retain high-quality staff members and consultants. Recruiters will easily be able to post, but also delete, close, extend, feature, update and re-post job announcements – and they’ll be alerted when a job ad is about to close. Extending an ad for 15 days is free; reposting an ad will make it reappear at the top of the Devex jobs board and in our Doing Good publication, which reaches more than 400,000 job seekers around the globe every week. Recruiters can save their organization’s profile, edit and reuse it for other job ads – and in searches, only the job portion of an ad will be searchable. That way, if an organization that has worked in global health is looking for an education specialist, a search for the former won’t turn up this irrelevant ad. For those engaged in recruiting the international development leaders of tomorrow, a Devex recruitment account is an essential tool. Read more at devex.com/news/jobsboard and watch a step-by-step webinar guide at devex.com/news/jobsboard_webinar

EIB: Jonathan Taylor, vice president; Clara Crespo, full member of the board of directors; Edward Bannerman, alternate expert member of the board of directors Finnish Ministry for Foreign Affairs: Pekka Puustinen, director-general of the Department for Development Policy Global Fund to Fight AIDS, Tuberculosis and Malaria: Mark Dybul, executive director; Christopher Game, chief procurement officer; Elizabeth O'Donnell, head of human resources; Osamu Kunii, chief of strategy, investment and impact; Norbert Hauser, interim inspector general ICRC: Hugo Banziger, Jacques Chapuis, Alexis Keller, Doris Schopper and Heidi Tagliavini, members of the ICRC Assembly Inter-American Investment Corp.: Carl Muñana, general manager MCC: Lorne W. Craner and Morton H. Halperin, members of the board of directors OECD-DAC: Erik Solheim, chair Oxfam: Winnie Byanyima, executive director, Oxfam International (starting in April); Mark Goldring, chief executive, Oxfam GB; Helen Szoke, chief executive, Oxfam Australia Pan-American Health Organization: Carissa F. Etienne, director Swedish Ministry of Foreign Affairs: Ann-Sofie Nilsson, director-general for international development cooperation United Nations: Romano Prodi, special envoy for the Sahel region in West Africa; Paul Farmer, special advisor for community-based medicine and lessons from Haiti, José Ramos-Horta, special representative and head of the U.N. Integrated Peacebuilding Office in Guinea-Bissau; Ahmad Alhindawi, envoy on youth; Néstor Osorio, president of the Economic and Social Council U.N. Capital Development Fund: Marc Bichler, executive secretary UNAIDS: Luiz Loures, deputy executive director of program USAID: T. Charles Cooper, assistant administrator for legislative and public affairs U.S. President’s Global Development Council: Mohamed A. El-Erian (chair), Richard C. Blum, Sylvia Mathews Burwell, Esther Duflo, Sarah Beardsley Degnan Kambou, James M. Manyika, William K. Reilly, Steven Schwager, and Smita Singh U.S. State Department: John Kerry, secretary of state; Eric Goosby, head of the Office of Global Health Diplomacy World Bank: Bertrand Badré, managing director for finance and chief financial officer; Kaushik Basu, chief economist; Axel van Trotsenburg, vice president for East Asia and Pacific; Kyle Peters, vice president for operations policy and country services; Joachim von Amsberg, vice president for concessional finance and global partnerships World Food Program: Elisabeth Rasmusson, assistant executive director

Business Insight

Devex Impact

Could a new business model be the next wonder drug?

A new platform linking business and development

By Paula Park, Devex correspondent

International drug companies have long been demonized in the developing world. For a few decades now, critics have painted these global corporations – or big pharma, as they are collectively and commonly known – for testing unsafe medicines and selling expired drugs in the least developed countries while at the same time blocking the sale of cheaper generics to the poor and sick. The 2005 hit film “The Constant Gardener” neatly summed up the drug-company-as-villain view. In part to counter the criticism, over the last few decades, drug companies have made substantial donations of medicines to poor countries. But big pharma’s philosophy has changed. Economic troubles in the West and growth in developing countries have prompted big pharma to transform its approach. Companies now consider poor countries as new markets for consumer sales. This has led many big pharma executives to radically change their engagement with the global health and development community. No longer are they simply donating medicine. Today, big pharma is partnering with aid organizations to develop medicines specifically for the developing world and to improve the health care infrastructure in the poorest countries. In a departure from an approach that focused solely on drug giveaways, big pharma is in the process of designing a new business model that marries improved health outcomes for the poorest with their own business survival. “We’ve got a long-term horizon,” says Dr. Allan Pamba, director of public engagement and access initiatives for GlaxoSmithKline’s developing countries and market access unit. “These are some of the fastest growing countries in the world.”

As market-based solutions to development challenges — from supply chain sustainability to impact investing to social enterprise — gain prominence, the U.S. Agency for International Development and Devex are proud to have launched a new online platform dedicated to the intersection of business and development. The website, Devex Impact, is attached to Devex.com and serves a growing community of professionals and organizations with breaking news, in-depth analysis and practical information on public-private partnerships and other business-driven development initiatives.

In today’s global economy, pharmaceutical company needs parallel those of developing countries. Profit and productivity is falling in Europe, the United States and Japan, where regulatory pressures also threaten traditional pharma business plans. At the same time, many developing countries need medicines for both tropical diseases and more traditional pharmaceutical targets such as cancer.

“We see innovative partnerships like this one as central to leveraging the power of the private sector to improve lives around the world,” said USAID Administrator Raj Shah, who spoke about Devex Impact at the 20th annual Business for Social Responsibility summit in Manhattan. “We look forward to building a wide-reaching community of business and development professionals who have the practical information they need to make an impact through public-private partnerships.”

Company earnings reflect these pressures. Six of the top 10 global pharmaceutical companies by revenue reported declines in trading profits for 2011 and were expected to do so again at the end of 2012, according to an analysis by Peter McDougall, chief executive officer of druganalyst.com.

Learn more about Devex Impact at www.devex.com/impact

Conversely, the emerging market for treatments and vaccines is huge. Brazil, India, Russia, China and South Africa have a total population of 2.9 billion, with an additional 750 million people living in lesser developed countries, according to the Population Reference Bureau and the United Nations. As they search for new profits, pharma executives are now testing whether potentially high-volume product sales can justify investment in products whose prices must now be capped to remain affordable to developing country consumers. “We review our programs on an ongoing basis, but believe that we are able to make the greatest contribution to increasing access to when our approach is commercially sustainable,” AstraZeneca spokesman Andrew Higgins told Devex “This underpins our continued business success which in turn generates the revenue we need to reward shareholders.” Read the full story at devex.com/news/pharma

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Photo credits: Hillary Clinton: U.S. Department of State, cover photo copyright Kendra Helmer/USAID; Raj Kumar, Devex recruiter dashboard: Devex; Jan Eliasson: Devra Berkowitz/United Nations; Queen Rania of Jordan, Martin Dahinden: Michael Wuertenberg/World Economic Forum; Bill Gates: Moritz Hager/World Economic Forum; Geeta Rao Gupta: Susan Markisz/UNICEF; Justine Greening: U.K. Department of Transport; Heidi Hautala: Global.finland.fi; Gunilla Carlsson: Thomas Henrikson/World Water Week; Dov Zerah: AFD; EUDevDays: European Union; Joseph Biden and Barack Obama: White House; Mark Dybul: Global Fund to Fight AIDS, Tuberculosis and Malaria; Eric Goosby: Monika Flueckiger / World Economic Forum; John Kerry: Mark Mathosian; Elizabeth Becker, Jacob Lief, Susan Reichle, Paula Park: personal collections; Bekele Geleta: World Economic Forum; Imoni Akpofure: European Commission

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