One of the main concerns about foreign aids is how to allocate the resources to get the best result.  Both private sector and public sector have to work together to end global poverty to achieve maximum effectiveness. To understand the importance of the joint effort between these two entities, one first needs to understand what effect these two sectors have on the economy.

In the book “A Life Half Lived: Surviving the World Emergency’s Zone”, the author, Andrew McLeod, discussed the differences between these two sectors and proposed the solution for their cooperation.

The private sector has many constraints to enter the developing countries. The first constraint is the high risk of investment.  The second constraint is the policies in developing countries in welcoming potential investment from international firm.

The developed countries do not want to invest in developing countries because they do not see that their helps are making improvement in the developing countries; therefore, the diplomacy between developed countries and developing countries need to be improved to create better opportunities for the private sectors to enter the poverty countries.

To achieve this objective, public sector should work together with the private sector to discover private sector’s needs and understand its structure. When international firms see the potential positive return on the investment, they will want to create branches in the developing countries. When these firms enter the countries’ market, they bring along jobs, expertise and capital. With these available resources, developing countries can spur their economic growth and the foreign aids from developed countries will reach the maximum potential.

For example, if an international company wants to enter China, the United States can direct its fund toward getting favorable policies from Chinese government. At the same time, the foreign aids can be guided toward improving education level for Chinese citizens so that they will become skilled labor to fit the needs of the industrial revolution.

In “A Life Half Lived: Surviving the World Emergency’s Zone,” the author expressed his opinions after the half of the life time in his foreign aid campaign and went into detail about the importance of the cooperation between public and private sector in the war against global poverty.

– Phong Pham

Sources: Goodreads, Booktopia, CSIS

US Water Partnership Fights Water Challenges

It’s been one year since former Secretary of State Hillary Clinton announced the start of the U.S. Water Partnership. The partnership consists of public and private sectors and “unites and mobilizes U.S. expertise, resources, and ingenuity to address water challenges around the globe.”

According to the fact sheet, “The USWP is an alliance of 18 U.S. government agencies and 29 U.S. private sector and civil society organizations.” However, the USWP has increased from 47 to 61 partnerships in the last year. They work together to improve water resources worldwide and focus primarily on developing countries.

The partners pledged $610 million dollars on June 20, 2012. Funded projects included: control or elimination of Neglected Tropical Diseases, increased solar power pump stations, and improved desalination projects.

The success of the USWP depends on collaboration and flexibility. Partners are able to work in groups or individually. For example, the Overseas Private Investment Corporation revitalized water purification systems throughout Ghana by providing funds for the Ghana National Water Infrastructure Modernization Project.  World Vision helped boost rural and semi-urban schools in India through the “Support My School” campaign, whereas multiple organizations joined forces to provide WASH technologies. These technologies decrease infection and increase public health.

Hattie Babbitt, Chair of the USWP Steering Committee, led the USWP first anniversary event at the National Academy of Sciences on Mar. 21, 2013.  She discussed the numerous projects that could not have occurred without the help of the partnership and congratulated the ten new partners. The USWP continues to grow and progress and strives to bring each person safe drinking water.

Whitney M. Wyszynski

Source: U.S. Water Partnerships
Photo: US Water Alliance