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Ending Extreme Poverty with a New Model of Development

Tonight, 860 million people will go to sleep hungry. This year, 6.6 million children will die before their 5th birthday. And every day, 1.1 billion people around the world—more than the population of North and South America combined—live in extreme poverty on just a dollar-and-a-quarter a day.

Paschali Axweso Amnaay, chairman of the Mahande Rice Irrigation Scheme

Paschali Axweso Amnaay, chairman of the Mahande Rice Irrigation Scheme in Tanzania, along with many agri-businesses in the country, benefit from initiatives like Power Africa. Photo by: CNFA

Even after adjusting for the relative price of local commodities, this is a desperately meager sum. With it, families must make daily choices among food, medicine, housing, and education.

We know it doesn’t have to be this way. For the first time in history, we stand within reach of a world that was simply once unimaginable: a world without extreme poverty.

From 1990 to 2010, the number of children in school rose to nearly 90 percent, and around two billion people gained access to clean water. Child mortality rates have fallen by 47 percent and poverty rates by 52 percent. In 2005, for the first time on record, poverty rates began falling in every region of the world, including Africa.

We now have a clear roadmap out of extreme poverty that is driven by broad-based economic growth and transparent democratic governance. With the deadline for the Millennium Development Goals drawing near—and conversations on the Post-2015 Development Agenda well underway—the global community has an opportunity to pioneer a new model of development and shape an inclusive, results-driven agenda that will end extreme poverty.

The Busan High-Level Forum on Aid Effectiveness has built a strong foundation for this effort—tapping into the capabilities of governments, foundations, companies, and civil society organisations to solve the world’s greatest development challenges.

Through this new model of development, USAID is forging high-impact partnerships to harness innovation and scale meaningful results to end extreme poverty. This month, we launched the U.S. Global Development Lab, a hub of creative design and high-impact collaboration that is setting a new standard for development. Together with 32 cornerstone partners, the Lab will bring innovators and entrepreneurs from across the public and private sectors to answer the world’s most pressing development challenges through science and technology.

On April 3, U.S. Agency for International Development Administrator Rajiv Shah unveiled the U.S. Global Development Lab.

On April 3, U.S. Agency for International Development Administrator Rajiv Shah unveiled the U.S. Global Development Lab. Photo credit: USAID

Earlier this year, through our Development Credit Authority, USAID partnered with GE and Kenya Commercial Bank to help health care providers buy life-saving healthcare equipment, including portable ultrasound devices and Magnetic Resonance Imaging machines. For the first time ever, our private sector partner is covering the cost of the loan guarantee—making this program virtually costless for the taxpayer.

President Obama’s Power Africa initiative is another great example.

For most of the world, electricity allows businesses to flourish, clinics to store vaccines, and students to study long after dark. But for more than 600 million people in Sub-Saharan Africa, these opportunities simply do not exist. Power Africa encourages countries to make energy sector reforms—while connecting entrepreneurs to investment opportunities that are created by those reforms themselves.

Less than a year since launching, more than 5,500 mega-watts of power projects have been planned—putting us more than halfway towards the initiative’s goal of expanding electricity to 20 million homes and businesses. Just recently, we celebrated three local engineers who are lighting up Africa with solar-powered generators and pay-as-you-go power home meters.

Increasingly, the best ideas aren’t just coming from development professionals who have been in the field for three decades. They are also coming from scientists, inventors, and entrepreneurs around the world. That is why we launched the Grand Challenges for Development and created the Development Innovation Ventures fund—to enable problem-solvers to test their game-changing idea, whether it’s a mobile technology that boosts hospital efficiency or a $10 device that prevents the leading cause of maternal mortality.

A few years ago, we were lucky if we got half-a-dozen proposals in response to our solicitations. So far, these new kinds of open competitions have received more than 6,000 applicants—each with the potential to transform development. Even better, 70 percent of proposals are from inventors who we’ve never worked with before.

We look forward to strengthening this new model of development at the first High-Level Meeting of the Global Partnership for Effective Development Co-operation. Whether we work for a government agency or small local organisation, each of us can expand our emphasis on partnership and innovation. Each of us can deepen our focus on rigorous evaluation and scalable results. Working together, we can throw open the doors of development and engage millions of people in our mission to unlock a brighter future for all.


This post originally appeared on devex.com on April 11, 2014

U.S. Global Development Lab Launches to Develop and Scale Solutions to Global Challenges

Former US Secretary of State Hillary Clinton & Dr. Rajiv Shah on April 3, 2014 at the New York launch of the Global Development Lab

Former US Secretary of State Hillary Clinton & Dr. Rajiv Shah on April 3, 2014 at the New York launch of the Global Development Lab

Imagine a world in which diagnostics for diseases that are prevalent in developing countries are available at pennies per use, renewable off-grid energy services are affordable for households earning less than $2/day, and every family has enough healthy food to eat.  USAID is helping to turn these ideas into realities by launching the U.S. Global Development Lab. The Lab is a critical part of delivering on the President’s commitment to game-changing innovation in the first-ever Presidential Policy Directive on Global Development.

The Lab’s creation is part of a strategic decision to emphasize innovation as one of the critical tools needed to end extreme poverty and achieve broad-based economic growth in light of a number of converging trends:

  • Recognition that quality of life and economic improvements in developing countries over the last few decades can be traced in large part to the use of scientific advances such as improved agricultural seeds and practices, oral rehydration therapy, vaccines, and the cell phone.
  • Emphasis on leveraging U.S. core competencies.  America is a global leader in innovation and invests $453 billion in public and private research and development annually.  It also has 17 of the top 20 research universities, and world-class innovation hubs such as Silicon Valley and Cambridge, MA.
  • The information economy is changing the way innovation occurs and is increasingly enabling people in even the most remote parts of the world to use mobile communications and data to learn, co-create, and deploy solutions locally and globally.
  • The emergence of new pathways to scale innovations via for-profit or social business models that are made possible by a surge in private sector investment in developing countries.  These pathways are critical since they exceed the level and reach of official assistance by the U.S. Government.
Farmers using a SuperMoneyMaker pump.

The U.S. Global Development Lab puts tools in place to create and scale solutions to global challenges in partnership with public and private innovators around the world, USAID Missions, and interagency colleagues.  The Lab has Centers that will focus on Data Analysis and Research (problem definition), Development Innovation (ideas), and Global Solutions (scale).  It will also have teams dedicated to private sector and Mission partnerships, and evaluation and impact.

The Lab brings together a number of existing programs from across the innovation pipeline: Partnerships for Enhanced Engagement in Research (PEER), the Higher Education Solutions NetworkGrand Challenges for DevelopmentDevelopment Innovation VenturesMobile Solutions, and Global Development Alliances.

Students using mobile devices

We believe that the U.S. Global Development Lab can help lead the transformation of the U.S. development enterprise and strengthen critical initiatives including Power AfricaFeed the Future and Global Health by increasing USAID’s ability to:

  • Invest in breakthrough technologies;
  • Scale what works;
  • Attract scientists, engineers and entrepreneurs to work at USAID, and harness the growing interest of young people in development;
  • Leverage America’s $453 billion investment in public and private R&D – which can often have significant benefits for the developing world;
  • Effectively partner with governments, the private sector, researchers, investors, and civil society – at home and abroad; and
  • Excel at using new approaches to solve hard development problems, including Grand Challenges, incentive prizes, and other “pull” mechanisms, crowdsourcing, impact investing in inclusive businesses, managing a “pipeline” of innovations, user-centered design, and the formation of global “communities of practice.”

Cross-posted from the White House Blog.

USAID launches Global Development Lab

Today in New York, we launched our Global Development Lab, the new arm of our Agency that will foster science and technology-based solutions to help end extreme poverty by 2030.

Modeled on some of the most innovative and technologically advanced centers for discovery across the country, The ‘Lab’ as we are calling it, brings together a diverse set of partners to help us develop, test, and scale groundbreaking solutions to the greatest challenges known to man. Our goal is to reach over 200 million people through a new Lab-supported global marketplace of innovations in the next five years alone.

To focus the efforts of this talented community, we have outlined nine core areas where science, technology, and innovation can dramatically accelerate progress—from improving child literacy to advancing human rights to expanding financial inclusion through digital services.

And to help build the ranks of a next generation of talented development leaders, we also announced the first-ever class of 62 USAID Research and Innovation Fellows, who will deploy to more than 50 institutions across the world and examine everything from climate data in the Sahel to the impact of pathogens on child nutrition in South Africa.

But we can’t do it alone. If you are excited about the Lab’s vision and want to be part of this bold new approach to development, we want to hear from you!

Cooking With Green Charcoal Helps to Reduce Deforestation in Haiti

An organization in northern Haiti is promoting a cooking fuel made from agricultural waste that can save trees, help farmers increase their yields and generate additional income.

“Our aim is to try to stop deforestation in Haiti by teaching people to switch from cooking with charcoal to using cooking briquettes, small discs made from charred agricultural waste,” said Anderson Pierre, the Supply Chain Manager for Carbon Roots International (CRI), a USAID-supported non-profit organization operating in Quartier Morin.

Carbon Roots International on Dec 12, 2013. Copyright Kendra Helmer/USAID

Workers create cooking briquettes, small discs made from charred agricultural waste, in northern Haiti. Copyright Kendra Helmer/USAID

Despite the fact that only about 2 percent of Haiti’s forests remain, it is difficult to shift habits of cooking with wood charcoal to methods that are environmentally friendly.  According to Pierre, other alternative fuels are still not well-known – or accepted.

“We work little by little, changing perceptions and providing information on the benefits of using briquettes,” Pierre said.

CRI employs smallholder farmers and entrepreneurs to produce carbon-rich char from agricultural waste such as sugarcane bagasse, the fibrous matter that remains after sugarcane stalks are crushed to extract their juice. CRI uses this waste to create two innovative products: renewable charcoal cooking briquettes called “green charcoal,” and “biochar,” a potent natural soil additive that increases soil fertility and removes carbon from the atmosphere. CRI sells the briquettes as an alternative to traditional wood charcoal through a network of women retailers, and disburses biochar back to farmers to increase crop yields and further raise incomes.

As a result, the project contributes to the sustainability of Haitian agriculture and provides income opportunities for women entrepreneurs. It offers a comparably priced, locally appropriate green cooking fuel to the Haitian marketplace, as well as encourages the adoption of biochar as a viable tool for increasing agricultural productivity and soil resiliency.

CRI’s efforts to promote green charcoal are gradually gaining ground in northern Haiti. While they’ve been focusing on market research and production, they plan to expand to bulk sales and more roadside kiosks this spring. In December, CRI ran a public awareness campaign in Quartier Morin under the slogan “Green Charcoal is Your Charcoal”, using demonstration stands and offering free samples of briquettes.

“The Haitian consumer likes the fact that this comes from a source other than wood. People have heard about a Haiti that used to be green. They understand that deforestation is not good. If they have an alternative, they will go for it,” said Ryan Delaney, co-founder of CRI. The briquettes are 5 to 10 percent cheaper to buy than wood-based charcoal and they can be burned in a traditional cook stove, making it an attractive fuel alternative.

USAID is supporting CRI through a $100,000 Development Innovation Ventures award. The USAID award has helped CRI prove itself — it developed a network of producers, started production and created viable markets for biomass products.

“We want this to be a self-sufficient project,” Delaney said. “We have just purchased a machine that can increase the briquette production from 3,000 briquettes a day to 3 tons an hour. There is a lot of sugarcane production in Haiti providing the needed sugarcane waste…. Right now we sell small-scale, but we have ambitious expansion goals.”

Delaney estimates the charcoal market in Haiti to be valued at about $700 million a year (approximately $90 million in northern Haiti).  “The potential to scale in Haiti and beyond is enormous, as there is little centralized production of charcoal,” he said.

This month, the U.S.-based CRI expects formal operations to begin for their for-profit entity in Haiti, called Carbon Roots Haiti, S.A.  Eventually CRI wants to hand over green charcoal production to Haitians, Delaney said. “Ultimately, we envision this as a Haitian company run by Haitians.”

Launched in October 2010, USAID’s Development Innovation Ventures (DIV) holds a quarterly grant competition for innovative ideas, pilots and tests them using cutting-edge analytical methods, and scales those that demonstrate cost-effectiveness and widespread development impact. DIV uses a staged-funding model inspired by venture capital to invest comparatively small amounts in relatively unproven ideas, and continues to support only those that prove effective.

For more information on DIV and how to apply, go to http://www.usaid.gov/div. For more information on CRI visit http://www.carbonrootsinternational.org/ and see photos of CRI in Haiti on Flickr.

Read another story about how USAID is fighting deforestation through an improved cooking technology program.

Anna-Maija Mattila Litvak is the Senior Development Outreach and Communications Officer for USAID/Haiti.