2019 saw the seventh annual Council of International Development Companies conference for PSC’s and it was indeed, one for the ages. Thanks to the hard work of CIDC members and the leadership of our Executive Advisory Board, our constructive advocacy and thought leadership efforts are well-received and in fact sought out by decision-makers in the federal government.  This acknowledgement and appreciation was made manifest both by the number of government officials who attended the entirety of our event and the top-tier presenters we were able to attract.  Similarly, the record number of attendees and sponsorships each set new benchmarks and are indicative of the value our members place on this event.  For those who were not able to attend, a brief re-cap is provided below. For those wishing to purchase the video replay of the conference in its entirety, please follow www.pscouncil.org/psc/Events.

Conference Kickoff

PSC’s President and CEO David Berteau welcomed attendees and provided a summary of the rather tumultuous preceding twelve months. Starting with a reminder that at our 2018 conference, no one would have predicted the ensuing 35-day partial government shutdown, Berteau cautioned the audience of the possibility of another. He then recounted the funding battles between the White House’s requested 25% cut to the Department of State and USAID’s budget, to the restoration of those funds by Congress, to the subsequent attempts by OMB to rescind some of those funds in August and PSC’s role in defeating those efforts. 

State Department and the Foreign Assistance Funding Nexus

Our first headliner was James “Jim” Richardson - the Director of U.S. Foreign Assistance Resources at the U.S. Department of State.  Jim is well known to CIDC from his previous work at USAID where he served as Assistant to the Administrator in USAID’s Bureau for Policy, Planning and Learning and Coordinator of USAID’s Transformation Task Team, and he graciously acknowledged the excellent relationships he developed with PSC/CIDC while he was leading AID’s massive reorganization efforts.  As with his prior interactions with CIDC, Jim was candid and detailed in his presentation regarding his new role as the coordinator for both the funding and policy aspects and his work to improve the efficiency and effectiveness of foreign assistance by enhancing strategic alignment, performance input, data use, and interagency coordination.

He touched on his efforts to referee the $35 Billion in U.S. aid spending between the sometimes-competing priorities of the State Department and USAID and the importance that data played in these decisions – data that is amply (though as our audience reminded him – not always completely accurate or up to date) on USAID’s Foreign Assistance Dashboard. 

From “OPIC” to “DFC”

We next heard from Adam Boehler, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC) who joined CIDC’s Chair and CEO of Devis, Cristina Mossi, for a “fireside chat.” Our conference was one of Boehler’s first public appearances since he was confirmed by the Senate and sworn in to his position. 

Boehler reminded the audience that Congress had recently passed the Build Act which created the DFC, largely to counter growing Chinese “Debt-Trap Diplomacy” whereby recipient countries, unable to re-pay their loan to Beijing would find their natural resources and infrastructure mortgaged to China.  Boehler noted that the US approach to financing emphasized the necessity for maintaining sovereignty for all recipient nations and driving recipients’ global development while increasing their self-reliance. Recent examples of such efforts included just-concluded investments such as a power generation project in  El Salvador and a natural gas pipeline in Mexico.  He ended by noting there is always strength in numbers, with the DFC looking to partner with other nations’ finance institutions, including the Japan Finance Corportation, the African Development Bank and Islamic Development Bank.

USAID Digital Strategy in the New Age

Chris Burns, Director at USAID’s Center for Digital Development and Michelle Parker, senior policy advisor, detailed the agency’s new draft Digital Strategy in a panel moderated by Chemonics CEO Susi Mudge. Both speakers were quick to thank those in the audience who had commented on some of the ten prior drafts of the Strategy and cautioned that the document was still not final.

The speakers highlighted the two core objectives of the Policy. The first objective is to improve humanitarian assistance through the responsible use of digital technology. The new Strategy outlines Principles for Digital Development that include data driven analytics, open source and standards, privacy and security, collaboration with the user in the design stage, and sustainability. The second objective is to strengthen openness, inclusiveness and the security of a country’s digital ecosystems, increasing the growth of private sector-led digital economics, strengthening partner government commitment and capacity to foster digital ecosystems that align with established best practices, and increasing communities’ adoption of and capacity to securely use and contribute to digital ecosystems.

Moderator Mudge probed the speakers on the details of the effective implementation of the Strategy and how it hinges on USAID’s ability to appropriately meet partner countries where they are on their digital evolution. In response, they noted the new Strategy will strengthen local systems and interoperable capabilities, address digital inequities, literacy needs and the gender digital divide, and implement digital programming guidance for missions. USAID will also shift to a default position of using digital technology. This includes mandating digital payments, incorporating the Principles for Digital Development in all USAID procurement and programming, and developing cybersecurity and data privacy protective measures. In wrapping up their engaging presentation, they noted that USAID will continue to invest in positioning the workforce to succeed in the digital age and will appoint mission-specific Digital Development Advisors, dedicated to studying and understanding the digital network for their mission in foreign countries.

DDI: Working Better, Together

Our second all-star panel focused on USAID’s new Bureau for Development, Democracy and Innovation (DDI) that is in the process of being stood up as part of the agency’s aforementioned transformation efforts.  The panel – moderated by CIDC Vice Chair and Managing Partner at Palladium, Santiago Sedaca – included Kimberly Rosen, E3 Acting Assistant Administrator; Julie Cram, E3 Deputy Administrator; and Tim Meisburger, Director, Democracy, Human Rights, and Governance.

Panelists noted that programming out of DDI is intended to be more integrated and will result in more comprehensive development programs impacting the whole country, rather than specific sectoral programs.  Additionally, DDI is “integration actualized,” resulting in breaking down some of the existing policy stove-pipes, with DDI serving as one giant coordinating mechanism. DDI will serve as the “connective tissue” that ties all the agency’s bureaus together. Sedaca pushed panelists to help the audience understand better the difference between “Hubs” and “Centers.” Hubs were described as have many “spokes” emanating from them based on the type of programming  – for example Private Sector Engagement, Youth, Gender –  and should be seen as cross-sectoral.  Centers are focused sectoral experts – similar to what they are now.  DDI is intended to be much more cross-sectoral driven and less personality driven than current structures.  In wrapping up, panelists noted the still-fluid nature of the DDI, and welcomed additional feedback, promising to return to CIDC for follow-on briefings and consultations.

Administrator Green’s Closing Keynote Address

USAID Administrator Mark Green helped draw our event to a close with remarks that demonstrated a virtual sea-change in terms of how AID now appreciates the role of CIDC members in providing needed support to both the agency and donor recipients.  Please see the adjacent article for more on his remarks.

Conclusion

Best-ever CIDC Conference…until the 2020 Conference.  But don’t wait until next December; engage with CIDC now!

Since 2013, Paul Foldi has served as PSC’s VP for International Development Affairs, working closely with CIDC members to drive their issues before the executive and legislative branches.  Prior to PSC, Foldi served on the Senate Relations Committee staff of then-Senator Richard Lugar (R-IN). From 1996-2003 he was a Foreign Service Officer with the US Department of State, serving in Pakistan, Nicaragua and numerous positions in Foggy Bottom.