 CSIS has been working on the issue of middle-income countries, has also been working on the issue of partnerships and networks of partnerships, and I've also looked at the issue of supply chains and value chains in a number of different contexts. We did a report about a year ago for the US government on strategic foreign assistance transitions, which I'm happy to give copies of folks to offline, or you can get it on the web. We also did a report, my friend and colleague Holly Wise is here looking at public-private partnerships. Many of the public-private partnerships that we'll be talking about later are in networks or networks of networks. How do you manage them? How do you lead them? How do you share knowledge? This is a critical question for specialists, and then also the issue of the power of supply chains and value chains. Unido, who's our partner and sponsor of this conference, spends a lot of time in its work as a UN agency thinking about how to work with value chains and support value chains and support industrial development that also supports broader development at large. I want to thank my friend Steve Holloway, who's here. Steve is the representative for Unido here in Washington. He's a friend and colleague and wanted to thank him for making this all happen. Thank you Steve for your support. We have a very distinguished guest speaker today who will be joining us both for our live audience as well as our online audience. We have the former minister of Costa Rica, Enrique Castillo, who's going to be joining me here at the podium in a second. Enrique Castillo has a very distinguished career. He was trained as a sociologist. He's also someone who has served as an ambassador in a number of countries. He's also involved in public life and he's currently serves as the former minister of Costa Rica. Costa Rica will be hosting a very important conference on financing for development next month. We see this conference as sort of the pregame to that conference in a way to sort of socialize the ideas that will be coming out of this conference. So without further ado, I'm going to see the floor to the minister, Enrique Castillo. Thank you very much and minister. Thank you. Thank you Mr. Roni. Ron, for your welcome to me in this place. It is a privileged, distinct privilege to be here with you today. Good morning everybody. And Excellencies, distinguished guests, ladies and gentlemen. It is my pleasure to address you today here in Washington DC at this important workshop on network governance and the development potential of middle income countries. The topic of today's meeting resides at the core of Costa Rica's future development, an international development cooperation strategy. Thanks to policies and actions we in Costa Rica implemented over almost three decades now and in turn as a result of a long history of investing in economic and social development, we'll feel that Costa Rica has positioned itself particularly well to take advantage of today's globalized economy. Either for HOP, you will find our perspective as a fully fleshed middle income country of interest for today's stocks. Allow me to provide some historical background to today's situation. Over the past 20 years, many middle income countries have achieved a phenomenal growth and development, bringing prosperity to millions of people, building democratic societies, fostering innovation and knowledge, and increasingly becoming key drivers of world economic development in this current era of globalization. Looking back at the past decades, I believe that the most distinct factor of global development in determining the pathway of middle income countries are the various phases of post-colonial globalization based on a voluntary process of increasingly integrating global norms and systems. Let me be a little bit more specific. During the first decades after World War II, many middle income countries went through the hard struggles of nation building and traditional international relations with an ever-increasing number of states, mostly in America, parts of Asia, and new island states in the Pacific and the Caribbean. Latin America in general and Costa Rica in particular had achieved independence earlier and were struggling with changes of a different nature during the post-war period. The United Nations, built to export the ideals of democracy, self-determination, free enterprise, and human rights, was created during this period, but also shaped it. Let me call this stage Globalization I. Of course, we know that Globalization I was the 15th and 16th centuries where discovery and conquest occurred, but in modern times this would be the first period, the time of the appearance of the United Nations. The next phase was characterized by increasing international trade in industrial goods, primarily among richer nations, but with raw materials delivered by a growing number of developing countries. This was certainly a first push towards economic globalization, but the effect on developing countries was at times precarious. As market doctrine was globalized, it pushed some developing countries that had some degree of protected industrialization of the development ladder. This is the time of GATT, trade fights and first vast financial crisis in Latin America and Asia. Nevertheless, countries like South Korea, Singapore, Taiwan, and Israel were early success stories during this period. The larger countries in Latin America, Brazil, Mexico, Argentina, especially, started to develop an industrial base, but mostly geared to domestic or regional markets. Let me call this period Globalization II. Today, in the post-financial crisis world, I believe that we have entered a new stage of global development and international order. Let me call this Globalization III, number three, or the stage of a global village, the core element of which I will elaborate next. Economic globalization. The world has continued to grow into an almost single global marketplace with an increasing number of transnational corporations that emerged both from traditional industrialized countries like the U.S., as well as increasingly from emerging markets such as China, India, Brazil, or in fact, also Costa Rica. Different modalities of trade agreements are negotiated to overcome them, also globally speaking, this is not the optimum path. At the same time, even small and medium-sized companies from emerging economies have entered the global markets, unthinkable in the best, and are becoming a real backbone to the global economy, stabilizing markets when large industrialized nations struggle. Economic Globalization III is more complex, interdependent, and mutually vulnerable than ever in history. Let me be clear. These markets, whether national, regional, or global, are competitive but not free in the classic definition, but they do offer a multitude of opportunities to different-sized players. Technological Globalization. Closely linked to this trend in economic globalization, technology has globalized at an ever-rapid speed, benefiting millions of people in developing countries to access not only information through internet and other information and communication technologies, innovations who have not seen their kids or grandchildren benefit from this, but also improved solutions for common developmental problems such as water purification, immunization of or public mass transport. Cleaner production and more sustainable ways of consumption are enabled through technological innovation and related knowledge as well as its global application. It is no wonder that this year, the UN Economic and Social Council, will focus its annual ministerial debate on this particular issue which is also closely linked to the effectiveness and sustainability of any development effort. There are certainly many unfulfilled needs in developing countries, both LDCs and MICs with respect to technology transfer, adaptation, and indigenous generation. Globalization 3 is certainly characterized by technological globalization. Political globalization. The world is also becoming more complex and multipolar in its political governance structures with a larger number of middle-income countries playing an increasingly active role in shaping the international development paths and paradigms. This will be very much at the center of our discussions today. The most influential countries comprise those with higher degrees of relative development and an enhanced ability to link themselves into the global markets and knowledge networks. This is certainly most visible with the relatively recent emergence of the G20 as a key global governance mechanism but also in aspects of the Busan partnership for development effectiveness, modest adjustments in the governance structures of the international financial institutions, and other similar attempts at redefining the prevailing governance architecture of international affairs. At the same time, global governance has become more complex as non-state actors are becoming involved in governance networks including the aforementioned business sector as well as non-governmental organizations and academic institutions. And this happens at local, regional, and global levels. Political globalization 3 is more complex, independent, and mutually vulnerable than ever in history. Costa Rica, a country with no global power ambitions, observes this phenomena with interest and strives to influence, however modestly, this reshaping especially because as a country without an army we depend on the legal multilateral governance system for our own security. Environmental globalization. I will not do too much on the globalized conscience as regards the protection of the environment. We saw the global engagement of thousands of interested groups, institutions, and of course governments at the Rio plus 20 sustainability summit last year in Brazil. It is clearly recognized that climate change, air, water, soil pollution, and other human-born environmental footprints have an impact beyond national borders. In fact, the ramifications of inadequate attention to environmental issues are already triggering consequences that are truly global in scale. The complexity of our impact on the environment has no precedent in human history. It is also, I believe, a key part of globalization 3 in the sense that today's global environmental challenges above all climate change are clearly among the most serious challenges for humanity as a whole, together with the eradication of hunger and poverty worldwide. These three concerns are also intrinsically related as are the solutions to each, but the way in which different countries address or fail to address environmental issues will increasingly benefit or disadvantage all countries as we witness an inevitable intensification of environmental globalization as these issues further come to a head. Cultural globalization, in view of the incredible process of integration at other levels, some wonder if the world is not drifting apart on a cultural divide. Even here, I believe that we have entered a new era of globalization with a genuine appreciation for the other, like in any family, there are differences of opinion, it is possible the most sensitive and complex field of our current stage of global development, but I believe that cultural globalization is not about the assimilation of our cultures, but about the appreciation of our cultures. Global tourism and an increasing number of intercultural programs and activities have created a generation that is inspired by the cultural diversity and intercultural exchange and respect. I cannot think of any period in history when such cultural globalization three ever happened. This is an incarceration development. However, in order to avoid misunderstandings and given that this road is not without some risky bumps, I should also state my belief that a limiting factor to cultural relativism is the full respect of the values, principles, and commitments contained in the universal declaration of human rights. Much progress still needs to be made in realizing in an unable human rights for all people, and there is notable variation in the level of success in doing so across regional and national levels, but the global trend for terrain respect and dignity for people everywhere moves in a clear and positive direction that should continue to be bolstered. Globalization three has many other facets, but I believe the five mentioned the economic, technological, political, environmental, and cultural are the most pronounced and relevant for middle-income countries. This new era of globalization requires us to rethinking global governance. New funds forms of globalization should permit new funds solutions to today most serious issues. As we enter unchartered waters, we should promote both in thinking to scape all traps as we seek to improve and sustain the prosperity for all. The United Nations remains the most legitimate pillar of global governance, but we need to reform the United Nations system to fit the requirements of a new era of globalization three, in particular because of the changing needs of middle-income countries and emerging economies. We need a new and open dialogue on the future of our international system and on what we can possibly expect from globalization four for the next generations. The dramatic growth of the past decades experienced especially by middle- income countries has also led to a serious expansion of income inequality. An equal access to assets and resources including knowledge globally, but especially in the development world remain persistent challenges. Indeed, high levels of inequality are detrimental to the social fabric of countries, impede economic growth or shorten periods of growth and undermine progress toward achieving a set of development goals. It goes without saying that persistent inequalities are unjust in themselves and harmful to future generations. So middle-income countries have a hugely important role to play in the development agenda as living examples of how to pull away from poverty, but also because MICs still house to over half of all poverty. In the new geography of poverty, 65 percent of the world's poor live in middle-income countries. Any poverty reduction policy worthy of its name has to take this new reality into account. It is also a fact that international development cooperation is not a zero-sum game. The achievements and examples of MICs will continue to lead to significant benefits for the world. These will accrue you across the pillars of globalization, economic, technological, cultural, etc. All for new markets and a growing global middle class also presents challenges and dangers, particularly in environmental and equality terms. This is why it is so important for the international community to work actively across the three dimensions of sustainable development, economic, social and environmental. We cannot achieve a balanced and integrated approach of the three dimensions of sustainable development by proceeding on the basis of business as usual. Current production and consumption patterns are unsustainable. At the same time, there can be huge economic gains from increasing resource efficiency in production. In order to decouple economic growth from the consumption of natural resources, energy and materials, we also need a significant change in our mindsets. At the same time, international development cooperation itself has to change. It has to appreciate a new era of networked development in which multiple actors are able to leverage development outcomes through knowledge and other assets. These actors include a growing diversity and breadth of participants beyond just governments and international organizations with the private sector, civil society, academia and foundations taking on greater importance with each passing decade. UNIDO research conducted as part of the organization's Networks for Prosperity Initiative provides compelling policy relevant evidence that in today's world there is a strong correlation between a country's international connectedness and its economic and environmental performance. The structure of aid also may be reviewed, rather than development agencies or traditional donor countries directly carrying out programs in developing countries. It might be more effective to explore partnerships involving middle-income countries. One example could be through expanded triangular cooperation initiatives such as developed countries support the middle-income countries to assist lower-income countries on a regional basis. It certainly was the experience of Costa Rica that change has been promoted and incentivized through a range of processes spanning public and private partnerships for business as well as north-south, south-south and triangular cooperation and improved and seen political governance. Let me be clear however there are lessons to be learned but not general recopies for development. Every country will have its own receipt for success of the regional formulas may be more suitable than examples for other parts of the world or models transposed from high-income countries. The issue of connectedness needs to be at the center of the POS 2015 development agenda because it is by taking best advantage of our newly networked world that we will find the most efficient effective and innovative way forward. For connectivity to be taking full advantage of we must go beyond mere access. In a world in which knowledge has been democratized to unprecedented levels the international development community has to appreciate that that effective and working alone does not equal action that is the ability to integrate master new knowledge and act for it and act on it that is the ability to integrate master I repeat master new knowledge and act on it. For the later to happen MICs and other developing countries need to specially build up their absorptive capacities for knowledge. This implies above all enormous efforts in education starting from the very earliest age through at least to the end of secondary or vocational education. Knowledge networking is recognized as one of the new and most dynamic instruments for middle-income countries in meeting the challenges of private sector development and related sustainability challenges. Although it is critical the knowledge networking is shared and spread among different social sectors further work needs to be done as UNIDO also recognizes to fully operationalize network governance. In this context UNIDO's networks for prosperity initiative and green industrial platform can provide the foundation for a new innovative industrial policy built on the network approach. The experiences of Costa Rica with creating effective knowledge networks particularly at the regional level were presented as a valuable example for other countries to learn from. The challenge ahead is to continue to translate the conceptual insights and achievements to date into concrete action on the ground while taking into account the different realities individual countries face. Let me conclude my remarks today by turning briefly to some of the issues of the current UN agenda on development as they are essential for middle-income countries and relate closely also to issues of network governance. The debate on the set of development goals that will replace the current millennium development goals in MDGs after 2015 is becoming increasingly intense with frequent consultations, high-level meetings and discussions being held around the world. It would be it would go beyond the time allowed to me to recount this in detail suffice to say that there are currently two main tracks. The first one consists of UN-led national consultations currently 66 11 thematic consultations on topics that might be subject of new goals a high-level panel of eminent persons appointed by the secretary general that will report very shortly and a number of other interagency UN activities. The second is an open working group of 30 member states established by the Rio Plus 20 outcome document which has been charged with elaborating a set of sustainable development goals. Eventually these streams will come together in an intergovernmental process and the new goals will ultimately be adopted by the general assembly. It is worth noting that financial considerations are becoming an increasingly important part of these discussions and are likely to stay high on the agenda. In that sense there is a strong contrast with how the financing was dealt with in the run-up to the MDGs which is to say no at all. The Millennium Development Goals have been able to operationalize a common global development agenda. However the MDGs are silent about the their means of implementation including financing and how to achieve the results proposed by this development framework. Looking ahead I can see that the United Nations Development System is already thinking of how to tackle implementation issues including financing in a way that connects it with the formal intergovernmental process. It is quite likely that after the high-level event on MDGs at the UNGA this September we will see a new round of consultations that addresses among other things financing. We may also see the emergence of some specific tracks emphasizing the role and needs of middle-income countries in that regard. We should we should all approach these challenges with an open mind and with a generous and long-term perspective. That is why we feel as far as the future of development financing and the kickoff for the structures for globalization III is concerned the high-level conference on middle-income countries in San Jose in June 2013 will be of great importance. This will be as far as I can see the only real opportunity for middle-income countries as a group to take the initiative on issues like financing as well as the evolving role of middle-income countries as partners in development before the final round of formal UN discussions on these issues gets underway. I ensure that at San Jose participants will rise to the occasion. Now that you've heard a Costa Rican perspective I will be particularly interested to hear your thoughts on the emerging role of middle-income countries in this networked world of ours. I look forward to take these viewpoints back with me to San Jose as substantive inputs for our high-level MICs conference this June. Thank you very much. Thank you very much minister thank you so much you're gonna take you'll take a couple questions yes thank you very much okay Steve Holloway back there if you could rate Rachel if you'd get to my friend Steve you would thank you very much Steve Holloway formally of UNITO now at the World Bank minister first of all I would hope that your remarks would be circulated among the missions in New York and frankly you could give that speech to the opening session of the GA in September just as you said it they they certainly could use hearing those words from your country which leads me to my question why what has led you to take a leadership role in this whole area hosting the conference speaking so eloquently on it but what what led you and the government of Costa Rica to take this on as a as a kind and a leadership capacity of course thank you very much for your remarks well for Costa Rica this is a matter that is of big concern because we have been making improvements since at least the 1940s where we established a a social social care system very advanced but at the same time we started the economic development and growth and since then since the at least this the end of the eight the 40s we've we have been growing up at a rate thank you as an average in in 60 years at a rate of four percent a year sometimes higher sometimes lower but the average is four four percent of growth every year during 60 years but also increasing the social protection of our human resources and that has allowed us to to arrive to this point of being of becoming a middle income country but now that we but and we did that with with the help of international cooperation of course we put in place our own efforts but we have received cooperation from abroad be it country friends or international organizations now we achieve this level it is said to us okay that's enough you are big enough to to to play by on your own and goodbye and we feel that isn't fair because we've done the homework very well and now we are released and there are challenges that middle-income countries middle-income countries as Costa Rica cannot face on their own we need we still need the international cooperation this process of growing up has brought in inequality bigger than before and we cannot face it alone because it requires efforts that are go further than our own capacity so we we are looking around being placed in that situation and that's where why we felt the necessity to call emitting for countries like us but in the company of developed countries which are also being invited to discuss not in order to try to get the same kind of cooperation that we before received but looking for new partnerships that allows to keep growing but also to help the world keep growing we don't ask for donations anymore we don't ask for not not reimborsable help we look for partnerships and ways of development developing in order to increase our wealth but also the world's wealth so that is that is the reason for which we we we made this this we are organizing in collaboration with Uniti with Unito this big conference and we hoped that new paths be discovered in it. I just I'll take advantage minister of your comments about Costa Rica's assistance in our report we talk about the U.S. engagement in Costa Rica the history of U.S. engagement as you know the United States left as a development partner to Costa Rica in the mid 90s after having helped establish INKI the very prominent business school in Costa Rica as well as FUNDEX which is an export was an export organization as well so the U.S. was very proud to be a development partner and obviously the trade relationship is so so large now with the United States and Costa Rica is a great trade and cooperation partner for the United States and of course what was what was left behind perhaps and not the most strategic way on the part of the United States was the Costa Rica U.S. friendship as a cruiser the friendship association and endowed foundation so I know there's there've been various attempts to to think about how donors think about how they transition from being a don't having a donor relationship to something akin to a trade and cooperation relationship and we've looked at this issue and I think you've eloquently described that we want to have it's important to have ongoing connectivity and to take advantage of the lessons learned that that countries like Costa Rica have to offer to the world and of course to you expounded in your remarks as well thank you by the way the relationship between the U.S. and Costa Rica is a good example of that and the recent visit that President Obama made to Costa Rica some days ago was also in that in that direction he came to Costa Rica not to bring a bag of full of money but to propose to propose projects that would enable both countries to take advantage of it for instance we we need to develop clean energies we we are using well most of our energy it comes comes from from from clean sources but still we have to to accomplish a at least 15 percent more of clean energy because we have 15 percent that is not satisfied by by clean energy but by by fuel for instance that is expensive and and contaminating so we talked about that and we reached a sort of agreement we need natural gas or hydrogen and but which we don't produce but we need them and we can get them from the United States at lower prices than the international markets thanks to our trade free trade agreements so these will open at the same time opportunities for U.S. companies to invest in Costa Rica and to make profits so this is a win-win partnership that is the kind of cooperation that we need we need perhaps the raw materials but most most important about about that above that is the technology and the knowledge so that is a way of helping in in an effective way these kind of countries like like middle-income countries you have time for one more question yeah i would take one more Barbara thank you your excellency thank you very much i would like to also echo the words of my colleague Steve about the highly insightful presentation which was much appreciated my name is Barbara Kreisleim from UNIDO and my question would be how you talked in your speech about the end of the millennium development goals and the move to the sustainable development goals from a middle-income country perspective what would you like the sustainable development goals to to focus on particularly focusing now on the context of middle-income countries such as Costa Rica thank you very much for your question well i we think that the the the goals the goals of the millennium are in fact opportunities because they show the country the way we should follow so these are objectives that help help us to to to go on the good track and we are only concerned at this moment we have accomplished most of them but we know there are other countries that hasn't do that or haven't been able to do it but we we we are in a very good position and nevertheless we we are already thinking about the next the post 2015 goals and we think that we should plan it plan it very well from now because we don't we don't want to arrive at 12 2015 and and find a gap or a bridge between the first plan and the second plan so we would like to have a smooth transition from the first goals to the goals after 2015 so that's that is our current concern and we viewed it as the way to to to for prosperity we since many years ago we we we abandoned the concept of economic growth equal development for us development should be something integral with with policies that integrate minorities and and of any kind, ethnic minorities, youth and women etc etc and to develop in that way the human resources we need for for for achieving prosperity so we need clean water clean energies labor good labor practices as well as investment and I think we can reach all that with the millennium goals thank you one more Bill Reese Rachel let me just give one more example of how our two countries work together and left to the lasting legacy not just the binational relations but regional cooperation the founding of earth university that your government and our government us aid the Kellogg Foundation multinational businesses and and Costa Rican businesses created 20 years ago that university is drawing students from all over Latin America and now from Africa and in fact the university is mentoring new African universities not just to build the physical structure but to to bring in a new more hands-on oriented business oriented entrepreneurship oriented ag university to to other parts of the developing world and I think that's a legacy of of the way our two countries can work together again broader than just our binational interests but on global issues thank you very much you are you're right that is also a good example let me just close just with a couple comments minister thank you so much for being here I just want to you to take back with you to Costa Rica just a couple thoughts as well from CSIS I think one is is that we think that the 10-year bull market on official development assistance is over that the 10-year we've hit the 10-year high of official foreign aid from OECD countries so I think finding additional resources to to and as you've said in your speech it's a different kind of a paradigm to engage with middle-income countries but I think it's going to be yes there are many of the world's poor are in middle-income countries but I think it's going to be very hard to justify to publics in the United States or in Europe for example in the UK traditional foreign assistance source of paradigms to countries I'll use the country of India because it's a little bit more extreme but if a country has a space exploration program like India and while at the same time still has a tuberculosis program it's going to be very difficult for the American public to to subsidize India's space exploration program by paying for the tuberculosis now if you told me from a geo-strategic standpoint for the United States that we were going to get a a military base for some other reason or there were some other geo-strategic reason for the U.S. to do it that might be that might be justified but I think in this era where you're going to see official development assistance go from about 120 billion dollars a year to something like 100 billion or 90 I think the path of least political resistance is going to be middle-income countries so I think as middle-income countries think about triangular cooperation developing agencies to do this sorts of work identifying ways to have cooperation having capabilities to do that having those counter-power capabilities are going to be sought more and more because it's going to be very difficult to sell whether it's the UK or the United States or otherwise to say look if somebody's got X or Y the sovereign wealth fund or a space exploration program etc etc that these things are going to be very hard to sell so I want to just do to take that back and we'll be joining you in June in Costa Rica but I think thank you for governments in middle-income countries to have the capabilities to to be a good counterpart partner is going to be something that's going to be required over the next 10 years as well so I want to share that with you. Thank you thank you and that's very pertinent because we are very aware of it and that's why we are allowing a big space for the private sector. It is with the private sector that we can materialize many of our needs and projects. The last example again with the visit of President Obama it was proposed to President Obama or at least he was informed about that. We have a private company headed by a Costa Rican astronaut from NASA he's retired already he created a company and he's developing a new engine with a low cost energy and he is he made already a merger or an agreement with Cummings the producers of engines so both private corporations are working together so that is a good way in which we can engage the private sector in our development and it's absolutely natural that they do that so we can we can say it in that in that perspective that is why this conference that we are approaching in June it's very good that it's being hosted also by you need to industrial development that means something but of course there is also agriculture and other areas thank you minister thank you so much please join me in thanking the minister I'm going to ask the panelists from the first panel to join me if you would Kazuki, Jan, voters, Tim Meyer and friend Jerry O'Brien great good we're going to get started right away thank you all for being with us today I'm this panel is going to be talking about the future of international cooperation and growing prosperity through knowledge partnerships and really this this panel and this work were instigated by a very interesting and thought-provoking report that UNIDO sponsored and and we participated in the launch of that report in Vienna in December and there are copies of it outside about networks for prosperity I'm going to ask Kazuki Kitoka the manager of networks for a prosperity initiative at UNIDO to help us frame up this discussion and to speak first so you have his biography in front of you and I'll introduce each of the the speakers in turn but Kazuki the floor is yours well thank you very much Dan and first of all I would also like to thank our our partners from Costa Rica to be here in such a big number it's a great collaboration that we have in this in this project that we have put together about two and a half years ago called networks for prosperity and I would like to give you first before going to the to the report itself into the background of why we as a UN agency that is dealing with industrial development has come up with with this particular initiative and why and how we are seeing the way forward for after this report has been launched different places and after the the forthcoming conference in Costa Rica the initiative was conceived about three years ago together with the government of Spain and 12 interested middle income countries that saw that the exactly as was mentioned before the future of ODA the future of development assistance is changing very rapidly we saw that globalization as the foreign minister has elaborated so eloquently has entered a new stage with it the the the concept of industrialization the concept of global industrialization has also entered a new stage some of this had to do with the large financial crisis we we faced in in 2008 some of it was a simple probably almost linear trend that we have seen over the last 20 years in in in globalizing value chains I understand the second panel is going to talk about that particular issue and the the role of the private sector in in globalization the role of the private sector also in in global governance in in in a more in-depth manner and for us in in the UN one of the questions was if the private sector is going to be much more of a global player in governance if the if industry is to play a more decisive role in in in in deciding what development and development assistance are going to look like what is the role of the UN and more precisely also of UNIDO as the development industrial development agency in in in this new landscape and that was really very much the background from which we came when we started to to work on this network's prosperity initiative at the same time as also the the foreign minister very clearly said the the issue today is not necessarily money the issue today is in most cases technology and knowledge so the question here was how can particularly in middle-income countries where money is not the primary issue we as a as a UN agency but also with all the partners that we work together around the globe help connecting those knowledge notes knowledge polls to improve the the development possibilities and abilities of developing countries in in a more substantive and sustainable manner and here again middle-income countries are really at the core of of our attention also considering that out of the almost 200 member states of the UN 110 so more than 50 percent are actually middle-income countries which is interesting we have been talking about the millennium development goals which have been broadly focusing on on the least developed 49 least developed countries of the of our membership which is actually a relatively small minority and the question will be I think also in the future development agenda that we are now elaborating at as we speak what we are going to do for those 110 more than half of our membership in terms of development but let me come back to the to the to the background of this of this report what we think is networks will play a key role in managing globalization in the future networks will not only be government networks they will be multi-stakeholder they will include the universities the private sector and others industry particularly they will not have one center they will have multi-centers etc all of these findings we have tried to at least touch upon in this report that we have issued which is actually the second report we had a first report about two years ago this is the second report and what we believe is that we're moving really into the direction of an ecosystem of development actors of knowledge actors which help each other in in this new phase of globalization to to form what development assistance is going to look like in the in the future and that that is our perspective for that now coming to the report it has essentially three parts the first part is looking into these slightly more broad post 2015 as we as we have been talking about this is essentially a UN terminology for what is going to happen after the melon development goals that are at the moment the the primary agenda for for the UN and I think also broadly for the World Bank have been expired in 2015 what we think is that the the agenda will have to be broader some of this is in the first chapter of this report what we also think is that here we need to take into consideration large emerging economies we we have been talking Brazil South Africa China India and others their role will be very different as we see it in these in this new era of of development the second part of the report is looking into what the foreign minister has also been mentioning the connectedness we are trying to quantify connectedness between countries and here I'm very glad to that we had a brilliant partnership with the University of Loven and and other academic partners that could bring together a an index for 140 countries indexing their connectedness their ability to connect knowledge across borders but also within their country and as such what we think is this index shows their ability to manage their way in this era of globalization where knowledge is really the the core issue the core commodity if you want that that is necessary for their development and then a third part is looking into a number of examples a number of case studies Tim is going to mention one of them and we end with recommendations on the kind of network development that we think should be the cornerstone of the of the future development agenda now I finish with this and I see that there's already the next presentation here on the screen let me finish probably with two two issues one is why did we combine this particular activity with the the report that came from the CSIS on transition assistance we believe that this report on transition assistance is very interesting from from the point of view of a traditional donor country we are looking at this at the same issue essentially from the from the UN and a middle income country perspective I think bringing those two perspectives together will probably be the the most interesting way of really forming the future development agenda and also assistance agenda that we are trying to create for the future and also this will possibly answer some of the questions on who and how are we going to finance all of this that we want to create in in this new era and finally let me thank again the the government of Costa Rica I'm looking forward to this conference that we have in June I think the three topics that we have chosen are wisely chosen looking into growth looking into sustainability and then the financing of it and yes I hope I see all of you there and for a great new discussion thank you thanks very much Kazuki Mr. Vowder Dr. Vowder's if you would please come to the to the podium and speak from the dais the you were one of the co-authors of this report and please the floor is yours thank you excellency ladies and gentlemen it's a great honor to be here in Washington DC in the face of evolving global challenges and shifting notions and constellations of development the strategies which are being developed to achieve economic growth and stability are changing as well networks and in particular networks of knowledge are becoming increasingly important in order to support development which adheres to the mdgs and their post 2015 successors this is the starting point this is the basic premise of the networks for prosperity initiative which unido together with our leuven center for global governance studies is jointly developing this initiative aims to expand the understanding of how networks function in theory but also in practice doing so exposes the ways in which networks can disseminate information capable of influencing development practices research centers on unido's recognition of networks as major contributors to development and it builds on the fast growing body of academic research in many disciplines which recognizes the importance of network governance as a distinct form of governance bearing this in mind the networks for prosperity initiative acknowledges networks as this emerging governance structure but also builds on the notion of sustained cooperation between actors and states and i'll explain that in a moment because the importance of building on sustained cooperation is also highlighted in the high level panel of eminent persons which was mentioned already by the foreign minister this high level panel following their recent meeting in march in bali identified four key areas on which progress is needed to achieve their post 2015 vision and one of those four key areas and i quote is to reshape and revitalize global governance and partnerships they note that in order to achieve prosperity for all i quote again enhanced and scaled up models of cooperation among all levels of government the private sector and civil society at the global regional national and subnational levels will be needed now one of the key challenges for states and especially middle income countries is how to reap the benefits from sustained cooperation in a world which is characterized by a strong increase even a proliferation of formal and informal bilateral plural lateral multilateral clubs organizations and commitments on many transnational policy issues this proliferation of international cooperation and networks can be illustrated by at least four interrelated trends first of all one can observe an increase sheer increase in the number of formal international organizations international organizations you can have long discussions about the proper definition of it but one thing is clear you notice a very strong increase during the last four decades of their numbers there are the countings by the union of international associations i'm not going to redo them here but let me just tell you that between one hundred between 1990 when we counted 4300 international organizations we made a big leap to 2012 when we are at 7696 so you have had hundreds of new intergovernmental organizations founded each year at all possible levels bilateral trilateral sub regional regional global and so on interregional as well secondly we do not only increase we do not only see an increase in numbers of international organizations but also in the participation in international organizations by many countries across the world also in particular middle-income countries one way to capture that evolution is to look at its evolution at the cough political globalization index and that's why i'm showing here on this figure one this cough political globalization index which is a part of the overall connectedness index that we draw up together with unido this index captures the membership in intergovernmental organizations the number of international treaties which are signed and ratified by a country but also the number of embassies across the world and participation in united nations missions scores range from zero to 100 100 indicating a very high degree of political globalization and political integration now this shows the evolution between 1970 and 2010 with a specific line indicating the participation by middle-income countries and all countries in international affairs after the fall of the burlin wall one can observe a steady increase and a global integration of countries internationally more and more countries participate in the multilateral arenas of international politics and this is a kind of average trend for the world and for middle-income countries it doesn't show you the significant variation between individual countries that's the second trend there's a third trend where countries are not only increasingly engaging in by multilateral international organizations and say arenas they're also more and more engaging in bilateral international cooperation now i show you this second graph which is somewhat puzzling well what is this well many countries are especially in the context of economic cooperation pursuing bilateral agreements this is clearly illustrated and so i come to this graph by the increase in bilateral investment treaties germany set the president back in 1959 by starting up a strong number of bilateral state to state investment treaties since then we have seen especially over the last decade a real proliferation of those bits by the end of 2011 unctat counted 2833 of those bits in force this proliferation which you see here on this figure you see how countries link to each other through the bits which they have signed and what emerges is a very dense network of bilateral agreements between countries and you also see that some countries are far more connected through bits than others at the core of the graph nearly illegible i would say you see those countries with many bits and in the outer circle are those countries which signed only a few bilateral investment treaties in addition there are now more than 300 free trade agreements and you know coming from the european union i can tell you that you know plurilateral free trade agreements are the big hype in the european union this is partly due with the blocking of the doha development round okay that about my graphs i have a for development which is on top of all these formal forms of multilateral bilateral engagement there is an incredibly interesting increase in the number of informal or issue specific networks now there is no nice graph to be shown here there are no official records of this and it is very hard to determine their nature and their setup but if you choose for instance one particular policy issue you will immediately find many international networks and knowledge platforms take for example climate change and low emission development strategies clean the coordinated low emission assistance network has made an inventory of international and regional knowledge platforms which deal with low emission strategies they have identified a few those and of those hybrid networks dealing with low emissions such networks are extremely interesting because they really typically involve multiple stakeholders such as governments intergovernmental organizations and geos academia business and so on and so forth and they of course also aim to diffuse information and generate policy learning now come to my if you wish policy conclusions or or if you wish implications what emerges from these strengths is a complex international institutional environment with many actors many linkages which poses several challenges for both states and for multilateral organizations those challenges are indeed highlighted in our networks for prosperity reports from the perspective of each individual country this increase in international cooperation results at least in two very important direct challenges first of all for those countries which are less integrated in the international system for instance they only participate in few intergovernmental organizations or they only have a limited number of bilateral agreements for such countries the big challenge is to become more integrated more connected our reports with unido show clearly that some countries are indeed much more connected and networked than others what emerges from this is not so much a division between north and south but between highly networked countries and less networked countries countries moving from the periphery to the core grasping the importance of being indeed connected our hypothesis here is that countries that understand the importance of networks can develop distinct advantages in their pursuit of prosperity second challenge for the well-connected countries being involved in many different international constellations and being linked through different connections to other countries raises the challenge of how to make an efficient use of these connections these network connections may serve many purposes the most important one of from the perspective of our joint initiative is to facilitate policy learning information exchange and knowledge dissemination on a range number of policy issues and in order to maximize information diffusion and knowledge creation we have argued in our first networks for prosperity report that one does not only need to increase the number of network connections process which is currently happening at a fast pace as i've just illustrated one also has to deepen to embed these network connections make them also sustainable sustained network connections which allow for frequent interaction and dialogue in order to generate trust between partners facilitate information exchange knowledge creation and so on how to do that that's a key question we know from research in economics in psychology that trust building and embedding network relations is often a function of face-to-face interaction over longer period of time hence building effective networks requires time and investment this brings opportunity costs as a result you have to do some strategic thinking what do we want to achieve how do we want to achieve it with whom and so on with regard to your network involvement and that's a real key issue now the proliferation i'm coming to my end mr chairman the proliferation of international cooperation which is increasingly taking this network form poses also significant challenges for the more traditional multilateral organizations especially those which regard to their role especially with regard to their role as policy facilitators and knowledge managers they are confronted with a significant transformation this transformation is one in which knowledge is or was managed within the boundaries of only a few multilateral organizations to an entirely new environment in which knowledge moves in and out of organizations depending on the networks in which these organizations operate how to deal with this will have significant implications for the design and management including the human resources management of the more traditional multilateral organizations this might even give rise to some serious tension or a paradox because on the one hand knowledge is a key asset for international organizations many international organizations act as knowledge and expertise centers and diffuse knowledge and information across the world we speak here in the shadow of the Bretton Woods institutions on the other hand moving towards network organizations which increasingly rely on external expertise and knowledge might hamper their function as knowledge centers because they will not have any more the sole ownership over the knowledge and the knowledge is becoming ever more diffuse hence a kind of tension which emerged is one in which the international organizations rely on their own knowledge base to perform some of their key functions but they're also facing increased challenges to manage knowledge in a network context addressing these challenges and managing knowledge is one of the areas on which i think much of our future work needs to concentrate we already observe that several international organizations are experimenting in a very interesting and creative way with new forms of network formation and knowledge management i could give you a couple of recent examples of that but i'm not going to elaborate on it because my time is up but it's just very interesting is that indeed some of those initiatives merit further studying because indeed it shows how multilateral organizations are undergoing a kind of transformation themselves based upon this phenomenon of knowledge networks whether this all generates more added value all these networks we have to see that also needs to be further investigated but those experiments and transformations are really extremely interesting i think many local regional global organizations can really start learning much more from each other in this kind of knowledge networking society to investigate these profound challenges are i have already referred to the partnership between UNIDO and our Living Center for Global Governance and we intend really to continue this close cooperation because as you see there is still a very broad and deep research agenda ahead of us thank you very much thank you Dr. Voyders i'm going to ask Tim Meyer from the University of Georgia Law School now to have the floor thank you Tim for coming to be with us my pleasure and thank you Dan and thank you Kazuki for the invitation to contribute to this very final report the question i want to talk about today picking up where Jan left off to a large extent is what is the role of international organizations in governing networks Jan mentioned the issue of trust and how it can be developed in face-to-face context in dealing with networks but when we're talking about the diffusion of knowledge the diffusion of information particularly scientific and expert technical information coming from experts institutions play an important role in fostering trust and in fostering the credibility of the information that's shared just to give a couple of examples across a variety of policy issues relevant to development we can think about for example how do you diffuse best best practices for regulating tobacco under for example the WHO's framework convention on tobacco control how can studies about the feasibility of different forms of renewable energy be effectively diffused to countries that are considering trying to change their energy pathway from a fossil fuel dependent energy pathway to a more renewable and sustainable kind of energy of energy pathway this is an incredibly important question because lots of the scientific and technical research is done in a relatively small handful of countries to give you an example from from renewable energy 75 percent of the exporting of renewable energy technology occurs just between developed countries of those exports that occur to developing countries the lion's share go to only three countries china brazil and india so as we were working on developing a clean and sustainable in this case energy pathway that hopefully can solve both development objectives and environmental climate objectives we have this major problem of how we ensure that the energy is that the information is in fact diffused in a way that helps all countries in in achieving their development of goals so i want to make three points the first is that we have to problematize i think in terms of thinking in the role by the role of institutions we have to problematize the idea of knowledge because knowledge is not something that is just simply handed out by by scientists or by experts rather it's something that has has to have meaning in the context of particular policy problems when we can talk in this in this fashion about information or scientific information being usable and being credible by being usable i mean that the information has to actually be relevant to the policy problem that is actually facing policy makers a scientist in a lab who's setting some sort of abstract problem is unlikely to come up with a scientific result that has an immediate application to some particular policy problem that faces a a policy maker in some country to give you an example in 2009 the international renewable energy agency was founded the arena his mission is to essentially coordinate a network of countries and try to facilitate the diffusion of information related to renewable renewable energy technologies it turns out that that different kinds of renewable energy technologies are useful for different kinds of projects okay it's not useful to simply share information generally about renewable energy technology if you're located in a particularly dry part of of the world one of your major challenges is going to be desalination you need to it's just very energy intensive you need to take the salt out of the water in order to solve your water needs that's very energy intensive therefore you're going to have a particular interest in clean energy desalination projects one of the things arena has tried to do is really focus on the needs of its client states and the particular needs of its client states by doing very targeted country specific studies in an effort to ensure that information is indeed usable the second issue and i'm gonna spend a little bit more time talking about this is is the issue of credibility the information that comes out of both both governments that are giving foreign assistance like the united states or european countries as well as international institutions has to be credible to countries that are seeking advice as to acceptable policies best practices and scientific scientific information to give you an example in 2009 there was the h1n1 outbreak the world health organization recommended that country stockpile tamiflu as a means of treating this outbreak subsequent research and many countries did it yielded billions of dollars in revenue for tamiflu's manufacture so it's going to research has shown that the who and national health authorities the cdc in the united states and european health health authorities didn't have access to the basic underlying data that about tamiflu's effectiveness and therefore potentially significant amounts of money were wasted by these governments because the international organizations and the national health authorities simply didn't have access to the right kinds of information that calls into question on the credibility of some of these multilateral and institutions or institutions like the who and we have to think about how we solve that how we solve that problem how do we make sure that institutions like the who are able to deliver credible and effective usable information institutions matter here the minister in his introductory remarks talked about the united nations in its role and i think the phrase he used was exporting democracy and self-determination institutions play a role in exporting policies at a much smaller level here and the form of these institutions matter in some context it's going to make sense for institutions that deal in scientific and technical information to be independent of large multilateral institutions to not be tied to specific kinds of multilateral negotiating processes i think here for example the united nations framework convention on climate change and the negotiating process to what extent should we be decoupling efforts to diffuse renewable energy technology from the unf triple c process which has become bogged down you can similarly think in the trade and investment area of trying to decouple cooperation on certain kinds of environmental trade from the doha round process and the wto's on processes the various disputes going on under the sps and tbt agreements in the wto at the same time independence has severe costs where the where the credibility of information is concerned it is often incredibly useful and i think this is often underappreciated it is often incredibly useful for governments to be able to have and particularly governments that are trying to absorb best practices that are the targets for aid to have oversight of the work of these scientific and technical bodies when european countries initially tried to deal with the problem of persistent organic pollutants they wanted to have a european convention a protocol to an existing convention to deal with these persistent organic pollutants these are things that travel that their byproducts essentially of economic activity that travel through water systems and the food chain they are serious health risk and the problem was that eastern european states at the time were not really equipped to participate in the generation of scientific recommendations nevertheless it was deemed absolutely critical that the eastern european states have the ability to participate in the preparation of the scientific assessment that was going to result in legal rules because their buy-in as to the scientific recommendations and not just the legal rules was absolutely was absolutely critical therefore a number of western european states put money on the table to encourage the participation by by these eastern european states and by all accounts it was very successful that in engaging countries and allowing them an oversight role at the scientific and expert stage facilitated and encouraged the successful cooperation on on persistent organic pollutants my third point and and i will conclude here is that it a number of speakers this morning have touched on this but that it increasingly looks like governance of these kinds of networks is most effectively accomplished in smaller institutions that are decoupled from large multilateral organizations the role of oversight the role of non-european non-american countries and participating in these institutions is absolutely critical critical for the credibility point but is it often it seems to be a potential ingredient for success they not be linked to major negotiating process like the UNFCCC like the WTO's process and by way of example i'll talk about the founding of IRENA IRENA the International Renewable Energy Agency was sponsored to a large extent by the german government and at the time there was a serious conversation about where IRENA should be housed should it be part of the UNFCCC process embedded in the UN process should it be part of the international international energy agency which is maybe you probably know is an OECD organization that has existed since the 70s it does a lot of work on on energy but its primary focus historically has been petroleum and there was a big push from some of the other European countries to think about whether or not it made sense to house this either as a as a environmental initiative within the within the UNFCCC as an energy initiative within the IEA the IEA has been trying to boost its its renewable energy profile and therefore was eager to to get this and the Germans were quite insistent that it was very important that this be an independent body and an independent organization so that the the function of developing these feasibility studies the the role of coordinating networks intellectual property is very important for renewable energy intellectual property creates a lot of barriers to the diffusion of knowledge in the in the clean energy area trying to build networks that would knock down those those barriers erected by intellectual property that it was critical for the functioning of that mission that arena not be affiliated with any of these larger larger bodies the IEA was deemed to be a credibility risk because of its petroleum links not friendly to clean technology and the UNFCCC was thought to be sufficiently embroiled in larger political political and legal debates that it would deter from the mission. Arena is of course only one example one size does not fit all as Kazuki mentioned one of the things we need is as much greater research into how organizations like arena can be effectively structured to encourage the diffusion of information in specific areas different kinds of information probably called for different kinds of institutional solutions but I do think that arena offers one particular model that we might look to as a way to encourage and foster the sharing of credible and usable scientific information so thank you very much thanks thanks very much Tim I think there's a very nice segue into Jerry O'Brien's remarks I think Jerry's remarks who Jerry's with USAID he's the Deputy Director of the Office of Science and Technology at USAID I think will also be a nice bridge into the conversation we're going to be having about a series of specific networks for solving global problems we've talked about the big picture through the minister we've been having sort of a discussion at a largely at the larger picture level in this panel I think Jerry you're going to help us kind of close it out thank you Jerry the floor is yours well thanks good morning so I'd like to share a little bit about our thinking about knowledge networks from the donor perspective particularly science and technology knowledge networks the Office of Science and Technology a relatively new part of USAID and our stated purpose is to help the agency and developing countries use science and technology to better achieve their development goals so obviously we think a lot about the importance of science and technology capacity building as a tool for development developing countries represent 80 percent of the world's population yet only 28 percent of the world's scientists and so this is a stark reminder of the lack of innovative potential necessary for developing countries to solve the real-life challenges affecting their countries and their people so we see science and technology capacity of a country as a core development prerequisite so that development interventions can be sustainable can be institutionalized and scaled within with local ingenuity and local capabilities and renewed with local scientific and technological innovation so that countries can be proactive players in their own development so that we can ensure that science and technology advances are contextually and environmentally appropriate and so that science and technology can act as a kind of infrastructure for absorptive capacity in developing countries so we have been preaching this gospel inside the agency for a couple years now and at least the folks in the chorus are fairly receptive and what we're seeing over the past year or so is a much more explicit discussion of science and technology in our strategic planning and our program designs for example USAID Indonesia just released its new five-year strategy and of its four development objectives increasing the science and technology capacity of the government of Indonesia is one of them that's the first time we've seen that other countries country missions have explicit s&t goals as part of their development objectives or we see it as a theme woven across the entire strategy so we're delighted at that development inside the agency I would note that we are seeing that happen in the country development strategies in middle-income countries though which leads me to kind of another conversation that's going on in the agency there's an interesting conversation going on in our policy bureau right now about how best we should embrace the goal of eradicating extreme poverty in a generation and the folks in our policy bureau have suggested that we need differential strategies for different kinds of countries and when they are talking about middle-income countries they are the core approach that they are proposing is to harness science technology innovation and knowledge sharing as the best way to help countries eliminate extreme poverty so our comparative advantages in agency now is not in providing financial assistance or traditional development assistance but in knowledge exchange sharing of lessons learned policy reform and by helping countries create the ecosystem of science technology and innovation leadership we're delighted that there's some policy coherence between the science and technology office and the policy office we were delighted to see that we don't always see that but we think that's that's a good sign so as I started casting about trying to put my thoughts together around this I started going to technical bureau colleagues and saying hey what are you guys doing in knowledge networks what's your thought about that and they said in what but once I explained to them what I was casting about for they said oh yeah I know we do a lot of that in fact observation is that when I first started thinking about this I I thought of the Arab Spring and I thought clearly the I'm not sure if what Arab youth were creating in that instance were technically knowledge networks but they were certainly in that ballpark interesting to note that all those countries are middle income countries but it seems that that middle income countries have the necessary combination of characteristics to allow spontaneous and user driven knowledge networks to spring up and to be effective but I did find lots of examples in the agency of knowledge networks in rather different kinds so for example actually let me step back early examples in in the science and technology arena of a knowledge network is the open drug discovery process this is a process through which scientists collaborated on looking for treatments for TB malaria and other neglected tropical diseases been around for a long time for decades it engaged a ton of new players and actually contributed significantly to challenging this concept of intellectual property as a barrier for this kind of knowledge sharing so we think science and technology as a field is particularly well suited for this kind of knowledge management approach as I said in the agency we find lots of examples of knowledge management efforts that we have supported a very early one was called frame net and it started as a community of practice a couple decades ago working with folks in the natural resource management field it started in Africa as a face-to-face series of meetings and workshops and networking opportunities hard copy publications designed to share successes and failures among practitioners frame net moved very early to an internet platform and and very quickly became a global community and a real knowledge network as we would define it but that is rather the exception than the rule as I talked to folks in in the agency who are talking about how we're supporting knowledge networks and knowledge management more typical as an example of a project called adapt Asia Pacific it's a knowledge network that focuses on climate change and resilience and it does the usual knowledge network kind of things but it has a very specific focus on linking funding organizations with eligible recipients and helps those recipients and countries prepare fundable projects so there's a pretty clear tension between the knowledge management goals here and the the USAID strategic goals actually a quote from the the project documents as with all its regional programs rdma seeks to demonstrate measurable impact on the ground and the creation of sustainable programs and we will measure program impact in terms of and then it goes on to say exactly how we measure that so that's a little bit of attention there but nonetheless important knowledge management aspects there are quite a few of these across the agency I won't go into a great discussion of them but there are a number of them our office has just established the what we call the higher education solutions network which is a hundred million dollar five year project through which we are creating we have created seven development labs at universities around the world they include over 119 partners in in 38 countries each lab is working on a specific interdisciplinary aspect of development science and one of them I think that's quite interesting is that macaery university in Uganda and it it has created what they call the resilient africa network which is a network of african universities at looking at the science of resilience and creating a network for the sharing and creation of this of this science our goal however is to create a broader network of all of these actors and to support the widest possible creation of and sharing of knowledge in this field of development science again largely focused on the development community on us and on you and not so much focused on the actual sort of participants in the the network so let me just close with a couple of observations about so our role in in all of this and and sort of what the challenges are and where we might be going as an agency we're under pretty significant pressure to measure and demonstrate the impact of what we fund we have to justify how we spend your taxpayer dollars actually and congress keeps asking us so we keep having to tell them our definition of evidence is pretty narrow and the tools we used to measure it are suited to to measuring that narrow definition we struggle with a annual funding cycle and clearly the way our missions are staffed with foreign service officers that rotate every several years this creates a set of incentives that make it hard for us as an agency to invest in systemic approaches to development and to knowledge management which are inherently a long-term difficult to measure and have diffuse impact and so that skews our investments in activities that have measured outcomes in short-term impact so that's this again an inherent tension between the the incentives and constraints that we work under and achieving the kinds of goals that knowledge management offers us the other big constraint that I've alluded to is that many of our efforts in this arena really are focused on creating and sharing knowledge for our purposes or as I said for your purposes the broader development community's purposes and not for developing country actors and we know that the most vibrant and successful knowledge networks are those that are user driven and inclusive of developing country actors they are the ones who know what they need and we should be following that lead obviously so a couple closing comments if we as an agency really want to reap the benefit of knowledge management that's particularly in this middle income country environment where that should be the way we should be operating we need to do a couple things we need to make the case for the benefits of a systemic approach to knowledge management as an end in itself and not as a kind of a as a tool to achieve other goals I think we need to make explicit the knowledge management aspects or elements of many of the programs that we have as I said they're often implicit or not not teased out I think we need to consolidate and expand the knowledge networks that there are in in being supported by the agency we shift our emphasis clearly to the users or at least better balance our interest in the users and and our strategic interests I'm not those constraints that I mentioned earlier are not going to go away but if we make more explicit the the role of the user here I think we can shift the balance more effectively in that direction and finally and importantly I think we need to be willing to make the the case for this longer term goals and a longer planning horizon because investing in these kinds of approaches to development clearly is a much longer term exercise than than the the typical planning horizon that we struggle with so I'll leave it there thank you thanks very much Jerry I think the panel is going to take a few questions so I'll open the floor my friend Alina Jaskowski up here hello and I'm Alina Jaskowski I'm the director of the DC office for global development network and we are an organization that focuses on research capacity building so this is very much of interest for us so thank you Dan and CSIS for organizing this I really thought that the keynote speaker was excellent and hoped that his speech would be available I'm not sure if you'll be able to provide copies or or have a link on on the web because I do think it's a good thing to share with everybody and I appreciate being exposed to the UNIDO report so I was wondering with the UNIDO report is this plan then to be done every two years this index and if so you know how comprehensive is your tracking what kind of methodology are you using and and if this is something that is fully funded by UNIDO or how how it's working thank you why don't we take one or two more questions if other folks have questions we'll do this world bank style if any other folks have other questions comments if not we can go ahead and I'll ask Dr. Boyders to respond to that the ambassador here from Costa Rica thank you very much I'm Sol Weisleiter I'm the deputy permanent representative of Costa Rica to the UN in New York I wanted to ask Mr. Vauters he didn't have time during his presentation but if he can tell us a little bit on at least one of the examples that that you mentioned because for many of us even though we have been catching a little bit better but the issue still remains a little bit abstract it we have moved into a more concrete understanding but I my feeling is that for many of us it's still a little bit abstract so so we need more examples one could even say that in today's world what doesn't happen without networks so in a way to convince us that networks are important well yes it's important but but it's not so unless you show it in a more concrete way thank you very thank you very much I think the second panel I think what what we've imagined is is that we'll have a chance to talk about three different three different networks that cover cover different challenges global challenges that I think will get to this our our thought was to do this in a but I think I think your point is very well taken so perhaps Dr. Vauters will have a chance to respond to that thank you Kazuki why don't you respond to the first question if you would please yeah thanks very much Dan the the plan we have is actually so far we have issued this report on an annual basis the first one two years ago and this one actually came out last year in November we're planning for this year to bring out one additional report which is going to look at networks and sustainability issues as the primary focus of the of the report and hope that we will continue if not on an annual then at least on a biannual basis with the with the report and of course if there is interest in partnering with us on this particular activity that's that's the beauty of networks let's exchange cards and just one because you were asking about the funding issue so far UNIDO has been funding this with the support of the government of Spain the government Spain was very generous actually funding this entire initiative so far and what we know is that Spain has also renewed its its interest in working with middle-income countries which is a traditional focus of Spain particularly in Latin America and we hope obviously that this partnership with Spain will continue on this in this particular initiative but we are very happy also to look at some other opportunities when it's coming to funding of this of this initiative as for the for the Connectedness Index I think I leave it to Jan to respond so Jan theoretical versus can you give us some examples and how do you make it so that our head doesn't hurt when we think about this issue we should have a second seminar about this you know well first of all in in the two reports which we have been doing and in particular the the second one of November last year there are a couple of case studies that indeed look at the way in which for instance from a business point of view from an international organization UNIDO and other organizations point of view these networks are added value but I could not elaborate in my speech were actually two examples I had in mind when speaking about this last topic about how multilateral organizations have to cope with this network society in fact the two examples in which we are ourselves in live and involved in as academics the first one is the world bank the world bank here and I visited the vice president in that respect Hassan Cisse a few days ago the world bank has developed a whole network of scholars practitioners and analysts that focus on law development and justice it's a huge network you create a kind of partnership agreement and you're part of more than 250 partners it's divided in a whole set of working groups that share up-to-date research debate and identify key priority areas for researchers and policymakers on a broad range of issues on law justice and development it brings not just together academics it brings together practitioners from an enormous amount of international financial institutions legal counsel and so on so I mean it really creates I mean you they have their annual week more or less that they do in Washington DC this year it will be in November so you bring actually together not just knowledge that cannot always be present in one single institution but you connect the various if you wish stakeholders constituencies where knowledge is being produced especially I must say for us academics this is extremely rewarding it's not just about exchanging business cards it's really about if you wish being able to exchange the actual results of your academic research and make you as an academic also much more aware of you know where are the real life issues that matter where you know academic if you wish important issues meet the policy needs and I think that's something which we absolutely need to cultivate much more not just here in Europe I think more more inter-regionally as well because one thing I have to say my experience in Europe we do have European research programs funded by the European Commission but they are still very much you know based in Europe and I I'm the first one to say we should cultivate much more inter-regional research cooperation the problem is as in so many cases of international institutions and governance there is no overarching structure for that and the country still very much think about research and research funding as something part of their national spheres of sovereignty I mean I think we should open up those markets also in order to stimulate the best possible results and also deal a little bit with the enormous overlap that exists overlap but also gaps and there for the gaps I think the great utility of such say networks which multilateral organizations like the World Bank stimulate is that you need you confront the knowledge production with each other and you make academics better aware of the real life needs of policymakers John thank you very much I think what we're going to do is we're going to stop here so we can get back on schedule if you all will promise to be back in 10 minutes we'll reconvene in 10 minutes thanks very much okay we're going to get started while the folks are getting seated we had a discussion that was we're going to go from the theoretical to the applied we're going to talk about a series of case studies that are related to network networks and networks of networks we're going to talk about the issues of knowledge sharing within them governance how they're formed how they're maintained how they do their work I think this issue of knowledge instead of finance as a driver I think will be I think will be one of the underlying themes within this so I think it was a I think we'll have a a very interesting and rich discussion of three different case studies I'm going to ask Barbara Chrysler though who is the manager for UNIDO's business partnerships to first kick it off so Barbara the floor is yours much very much ladies and gentlemen it's a pleasure to be here I thought after the very insightful and thought-provoking discussions this morning that I'll start you off with a very quick video on the way UNIDO manages business partnerships which are partnerships with the private sector and then I would be very happy to as Dan was saying to get a bit more into the practicalities of business partnerships which after all are a certain form of networks and networking so if you don't mind I'll just I think we've got a technical issue here sorry I just don't know UNIDO has a special base in the UN system the focus of our work is to accelerate industrial development in developing countries as well as an emerging economy industrial development is important but it needs to be sustainable inclusive and not achieved at the expense of natural resources we are happy to see that our views are being shared by a growing number of corporate actors so by engaging in business partnerships we can take advantage of the creativity as well as the know-how of the private sector in order to further increase the development impact of our work major multinational companies retail industry manufacturers they are trying to develop their supply chain in a more responsible and sustainable way and they require the sustainability of their sourcing they need the suppliers they are capable to produce at the right time the right products this involves assisting local suppliers and producers to comply and conform with market requirements and international standards they comply with social standards environmental standards they can be productive and efficient and in doing this UNIDO has the necessary experience and tools to help those suppliers accessing regional and international value chains and trade systems there is a benefit for all the suppliers their families the the major buyers and the consumers industry plays a major role in job creation partnering with the private sector has a lot of UNIDO to harness the know-how and the technology to meet the job market needs set partnerships facilitate linkages between the private sector and public training institution to transfer important skills to local people especially the young they support them to find work or set up their own businesses UNIDO has an extensive field network we have offices in over 50 developing countries working in partnership we can ensure that initiatives reach the people on the ground and that they are sustainable to address global economic challenges such as food security or environmental sustainability or energy access we're building an increasing number of what we call multi-stakeholder platforms these are platforms that involve a wide range of actors from the public sector the private sector as well as civil society to achieve systemic change within entire industry sectors by pulling our resources we are able to make sure that we add value across the entire value chain by bringing together different actors we try to encourage the exchange of information foster innovation and promote best practices the private sector often holds the key skills expertise and technological solutions and with UNIDO's catalytical support we can jointly adapt products and services to local needs at scale and level that result in transformational change to help industries move away from the current unsustainable manufacturing model to a greener more resource efficient production process and in this way upscale and mainstream the greening of industries as partners we can deliver sustainable and clean energy solutions to millions so why are we working with the private sector to create shared value more jobs increase livelihoods promote inclusive green growth achieve greater scale and impact transfer knowledge and technology add value and innovation great all right all right thank you very much i thought this was perhaps a good way to to kick off this session and what i would like to do is basically to talk to you today about the specific networks that we and you need a very much foster which are around partnering with the private sector i think after this morning's discussion and what the honorable ambassador as well as dan have been alluding to is that the years of traditional development assistance are certainly going to be over or we already see the end of that there is no more the traditional the north the rich north giving the south funding in order to to to develop further we will see less and less of that we are in a fundamental transition phase where we see new forms of relationships and partnerships and as as kasuki and and others also noted that there are new innovative ways of partnering and networks for prosperity is obviously one important initiative in that in that respect another one and this is one that we are very much working on in unido is to see how we can further work with the private sector to transfer knowledge and know how in order to further increase the developmental impact of our of our technical cooperation programs and in that we have now a growing number of successful partnerships which very much make us realize that this is certainly a very promising way of further cooperating in the future what is very clear when we when we work with the private sector is that obviously we have to recognize that there are different agendas that are coming together at the end of the day the business of business remains business businesses are not NGOs they are not philanthropic organizations and we very much need to recognize that when we are when we partnering with them and in order to create sustainable networks and partnerships we need to make sure that there is an value added for all partners involved we are not talking about here these philanthropic traditional approaches where large companies are writing a check you know to do some nice project somewhere and then it's pretty much over with a nice present photo opportunity but we are talking about how to engage the private sector in its core business and to make sure that we can transfer their knowledge to the benefit of our ultimate beneficiaries which are small and medium size enterprises in developing countries and since more and more companies are sourcing from developing countries in in their local regional and global supply chains these kind of partnerships will become ever more important so um what i wanted to to basically i'll just i wanted to show to you thank you the the ongoing partnerships that we currently have found a problem repair i don't know what the problem is f5 ah thank you great exactly knowledge network so i i just basically here in this slide wanted to show you uh what we are talking about when we talk about business partnerships i think we at unido have certainly an advantage being a unorganization with a specific mandate on industrial development which makes us a very interesting and relevant partner for the private sector i'm listing here the partnerships that we currently have ongoing in unido in different areas whether it's in agro industry uh technology environment or energy and climate change but it just basically shows um there's a lot of room for for potential to up scale is further i also wanted to uh draw your attention to a relatively new form of partnerships which i think in the context of uh talking here about networks and networks for prosperity is is very important because in addition to the traditional bilateral partnerships that are taking place between let's say a unorganization and a private sector partner we see more and more the development of what we call multistakeholder or transformational partnerships these are partnerships that involve a large number of actors from the private sector from governments from academia as well as civil society and others to address global development issues and achieve systemic change within entire industry sectors we have a number of initiatives that fit this category one of them is the green industry platform which i will talk to about in in in a second obviously these partnerships once they are successful have the the the potential of a much larger impact in on the on the global scale the downside to that is of course and i think we should also not forget about that is the complexity of such multistakeholder partnerships and to to bring them up to to a phase where they can actually show impact can be a really daunting task because we already see in our bilateral partnerships that this is sometimes not an easy an easy way of partnering so bringing even more actors together could potentially also be quite challenging i i'm not going to go through this in detail i'm very happy afterwards to to to provide more information i just wanted to give you three quick examples of our ongoing partnerships and i also have some brochures here with me so whoever's interested please come and approach me afterwards one of them is a partnership that we have with microsoft i don't think i need to introduce microsoft microsoft is a partner they've been working with since 2006 and the focus of our work has been in africa to to to allow and enable particularly small and medium-sized enterprises in rural areas to access ict training access the internet and be able to obtain updated information relevant to their business through through this partnership we are also working with microsoft most recently now on their project around e-waste electronic waste which is one of the fastest growing challenges when it comes to recycling issues and in fact we will hold a workshop with microsoft and others in two weeks in cape town on on that issue the other project i would like to bring to your attention again it's in the it sector but i thought since we are here in the u.s perhaps also interesting to pick some of our u.s partners is with hewlett puckert where we have a project in 15 countries all over the globe this is truly a global partnership that we have since 2008 and it's a training curriculum that combines entrepreneurship training with it skills which is quite an innovative way of providing this kind of knowledge particularly to young people as well as aspiring entrepreneurs and i think the results that you see on the screen speak for for themselves the last example that i would like to give to you is the example of the green industry platform as i mentioned before this is one of our multi-stakeholder platform it was launched last year at the rio conference is a partnership that we have launched together with unab the environmental program and the objective of the green industry platform is to assist the greening of existing industries as well as the creation of new industries it's a global initiative we have 142 members that have signed up to up to date and the numbers are still growing you could you can see here quite important participations of businesses government as well as international organizations and we have just kicked off our first advisory board meeting in paris a few weeks ago and are very much now focusing in the first year on looking at green industry activities in the food and beverage sector so this is very much seen as a global platform to share best practice and to share knowledge between like-minded partners on what can be done in the area of advancing green industry and sustainable production patterns i think i would leave it to to this short introduction for now i just wanted to since this is after all a conference on middle income countries wanted to ensure you that in this next phase of our program we very much are reaching out and want to reach out to private sector partners in middle income countries so far this is has been more the traditional approach of working with the big boys so to speak but for us working and identifying suitable private sector partners in middle income countries and encouraging these south south and knowledge transfer is very much an area of focus for unido in in this next year to come so thank you very much thank you very much thank you i'm gonna i'm gonna ask bill reese who's the CEO of the international youth foundation to share with us a case study of the international youth foundation and the work that it does which it does in the form of networks bill the floor is yours thanks Dan a week or so ago i was here giving a different case study on employment and scaling but today i'm glad to talk about something quite different but it takes the two to to tango so to speak value chains and supply chains are very important and we've talked about them for years now in the industrial or commercial sectors but they're i think they're just as important in in development because as Barbara said development is a complex set of processes it does take multiple stakeholders frankly just two probably don't do it neither do three or four year projects which a lot of donors want to get into i'm going to fund you to do that and we'll do it for three years and then sustainability is is if you can get someone to fund it for years four five and six uh real development takes 10 15 20 years dan asked me to talk about our network and the international youth foundation really is a community of practice of about 250 well vetted all locally governed sustainable they may need help but they're not needing help to pay their light bill that month nationally rooted civil society organizations across about 70 countries so it's a platform really for learning and sharing and also for scaling and inputting and and leveraging projects we share a philosophy across this network i call it horizontal and virtual because it's not vertical with the headquarters here in the united states or somewhere else with a bunch of field offices and it's virtual because we don't try to own or govern the local institutions we're there to work together around shared value uh sharing a philosophy sharing values and sharing standards of operations it's all for us about positive youth development but you could have another network doing gender issues or agricultural issues or or you name it positive youth development for our foundation and for others who use those words positive youth development is that the outcomes you're looking for and we're all talking about outcomes these days the outcomes of a youth program put on by multiple stakeholders government business and civil society ought to be a healthy civically engaged employed adult not a youth the ROI on a youth program is a 50-year successful adult hopefully uh together this network of ours about 250 organizations is sharing in a in a robust and proactive way best practices trying to set high standards for both governance and and management and the use of best practices then to advocate for what the types of successful proven practice programs were we're all doing together and fourthly and i leave it for fourth it is to leverage resources that these institutions couldn't raise themselves and i speak here of a 30 country 50 million dollar program we did with nokia over a 12-year program 12-year time frame about 50 or 60 countries that we've worked in with microsoft over 12 years now a large caterpillar program now that's all these are eight figure programs yes part of it is philanthropic at times part of it is CSR part of it is their core business but it's companies wanting to invest in sustainable communities by having in this case doing it through the preparation of the next generation of workforce and consumer people meaning the youth bulge the largest cohort of teenagers and young adults in the history of the world we think this is particularly important in middle income countries because quite frankly if there are two billion people in our next goal uh two million people living under in the poverty under the any definition of poverty and we think we're going to eradicate poverty well i think that half of those live in middle income countries and as jerry o'brien said earlier today we need differentiated uh strategies for sure too often we have about 200 differentiated strategies because we want to treat each project in each country differently because they're so special and so different what we try to do is try to find best practices that are transferable and the latinos call it because there's a whole american uh group that have poo pooed replication for years and there's a lot written on it can fill a library but the latinos will talk about re-editing you re-edit a book by updating its graphs and it's adding a chapter and changing the pictures and translating it to another language and putting an afterword or a forward or whatever else good practices need to be re-edited like that so they can be taken to another part of the world and i think there there there may be a billion people in paul collier's bottom billion uh but those are countries that are going to need very different strategies the middle income countries who probably have more poor people living in than the rest than than collier's uh countries frankly have probably a better chance of raising that last segment of poor people in their countries in all the countries we were talking about today and even little costarica has some of its poor people too but the brazils the china's the indias that's where the bulk of poor people live and they probably have a chance if we can work with them around these issues so our dna across this network is to build public private partnerships at the national level because global partnerships are terrific what unido is doing and some of our partnerships you could be column global but really where they're working is at that local level and oftentimes local is not with the federal government in a brazil or a mexico it's with mayors it's with regional governments it's with governors where frankly more work gets done and you can see more outcomes and then you build public private partnerships with local businesses not just the the big global names um we talk a lot at iowaf about effectiveness scale and sustainability and that's nothing we invented but it's something that tries to govern what we do across this network and that is that you need to invest in things that have real proof and and metrics behind them so we're all for measurement these days not just because it's politically correct because it helps us make our job do our jobs better so transparency and accountability are part of it but frankly the most important part for me is that we need to measure so we can invest in the right things the best things and there's not one best practice but there are dozens of better practices and for too long i think most of us have been investing in well-intentioned practices that don't no one really knows whether they're they're proving right or wrong scale then is hugely important in whatever field of development but particularly for us who have talked about the youth bulge this this demographic cohort if it's to become a dividend rather than a liability then we have to get to scale for Pete's sake and frankly sustainability is the other side of the coin to me to scale if you can get it to scale you better figure out how to sustain it and sustaining means the public sector does have to be involved in to a great extent because governments too often come in wipe the slate's clean i'm the new minister of this i'm going to start history over again put my name on everything and there's no sustainability of goodwill or practice or or investments and that happens here in in our country as well as any other country we're very happy to have created a partnership with csis in the last few months you'll hear more about it in the months to come what we're doing is trying to create a youth well-being index which would not be a name and shame index but it would be an index around which we could look at a country or a part of the country and say what is making those young people well off or not and i mean well off by getting through school being healthy civically engaged and job ready again if if a country isn't doing that and by country i mean now business at civil society all the donors that are playing in that country for a while external donors and the government itself then we need to be looking at that civically engaged healthy and employable adult we're happy to have influenced over the years the world bank and its 2007 world development report which i think is still the best single document on on youth development and how you build these partnerships and how you build and look at youth development is not just education or health but a whole series of things that make it give us that could give us that kind of adulterer citizen we're looking for in society and we're happy to work with a id last year in the development as a 51 year old agency it's first ever youth youth policy paper those things are important i think for us as knowledge managers to do is to try to influence the bigger boys and girls and how they run their programs and to influence a big bilateral and the world bank is important but we also want to influence the multinationals and it's and not just to get their money but to work with them at the core of their businesses so we're working with walmart and and mcdonald's day in training their entry level employees mcdonald's trace trains a hundred thousand young latins every year they turn over about a hundred percent of those people too but can they lower that that that rate of losing their people but can they also see those people who come into a first job and most of us as parents here know that we want our kids to have a first job but the first job isn't your end job so is there some chance of moving up and having a career and thinking of future education and growth well that's what we're trying to do in these pre pre employment training programs with two employers that are they're huge that's core to their business this is not philanthropy uh so i i'll i'll leave it at that but i think that to us the public private partnerships are sort of of and buy and for the people but they are of and buy and for the locality that's where i think real public private partnerships that they can get traction at a community state level in some of these bigger multi uh middle income countries we can really have some some proven practice programs that then can be taken also to scale because we're influencing the policymakers and business community thank you thank you bill rada please share with us about the clean cookstows alliance which i if i recall has over 700 members of of various types public private governments of please the floor is yours rada thank you dan and thank you bill as i was listening to your presentation as thinking i can take a take i y f out of a lot of what you've said and just substitute the global alliance in there and it would sort of apply very much in terms of principles and philosophies and i think we certainly learn a lot from organizations like yours who've been at this for a little longer than us i'd like to start just with 30 seconds on what the issue is because not everyone is aware of the global alliance for clean cookstows so the issue here is the problems that come about as a result of cooking over open fires or cooking over rudimentary stoves and essentially there are four types of problems there's a health issue an environmental issue women's empowerment issue as well as an actual bottom line you know livelihood economic impact on families as well so the first issue related to health just one statistic and i won't bore you with anymore you know four million deaths a year result from exposure to cookstow smoke so it's a number that's that's significant it's much larger than many other numbers were familiar with in terms of hib tb etc but it's one that is a silent killer if you will and one that hasn't gotten the attention so that's a significant area and reason why we're in why we've come into being environmentally just one additional statistic here is 24 of the world's black carbon comes from emissions from these cookstows so it's a it's a significant environmental issue as well when it comes to women's empowerment you know it's hard to be able to empower women to have choices and to be able to do other things with their lives if they're spending eight to 12 hours a day collecting their fuel and cooking over inefficient stoves so if you want to get two women's you know really at the issues of women and women's empowerment being able to address clean cooking and provide clean cooking solutions is a very quick way of of getting there and the fourth area is around economic impact on a household for those households who are not collecting their fuel collecting wood they're buying charcoal or kerosene on a spot basis on a daily basis because they can't afford and one soup to buy more more of their fuel and so that's approximately 30 to 40 percent of their income because that charcoal or fuel is cooked relatively inefficiently over an open fire today so that's the issue and that's the problem so the global alliance came into being in 2010 it was launched at the clinton global initiative and it seeks to take a market-based approach to addressing this problem so we have a very concrete goal it's 100 million households achieving sort of clean cooking solutions cleaner fuels cleaner stoves more efficient stoves heat retention devices everything along that spectrum by the year 2020 so we were conceived of as a market sort of a public private partnership so it's a little bit different perhaps in the sense that in many cases at least other organizations that I've been with we have sought to attract private sector partners to join our efforts and to meet our mission this initiative was really born out of a public private partnership of 19 partners many UN agencies many NGOs and many corporations as well there are 19 that that sort of gave birth to it if you will and now we're sitting as Dan said at about 700 or so organizations that are partners across academia business NGO governments etc so what do we bring to the sector and why why is it important to have an association or a group like the like the global alliance in the past the sector and I'd say even today because we're slowly sort of chipping away at it but not quite there yet the sector was incredibly fragmented so whether you are in the academic field and even within academia if you're working in health or in population or you know women's empowerment you are sort of disconnected from from one another if you will and even if you look at the business sector those involved at any stage of the value chain in producing a a more efficient stove whether it's the ceramics liner or those you know at the factory level of the distributors they just didn't know one another and they're operating in isolation whether in a in a community in a country or throughout the world so a very fragmented industry a nascent industry one that wasn't looked at as a market and driven by donor and aid aid applications in the past really needed a convening body if you will to help to help kind of bring it together and and to work sort of collectively towards this hundred million goal so that's one role that we play in terms of really bringing the sector together the the other role which I think is an overarching one is that everyone have their own strategy and approach in a very small way of addressing this issue and as a result I mean cook stoves are not a new issue in development it's been around for several decades as a result you had small small projects that may have succeeded may not but nothing that addressed this issue at scale and so for us bringing the sector together and developing a cohesive strategy for the sector was really critical and it's one that donors had talked to us about it's one importantly that investors had talked to us about and said we cannot invest a dime you know in this sector given the fragmentation and given that everyone is moving in a completely different direction to achieve these goals and so given our market-based approach we absolutely need to drive investors into the sector and to you know within a few years we hope by 2020 sort of you know let it function as an efficient market so today we use the grant-based funding that we have and we call it sort of smart grants to capitalize and leverage capital that's the only way we use the grant money that we have so in addition to donors and investors and and the networks that they bring to the table we've had we had players within the sector everyone from your small artisanal stove producer to some of the larger companies like phillips that are engaged in this as a core business that said you know you've got a role to play here in terms of brokering partnerships within the you know the actors within the sector to be able to connect them with one another phillips knows where it's strong it might not necessarily be the strongest in that last mile distribution or in that after-sales service you know and you might need to have women's groups trained to be able to sell the phillips stove and to be able to service that phillips stove every couple of years or so and so brokering those partnerships even within a sector was another important role that was identified and one that we play as well so these are some of the different ways so sort of developing the strategy bringing different networks and ecosystems together the biggest for us is the investor group and the investor larger investor network all the way from impact investors to sort of commercial traditional you know financial service providers as well and so those are some of the different kinds of networks that we're bringing to this issue given the market-based approach that we're taking to to to address it as well now Dan asked me to talk a little bit about 700 partners you know how does this get managed you know and how does it kind of layer if you will so there are different roles that we as a global alliance play and we're quite conscious of the fact that we're just a hub if you will we have no intention we're about 12 people we've no intention of growing more than I don't know 15 or 16 people or so so it's really layering and using many of your partners as ambassadors as sort of hubs within specific areas so we've got a couple of banks that are our leaders in the investment space and they kind of take on and manage that investor network if you will we've got a couple of impact investors that manage that space for so it's a little bit of distributed authority you know and delegation to help govern these different networks and to help drive their engagement within the broader network of 700 partners the other thing is we don't have offices in any of the countries that we work in and so the idea is we work through our partners and and and that is the one element of sustainability here so that it's not that we have an office and we have staff and so while we're there things will go fine and then we're going to pull back so that that's from the outset that's how we've sort of designed this and the idea of having all these partners is for them to play roles you know so that they're active contributors within within the sector as well so those are some of the different ways in which we engage they're obviously online ways of managing knowledge and communities of practice many of which have been discussed you know already and then there are sort of these offline ways of having alliances that are formed you know in country and that's really just if you think about it it's an industry association you know if you had a mature industry you have an association that is then championing their issue and advocating governments at different levels and others and prioritizing this issue and so we help facilitate those again on the ground so it's less of what our staff if you will there but more right from the beginning the development of these kinds of of actors and institutions that will that will take that will service this sector once it becomes a mature sector in each of these countries as well so i'm happy to answer any other questions i didn't want to take too much time now but just to give you a sense of how how we work and and again we there are 50 countries that we that we work in you know we've again sort of focused in on just six or seven of those to prove the concept that a market-based approach can work and twin other countries with these six or seven so that there can be learnings and we don't have to kind of be in all of them at the same time and there's a responsibility for some of the middle-income countries and these focused countries to take on some of the learnings and share that with uh with other countries to help catalyze their cook stove markets as well thank you thanks very much rata i'm gonna ask kathleen vickland to speak about the work that karana does which is a consulting firm working with uh around agricultural value chains in latin america thank you for being with us kathleen thank you thank you dan it's a pleasure to be here with all of you um karana specializes in crafting and managing networks to solve uh supply chain problems in an inclusive manner bringing in the last mile small farmer bringing in women into the value chains bringing in at-risk youth into uh employment and so that is sort of our our our core focus i want to give a couple of examples of uh networks that we're currently operating and the development challenges that we are facing in those networks and the tools that we're using to not to manage knowledge and share information within those two networks so one uh program that we're currently operating is in el Salvador it's called improving access to employment it's with us usage funding for four years and we're have about 20 partnerships which are often called alliances in in the usaid world and in each one we're working with an employer and a training institute non-profit organization to prepare youth for work um because there are jobs in el Salvador but it's not always easy for the youth to get the jobs because they lack experience they lack the skills um and they haven't been properly trained for the existing job so we have a series of 20 partnerships we've trained 10 000 youth but more importantly i loved barbara's example we've truly built those 20 alliances so that at the end of the four years it's not just 10 000 youth because in el Salvador there's 100 000 youth every year who either leaving school graduating or not is more more likely so we need a transformational solution and the partnerships can indeed do that the second example is our peru koko alliance uh which is a five-year usaid program it's a non uh a gda global development alliance um working with some of the largest koko investors and buyers around the world working with the research firms that are located in uh peru in the areas where they were formally growing koka so we're going from koka it's been eradicated three times by divita and now the population is very much in need of long-term income solutions and koko can be a part of that however koko has um it's strongest yield beginning in about year four and so we also bring in short-term crops such as plantains and chilies to bring in immediate income and we're doing all of that through alliances through networks so one of our goals is to shift the paradigm towards the co-creation of value for inclusive economic development we want to bring the private sector in we want to bring the government in find where the supply chain problems are you need a deep technical understanding i think one of the key messages that's been coming out of our presentations throughout the morning has been value a network will be vibrant and dynamic and active and sustainable if it's providing value to its members and so um each of our partners has to get value why is armor genre our partner they need fine flavor koko there is political unrest in africa in the traditional sources of supply prices are up middle-income countries are are demanding more koko they need uh sources of supply that are inclusive that don't involve child labor that are traceable so that if there's a problem in the supply chain they know exactly where it is and we can immediately fix it we can help them do that in the alliance the the research uh organizations are critical we need varieties of koko that will provide high yields for the farmers again they're not going to be involved in the alliance unless their income is up how can their income go up to either greater demand more sales or higher yield or some combination of those two so um and then the area cooperatives are key members of the the networks in in peru and they want to boost yield and income for their members so the the the agricultural cooperatives a second development goal that we're solving through the networks is um we need to structure the co-investment and so the first step in that is a memorandum of understanding which is where we all sit around the table and it does begin with face to face that's another common theme from throughout the morning is these these are relationships and they can begin face to face and then we can use our technological tools to continue to provide value and share documents and and and the the relationships can grow but we need to begin face to face and so the memorandum of understanding we all sit down and we say here's my goal here's what i can contribute here's my here's what i need to uh to get out of it and they need to be very specific they need to be written they need to be detailed and they need to be monitored then you take the memorandum of understanding and you implement it through a very either a sub award which is either a subcontract or a grant agreement which again is very specific so with our training institutes we clarify you're providing the training and you're providing the the classroom you're providing the trainer us ad can often finance developing the curricula in in keeping with employer needs um so everyone plays their role everyone's clear down to who's providing snack which sounds small but you know when we're training these at-risk youth we need to have a nice lunch for them every day and so that can be an opportunity for small business to get involved and provide lunch and that needs to be within the overall context of the of the network who's providing those services a second a third key development challenge is we need to share a lot of information to make this work and we're using both cloud-based and server-based solutions such as Dropbox such as um online monitoring and evaluation systems and geo-referenced uh traceability systems so that we know exactly which farmer is treating which crops how and we can trace that all the way to the final buyer a really exciting um network in the peru cocoa alliance is our germplasm advisory committee and that means what type of cocoa are we going to plant and that needs to be decided between the private sector who knows what they want to buy because they know what the consumer wants between the the science and technology community who's been developing varieties that can boost farmer income and between the producer associations who know the level of risk that their farmers are willing to take and so often without a convener a broker was the word rata used and that's such an important role we have to be the broker and bring everyone together to make that decision so last month we brought we sat down with our majaro and with the international tropical crop institute and the universities and the producer associations and we got together in a room face to face and we said where's the best yield for the fine flavor cocoa that's going to give us the best chocolate that'll sell well and increase income for the small farmers in the former coca growing areas and we chose six and that is a fundamental departure from the way those decisions used to be made and it's and it's sustainable and it's market-based so we're just thrilled um finally there's a really important role for bringing new partners into these networks new local partners small NGOs small universities who for one reason or another may not be traditional partners for for usaid assistance and so local capacity building is an important role and we're we're not doing anything the tools we're using are you know it's mentoring it's training it's technical assistance to help additional NGOs to be ready to join these networks and receive usaid funding and and provide value to their clients so again i i come back to that core principle which is providing value um and i think our overall the the guiding principle is that relationships that are properly supported with consensus building and information sharing mechanisms power growth and it's just an exciting time to be part of this new way of doing business thanks very much thanks very much i'm going to ask some questions then i'm going to ask my colleague michael levitt who's a senior associate here at csis who used to be the president and ceo of cdc development solutions but also was the founding president business for social responsibility it was the author of a very interesting report that we did here at csis around value change to provide a response to the conversation we've just been having but first i want to take a couple questions from the audience so people have questions or comments from the audience now be the moment for those yes please it's a woman here in second row we'll get you a microphone i'm margaret daily haze and a i'm focusing right now on security sector issues but i've covered latin america from just every perspective um i am curious and bill it was your presentation that prompted this but i think several of you have uh contribution and that is how um are these groups sharing information how does it require face-to-face uh using technology especially in your youth experience but i think there are many others well i do share of sharing some of it is in conferencing bringing people together and and showing off in public that you've got maybe two or three international donors from the multilateral and bilateral community not just one and you've got not just one or two companies that want all the branding and excitement themselves but maybe a whole bunch and some of them are big name international types and some of them are local folks and then the cso so they can get to know each other and share and have the government people who are part of it with them um clearly though in today's world once they go home they can stay connected in so many different ways that back when you and i were starting our careers you couldn't even think of of of connecting a local NGO with its own government halfway across from bahia to brazilia or something like that uh let alone to another country uh then it's it's it's publishing in different ways and using social media to push it out the results of your of your measurements and and all so the and and we do and i think several of these folks do an online system of of inputting that information too so that a little NGO is not sending ridiculous reports or maybe they even faxing them as they did 10 years ago but uploading the information right there and then they're part of it and they can access it too so they can feel that they're part of something bigger and i think that's that's very important but when we make it frankly it's open to anyone who wants to see it we we want actually to see a much broader dissemination beyond just the sharing of within our alliance rata do you have any comments on that i think uh you know the the sort of communities of practice and portals are increasingly important both to build cohesiveness you know within the networks as well as to share you know with others so we have sort of a membership based portal where if you're just working on you know it's work in progress you don't necessarily want that shared and you want to just bounce off ideas etc and so with these portals which i'm sure you know others do as well sort of more functionally based so if you're a tester sitting in you know in senegal and you want to understand how to better use a particular protocol in testing a cook stove and you want to connect that you know and get some thoughts and ideas from our chinese colleagues and our you know bolivian colleagues etc so that may not necessarily be open you know to everybody but it's a way of sharing that information very quickly and increasingly you know the point about people you know in a network need to see value if they see sort of quick responses and people are using these it's amazing the amount of traffic you know that's actually in in these online ways of sharing kathy how do you get farmers to change behaviors from one farm to another on what's one question but then how do you take your learning of what you're doing in agriculture in latin america and how do you crosswalk it to africa um farmers will change their behavior much like much like any of us will when they see evidence that there is a benefit to doing so and so one of our most powerful tools is demonstration farms and so that's we've taken those six clonal varieties that we've identified will be the new markets in peru and we are developing demonstration farms to show farmers how to grow it and and what to grow and that's one of the most powerful mechanisms we transfer information across countries um using a couple of ways one is through our partners so we work with mackle haney does tabasco sauce and we're i don't know where we started working with them but now we're in um we're in africa with them we're in nicaragua with them we're in ecuador with them and and they're helping us to increase income for the in peru as well um so we once you have the trust which is an issue has come up a number of times you've got the relationship and we can say to them you know we've been working so well together in nicaragua we've got another opportunity and we can get you good quality chilis um at a good price uh in a traceable value chain are you interested and and because you've proven that you provide value they they often say yes so um you can take that network and just apply it to a new country um we have weekly management meetings at which we share what's going well what's not going well with our projects and and help help one another solve problems um we're a matrixed organization so we also have technical working groups that meet as needed sharing documents and and best practices and lessons learned in terms of another very powerful information sharing tool particularly for youth-based programs is facebook and in el Salvador we have 50 thousand facebook fans who every week trade 300 thousand tips on where is their jobs where is their good training how do you address for an interview how'd you get that job um and that's more than any radio station in salvatore can reach and so we have developed a peer network that's sustainable now it takes two hours a day to monitor that traffic and provide that feedback and that value so it's not free but phenomenally powerful and go where your audience is they're already on facebook don't don't create another network although we do we also use our website you know post all of our manuals for vocational training and all of those okay my colleague from Costa Rica had a comment Rachel thank you i like to make concrete questions and in this environment sometimes a bit awkward but uh to rather um have you for me are you familiar with energy for all uh initiative and have you been in contact or have you somehow exchange information but because i think the two things are very closely related that's that's one question the other question is you mentioned phillips but it could be another multinational corporation how do you make sure or how do you handle the fact that these partnerships or alliances or networks don't play the role let's say for them to get information from the other small producers and maybe they will enter a new market and will destroy the the the market for the small producers i mean it doesn't happen the other way around it's almost impossible for small producers to compete let's say with uh with a big multinational but it can happen that way and for Kathleen um just uh as a word of caution or something when you enter into that being the broker and all of that it's a great example but you acquire some responsibilities because i know examples of in Costa Rica especially in the agricultural sectors that the buyers let's say say okay this and this and this but then they incentivize volumes of production that later they won't buy so they are able to get the prices lower and buy to a lower price and there are all kinds of risks involved so it's it's it's a it's a risky thing i don't know if i made myself clear but you know they they tell you what is the kind of uh i'm not presenting here you know that the multinationals are all bad or whatever but they those are risks that are involved and when you enter into that role then you you you have some responsibilities in that sense maybe the production will be much larger uh the farmers won't be able to sell all what they produced and because they are agricultural products they will go rotten or whatever or the price will be low things like that okay okay great now thank you for those two questions um yes we are familiar with energy for all and in adb runs that in asia sustainable energy for all which we've heard about which is a great welcome addition and the World Bank has three cooking programs as well in different parts of the world so a big part of what we did at the very beginning in determining the sector strategies also to say who's doing what so that we have a clear understanding of both shaping all of those and then deciding what our role is i mean i think it's the beauty of coming in late you know and and being able to say let's see what there is what's worked what hasn't who are the actors and and so far given that we've developed the sector strategy cohesively we've actually been able to then say all right who now takes on different roles here in achieving this so actually it's very nice to to see that we're all working relatively well together so um so i think that that's a good part your second question around multinationals and their role you know it's an interesting sector to be in because it's not immediately very attractive to very large multinationals for a couple of reasons um a cook stove is not a light bulb it's not a commodity product today that can be used equally well you know across every part of the world today when you're looking at the base of the pyramid those who are cooking at the base of the pyramid have very different types of needs in different parts of the world so that's one reason it's not immediately attractive for a big multinational because they can't just come in with you know one product or a variation of those products and say it can be applied to all of these markets you know 500 million households worldwide so that that's one issue the second issue is reach into these smaller communities so yes a big chunk of our 500 million households who need clean cooking solutions are in urban and peri urban areas but close to 50 or more are in rural areas and these large companies today still some do but many do not have those networks to to have that to have that reach so we see actually what's occurring is a very nice necessary partnership between MNCs and SMEs you know to be able to have that full and efficient value chain from end to end the the third issue I would say is service so a cook stove while somewhat simple you know relative to some of our stoves if you will that were used to still has several moving pieces within it pieces that do need to be serviced need to be replaced etc and it's going to be a while before you have a large company that has an office you know in some of these villages and communities that's able to do that so again a fairly nice and and necessary partnership between some of the smaller artisanal players and the larger ones and in the sector I will go so far as to say there are many smaller producers who are coming to realize that they cannot design the stove manufacture the stove distribute the stove and do after-sale service they actually would welcome some of these larger players to both define the product category so people know what the hell cook stoves are and sort of you know and why is this important you know to be able to use that and that and for that actually many of them do welcome the Phillips and others of the world as well. Barbara thanks I just wanted to add to what Rada was just saying and trying to hopefully answer your question I think looking at it from a value chain perspective we we very much work with multinationals when it comes to developing the capacity of second third and four tier suppliers because usually the large companies have development programs for the first year suppliers but then when it trickles down further to the ground then there is no capacity and they as Rada rightly said they often simply elect the knowledge on how to bring these suppliers into the supply chain and actually make sure that they deliver the right product at the right time at the right quality and I think this is very much where we complement each other obviously when we sign partnerships with companies we make it very clear that this is not an exclusive partnership and that our development supplier programs are very much open to also cooperate with other larger companies that could very well be competitors of the partners that that we work with but I think looking it from a supply chain angle this is very much where a lot of cooperation can take place other other comments just to respond to your question it's something we take very much to heart business is business and they're there to buy good product at the best price they can so we've taken two steps to provide our farmers with as many options as possible after all we see one of our key roles is providing with information on options and the capacity to respond to that information the financing and the right variety seeds and the good agricultural practices so we're using an integrated agroforestry model which includes plantain pride shade for the cocoa also provides food for the family and they can sell it for to free to lay and make chips in addition there's the chilies those are both short cycle crops so that's immediate income and then you got the cocoa and then long term you we've also got timber or and or carbon credits by keeping the forestry the forests so we want to provide the farmers with options we also i've mentioned our rajaro by name but we have multiple buyers we're not certainly working with just one buyer so the farmers can sell to romex or you know any anyone that they want it's it's an open open arrangement okay i'm this time i'm going to ask my friend michael levitt uh who's with us here at csis to provide a response to this this discussion that we've been having about value chains and and partnerships michael i'm going to ask you if you would to speak from the dice if you would um normally i would thank you dan but i'm not sure i appreciate this opportunity because usually when you're asked to do this it's to fill in blanks in presentations and i thought these were all fabulous presentations in which at least i was inspired and i don't say that very often but you really did identify the commonalities the difficulties i mean it was extremely helpful to me so let me just throw in that the one piece that was throughout which is the private that there's a private sector piece in all of this um and just for some of you younger in here this conversation would not have happened ten years ago five years ago i don't know how few years ago the fact that the government or ngo world would be sitting here saying we're going to figure out what the core business is the core need of a business and work to that um the organization that dan mentioned that i ran for a number of years a few years ago decided to move away from going after aid funding because we are doing a lot of training programs around SMEs and we felt that AID funding was not tied to the end user who what were we training people for we knew we were supposed to go find out who was going to hire people in the long run and work back from that that's very different and this whole conversation was very different from from that but and i think it's also really important to recognize that the private sector is motivated in a very different way than it used to be as dan said i was the founding president of business for social responsibility 20 years ago when we started the corporate social responsibility movement most companies said we were if not nuts probably doing something illegal because we are saying corporate money should be spent in a different way now everybody has a csr department and in fact i would say one of the things you said was we've got to go beyond csr we want to get down to fundamental business because as we found working with the corporate social responsibility departments is usually those programs are short in duration and let me put this the nicest way you know this year they're funding a great agriculture program and next year the new CEO is really much more interested in the ballet in san francisco and that's where csr money goes i used to say the wife of the ceo was interested in the ballet now so the the ceo is interested in the ballet and that's where the money's going to go you want operations money you want marketing money and you all know that now um now i do want to ask what happens when your corporate partner who is doing wonderful things in the environment does terrible things to their employees in Bangladesh what do you do do you walk out on the partnership do you fire them that's a serious question um because you can be a wonderful company on the hr side and a less than wonderful company intentionally or unintentionally environmentally and how we how you come to deal with these things and these partnerships and networks i think is going to be a very important a very important thing also it seemed to me that in each one of these there was the continuing need for donor money somewhere in each one of these there's not enough to be sustainable and as a private sector guy what i mean by sustainable is profitable so i'm paying my own way and i think in each one of yours you need a you need at least a moment in time in which there's good guy money somewhere in the piece and i don't know is that is that a true fact and if so can we look forward to a time when that's not true in each one of yours when when the system itself is is self-sustaining i was gonna say the one of the big changes for me in the motivation of of business um is the fact that for most of the major companies now the countries we used to see as sources of cheap labor or cheap natural resources are now markets or future markets so that if company that used to care about buying bananas in a company in a country now needs to worry about selling bananas in that country and so that country that company is concerned about the economic health the economic well-being of the people of that country because they wanted to buy the bananas and i think if the more that motivation changes the easier life is going to be but let me let me have you had to deal with if i can ask you that's a good question have you had to deal with one of your partners going bad right getting it did you have to ever get a divorce right well yes by the way but thank you very much i think these are very pertinent questions as you raised and in fact to respond to your first one um first of all before we engage in a partnership we do a very thorough due diligence so we make sure that we know who we are getting to a marriage with having said that obviously that still entails the risk that while we are partnering with them that something can go wrong in that company and also one thing is clear i think there is not a single multinational company on this planet that doesn't have some wrongdoing somewhere in the world the question is also and that is a question we very much argue and debate with within unido is should we only work with the good guys because part of the reason we might be partnering with them is trying to bring them actually to slowly change their behavior and make sure that they are more open to a more responsible way of doing business so i think all of these together yes i mean we monitor very carefully who we partner with and we always also have an exit strategy that is also part of the the MOU that we usually sign with them and there there there can be cases where where this is very much becoming an issue because we simply feel that this is not a partner that is fit to the standards that we want to work with bill i'm sure you going to just ask you to the panelists to take this bill well i think it's a very good one uh we don't stop working with the u.s government just because in the last week or so there have been two scandals too that might parallel what thank you in mexico point point well taken i'll i'll look at it this way when we worked with gap in the nike and nike about 12 13 years ago when their their images were horrible about running of course their images were horrible because they were the biggest and usually the the folks who go after the watchdogs and all who go after you don't go after the little guy you go after the really big big one but when they said they wanted to do something to yes improve their their brand and their image but also to improve their their their workplaces and really what that meant was their supply chains in in asia we said fine but it has to be a multi-year investment has to be a large investment it can't be just a little cute thing that you're then going to spend a hundred thousand dollars on it and then five hundred thousand dollars extolling the nice work you did it has this has to be a serious investment it also had to be a serious and all the money had to be up front and all the money then would be managed by a type of governing structure that had the companies involved but had some outsiders involved including a managing director of the world bank uh as part of it um and then what would happen if shit happens because it will i mean that's a technical term we use it yes yes you know some of the worst fires in garment manufacturing as a result of as a result of cookstones as michael was just you know no one's talking about the fires in new york about a hundred years ago that killed a couple hundred women uh who were working in in similar situations it's what do you do afterwards so we put in place if something happens how are you going to talk about it reveal it discuss it and then that sort of thing and then i will just raise one other thing we worked with two very big companies that didn't go out of business or didn't didn't go bad because they did horrible things they just stopped running their company well we worked for collectively about 20 years in about 40 different countries with over about 70 million dollars worth of investments with nokia and lucent if you haven't checked your stock portfolios most of you don't have them or if you do you're selling them to to offset some of your gains somewhere else and its companies don't make money necessarily forever and some of the worst things that can happen to them as if they go down anyway yeah thanks bill agreed so on on clean cook stoves and yeah things that happen i think there are a couple of things that are important just to add on to what's been said because we agree with all of that i think it's just alignment of vision and philosophy when you're working with any partner but definitely from a corporate partner perspective as well sort of those principles what are they aiming to get out of it what are we aiming to get out of it and most of our corporate partnerships are the ones that take the longest to develop it's actually much shorter to have a bilateral relationship and a relationship with the foundation the corporate ones that are i think what we've all talked about multifaceted multi-year large ones to have impact those could take 18 to 24 months you know really at the minimum to even really come about in a robust fashion and a good part of that is yes the due diligence but also as i'm sure we've all seen you know that that relationship development and those core principles that are going to guide this in in addition to sort of exit strategies and what do we do when things go wrong so i think that that's that's very important i do want to touch on the issue of you know businesses can be run poorly or you know things happen in the in the global world that have negative impacts and suddenly a terrific partner who continues to have a stellar reputation just can't meet their commitment with you you know and and you may have sort of counted on a five-year seven-year multimillion-dollar relationship but their business has just taken a turn and you know year three they can't continue to do that and so for us that's been something real that we've had to deal with as well and how do you when you're balancing your portfolio every year of the interventions that are necessary and what you need to do how do you think carefully about you know and and attach some weight and some risks to these so that you still balance kind of some of the traditional donor input the investment resources as well as some of these corporate resources as well okay Kathy on sustainability i'll give three examples so for the training courses if they're good training courses and they are preparing the youth to get jobs then someone's going to want to continue to offer them because they'll be able to charge for it and so for example our tourism our English for Work for Tourism has been picked up by the Salvadoran Tourism Association and they and between them and the students they're going to continue to offer that course the most of our courses have been picked up by INSAFORP which is the governmental entity that receives a 1% payroll tax in El Salvador they don't do the training they then contract out the training but they pay for it and between INSAFORP and the the trainee most of our courses are picked up by then so it's off ramped into and it'll be offered as long as it's agile and CASATUR and INSAFORP have worked with the business to create that curriculum so that they can keep it agile because our jobs change their jobs change and the competencies to fill that job will change and they need to keep that curriculum up to date for the Peru Cocoa Alliance we are creating a local NGO that is the Peru Cocoa Alliance we are financing it through a 4% fee on financing that's provided to the small farmers so that money is going in and we'll we'll fund the Peru Cocoa Alliance so there's an enormous amount of subsidy and investment in bringing together the alliance but once you've got the relationships and you've got the trust it's a lower cost mechanism to continue it it's still there's still a role to manage this alliance but it can be funded and but you need to develop that funding mechanism early on thanks very much i'm going to just uh i want to thank the panel i also want to thank my friend michael levin i want to give him a chance to do a public service announcement i'd mentioned the report that we had done that he had done here at csis on supply chains i just would like you just to just just reference it if you would michael yes just very quickly there are copies outside and what made me think of it is this is the Cocoa Alliance in Ecuador that we used as a a role model a case study because we wanted to show the incredible power of supply chain in economic development around SMEs and that most of the work that had been done before looked at a sector usually oil and gas and this tried to cross-cut oil and gas tourism ag whatever it was i have one little question i'll be quick you described the Cook Alliance it was different in part because it started as an alliance i mean more than anything else but it also had a here's the solution i mean in the sense of a better cook stove has that been replicated have you identified the 16 things that makes the cook stove alliance different and said what else is what could we use it that model on elsewhere is somebody else looking for replications about that so we are sort of trying to to document some of that it might be something that we're happy to work with CSIS on good okay okay thanks very much folks