MCC – USAID – World Bank Participate in Diaspora-Focused Outreach Briefing

Historically, the African Diaspora community has had little or no input as a group in international
development activities and programs, even though Diaspora remittances in recent years exceed
official development assistance and Foreign Direct Investment (FDI) to Africa. The briefing
focused on MCC’s activities in poverty reduction and the critical role the Diaspora can play in
ensuring lasting and sustainable development.
The panel consisted of Thomas Debass , Senior Technical Adviser for USAID’s Diaspora and
Remittances, Kenneth Johnson, Principal of Devconia, LLC, an International Development and
Cross-Cultural Communications firm, Beldina Auma, Chairwoman of the World Bank Group-IMF
African Society an organization of Africans working for the World Bank and IMF, and Matt
McLean, Vice President of Congressional and Public Affairs at MCC.
McLean described MCC as a new and innovative federal development aid agency committed to
reducing poverty through economic growth. He explained that MCC uses 17 eligibility indicators
from independent sources to assess prospective countries’ commitment to good governance,
investing in health and education, and economic freedom. Countries are primarily responsible
for identifying and prioritizing their own barriers to poverty reduction and economic growth
through consultation with all segments of their society, he added.
McLean said that MCC’s unique model gives well-performing developing countries the
opportunity to take charge of their own development with funding from the MCC by identifying
their own development priorities, designing their own development program, and implementing
their projects in a transparent and accountable way. He explained that Because of its focus on
long term economic development, MCC does not provide humanitarian or emergency relief and
only provides grants and not loans.
In his presentation, McLean continued to explain that procedurally, an eligible country would
come up with their development plan and present it to MCC. The plan would then be vetted and
jointly reviewed by MCC and the eligible country. At this stage the plan may be modified but the
end product will be a program largely designed by the grant receiving country. MCC provides
technical assistance when needed with the understanding that the beneficiary country is leading
the effort.
In response to a question, Mr. McLean emphasized that the Diaspora can play an important role
by holding their respective governments accountable and assisting them in meeting the eligibility
requirements.
requirements.
MCC is excited about the leadership we see in Africa and we are optimistic about the
expanding opportunities for growth, investment, and trade. Mr. McLean concluded.
Thomas Debass of USAID acknowledged the growing importance of the Diaspora in the
development of their home countries. He explained that USAID is interested in engaging and
partnering with Diaspora groups in ways that go beyond remittances to include volunteerism,
investment, tourism, trade and advocacy.
Mr. Debass described a new USAID partnership model called Diaspora Network Alliance (DNA)
which also speaks to the importance of biological connection to development. The Diaspora is
inherently sustainable because of this DNA connection, Debass said. While many aid agencies
typically pull out during times of upheaval, with the effect of reducing cash inflows, the Diaspora
cannot precisely because of the DNA connection, Debass explained.
Diaspora Direct Investment (DDI) is another initiative, one that is similar to Foreign Direct
Investment. DDI is particularly important in fragile or post conflict countries where traditional
investors are reluctant to invest because they perceive these countries to be high risk.
In closing Mr. Debass referred to yet another initiative, Diaspora Capital Markets through the
creation of Diaspora bonds by private sector financial institutions to finance development
projects, these bonds are in turn partially guaranteed by USAID’s Development Credit Authority.
Beldina Auma of the World Bank Group-IMF African Society and co-organizer of the event
explained that the Diaspora is a natural constituency of the Society given that almost all the
Society’s 1700 members are Africans in Diaspora and that the Society also works with the
African Diaspora outside of its immediate constituency. She added that, The recently revamped
World Bank’s Diaspora program is a most welcome initiative that will coordinate African
Diaspora efforts as a group, and will greatly benefit the continent.
Auma briefed the participants on the Bank’s Diaspora program, mentioning last year’s Diaspora
Openhouse in DC, the Development Marketplace for African Diaspora in Europe early this year
and the forthcoming Development Marketplace for African Diaspora in North America. The
Diaspora response to all the events the Bank has organized has been positively overwhelming,
she added. She encouraged the participants to visit the Bank’s website for more information on
the Bank’s Diaspora program at www.worldbank.org and search African Diaspora.
Ken Johnson of Devconia LLC and co-organizer of the event added that while these
development initiatives were sound and promising, understanding and applying local customs
and cultural norms is vital for lasting success of any development program and input from the
Diaspora goes a long way in achieving this goal. He explained that, this event was the first of
what will be an ongoing effort by the World Bank Group-IMF African Society and Devconia LLC
to engage the Diaspora in all stages of development in a new approach he referred to as The
Next Wave in international development.
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